Wingtech Technology (600745) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥33.59 billion, up 15.01% year-over-year; net profit attributable to shareholders was ¥140 million, down 88.78% year-over-year.

• Excluding non-recurring items, net profit was -¥128 million, a decrease of 110.92% year-over-year.

• Semiconductor business revenue was ¥7.04 billion, down 7.90% year-over-year, with a net profit of ¥1.08 billion, down 22.40%.

• Product integration business revenue was ¥26.12 billion, up 26.68% year-over-year, but with a net loss of ¥850 million.

• Cash flow from operations was ¥2.64 billion, down 13.12% year-over-year.

Financial highlights

• Gross margin for semiconductor business improved sequentially in Q2, reaching 34.95%.

• Basic and diluted EPS were both ¥0.11, down 89.11% year-over-year.

• Weighted average ROE was 0.38%, down 2.96 percentage points year-over-year.

• Non-recurring gains included government subsidies and investment income from the sale of NWF (¥170 million).

• Total assets at period end were ¥75.71 billion, down 1.63% from year-end 2023.

Outlook and guidance

• Management expects semiconductor industry demand to recover in H2 2024, driven by AI, automotive, and industrial sectors.

• Product integration business profitability is expected to improve in H2 as cost reduction and price adjustment measures take effect.

• Company will continue to focus on R&D, international expansion, and sustainable development.