Zhongji Innolight Co. (300308) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥6.51 billion, up 115.25% year-over-year; YTD revenue was ¥17.31 billion, up 146.26%.

• Net profit attributable to shareholders for Q3 was ¥1.39 billion, up 104.40% year-over-year; YTD net profit was ¥3.75 billion, up 189.59%.

• Strong growth driven by increased sales of high-end optical modules, especially 800G and 400G products.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases; YTD gross profit was ¥5.77 billion.

• Basic EPS for Q3 was ¥1.27, up 101.59% year-over-year; YTD basic EPS was ¥3.42, up 185%.

• Total assets at Q3-end were ¥27.12 billion, up 35.58% from year-end 2023.

• Net cash from operating activities for the first nine months was ¥1.32 billion, down 8.79% year-over-year.

• Net cash used in investing activities increased significantly due to higher capex.

Outlook and guidance

• Continued investment in R&D and capacity expansion to meet strong order growth in high-end optical modules.

• Management expects ongoing demand for data center infrastructure to support future growth.