Tencent (00700) Q4 2024 Earnings Call March 19, 2025 08:00 AM ET Company Participants Wendy Huang - Investor Relations OfficerHuateng Ma - Co-Founder, Chairman of the Board & CEOMartin Lau - PresidentJames Mitchell - Chief Strategy Officer & Senior EVPJohn Lo - Senior Vice President & Chief Financial OfficerKenneth Fong - Managing DirectorAlex Yao - Co-Head of Asia Technology, Media & TelecommunicationsJohn Hyungwook Choi - Executive DirectorThomas Chong - Managing DirectorYuan Liao - Internet Media Researc ...

Financial Data and Key Metrics Changes - The company achieved a record revenue of $4.3 billion in 2024, an increase of 1.6% compared to 2023, driven by strong customer production schedules in APAC with China OEMs [12][41][46] - EBITDA grew by 22.5% year-over-year, reaching $424 million, with margins expanding by 170 basis points compared to 2023 [40][49] - Net profit improved by 68% to $62 million, with a margin increase of 50 basis points [42][58] - Free cash flow rose to $166 million, an increase of $61 million compared to 2023 [40][60] Business Line Data and Key Metrics Changes - The company launched a record 77 customer programs in 2024, with 45 tied to electric vehicle programs [13][16] - Customer program bookings totaled $6 billion in lifetime revenue, including significant steer by wire production awards [14][20] - The APAC division achieved record revenue of $1.3 billion, growing more than 10% compared to 2023 [14][48] Market Data and Key Metrics Changes - APAC adjusted revenue increased by 11.7%, significantly outperforming the market by 11.3%, driven by new and conquest program launches [46][47] - North America revenue decreased by 2.9% to $2.19 billion, while EMEA SA revenue slightly declined [48][49] - The company is now the number one steering supplier in the China market among domestic OEMs [12][15] Company Strategy and Development Direction - The company aims to drive innovation and growth, focusing on becoming a leader in motion control technology [5][6] - Key strategies include expanding the customer base, strengthening technology leadership, optimizing cost structures, and targeting emerging markets like China and India [11][12][29] - The company is committed to leveraging AI technology and automation to improve operational efficiencies [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the steer by wire technology, particularly in the China market, which is expected to lead in adoption [33][82] - The company anticipates a flat global OEM production volume in 2025, with expectations to outperform the market by 200 to 300 basis points in revenue [61][63] - Management is actively working to mitigate tariff costs and is preparing plans for compliance with USMCA requirements [76][77] Other Important Information - The Board approved a dividend increase to $22 million, representing a 35% payout ratio, up from a historical 20% [15][40] - The company opened a new facility in Changshu, China, to enhance manufacturing and testing capabilities [26][28] Q&A Session Summary Question: Can you provide more details about the steer by wire project size and content compared to traditional EPS? - Management indicated that the steer by wire system for the North American EV leader is a road wheel actuator, similar to a dual pinion system, with additional safety redundancies [68][69] Question: Are there discussions with OEM customers regarding potential tariffs and production shifts? - Management noted that the tariff environment is dynamic, and they are working with customers to mitigate costs and develop countermeasure plans [75][76] Question: What is the expected steer by wire revenue mix by 2027-2030? - Management expects steer by wire to represent about 5% of total revenue by 2027-2030, with China leading in adoption [82] Question: What is the outlook for the U.S. auto market growth amid tariffs and inflation? - Management anticipates a 3% reduction in North American production volumes, which could be at risk due to tariffs and consumer sentiment [84][85] Question: What is the latest margin guidance for the near term? - Management did not provide specific guidance but indicated a focus on improving margins, with expectations for incremental expansion into 2025 [87]

