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Category: China

  • MIL-OSI Economics: Secretary-General of ASEAN joins other ministers for a Courtesy Call on the Minister of Tourism, Culture and Arts of Malaysia

    Source: ASEAN

    Secretary-General of ASEAN Dr. Kao Kim Hourn this morning joined AMCA Ministers and other representatives from China, Japan and Republic of Korea in a Courtesy Call on the Minister of Tourism, Culture and Arts of Malaysia Dato Sri Tiong King Sing. The courtesy call reflected the importance of strengthening partnerships in culture and the arts among ASEAN Member States and with the Plus Three countries.

    The post Secretary-General of ASEAN joins other ministers for a Courtesy Call on the Minister of Tourism, Culture and Arts of Malaysia appeared first on ASEAN Main Portal.

    MIL OSI Economics –

  • MIL-OSI China: Researchers use AI algorithm to reveal hidden RNA viruses

    Source: China State Council Information Office 2

    This year’s Nobel Prize results signify that artificial intelligence (AI) technology is not only leading trends in computer science, but also has a growing impact in disciplines such as biology and chemistry. It offers scientists a new research approach: using AI to unlock the secrets of nature.
    One of the latest examples comes from virology. An international research team used AI technology to discover hundreds of thousands of RNA viruses from global ecosystems, showing the immense potential of AI algorithms in virus discovery and paving new paths for virology.
    A team of researchers from Sun Yat-sen University School of Medicine, as well as Zhejiang University, Guangzhou University, the University of Sydney and other institutions carried out the study, reporting the discovery of 180 RNA virus supergroups and over 160,000 global RNA virus species.
    The study, which was published recently in the journal Cell, is the largest RNA virus study to date, significantly expanding the knowledge about global RNA viruses.
    New AI algorithm
    Viruses are an essential component of Earth’s ecosystems and closely related to human health. However, the number of known virus species is still quite limited. Scientists can use gene sequencing technology to compare the similarity of unknown viruses with known viral nucleic acid sequences, thereby identifying new viruses.
    However, this method relies on the existing knowledge of viruses. When studying RNA viruses, which are highly divergent, numerous and prone to mutation, the method of sequence homology comparison couldn’t work well anymore.
    The researchers have proposed a new solution using AI technology. According to Shi Mang from Sun Yat-sen University School of Medicine, who is also one of the corresponding authors of the research paper, the AI algorithm models can uncover viruses that were previously overlooked or not even known.
    “During epidemics, the speed and accuracy of AI technology can help scientists quickly pinpoint potential pathogens,” Shi said.
    He led the team to use a core algorithm dubbed LucaProt, a deep-learning Transformer model for the study. After extensive learning of viral and non-viral genomic sequences, it can autonomously form a set of criteria for virus identification to find viral sequences from large RNA sequencing datasets.
    New RNA virus species
    According to the study, LucaProt demonstrated high accuracy and specificity, with a false positive rate of 0.014 percent and a false negative rate of 1.72 percent.
    The team conducted viral search on 10,487 RNA sequencing data from global biological environmental samples, and discovered over 510,000 viral genomes representing more than 160,000 potential viral species and 180 supergroups of RNA viruses.
    Among them, 23 supergroups could not be identified by traditional sequence homology methods. They can be referred to as the “dark matter” of the viral community.
    The study found that these viruses are distributed across various ecological environments on Earth. The highest viral diversity is found in leaf litter, wetlands, freshwater, and wastewater environments. Considerable virus diversity and abundance are also found in extreme environments such as antarctic sediments, deep-sea hydrothermal vents, activated sludge, and saline-alkali wastelands.
    According to Hou Xin, the first author of the paper, these viruses include not only pathogens that infect humans but also those that exist in the environment and infect various organisms. They can infect a variety of animals, plants, single-celled protists, fungi and bacteria.
    “A deeper understanding of viruses in the environment can help us better study the workings of the entire ecosystem. Moreover, we can use this method to discover viruses closely related to human diseases for the surveillance and early warning of emerging diseases,” Hou said.
    “The traditional classification system has become inadequate for the new viruses, whose diversity far exceeds human imagination. What we see now is just the tip of the iceberg,” Shi said.
    New tool for more studies
    It is a model specifically designed for discovering RNA viruses, but it also integrates the ability to recognize protein sequences and implicit structural information, and can be used to identify protein functions.
    According to the study, the LucaProt model helped researchers identify genomic structures beyond previous virus knowledge, revealing the flexibility of RNA virus genomic evolution.
    It also revealed a variety of viral functional proteins, especially those related to bacteria, indicating that there are more types of RNA bacteriophages, the viruses that infect bacteria, to be explored.
    The research team has open-sourced the model and shared it with scientists worldwide online.
    Li Zhaorong from Apsara Lab of Alibaba Cloud Intelligence, another corresponding author, believed that AI is gradually changing the way scientists tackle various scientific challenges.
    “This model is becoming a cutting-edge tool in virus identification and is also being applied to other types of protein identification and discovery of functions,” Li said.
    Xu Jianguo, an academician of the Chinese Academy of Engineering, said that the success of LucaProt marks a breakthrough for AI algorithms in virus discovery. In the future, AI is expected to become a major tool in microbiology and can be applied to predict the pathogenicity of viruses to humans.

