Range Intelligent Computing Technology Group Company (300442) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥3.58 billion, up 112.47% year-over-year, with net profit attributable to shareholders at ¥966.53 million, up 37.64% year-over-year.

• AIDC business revenue surged 1,147.85% year-over-year to ¥2.05 billion, driven by AI demand and large-scale customer wins.

• The company maintained a healthy financial position, with total assets at ¥27.70 billion, up 18.81% from year-end 2023, and a net asset value of ¥9.53 billion, up 11.82%.

• Board proposed an interim cash dividend of ¥3.995 per 10 shares, totaling ¥687 million.

• Strategic focus on AI, green data centers, and nationwide AIDC/IDC expansion underpins growth.

Financial highlights

• Operating cash flow dropped 84.97% year-over-year to ¥141 million due to increased procurement for AIDC expansion.

• Gross margin was 34.57%, down 17.06 percentage points year-over-year, reflecting higher AIDC equipment costs.

• Basic and diluted EPS were both ¥0.56, up from ¥0.41 in H1 2023.

• ROE reached 10.76%, up 0.76 percentage points year-over-year.

• Non-recurring gains included ¥18.59 million in government grants and ¥4.45 million in fair value changes.

Outlook and guidance

• Management expects continued strong demand for AI-driven computing and data center services, with further expansion of AIDC clusters and green technology adoption.

• Ongoing focus on customer diversification, technology upgrades, and ESG leadership.