Rockchip Electronics (603893) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 1.25 billion, up 46.44% year-over-year, with net profit of RMB 183 million, surging 636.99% year-over-year.

• AIoT product lines, especially flagship RK3588, drove strong growth; new products RK3576 and RK2118 launched and expected to contribute in H2.

• Gross margin improved by 1.99 percentage points to 35.91% compared to H1 2023.

• Operating cash flow for H1 2024 was RMB 635 million, nearly matching full-year 2023.

• R&D investment remained high at RMB 260 million, accounting for 20.84% of revenue.

Financial highlights

• Operating income: RMB 1,248.6 million, up 46.44% year-over-year.

• Net profit attributable to shareholders: RMB 182.8 million, up 636.99% year-over-year.

• Operating cash flow: RMB 634.8 million, up 221.19% year-over-year.

• Gross margin: 35.91%, up 1.99 percentage points year-over-year.

• Basic and diluted EPS: RMB 0.44, up 633.33% year-over-year.

Outlook and guidance

• New products RK3576 and RK2118 expected to become new growth drivers in H2 2024.

• Gross margin anticipated to gradually improve through product mix optimization and supply chain support.

• Company to maintain high R&D intensity and accelerate AIoT platform expansion.