Tianshui Huatian Technology Co. (002185) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥6.72 billion, up 32.02% year-over-year, with net profit attributable to shareholders at ¥223 million, a 254.23% increase year-over-year.

• The semiconductor market showed strong recovery, with the company expanding automotive electronics packaging and advancing 2.5D, FOPLP, and other advanced packaging projects.

• Major subsidiaries in Xi'an and Kunshan saw significant performance growth due to improved market conditions and increased orders.

• The company continued to invest in automation, quality management, and R&D, with 11 new patents authorized, including 9 invention patents.

Financial highlights

• Operating income for H1 2024 was ¥6.72 billion, up 32.02% year-over-year; Q2 revenue was ¥3.61 billion, up ¥506 million sequentially.

• Net profit attributable to shareholders was ¥223 million, up 254.23% year-over-year; Q2 net profit was ¥166 million, up 190.53% sequentially.

• Operating cash flow was ¥1.23 billion, up 61.58% year-over-year.

• Basic and diluted EPS were both ¥0.0695, up from ¥0.0196 year-over-year.

• Gross margin for integrated circuits was 11.16%, up 3.10 percentage points year-over-year.

• Non-recurring gains included ¥189 million in government subsidies and ¥127 million in investment income.

Outlook and guidance

• The company expects continued growth as the global semiconductor industry enters a new upcycle, driven by AI, high-speed computing, and automotive electronics.

• Ongoing investment in advanced packaging and capacity expansion is expected to further enhance competitiveness.