Zhejiang Dahua Technology Co. (002236) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥32.18 billion, down 0.12% year-over-year; net profit attributable to shareholders was ¥2.91 billion, down 60.53% year-over-year, mainly due to a high base in 2023 from non-recurring gains.

• Adjusted net profit (excluding non-recurring items) was ¥2.35 billion, down 20.74% year-over-year.

• Operating cash flow was ¥2.71 billion, down 41.07% year-over-year.

• The company maintained a strong R&D focus, investing ¥4.21 billion (13.09% of revenue), up 6.2% year-over-year.

• Proposed cash dividend of ¥4.58 per 10 shares, totaling ¥1.5 billion.

Financial highlights

• Gross margin for the year was 38.84%, up 4.67 percentage points year-over-year.

• Basic and diluted EPS were both ¥0.90, down from ¥2.31 in 2023.

• Total assets at year-end were ¥52.74 billion, net assets attributable to shareholders were ¥36.03 billion.

• Non-recurring gains in 2023 (notably asset disposals) led to a high base; 2024 non-recurring gains were ¥558 million.

Outlook and guidance

• The company will continue to focus on AIoT, large AI models, and digital transformation for cities and enterprises.

• Plans to strengthen global marketing, expand innovative business lines, and deepen ecosystem partnerships.

• R&D and innovation remain strategic priorities, with continued investment in core technologies and new business areas.