Hangzhou Silan Microelectronics (600460) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 2.89 billion, up 19.22% year-over-year and 2.87% sequentially from Q2.

• Net profit attributable to shareholders was RMB 53.8 million for Q3; adjusted net profit (excluding non-recurring items) was RMB 14.1 million, down 34.21% year-over-year.

• Gross margin for Q3 was 18.14%, down 3.72 percentage points year-over-year but up 0.18 points from Q2.

• R&D expenses increased 21.34% year-over-year, reflecting continued investment in new products and technology platforms.

• Major production lines (5, 6, 8, 12-inch) operated at full capacity; SiC chip line capacity expanded to 9,000 wafers/month.

Financial highlights

• Q3 revenue: RMB 2.89 billion; first nine months: RMB 8.16 billion, up 18.32% year-over-year.

• Q3 net profit attributable to shareholders: RMB 53.8 million; first nine months: RMB 28.88 million.

• Adjusted net profit (excluding non-recurring items) for Q3: RMB 14.1 million, down 34.21% year-over-year.

• Basic and diluted EPS for Q3: RMB 0.03; for nine months: RMB 0.02.

• Operating cash flow for nine months: RMB 145.75 million, up RMB 323.07 million year-over-year.

Outlook and guidance

• Q4 production lines expected to maintain full capacity.

• Gross margin anticipated to stabilize and gradually improve as product mix and cost controls advance.

• Continued focus on automotive, industrial, and high-barrier markets to drive growth.