Shenzhen Goodix Technology (603160) Q4 2024 earnings summary

Executive summary

• Net profit attributable to shareholders reached RMB 604 million, up 265.8% year-over-year, driven by improved profitability and cost control measures.

• Revenue was RMB 4.375 billion, down 0.8% year-over-year, as increased shipment volume was offset by lower average selling prices.

• Gross margin improved to 41.8% from 40.5% last year, reflecting lower chip procurement costs and product iteration.

• Operating efficiency increased, with inventory value down 20.4% and turnover rate rising from 2.1x to 4.0x.

• New products, such as ultrasonic fingerprint sensors and NFC/eSE chips, achieved large-scale commercialization.

Financial highlights

• Net profit attributable to shareholders: RMB 604 million, up 265.8% year-over-year.

• Revenue: RMB 4.375 billion, down 0.8% year-over-year.

• Gross margin: 41.8%, up from 40.5% last year.

• Operating cash flow: RMB 1.073 billion, down 39.9% year-over-year.

• Basic EPS: RMB 1.33, up from RMB 0.36 last year.

• R&D investment: RMB 1.097 billion, accounting for 25.08% of revenue.

Outlook and guidance

• Anticipates continued growth in AI, high-performance computing, and automotive electronics sectors.

• Plans to accelerate new product penetration, maintain core advantages in fingerprint and touch products, and expand market share in smart terminals and IoT.

• Will continue to invest in R&D, enhance operational efficiency, and pursue strategic M&A for business expansion.