Simplo Technology (6121) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was NT$19.0 billion, down 4% year-over-year; first half revenue was NT$36.6 billion, down 6% year-over-year.

• Net income attributable to owners for Q2 2024 was NT$1.32 billion, with EPS of NT$7.11; first half net income was NT$2.37 billion, EPS NT$12.84.

• Gross margin for Q2 2024 remained stable at 14%, with operating margin at 7%.

• The company operates as a single business segment focused on battery modules and related electronics.

Financial highlights

• Q2 2024 operating income was NT$1.39 billion, down from NT$1.51 billion in Q2 2023.

• First half 2024 net income was NT$2.78 billion, down from NT$3.08 billion in the prior year.

• Q2 2024 gross profit was NT$2.61 billion, with a gross margin of 14%.

• Cash and cash equivalents at June 30, 2024, were NT$21.7 billion, up from NT$20.9 billion a year earlier.

• Total assets at June 30, 2024, were NT$75.8 billion; equity was NT$40.9 billion.

Outlook and guidance

• Management expects no material impact from new IFRS standards effective in 2025 and 2026.

• The company continues to monitor global economic and currency risks but does not anticipate significant changes to its financial position.