Shenzhen Han's CNC Technology (301200) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥1.56 billion, up 102.89% year-over-year, driven by increased orders for specialized processing equipment as downstream electronics and AI-related PCB demand rebounded.

• Net profit attributable to shareholders was ¥143.22 million, up 50.1% year-over-year, with basic and diluted EPS at ¥0.34.

• Gross margin for H1 2024 was 29.3%, slightly lower than the prior year due to higher costs and increased sales expenses.

Financial highlights

• Operating income rose to ¥151.91 million, up from ¥99.68 million in H1 2023.

• Total assets increased to ¥6.84 billion as of June 30, 2024, up from ¥5.98 billion at the start of the year.

• Cash and cash equivalents at period end were ¥1.89 billion.

• Operating cash flow was negative ¥123.90 million, mainly due to increased working capital needs.

• R&D expenses rose 12.57% to ¥101.82 million, reflecting continued investment in technology.

Outlook and guidance

• Management expects continued growth in orders for specialized PCB equipment, supported by AI and electronics sector recovery.

• The company will maintain high R&D investment and focus on expanding production capacity.