Financial Data and Key Metrics Changes - The total revenue of ANTA Sports Products exceeded JPY 100 billion for the first time, achieving a year-on-year growth of 13.6% [4] - Operating profit attributable to shareholders increased by 15% [4] - Free cash flow was reported at JPY 13.5 billion, indicating stable cash generation ability [4] - The final dividend for the year was JPY 123, up 20% year on year [5] Business Line Data and Key Metrics Changes - ANTA brand revenue reached JPY 60 billion, growing by 10.6% year on year [6] - FILA brand revenue was JPY 30 billion, up 6.1% year on year [6] - Other brands, particularly Dessence and Colin, saw significant growth of 53.7% year on year [6] - Online sales grew by 20%, while offline sales also achieved double-digit growth [7] Market Data and Key Metrics Changes - The overall gross profit margin was 62.2%, a slight decline of 0.4 percentage points [7] - FILA's gross profit margin decreased by 1.2 percentage points due to increased investment in merchandise [8] - The consumer market in China grew at a low rate of 3.5% in 2024, with a consumer confidence index of 86.2% [21][22] Company Strategy and Development Direction - The company aims to maintain its number one market share in China and expand its multi-brand strategy [3][50] - ANTA is focusing on brand breakthroughs and enhancing product quality, particularly in performance sports [27][51] - The company plans to replicate its successful strategies in China to international markets [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual rebound in the consumer market supported by government policies [22] - The global sports industry is expected to grow steadily, with opportunities in running, outdoor, and tennis categories [22] - The company is committed to low carbon innovation and sustainable practices to enhance brand influence [52] Other Important Information - The company has invested JPY 2 billion in R&D, representing a 20% increase [11] - ANTA's inventory turnover days are at a healthy level of 123 days, with a sellout rate of 87% [14][17] - The company has made significant strides in ESG performance, including a reduction in water consumption intensity by 2.5% [46][48] Q&A Session Summary Question: What are the key growth drivers for ANTA in 2025? - The company will focus on brand breakthroughs for ANTA and FILA, aiming for high-quality development in footwear and apparel [51] Question: How is ANTA addressing sustainability? - ANTA is committed to low carbon innovation and sustainable materials, with a goal of 50% sustainable products in the order book [48][52] Question: What is the outlook for the consumer market? - Management anticipates a gradual recovery in consumer confidence and spending, supported by government initiatives [22]

Financial Data and Key Metrics Changes - Operating revenue increased to JPY 386.89 billion, a 4.6% growth year-on-year [5] - Profitability reached JPY 20.6 billion, reflecting a 10.1% increase compared to the previous year [5] - Return on equity improved by 5.8% [5] - Total mobile and broadband subscribers reached 470 million, with IoT connections exceeding 620 million [5] Business Line Data and Key Metrics Changes - Uni Unicom cloud revenue grew by 17.1% to JPY 68.6 billion [6] - Data center revenue increased by 7.4% to JPY 25.9 billion [6] - Net contract value of Intelligent Computing business exceeded JPY 1 billion [6] Market Data and Key Metrics Changes - International business revenue rose to JPY 500 million, a 15.2% increase year-on-year [21] - Integrated subscribers reached 77%, with an integrated subscriber ARPU exceeding RMB 100 [19] Company Strategy and Development Direction - Focus on connectivity communications, computing, and digital smart appliances, emphasizing innovation and breakthroughs [4] - Continued investment in R&D with a 9.1% increase, aiming to enhance core capabilities [13] - Plans for 2025 include a CapEx of around JPY 55 billion, with a 28% year-on-year increase in computing power investment [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in enhancing operational efficiency and brand image while creating more value for society and investors [25] - The company aims to deepen energy efficiency and utilize clean energy, contributing to corporate ESG responsibilities [22] Other Important Information - The company was included in the FTSE China A50 index, effective soon [23] - Dividend payout ratio increased by 5 percentage points, with a 20.1% rise in dividend payout [23][24] Q&A Session Summary Question: What are the expectations for future growth? - Management indicated that they anticipate continued growth in both domestic and international markets, with a focus on innovation and efficiency [24] Question: How is the company addressing ESG responsibilities? - The company highlighted its efforts in energy efficiency and clean energy usage, serving over 260,000 villages and 280 million users through digital platforms [22] Question: What are the plans for capital expenditure in 2025? - CapEx is expected to be around JPY 55 billion, with a significant portion allocated to computing power, reflecting a strategic focus on AI and important projects [24]

