Piotech (688072) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 1.27 billion, up 26.22% year-over-year, driven by strong product iteration and customer demand.

• Net profit attributable to shareholders was RMB 129.09 million, up 3.64% year-over-year, with R&D expenses rising sharply.

• Excluding non-recurring items, net profit dropped 69.38% year-over-year due to increased R&D and lower government subsidies.

• Company maintained high R&D intensity, with new products and process upgrades validated by customers and entering mass production.

• Cash flow from operations was negative RMB 899.81 million, mainly due to increased inventory and payments for materials.

Financial highlights

• H1 2024 revenue: RMB 1.27 billion (+26.22% YoY); Q2 revenue: RMB 795.1 million (+32.22% YoY, +68.53% QoQ).

• Net profit attributable to shareholders: RMB 129.09 million (+3.64% YoY); Q2 net profit: RMB 118.62 million (+67.43% YoY, +1032.79% QoQ).

• Net profit excluding non-recurring items: RMB 19.96 million (-69.38% YoY); Q2: RMB 64.17 million (+40.90% YoY, significant turnaround QoQ).

• Operating cash flow: -RMB 899.81 million (down RMB 156.98 million YoY); Q2 operating cash flow: -RMB 178.46 million (improved from Q1).

• Gross margin and EPS not explicitly disclosed; basic and diluted EPS: RMB 0.46 (+2.22% YoY).

Outlook and guidance

• Company expects continued growth, supported by robust order backlog and ongoing product validation.

• R&D investment will remain high to sustain product competitiveness and expand process coverage.

• Full-year shipment of reaction chambers expected to exceed 1,000 units, a record high.

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