KINGSEMI (688037) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 411 million, down 19.55% year-over-year; YTD revenue was RMB 1.10 billion, down 8.44% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 31.5 million, down 62.74% year-over-year; YTD net profit was RMB 107.6 million, down 51.12% year-over-year.

• Excluding non-recurring items, Q3 net profit was RMB 4.27 million, down 94.53% year-over-year; YTD was RMB 40.05 million, down 77.97%.

• Significant increase in R&D investment, with YTD R&D expenses up over RMB 70 million year-over-year.

Financial highlights

• Basic and diluted EPS for Q3 were RMB 0.16, down 73.77% year-over-year; YTD EPS was RMB 0.54, down 66.25%.

• Gross margin and operating profit declined due to lower revenue and higher R&D, management, and sales expenses.

• Operating cash flow for the first nine months turned positive at RMB 189.8 million, mainly due to increased sales collections and government subsidies.

• Total assets at quarter-end were RMB 5.02 billion, up 16.81% from year-end 2023.

• Shareholders’ equity reached RMB 2.52 billion, up 6.07% from year-end 2023.

Outlook and guidance

• Revenue and profit volatility expected due to uneven order structure and delivery cycles.

• Continued focus on R&D in front-end track, chemical cleaning, and advanced packaging.