On the evening of April 10, Montage Technology (688008) announced its 2024 annual report, which showed that the company's operating performance increased significantly compared with the previous year, and a number of financial indicators reached record highs. The company's operating income was 3.639 billion yuan, an increase of 59.2% year-on-year; the net profit attributable to the parent company was 1.41 billion yuan, an increase of 213.1% year-on-year; net profit after deducting non-attributable to the parent company was 1.25 billion yuan, an increase of 237.4% year-on-year; net operating cash flow was RMB1.691 billion, up 131.3% year-on-year; EPS (fully diluted) was 1.2332 yuan.

The company's distribution plan is to distribute a cash dividend of 3.90 yuan (tax included) for every 10 shares. The total proposed cash dividend is 443 million yuan (tax included), accounting for 31.39% of the net profit attributable to shareholders of the listed company in the consolidated statements.

As for the main reasons for the significant increase in operating performance in 2024, Montage Technology said that, on the one hand, benefiting from the gradual recovery of demand in the global server and computer industry, the company's demand for memory interface and module supporting chips has achieved restorative growth, and at the same time, benefiting from the increase in the penetration rate of DDR5 downstream and the continuous iteration of the next generation, the company's DDR5 memory interface chip shipments have exceeded DDR4 memory interface chips, and the shipments of DDR5 second-generation memory interface chips have exceeded those of the first child. On the other hand, benefiting from the promotion of AI industry trends, the company's three new high-performance capacity chips (PCIe Retimer, MRCD/MDB and CKD) began to be shipped on a large scale, among which: PCIe Retimer chips were applied on a downstream scale, MRCD/MDB chips and CKD chips began to be tried on an industry scale, and the total sales revenue of the three new products was about 422 million yuan, which was 8 times that of the previous year, contributing new performance growth points to the company.

The company's interconnection chip product line achieved sales revenue of 3.349 billion yuan, an increase of 53.31% over the previous year, and a gross profit margin of 62.66%, an increase of 1.30 percentage points over the previous year; Jindai server platform product line achieved sales revenue of 280 million yuan, an increase of 198.87% over the previous year.

In 2024, the company's interconnection chip sales revenue, net profit attributable to the parent company, net profit deducted from non-net profit, and net cash flow from operating activities will all reach a record high in the company's annual history.

In the fourth quarter of 2024, the company achieved operating income of 1.068 billion yuan, an increase of 40.43% year-on-year and 17.90% quarter-on-quarter, of which: the sales revenue of the interconnection chip product line was 972 million yuan, an increase of 40.27% year-on-year and 14.54% quarter-on-quarter, with a gross profit margin of 63.42%, an increase of 1.21 percentage points from the third quarter, and DDR5 third-generation RCD chips began to be shipped on a large scale; the net profit attributable to the parent company was 434 million yuan, an increase of 99.72% year-on-year and 12.67% month-on-month; The net profit after deduction was 374 million yuan, an increase of 74.87% year-on-year and 13.63% month-on-month. The increase in the company's operating performance in the fourth quarter of 2024 was mainly due to strong demand for DDR5 memory interface chips and increased shipments.

In the fourth quarter of 2024, the company's operating income, interconnection chip sales revenue, net profit attributable to the parent company, and non-net profit deducted all reached a record high in a single quarter, of which: the company's interconnection chip sales revenue, net profit attributable to the parent company, and non-net profit deducted achieved quarter-on-quarter growth for seven consecutive quarters.

The company attaches great importance to R&D investment, and in 2024, the company's R&D expenses will be 763 million yuan, a year-on-year increase of 11.98%, accounting for 20.98% of operating income. The company's R&D expenses have increased year by year since its listing in 2019, and the proportion of R&D expenses to operating income has exceeded 15% for three consecutive years.