Venustech Group (002439) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥3.32 billion, down 26.44% year-over-year, with a net loss attributable to shareholders of ¥226 million compared to a profit of ¥741 million in 2023.

• Gross margin remained strong at 58.83%, but both product and service revenues declined over 26% year-over-year.

• The company became a subsidiary of China Mobile in January 2024, with significant business integration underway.

• R&D investment increased 14.95% to ¥980 million, representing 29.56% of revenue.

Financial highlights

• Operating cash flow improved to -¥315 million from -¥393 million year-over-year.

• Total assets at year-end were ¥13.78 billion, down 7.31% from the previous year.

• Net assets attributable to shareholders were ¥11.42 billion, a 4.83% decrease year-over-year.

• Basic and diluted EPS were both -0.19, compared to 0.79 in 2023.

• Major non-recurring losses included a ¥1.13 billion loss from equity investments due to market volatility.

Outlook and guidance

• The company will continue to deepen integration with China Mobile, focusing on AI security, cloud security, and data security.

• Strategic priorities include expanding in personal, household, and industrial markets, and leveraging China Mobile’s ecosystem.

• No cash dividend, bonus shares, or capital increase from reserves is planned for the year.