SHENZHEN TRANSSION (688036) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ¥16.69 billion, down 7.22% year-over-year; YTD revenue grew 19.13% to ¥51.25 billion.

• Net profit attributable to shareholders in Q3 was ¥1.05 billion, a 41.02% decrease year-over-year; YTD net profit was ¥3.90 billion, up 0.50%.

• Q3 basic EPS was ¥0.93, down 57.92% year-over-year; YTD basic EPS was ¥3.46, down 28.36%.

• Cash flow from operations for the first nine months was ¥1.24 billion, down 89.10% year-over-year due to increased payments for goods and services.

Financial highlights

• Gross margin and profit declined in Q3 due to intensified market competition and higher supply chain costs.

• Non-recurring gains included government subsidies and VAT refunds, with non-recurring profit items totaling ¥231 million in Q3 and ¥655 million YTD.

• R&D investment in Q3 was ¥641 million, up 3.62% year-over-year; R&D-to-revenue ratio increased to 3.84%.

• Total assets at quarter-end were ¥46.71 billion, up 1.28% from year-end 2023.

Key financial ratios and metrics

• Weighted average ROE for Q3 was 5.43%, down 4.67 percentage points year-over-year.

• Net margin and profitability metrics declined sharply in Q3 compared to the same period last year.