Financial Data and Key Metrics Changes - Operating revenue increased to JPY 386.89 billion, representing a 4.6% growth year-on-year [5] - Profitability reached JPY 20.6 billion, a 10.1% increase compared to the same period last year [5] - Return on equity rose by 5.8% [5] - Total mobile and broadband subscribers reached 470 million, with IoT connections exceeding 620 million [5] Business Line Data and Key Metrics Changes - Uni Unicom cloud revenue grew by 17.1% to JPY 68.6 billion [6] - Data center revenue increased by 7.4% to JPY 25.9 billion [6] - Net contract value of Intelligent Computing business exceeded JPY 1 billion [6] Market Data and Key Metrics Changes - International business revenue reached JPY 500 million, a 15.2% increase over the previous year [22] - The company established 40 global branches in countries like Saudi Arabia, Peru, UAE, and Uzbekistan [22] Company Strategy and Development Direction - Focus on connectivity communications, computing, and digital smart appliances, emphasizing innovation and breakthroughs [4] - Investment strategy aimed at building new infrastructure with a focus on intelligent operations [7] - Anticipated CapEx for 2025 is around JPY 55 billion, with a 28% year-on-year increase in computing power [25] - Commitment to enhancing innovation momentum and optimizing business structure [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and commitment to enhancing quality, efficiency, and revenue [25] - The company aims to create more value for society and investors while fulfilling corporate ESG responsibilities [23][26] Other Important Information - The company was included in the FTSE China A50 index, effective soon [24] - Dividend payout ratio increased by 5% points, with a 20.1% increase in dividend payout [24][25] Q&A Session Summary Question: What are the expectations for future growth? - Management indicated that they anticipate continued growth in both domestic and international markets, with a focus on innovation and infrastructure development [25] Question: How is the company addressing ESG responsibilities? - The company highlighted its efforts in energy efficiency, clean energy use, and serving rural areas through digital platforms [23] Question: What are the key areas of investment for the upcoming year? - Key areas of investment include computing power, AI projects, and infrastructure development, with a special budget allocated for these initiatives [25]

Kingdee International Software Group Company (00268) H2 2024 Earnings Call March 18, 2025 07:36 AM ET Moderator And analyst to Jonas for the Kinti International twenty twenty four Annual Results Announcement. First of all, please allow me to introduce the management team with SKT A. There, Chairman of the Board and CEO, Mr. Robert Xu President, Mr. Jason Zhang Executive Director and CFO, Mr. Linbo Vice President and the General Manager of the R and D Center, Mr. Liu Zhong Wen General Manager of the IR, Mr. ...

Financial Data and Key Metrics Changes - Revenue increased by 52% to RMB582.8 million due to strong demand for containers during the reporting year [9] - Consolidated net profit attributable to owners rose by 76% to RMB34.1 million, including fair value losses from investment properties and a one-off gain on disposal [9] - Basic earnings per share reached USD 1.43, an increase of 74% [9] - Net asset value per share was USD 23.16 at the end of 2024, compared to the previous year [10] - Total dividend proposed for the year was USD 0.08 per share, with a payout ratio of about 72% [10] Business Line Data and Key Metrics Changes - The Manufacturing and Leasing segment achieved revenue of RMB153.6 million, accounting for 95% of total revenue, with a segment profit before tax of RMB44.5 million [11] - Approximately 216,000 TEU of dry freight containers were sold, making up 72.2% of manufacturing revenue [11] - Customized container sales totaled 20,000 units, contributing 21.2% to revenue [12] - Leasing revenue accounted for 1.5% of total revenue, with operating lease income at RMB5.6 million [12] Market Data and Key Metrics Changes - Worldwide new container production surged to over 8.3 million TEU in 2024, a record high, but is expected to decline to about 2.5 million TEU in 2025 due to various market factors [7] - The average selling price (ASP) for 20-foot dry freight containers decreased from USD 2,075 to USD 1,985, despite strong market demand, attributed to oversupply and lower steel costs [8] - Average steel cost was USD 5.53 per tonne, down 6.1% from the previous year [8] Company Strategy and Development Direction - The company aims to accelerate its journey towards net-zero emissions by providing sustainable battery energy storage solutions through its Green Tanaka initiative [4] - Plans to adjust production schedules in response to anticipated decreases in dry freight container demand, focusing on customized container projects with higher growth potential [13] - Continued investment in automation initiatives to improve efficiency [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment, indicating that while profitability is expected, the market remains difficult [48] - The company maintains a strong balance sheet, allowing it to lower overhead costs despite a lack of scale [51] - Confidence in the leasing business and new energy initiatives to navigate through tough market conditions [54] Other Important Information - The company operates eight container depots across major port cities in China and has a fleet of about 120,000 TEU of leasing containers [3] - The company is focused on providing container solutions that integrate renewable energy and optimize energy usage [5] Q&A Session Summary Question: Why is the Energy Storage System (ESS) contained? - The container provides mobility and protection, allowing for easy transport to job sites and efficient energy collection and release [20][25][26] Question: What target industries are being pursued for ESS sales? - The company aims to sell to various industries but focuses on long-term players, emphasizing the importance of mutual trust in customer relationships [31][32] Question: What are the significant capital expenditures (CapEx) planned for the future? - Major CapEx will be directed towards leasing and building new energy facilities, with a projected CapEx of over USD 100 million for 2025 [35][38] Question: Why is the tax provision higher this year? - The effective tax rate is influenced by various factors, including a subsidiary's high-tech status and losses incurred in certain operations [41][43] Question: Any guidance for next year? - Management indicated that while the market is difficult, the company should still remain profitable [48][54]