    MIL OSI China News –

  • MIL-OSI China: China thwarting satellites used to spy

    Source: China State Council Information Office 2

    China has been handling threats from foreign intelligence agencies who use satellites to conduct espionage in their attempts to steal the country’s secrets, according to the Ministry of State Security.
    The ministry said in an article published on its WeChat account on Wednesday that some foreign spy organizations continue to use high-resolution satellites to carry out remote-sensing reconnaissance on China. They also keep trying to infiltrate China’s space companies by tempting and intimidating Chinese scientists and engineers to obtain the latest developments in their research.
    Some Western countries have been hyping up the arms race in orbit and the contest for “space hegemony”, making all-out efforts to hinder China’s capability and jeopardize its space operations, it noted.
    Space has become a new domain for economic growth, military conflicts and national security work. Protecting space-based systems and orbital operations from threats and infringement is an important part of national security work because space-based assets are significant to a nation’s security and development, the ministry said.
    In recent years, state security bodies worked with relevant departments to handle cases in which foreign spies tried to steal secrets in China’s space sector, effectively suppressing foreign intelligence agencies’ espionage attempts, the ministry said.
    State security departments will continue to use concrete measures to safeguard China’s rights, security and interests in space, it added.
    Information previously published by the ministry shows that the space sector is a focal point for Western intelligence agencies that spy on China. Their agents target scientists, designers and technicians working for State-owned contractors and have turned a handful of employees into traitors, including a senior missile designer who was exposed in 2007.
    The latest spy case involving China’s space industry that has been made public was disclosed in April 2023.
    Zhao Xuejun, a researcher at a State-owned institute, was approached by foreign spies while he was studying overseas and then was recruited. After returning to China, he continued to work for the foreign intelligence organization and delivered a large number of classified documents.
    He was arrested in June 2019 and was sentenced in August 2022 to seven years in prison.
    An industry observer who declined to be named said that foreign spies are keen to obtain information about China’s space capability and programs because analyzing such information can help to establish a comprehensive, in-depth picture about China’s strategic prowess and its scientific, technological and engineering capacities.

    MIL OSI China News –

  • MIL-OSI China: Researchers build autonomous underwater vehicle for deep-sea microbial sampling

    Source: China State Council Information Office 2

    Researchers from Tianjin University have made a breakthrough in marine biological research with the development of the country’s first autonomous underwater vehicle designed for deep-sea microbial sampling.
    They have conducted comprehensive tests on the performance and functionality of the vehicle at various depths of less than 1,000 meters in the South China Sea, achieving in-situ sampling and high-fidelity preservation of deep-sea microbial genes. The related project was reviewed and approved recently by experts from the Laoshan Laboratory.
    The deep sea is the largest habitat within the Earth’s system, home to a vast array of undiscovered microbial species and untapped resources. Its unique ecosystem, characterized by high salinity, high pressure, low temperatures and nutrient scarcity, has remained largely unexplored.
    In-situ sampling of deep-sea microorganisms is essential for understanding marine species diversity and exploring the mysteries of ocean habitats.
    However, traditional ship-based sampling techniques often face issues such as sample contamination, degradation and nucleic acid structural alterations. These methods are also constrained by low efficiency and high costs.
    The autonomous underwater vehicle, equipped with advanced deep-sea sampling devices and environmental sensors, transitions sampling from localized, single-point and manual-assisted operations to regional, multi-point and autonomous missions. It also offers the seamless integration of sampling, high-fidelity preservation and nucleic acid preparation for deep-sea microbes.
    Its several technical indicators have filled gaps in domestic capabilities in related fields, and the indicators such as maximum sampling depth, number of samples and maximum single filtration volume have reached the international leading level, according to the experts from the review panel.
    The achievement can not only enhance sample quality and reduce the sampling cycle, but also boost the efficiency of marine microbial habitat research.
    It can also provide decisive samples and genetic data support for the discovery and exploration of new marine microbial species, revealing the patterns and evolutionary mechanisms of marine microbial diversity, and clarifying the influence mechanisms of the microbial carbon pump and ocean carbon sequestration.
    The research team plans to further tackle the technologies for deep-sea microbial sampling and metagenomic analysis, and improve the comprehensive resource database of marine microorganisms.

