Zhejiang Dahua Technology Co. (002236) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥14.87 billion, up 1.59% year-over-year, with net profit attributable to shareholders at ¥1.81 billion, down 8.42% year-over-year.

• Excluding non-recurring items, net profit attributable to shareholders was ¥1.76 billion, up 0.43% year-over-year.

• The company maintained a focus on high-quality growth, R&D investment, and ecosystem development amid a slow global economic recovery and domestic fiscal pressures.

Financial highlights

• Operating income: ¥14.87 billion (+1.59% YoY); net profit: ¥1.81 billion (-8.42% YoY).

• Gross margin: 41.27% (down 1.57 percentage points YoY).

• Basic and diluted EPS: ¥0.56 (down 11.11% YoY).

• Net cash flow from operations: -¥507 million (down ¥770 million YoY).

• R&D investment: ¥1.90 billion (+4.78% YoY).

Outlook and guidance

• The company expects continued opportunities from digital transformation and AI, with ongoing R&D in AI, IoT, and cloud.

• Domestic market faces slow government demand release; overseas business continues to grow, with focus on distribution and new business pipelines.