Loongson Technology Corporation (688047.SH) reported a net loss of 624 million yuan in 2024, with widening losses.

Loongson Technology Corporation (688047.SH) released its performance report for the year 2024, with total operating income of 507 million yuan, a year-on-year increase of 0.24%; a net loss attributable to the owners of the parent company of 624 million yuan, an expanded loss; a net loss attributable to the owners of the parent company after deducting non-recurring gains and losses of 660 million yuan, an expanded loss; and a basic loss per share of 1.56 yuan. During the reporting period, the impact of stagnation in the traditional advantage industrial control market still exists, leading to a significant decrease in revenue from industrial control chips; the electronic government market is starting to recover, with a significant increase in revenue from information technology chips; while revenue from chip products has seen a significant year-on-year increase, the company has actively reduced its solution-based businesses, leading to a significant decrease in revenue from solution-based businesses. Overall, the annual operating income of the company is on par with last year, showing a stable and positive trend. During the reporting period, the significant growth in sales of products in the information technology field has partially contributed to an increase in gross profit margin, but it has not yet returned to the ideal level; the decrease in revenue from industrial control chip business has led to a lower contribution to gross profit from that business, consequently affecting the overall gross profit margin.