Shenzhen Inovance Technology (300124) Q2 2024 earnings summary

Executive summary

• Revenue reached ¥16.18 billion, up 29.98% year-over-year, with net profit attributable to shareholders at ¥2.12 billion, up 1.98% year-over-year.

• Excluding non-recurring items, net profit rose 10.77% year-over-year to ¥2.07 billion.

• Cash flow from operations increased 144.23% year-over-year to ¥1.83 billion.

• Growth driven by strong NEV business and stable automation segment; elevator business slightly declined.

• Overseas revenue grew 17% year-over-year, accounting for 6% of total revenue.

Financial highlights

• Gross margin was 31.77%, down 4.5 percentage points year-over-year due to product mix and competition.

• R&D investment reached ¥1.47 billion, 9.1% of revenue, with 5,822 R&D staff.

• Total assets at period-end were ¥50.84 billion, up 3.84% from year-end.

• Basic and diluted EPS were both ¥0.79, up 1.28% year-over-year.

• Net asset value per share increased 4.01% from year-end.

Outlook and guidance

• Company expects continued growth in NEV and automation, with focus on international expansion and digitalization.

• Management highlights ongoing investment in R&D and cost control to maintain competitiveness.

• No interim dividend planned for the reporting period.