SHENZHEN TRANSSION (688036) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 34.56 billion, up 38.07% year-over-year; net profit attributable to shareholders was RMB 2.85 billion, up 35.70% year-over-year.

• Global mobile phone market share reached 14.4%, ranking second globally; smartphone market share was 9.1%, ranking fourth; over 40% share in Africa, ranking first.

• Proposed interim cash dividend of RMB 15.00 per 10 shares, totaling RMB 1.69 billion, representing 59.39% of H1 net profit.

• Focused on emerging markets, with strong growth in Africa, South Asia, Southeast Asia, Middle East, and Latin America.

Financial highlights

• Operating profit for H1 2024 was RMB 3.45 billion, up 35.55% year-over-year.

• Net profit attributable to shareholders (excluding non-recurring items) was RMB 2.43 billion, up 36.82% year-over-year.

• Basic EPS was RMB 2.53, down 3.07% year-over-year due to increased share capital.

• Operating cash flow was negative RMB 1.39 billion, down 120% year-over-year, mainly due to increased payments for goods and services.

• Gross margin for H1 2024 was 21.5%.

Outlook and guidance

• Will continue to strengthen core competitiveness in Africa and expand into new markets, focusing on sustainable growth and market share improvement.

• Plans to increase investment in R&D and mid-to-high-end product development, aiming for further breakthroughs in imaging and hardware innovation.