ONTF Latest Report

Performance in the Current Financial Report

Based on the provided data, ONTF's total operating revenue at December 31, 2024 was RMB366.8 million, a decrease of approximately 6.7% from RMB393.3 million at December 31, 2023. This indicates that the company faces challenges in its operating revenue, which may affect its overall financial performance.

Key Data in the Financial Report

1. Decrease in Operating Revenue: The operating revenue in 2024 was RMB366.8 million, a decrease of 6.7% from RMB393.3 million in 2023.

2. Change in Sales Cost: The sales cost in 2024 was RMB93.54 million, a decrease from RMB101 million in 2023, but failed to offset the decrease in operating revenue.

3. Decrease in Gross Profit: Due to the decrease in operating revenue being greater than the decrease in sales cost, gross profit decreased.

4. R&D Expense Situation: The R&D expense in 2024 was RMB88.8 million, a decrease from RMB93.63 million in 2023, showing the company's enhanced control over R&D.

5. Weakening Demand: There may be a decrease in market demand or increased competition, affecting the company's sales performance.

Peer Comparison

1. Industry-wide Analysis: The change in operating revenue of the overall industry may be affected by multiple factors such as economic cycles, market competition, and consumer confidence. If the overall industry performance is poor, it may lead to a decrease in the company's operating revenue. According to relevant data, competitors such as VJEC, Ankai Micro, and OPT's operating revenue in 2024 all decreased to varying degrees, indicating challenges faced by the industry as a whole (source: [VJEC](http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-02-28/688153_20250228_KOOY.pdf), [Ankai Micro](http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-02-28/688620_20250228_FELF.pdf), [OPT](http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-02-27/688686_20250227_WYB4.pdf)).

2. Peer Evaluation Analysis: ONTF's decrease in operating revenue may be greater than that of other companies in the same industry. Further comparison of the operating revenue changes of other companies in the same industry is needed to assess its relative market performance. Although the industry as a whole faces difficulties, ONTF maintains a 23% revenue share in the international market, the same as in 2023, showing stable market share.

Summary

In the 2024 fiscal year, ONTF faces challenges in its operating revenue decrease, which may be affected by multiple factors such as weakening demand, increased competition, and changes in the macroeconomic environment. Although sales cost has decreased, it failed to offset the significant decrease in operating revenue, leading to a decrease in gross profit.

Opportunities

1. Reviving Demand: B2B customer purchase intent has significantly increased, with product demonstration requests growing by nearly 60%, which may support future sales recovery.

2. Product Innovation: ONTF's new products such as AI-driven analysis and content engine (ACE) and next-generation intelligent engagement platform may attract new customers and drive revenue growth (source: [ONTF Form 10-K](https://www.sec.gov:443/Archives/edgar/data/1110611/000111061125000004/ontf-20241231.htm)).

3. Stable International Market: Maintaining a 23% revenue share in the international market shows ONTF's competitiveness and recognition in the global market.

Risks

1. Macroeconomic Factors: Uncertainty in the economic environment may lead to a decrease in customer spending, affecting sales performance (source: [ONTF Form 10-K](https://www.sec.gov:443/Archives/edgar/data/1110611/000111061125000004/ontf-20241231.htm)).

2. Intensified Competition: The decrease in operating revenue of other companies in the industry indicates intense competition, which may further affect ONTF's market share.

3. Insufficient R&D Investment: Continuous R&D investment fails to translate into sales growth in a timely manner. If this situation persists, it may affect the company's long-term development.