CloudMinds Technology Reports 42.8% Revenue Surge, Turns Profit

CloudMinds Technology, a leading technology company, has reported its financial results for the second half of 2024, showcasing a remarkable 42.8% year-over-year increase in revenue, reaching 12.824 billion yuan. This substantial growth underscores the company's strategic initiatives and operational excellence, positioning it strongly in the market.

The financial report highlights a net profit of 568 million yuan for the period, a significant improvement from the previous year's net loss of 320 million yuan. This turnaround in profitability reflects the company's efforts to streamline operations and enhance financial performance. The earnings per share on an ADS basis stood at 0.83 yuan, a notable improvement from the previous year's loss of 0.43 yuan per share, indicating strong value generation for shareholders.

Despite the positive revenue growth, the company's gross profit for the second half of 2024 was 2.895 billion yuan, slightly lower than the 2.945 billion yuan reported in the same period of 2023. The gross margin decreased from 32.8% to 22.6%, primarily due to changes in product structure during the transition period, which led to an increase in the contribution of lower-margin products to revenue.

In August 2024, CloudMinds Technology completed a strategic reorganization, divesting its IoT@Home product portfolio, excluding kitchen appliances such as range hoods, gas stoves, and water heaters. This strategic move allowed the company to focus more on its core family water solutions, driving strong performance in 2024. The CEO of CloudMinds Technology stated that the reorganization enabled the company to concentrate on its core business, resulting in a full-year revenue of 21.19 billion yuan and an operating income of 1.563 billion yuan, both exceeding previous expectations. The family water system revenue grew by 39.0% year-over-year, significantly contributing to the overall business expansion.

For the full year of 2024, CloudMinds Technology reported a total revenue of 21.19 billion yuan, a 29.3% year-over-year increase. The net profit for the year was 623 million yuan, a significant improvement from the net loss of 893 million yuan in 2023. This financial performance demonstrates the company's resilience and adaptability in a competitive market, driven by its focus on innovation and operational efficiency. As CloudMinds Technology continues to execute its strategic plan, investors and stakeholders can anticipate further positive developments and a robust financial outlook in the coming periods.