Guangzhou Haige Communications Group Incorporated Company (002465) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.59 billion, down 9.93% year-over-year due to industry client adjustments and cyclical fluctuations.

• Net profit attributable to shareholders was ¥195.83 million, a 37.11% decrease year-over-year.

• R&D investment increased 13.55% to ¥478.62 million, focusing on Beidou, unmanned, satellite internet, low-altitude economy, and 6G.

• Beidou navigation segment achieved significant growth, with revenue up 275% year-over-year.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥2.59 billion, down 9.93% year-over-year.

• Net profit attributable to shareholders: ¥195.83 million, down 37.11% year-over-year.

• Net cash flow from operating activities: -¥739.52 million, a further decline from -¥553.10 million last year.

• Basic and diluted EPS: ¥0.08, down 42.86% year-over-year.

• Gross margin for Beidou navigation reached 60.73%, up 15.52 percentage points year-over-year.

Outlook and guidance

• Company will continue to invest in strategic emerging industries and R&D, focusing on Beidou, satellite internet, unmanned systems, and 6G.

• Plans to leverage cooperation with China Mobile and expand in the southwest region via a new Chongqing subsidiary.

• Management expects to maintain innovation-driven growth and further market breakthroughs in smart transportation and low-altitude economy.