① Dahua Co., Ltd. achieved net profit of 1.81 billion yuan in the first half of the year, down 8.42% year on year; ② overseas revenue increased 9.08% year on year, accounting for 50.35% of revenue; ③ gross margin of smart IoT products, solutions, and innovative businesses all declined year on year.
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Finance Association, August 23 (Reporter Chen Kang) The net profit of Dahua Co., Ltd. (002236.SZ) declined year-on-year in the first half of the year, dragged down by the second quarter. According to the company's announcement this evening, in the first half of 2024, the company achieved operating income of 14.867 billion yuan, an increase of 1.59% over the previous year; net profit of 1.81 billion yuan, a year-on-year decrease of 8.42%.
On a quarterly basis, revenue for both quarters achieved a slight year-on-year increase, but net profit for the first quarter increased 13.26% year-on-year, while net profit for the second quarter decreased 15.68% year-on-year.
Looking at the subregion, in the first half of the year, Dahua Co., Ltd.'s overseas revenue increased 9.08% year on year, accounting for 50.35% of revenue. Domestic revenue decreased by 5.01% year on year, accounting for 49.65% of revenue. Overseas revenue surpassed domestic revenue for the first time. In the same period last year, Dahua's domestic revenue was higher than overseas. Domestic and overseas revenue accounted for 53.11% and 46.89%, respectively.
In the domestic business sector, TOG business declined markedly. Revenue decreased 15.07% year on year, TOB business increased 1.11% year on year, and other business decreased 6.47% year on year.
In terms of overseas markets, the company said that it is currently continuing to deepen the construction of a distribution system, comprehensively promote grid coverage, explore the operation of third-level customers, accelerate the layout of new business pipelines, and maintain continuous business growth. At the same time, the construction of overseas supply centers is progressing at an accelerated pace, and overseas delivery capabilities are continuously being improved.
The main business of Dahua Co., Ltd. is the R&D, production and sales of smart IoT products, and provides smart IoT solutions and operation services with video as the core.
Financial reports show that the profitability of various products declined across the board in the first half of the year. The gross margin of smart IoT products and solutions decreased by 1.28 percentage points compared to the same period last year. Among them, the gross margin of the software business decreased by 1.44 percentage points; the gross margin of the innovative business decreased by 0.12 percentage points. The gross margins of domestic and overseas businesses declined by 2.72 percentage points and 1.03 percentage points, respectively, over the same period last year.
However, revenue from the innovation business increased 8.95% year over year in the first half of the year, and the business currently accounts for 16.55% of revenue. In the field of innovation, Dahua Co., Ltd. explores businesses such as machine vision and mobile robots, smart living, thermal imaging, automotive electronics, smart security, smart fire protection, and storage media.
In the first half of the year, Dahua's R&D investment increased 4.78% year on year. In terms of R&D, the company polished large model model sites, promoted replication and implementation, and continued to launch new products such as Zhiqiang, Luban, Honghu, Sky Series, and Night Vision 2.0.
During the reporting period, net cash flow from the company's operating activities fell 293.07% year-on-year due to increased tax payments and employee remuneration compared to the same period last year. Furthermore, net cash flow from investing activities in the first half of the year fell 2080.04% year on year, mainly due to the purchase of large bank deposits.