NAURA's revenue and net profit in the first half of the year grew by double digits year-on-year, with net cash outflow from operating activities expanding by approximately 9 times year-on-year | Financial Report Insights

NAURA's revenue in the first half of the year increased by nearly 30% year-on-year, and net profit grew by nearly 15%. However, due to an increase in orders and R&D investment, the net cash outflow from operating activities expanded by about 9 times year-on-year. The increase in the company's acquisition expenditures also led to a more than 2-fold decline in cash flow from investment activities year-on-year. On Thursday, August 28, NAURA released its semi-annual performance report. Specifically: Revenue in the first half of the year was 16.14 billion yuan, a year-on-year increase of 29.51%. Net profit attributable to the parent company was 3.21 billion yuan, a year-on-year increase of 14.97%. Net profit excluding non-recurring items was 3.18 billion yuan, a year-on-year increase of 20.17%. The net cash flow from operating activities was -3.191 billion yuan, a significant decrease of 917.34% compared to -314 million yuan in the same period last year. Total assets were 84.34 billion yuan, an increase of 27.09% compared to the beginning of the year. Basic earnings per share were 4.45 yuan, a year-on-year increase of 14.23%. The dividend plan for the 2024 fiscal year is to distribute 10.60 yuan for every 10 shares, along with a bonus of 3.5 shares for every 10 shares. High Revenue Growth, Cash Flow Under Pressure From the financial data, NAURA's operating revenue in the first half of the year reached 16.142 billion yuan, a year-on-year increase of 29.51%, mainly due to an increase in company orders, leading to a corresponding increase in sales volume. Net profit attributable to the parent company was 3.208 billion yuan, a year-on-year increase of 14.97%, and net profit excluding non-recurring items was 3.181 billion yuan, a year-on-year increase of 20.17%. From the balance sheet perspective, total assets reached 84.345 billion yuan, an increase of 27.09% compared to the beginning of the year, and net assets were 33.793 billion yuan, an increase of 8.54%. In terms of cash flow, the net cash flow from operating activities was -3.191 billion yuan, while in the same period last year it was only -314 million yuan, a decrease of 917.34%. The company stated that the increase in orders and R&D investment led to an increase in cash expenditures. The net cash flow from investment activities was -2.398 billion yuan, a year-on-year decrease of 252.21%, mainly due to an increase in the company's acquisition expenditures. The net cash flow from financing activities was 6.026 billion yuan, a year-on-year increase of 1223.08%, mainly due to the increase in borrowings obtained during the period to meet the needs of orders, R&D investment, and acquisitions. 3.1 Billion Acquisition of Chip Source Micro, Stable Shareholder Structure While achieving performance growth, the company made a significant acquisition of a peer company, Chip Source Micro. The report indicated that NAURA acquired 17.87% of Chip Source Micro's shares for 3.135 billion yuan in cash, becoming its largest shareholder and gaining control. From a strategic perspective, Chip Source Micro's technical strength in coating and developing equipment complements NAURA's etching, thin film deposition, and other equipment, theoretically allowing for a more complete process solution for customers. The integration effect after the completion of the acquisition will be key From the perspective of the shareholder structure, NAURA still maintains a significant state-owned background, with the top three shareholders being state-owned legal entities, holding a total of approximately 53%. Beijing Qixing Huadian, holding 33.33%, is the largest shareholder. The National Integrated Circuit Industry Investment Fund and its second-phase fund hold a total of approximately 6.3%. Additionally, Hong Kong Securities Clearing Company Limited holds 10.19%