Guangzhou Haige Communications Group Incorporated Company (002465) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 4.92 billion, down 23.71% year-over-year due to industry client adjustments and cyclical fluctuations, with increased R&D in emerging fields and expanded civil business investment.

• Net profit attributable to shareholders was RMB 53.14 million, a 92.44% decrease compared to the previous year.

• R&D investment reached RMB 946.86 million, accounting for 19.25% of revenue, focused on Beidou, low-altitude, satellite internet, unmanned systems, 6G, AI, robotics, and smart wearables.

• The company proposed a cash dividend of RMB 0.6 per 10 shares, totaling RMB 148.91 million.

Financial highlights

• Operating income: RMB 4.92 billion, down 23.71% year-over-year.

• Net profit attributable to shareholders: RMB 53.14 million, down 92.44% year-over-year.

• Net profit after deducting non-recurring items: -RMB 72.96 million.

• Operating cash flow: -RMB 755.85 million, a further decline from -RMB 268.86 million last year.

• Basic and diluted EPS: RMB 0.02, down 93.33% year-over-year.

• Total assets: RMB 20.53 billion, up 5.64% from the previous year.

• Net assets attributable to shareholders: RMB 12.61 billion, down 2.02% from the previous year.

Outlook and guidance

• The company will focus on high-quality development, strengthening international and civil markets, and cultivating the aerospace industry.

• Strategic focus on new quality productivity and combat power, with continued investment in Beidou, satellite internet, low-altitude economy, and AI.

• Plans to accelerate transformation from equipment supplier to capability provider, emphasizing integrated solutions and industry ecosystem building.