Hangzhou Silan Microelectronics (600460) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 11.22 billion, up 20.14% year-over-year, with net profit attributable to shareholders of RMB 219.87 million, reversing a prior year loss.

• Adjusted net profit (excluding non-recurring items) was RMB 251.70 million, up 327.34% year-over-year.

• Operating profit was negative RMB 100.73 million, with a net loss of RMB 23.86 million, but significant improvement from 2023.

• Cash flow from operations increased 39.68% year-over-year to RMB 442.54 million.

• Board proposes a cash dividend of RMB 0.04 per share, totaling RMB 66.56 million.

Financial highlights

• Gross margin for main business was 19.41%, up 2.88 percentage points year-over-year.

• Basic and diluted EPS were RMB 0.13, compared to -0.02 last year.

• Weighted average ROE was 1.81%, up 2.28 percentage points year-over-year.

• Total assets at year-end were RMB 24.80 billion, up 3.72% from prior year.

• Net assets attributable to shareholders were RMB 12.21 billion, up 1.61% year-over-year.

Outlook and guidance

• 2025 revenue is expected to reach RMB 14 billion, a 25% increase, with cost control measures to keep total costs at RMB 13.4 billion.

• R&D spending planned at RMB 1.3 billion, up 20% year-over-year.

• Capital expenditures to focus on SiC power device lines, automotive semiconductor packaging, and 12-inch power chip lines.

• Borrowing scale for 2025 to be controlled at RMB 6.5 billion.