Financial Data and Key Metrics Changes - In 2024, the company recorded revenue of RMB 3.65 billion, with a profit attributable to shareholders of RMB 0.4611 billion and a gross profit margin of 47.7% [5][9] - The overall turnover growth was 27.2%, driven by strong sales per store and the success of the new retail pipeline [5][9] - Profit attributable to shareholders decreased by 13.1%, and profit margin attributable to shareholders fell by 2.4 percentage points to 12.6% [11] Business Line Data and Key Metrics Changes - Revenue from the Smart Casual segment grew by 27.2%, while revenue from the core collection declined by 3% due to the transition to a direct-to-customer (DDC) model [9][11] - The company implemented a new retail strategy, achieving a rapid sales growth of 24% [6][9] Market Data and Key Metrics Changes - Eastern China contributed significantly to sales, totaling RMB 1.563 billion, while the Northeast region saw a decline due to one-off deductions from distributor compensation [18][19] - The total number of retail stores increased to 2,773, representing a year-on-year increase of 7.1% [19] Company Strategy and Development Direction - The company plans to focus on the core collection and Smart Casual collections, enhancing product quality and design to meet consumer needs [27][28] - A net increase of 100 stores is expected in 2025, with a continued emphasis on online sales and social media marketing [29][30] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving growth targets despite external uncertainties, emphasizing the importance of consumer confidence and market conditions [34][36] - The company aims for a growth of 15% or more in its new retail business for 2025 [30] Other Important Information - The company has resolved to pay a final dividend of HKD 9 per share and a special final dividend of HKD 3 per share, resulting in a stable dividend payout ratio of 73.1% [7] - The group has recovered operating rights from distributors in several provinces, transitioning to a DDC model which is expected to improve operational efficiency [6][19] Q&A Session Summary Question: What strategies will be implemented for online and offline sales? - Management indicated that the overall environment remains promising and strategies will focus on healthy financial operations and product shipping [34][35] Question: What is the confidence level in achieving growth targets? - Management acknowledged challenges due to weather conditions but remains optimistic about achieving sales targets [34][36] Question: How does the company define its e-commerce performance? - E-commerce sales are expected to contribute significantly, with traditional retail and e-commerce combined accounting for a substantial portion of total sales [37][38] Question: What are the implications of recovering distributor rights? - Management believes recovering distributor rights will enhance operational efficiency and provide multiple sales channels, leading to improved profitability in the long term [41][43] Question: What are the expectations for future expenses? - Future expenses are expected to be reasonable, with a focus on maintaining store efficiency and supporting growth in the Smart Casual segment [51][53]

