Unigroup Guoxin Microelectronics (002049) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ¥1.39 billion, down 27.25% year-over-year; net profit attributable to shareholders was ¥272 million, down 57.30% year-over-year.

• Year-to-date revenue reached ¥4.26 billion, a 24.56% decrease; net profit attributable to shareholders was ¥1.01 billion, down 50.27% year-over-year.

• Declines mainly due to weak downstream demand in the specialty integrated circuit business, leading to lower sales volume and prices.

Financial highlights

• Q3 basic EPS was ¥0.3231, down 57.29% year-over-year; year-to-date basic EPS was ¥1.1977, down 50.05%.

• Operating cash flow for the first nine months was ¥973 million, down 17.49% year-over-year.

• Gross margin and net margin declined due to lower sales and increased impairment losses.

• Non-recurring gains for the period totaled ¥131 million, mainly from government grants and asset disposals.

Outlook and guidance

• Management attributes performance decline to insufficient demand in the specialty IC sector and expects continued pressure if market conditions persist.