Western Superconducting Technologies (688122) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 1.21 billion, up 24.43% year-over-year; net profit attributable to shareholders was RMB 255 million, up 58.04% year-over-year.

• Nine-month revenue totaled RMB 3.24 billion, up 4.76% year-over-year; net profit attributable to shareholders was RMB 604 million, up 3.62% year-over-year.

• Significant profit growth in Q3 driven by higher revenue, increased government subsidies, and reduced R&D expenses.

Financial highlights

• Q3 basic and diluted EPS were RMB 0.39, up 56% year-over-year; nine-month EPS was RMB 0.93, up 3.33%.

• Q3 R&D investment was RMB 50.47 million, down 33.37% year-over-year; R&D-to-revenue ratio fell by 3.61 percentage points to 4.15%.

• Total assets at quarter-end were RMB 12.68 billion, up 4.91% from year-end; shareholders' equity was RMB 6.52 billion, up 3.15%.

• Q3 net cash flow from operating activities was RMB 155.89 million.

Key financial ratios and metrics

• Q3 weighted average ROE was 3.99%, up 1.33 percentage points year-over-year.

• Gross margin and other profitability metrics improved due to higher revenue and cost control.