Financial Data and Key Metrics Changes - In 2024, revenue was RMB 13.4 billion, up 5.3% year on year, with a better growth rate in the second half of the year compared to the first half [32] - Gross margin decreased to 37.4% from 38.7% in 2023, attributed to lower gross margin in ODM yield growth [33] - Profit before tax was RMB 1.655 billion, down 14.5%, while after-tax profit decreased by 4.8% [36] - Comprehensive income for the year was RMB 1.416 billion, with earnings per share at RMB 21.42 and a final dividend of RMB 5, resulting in a payout ratio of 40.2% [38] Business Line Data and Key Metrics Changes - Self-branded business revenue was RMB 2.48 billion, increasing its share of total revenue from 16.5% in 2023 to 21% in 2024 [39] - ODM business revenue was RMB 9.32 billion, accounting for 70% of total revenue, with a slight decline of 0.3% year on year [40] - The self-branded business saw a 30% growth in the first half of the year but only 13.3% in the second half due to a higher base [41] Market Data and Key Metrics Changes - In the U.S. market, revenue was RMB 402 million, with significant contributions from Europe and other overseas markets [42] - The China market generated RMB 30 million in revenue, primarily from beauty atomization products launched in the first half of the year [43] - ODM business in Europe saw a slight increase of 0.3%, while the U.S. market experienced a small decline of 2.4% due to cash flow pressures faced by some customers [46] Company Strategy and Development Direction - The company aims to solidify its position in the atomization industry, focusing on e-cigarettes, H&B, beauty, inhalation therapy, and special purpose atomization [20][22] - The management emphasizes the importance of R&D and technology as the main engine for development, with a commitment to innovation and long-term operation [24][25] - The company is optimistic about the future, expecting growth in various segments, particularly in H&B and beauty optimization products [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth amidst stability in the e-cigarette market, with expectations for a turning point in 2025 [18][21] - The company is focused on enhancing management quality and productivity to prepare for future high-speed growth [30] - The management highlighted the importance of compliance and adapting to regulatory changes in key markets like the U.S. and Europe [67][116] Other Important Information - The company has invested significantly in R&D, with expenses increasing from RMB 1.48 billion to RMB 1.57 billion in 2024 [35] - The beauty atomization product, Moyo, launched in 2024, has received positive feedback and is expected to perform better in 2025 [75] - The company is exploring new markets and product categories, including inhalation therapy and beauty atomization, to diversify its offerings [54][75] Q&A Session Summary Question: What are the considerations behind the stock incentive plan linked to market cap? - The management emphasized the alignment of the incentive plan with shareholder interests and the confidence in achieving the set market cap goals [81][83] Question: How is customer feedback on new HMB products and their global launch progress? - The management reported positive feedback from trial sales, highlighting improvements in convenience and flavor, with plans for a proactive global rollout [92][95][96] Question: How is the company adapting to changes in consumer behavior and regulations in Europe? - The management noted a shift towards pod-based and open system products, with a focus on compliance and product innovation to meet market demands [99][103] Question: What is the expected timeline for H&B product development and market launch? - The management indicated that the R&D process for H&B products took ten years, and they are now focused on empowering customers to expedite market entry [106][108] Question: What is the impact of new regulations on product pricing and profits in Europe? - The management expressed optimism about stable growth in Europe, driven by compliance and product iteration, which is expected to enhance revenue and profits [116]

Financial Data and Key Metrics Changes - Total group revenue increased by 6.5% to JPY 13,577,000,000 [10] - Operating profit rose by 9.3% to JPY 1,966,000,000 [11] - Net profit increased by 20.2% to JPY 1,238,000,000, with a net profit margin up by one percentage point to 9.1% [13] - Gross profit margin improved by 1.4 percentage points year on year to 43.2% [12] Business Segment Data and Key Metrics Changes - Revenue from the core brand increased by 3.2% to JPY 12,327,000,000 [17] - Professional Sports segment revenue, including Saucony and Merrell, grew by 57.2% to JPY 1,250,000,000 [18] - Saucony's revenue increased by nearly 60%, surpassing JPY 1,000,000,000 [19] Market Data and Key Metrics Changes - E-commerce revenue grew by 20% year on year, accounting for 30% of core brand revenue [28] - Saucony's revenue growth over the past five years has exceeded 100% CAGR [29] Company Strategy and Development Direction - The company will continue to focus on running and develop professionalism and refinement in its offerings [6] - A proactive approach will be taken to enhance operational efficiency and deepen end channel management [6] - The company aims to solidify its market status as the number one running brand in China through brand synergy and product matrix [24][33] Management Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain, but opportunities exist due to the national fitness boom [4] - Management expressed confidence in achieving high-quality growth and lucrative returns for investors [6] - The company plans to increase investment in DTC (Direct-to-Consumer) strategies to drive growth [35] Other Important Information - The company announced new appointments to strengthen its management structure, with Mr. Ricky Yang promoted to Executive Director and Ms. Donna Ding appointed as CFO [7] - The company has been recognized with an MSCI ESG rating upgrade to A, marking it as the first Chinese sports goods company to receive such a rating [32] Q&A Session Summary Question: What are the growth expectations for Saucony in 2025? - Saucony expects revenue growth of around 30% to 40% in 2025 [19] Question: How does the company plan to manage expenses moving forward? - The company will focus on controlling expenses while enhancing retail and inventory management capabilities [22]