GONGJIN(603118)2024-07-09 09:07Financial Performance - The company expects a net profit attributable to shareholders of the parent company to be between -15 million and -18 million yuan for the first half of 2024, indicating a loss compared to the same period last year [13]. - The net profit attributable to shareholders of the parent company, excluding non-recurring gains and losses, is expected to be between -48 million and -51 million yuan for the first half of 2024 [14]. - The company reported a significant decrease in foreign exchange gains, with a loss of over 20 million yuan in the first half of 2024 compared to a gain of over 43 million yuan in the same period last year [17]. - The company anticipates non-recurring gains and losses of approximately 33 million yuan for the reporting period, compared to 19.33 million yuan in the same period last year [24]. Revenue and Sales - The company's revenue structure shows that the network communication business accounts for over 70% of total revenue, significantly impacting overall profitability due to declining market conditions [23]. - The domestic sales accounted for approximately 50% of total sales in the first half of 2024, up from about 35% in the same period last year, contributing to a decline in overall gross margin [23]. Product Development and Growth - The company achieved a year-on-year increase in shipments of set-top boxes and automotive electronics, with growth rates exceeding 60% and 350%, respectively [10]. - The company has successfully developed new products, including customized smart voice recognition chips and self-developed modules, with trial production orders delivered smoothly [10]. - The company is optimistic about the long-term growth potential in the optical communication and wireless markets, despite current challenges in the network communication sector [19]. Gross Margin and Financial Trends - The overall gross margin has weakened year-on-year, but the company reported improvements in revenue and gross margin in Q2 compared to Q1 [18].