Unisplendour (000938) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥37.95 billion, up 5.29% year-over-year; net profit attributable to shareholders was ¥1.00 billion, down 2.13% year-over-year.

• Operating profit rose 5.13% year-over-year to ¥1.89 billion; adjusted net profit (excluding non-recurring items) increased 5.78% to ¥893.6 million.

• Cash flow from operations was negative ¥3.22 billion, a further decline from the previous year.

• Subsidiary H3C contributed ¥26.43 billion in revenue and ¥1.82 billion in net profit.

• The company will not distribute interim dividends, bonus shares, or capital reserve to share capital.

Financial highlights

• Gross margin for H1 2024 was 19.03%, down 1.29 percentage points year-over-year.

• Basic and diluted EPS were both ¥0.3498, down 2.13% year-over-year.

• Total assets at June 30, 2024, were ¥88.80 billion, up 1.76% from year-end 2023.

• Net assets attributable to shareholders increased 1.85% to ¥34.58 billion.

• R&D investment for the period was ¥2.41 billion, down 13.10% year-over-year.

Outlook and guidance

• The company expects continued growth in digital infrastructure, AI, and cloud computing, driven by national policies and industry digitalization.

• Focus remains on innovation, expanding AIGC solutions, and deepening industry applications.

• Management will continue to optimize cost structure and improve operational efficiency.