Hundsun Technologies (600570) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 6.58 billion, down 9.62% year-over-year, with net profit attributable to shareholders at RMB 1.04 billion, down 26.75%.

• Main business gross margin remained high at 72.05%, reflecting strong product competitiveness.

• R&D investment totaled RMB 2.46 billion, accounting for 37.36% of revenue, with 67% of staff in product/tech roles.

• Company maintained top 22 global ranking in IDC Fintech100, remaining Asia's leading fintech provider.

• Board approved a cash dividend of RMB 0.10 per share (RMB 188.9 million total), with 31.42% payout ratio over three years.

Financial highlights

• Operating income: RMB 6.58 billion, down 9.62% year-over-year.

• Net profit attributable to shareholders: RMB 1.04 billion, down 26.75% year-over-year.

• Net profit excluding non-recurring items: RMB 834 million, down 42.39% year-over-year.

• Operating cash flow: RMB 868 million, down 31.19% year-over-year.

• Basic and diluted EPS: RMB 0.55, down 26.67% year-over-year.

Outlook and guidance

• Strategic focus remains on high-quality growth, with emphasis on profitability and cash flow.

• Company will continue to invest in next-generation core products and adjust budgets dynamically based on market conditions.

• Management prioritizes income quality over scale, aiming for efficiency and stable financial structure.