Thunder Software Technology (300496) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.40 billion, down 3.39% year-over-year; net profit attributable to shareholders was ¥104 million, down 73.10% year-over-year, mainly due to lower gross margin and increased R&D and sales expenses.

• Gross margin declined by 4.49 percentage points year-over-year; R&D expenses rose 8.84% to ¥791 million, reflecting continued investment in core technology and innovation.

• Overseas revenue grew 14.20% year-over-year, while domestic revenue fell 11.02%, highlighting the company's global expansion strategy.

• The company maintained a strong focus on its “operating system + edge intelligence” strategy, with significant investments in automotive OS, industrial robotics, and edge AI.

Financial highlights

• Operating income: ¥2,400,709,316.47, down 3.39% year-over-year.

• Net profit attributable to shareholders: ¥104,369,373.13, down 73.10% year-over-year.

• Basic EPS: ¥0.2272, down 73.15% year-over-year.

• Gross margin: 36.80%, down from 41.29% year-over-year.

• Operating cash flow: ¥288,354,661.10, down 30.30% year-over-year.

• R&D expenses: ¥791,226,076.75, up 8.84% year-over-year.

Outlook and guidance

• The company will continue to expand its global presence, strengthen R&D in edge intelligence, and focus on innovative applications in AI, IoT, robotics, and automotive OS.

• Management expects to further improve operational efficiency and maintain strategic investments in key growth areas in H2 2024.