Kosen Technology 2024 Interim Report: The slowdown in the consumer electronics industry affected performance, and net losses expanded to 161 million yuan

Kosen Technology 2024 Interim Report: The slowdown in the consumer electronics industry affected performance, and net losses expanded to 161 million yuan

Kosen Technology released its 2024 semi-annual performance report. During the reporting period, the company achieved revenue of 1.741 billion yuan, a year-on-year increase of 35.62%. However, due to the failure of the new graphite heat dissipation module to meet expectations, the net loss expanded to 161 million yuan. The company's assets and net assets were 5.56 billion yuan and 2.57 billion yuan, respectively, and operating cash flow decreased by 66.81%. In addition, the company's shipments in the consumer electronics field slowed down, the industry competition was fierce, and the product gross profit margin was still on a downward trend.

On August 26, Kunshan Kosen Technology Co., Ltd. (603626) released its 2024 semi-annual performance report.

In terms of revenue, the company achieved a total operating income of 1.741 billion yuan in the reporting period, a year-on-year increase of 35.62%; the net loss attributable to shareholders of the listed company was 161 million yuan, a year-on-year increase of 132.13%;

In terms of assets, the net assets attributable to shareholders of the listed company were approximately 2.57 billion yuan, a year-on-year decrease of 8.98%. The company's total assets at the end of the reporting period were 5.56 billion yuan, a year-on-year increase of 5.33%, and accounts receivable were 1.344 billion yuan;

In terms of cash flow, the net cash flow generated by operating activities was approximately 92.76 million yuan, a year-on-year decrease of 66.81%.

Kosen Technology 2024 Semi-annual Performance Report | Source: Kosen Technology Official Website

Kosen Technology 2024 Semi-annual Performance Report | Source: Kosen Technology Official Website

The company said that the main reason for the change in operating income during the reporting period was the mass production of the company's new products and the increase in operating income. However, due to reasons such as the failure of the new graphite heat dissipation module to meet expectations, the performance was in loss.

In addition, in the field of consumer electronics, the company provides international and domestic well-known customers with R&D, manufacturing and partial assembly services for precision metal and plastic structural parts required for consumer electronic products, including heat-not-burn electronic cigarette structural parts. Since the beginning of this year, the shipment volume of the consumer electronics industry has slowed down, and the overall scale of the industry has stabilized, but the intensity of industry competition has not decreased at all, and the product gross profit margin is still in a downward process, and there is still a risk of fluctuations.