Danghong Technology's 2024 Revenue Declined by 7.82%, New Businesses Such as Smart Cars and Industrial Satellites Await Scale-Up

Danghong Technology released its 2024 financial report, showing revenue of 307 million yuan, down 7.82% YoY. Net profit attributable to shareholders of the parent company was -102 million yuan, with a reduced loss of 35.9955 million yuan compared to the same period last year. Net profit after deducting non-recurring gains and losses was -108 million yuan, also showing improvement YoY. Net cash flow from operating activities was -2.6486 million yuan, significantly improved compared to the same period last year. In Q4, revenue reached 138 million yuan, with net profit attributable to shareholders of the parent company at -32.7434 million yuan and net profit after deducting non-recurring gains and losses at -33.1046 million yuan.

During the reporting period, Danghong Technology's net cash flow from operating activities improved from -97.8452 million yuan in the same period last year to -2.6486 million yuan, mainly due to significant recovery of historical receivables and accelerated sales collection.

From a business composition perspective, media and culture business accounted for over 60% of Danghong Technology's total revenue, generating 185 million yuan, down 26.59% YoY, with a gross margin of 33.89%, up 3.48 percentage points YoY. The decline in revenue was mainly due to industry cyclical adjustments and customer budget restructuring.

Industrial and satellite business, as well as intelligent connected vehicle business, saw substantial growth compared to the previous year. Among them, industrial and satellite business revenue was 69.916 million yuan, up 34.58% YoY, while intelligent connected vehicle business revenue was 46.124 million yuan, with a YoY growth rate of 91.11%.

By region, domestic market revenue was 292 million yuan, up 1.39% YoY, with a gross margin of 41.10%, up 4.87 percentage points YoY; overseas market revenue was 9 million yuan, down 77.07% YoY, with a gross margin of 21.10%, down 2.86 percentage points YoY.

In terms of fundraising projects, the cumulative investment in the next-generation codec system upgrade project reached 157 million yuan, completing 84.32% of the planned progress; the cumulative investment in the intelligent security product upgrade project reached 110 million yuan, completing 70.52% of the planned progress; the cumulative investment in the advanced video technology R&D center project reached 70 million yuan, completing 89.75% of the planned progress.

Danghong Technology stated that the company's new businesses have begun systematic promotion in corresponding industries, with rapid revenue growth in intelligent connected vehicle business and industrial and satellite business compared to the same period last year, but the overall market coverage rate remains low, and large-scale revenue has not yet been achieved. The company did not achieve profitability during the reporting period.