    MIL OSI China News –

  • MIL-OSI China: Int’l forum for young space scientists held in Macao

    Source: China State Council Information Office 2

    The International Forum for Young Space Scientists was held at the Macao Science Center from Tuesday to Friday, attracting nearly a hundred scientists from various countries and regions.
    At the forum’s opening ceremony on Wednesday, Wu Ji, president of the Chinese Society of Space Research (CSSR), expressed his hope that the forum will provide a platform for exchanges and cooperation and lay the foundation for future cooperation.
    Zong Qiugang, director of the Space Science Institute of Macau University of Science and Technology (MUST), introduced the scientific output of Macao’s first space science satellite “Macao Science 1” in geomagnetic science research and space environment monitoring and expressed that MUST will continue to contribute to international exchanges and cooperation in space science.
    On Wednesday afternoon, young space scientists had in-depth exchanges and discussions on disciplinary frontiers, the new discoveries of domestic and international satellite missions, the progress of relevant modeling and technology, and future joint research.
    As part of the forum, participants will visit the related laboratories of MUST and the University of Hong Kong (HKU).
    As the first international conference for young space scientists held in Macao, the forum was co-organized by the CSSR, MUST, the National Space Science Center of the Chinese Academy of Sciences, the HKU, and the International Space Science Institute – Beijing.

    MIL OSI China News –

  • MIL-OSI China: China to kick off consumption campaign in 5 big cities

    Source: China State Council Information Office

    China will launch a monthlong campaign to promote consumption in November as part of its efforts to bolster consumer spending, the Ministry of Commerce said Wednesday.

    The consumption promotion month will kick off next month in Shanghai, Beijing, Guangzhou, Tianjin and Chongqing.

    It will feature a series of activities promoting consumption in shopping, catering, tourism, exhibitions and performances, among others, according to the ministry.

    Relevant departments and localities have been asked to refine their plans to implement the promotion month and introduce practical measures to foster the continuous recovery of the country’s consumer market.

    China introduced a large-scale equipment upgrade and consumer goods trade-in program in March this year to expand domestic demand and shore up the economy.

    China’s retail sales of consumer goods went up 3.3 percent year on year in the first three quarters of this year, official data showed.

    MIL OSI China News –

  • MIL-OSI China: CNOOC, Air Liquide pioneer long-distance liquid hydrogen transport

    Source: China State Council Information Office

    A vessel carrying specialized insulated tanks containing liquid hydrogen arrived at Yantian Port in the south China metropolitan of Shenzhen on Tuesday, after a voyage of about 20,000 km from Europe.

    The pioneering long-distance transport of the liquid hydrogen was jointly carried out by the China National Offshore Oil Corporation (CNOOC) and French industrial gases giant Air Liquide, which marked a significant milestone in global energy transportation.

    The shipment covered over 20,000 km from Rotterdam to Shenzhen, emphasizing the potential of hydrogen as a sustainable energy source.

    The International Renewable Energy Agency predicted that by 2050, more than 30 percent of global hydrogen production will be used for international trade. China’s annual hydrogen production has amounted to 40 million tonnes, and long-distance offshore shipping of liquid hydrogen has been eyed as a new transport initiative to explore hydrogen energy trade.

    MIL OSI China News –

  • MIL-OSI China: Chinese NGOs aim to make bigger intl impact

    Source: People’s Republic of China – State Council News

    China has cultivated thousands of technology-focused nongovernmental organizations in recent years to stimulate innovation and bolster its influence in global research and development governance, a Ministry of Civil Affairs official said on Wednesday.

    Zhang Lin, a deputy head of the ministry’s bureau of NGO administration, said that by the end of last year, China had over 24,000 such organizations at the forefront of technological innovation, playing a crucial role in advancing the nation’s expertise in competitive technologies.

    “At the same time, the ministry is fostering national and international social organizations to facilitate engagement in global scientific and technological governance initiatives,” she told a news conference in Beijing.

    Technology-based organizations have increasingly emerged as a pivotal force propelling China toward technological advancement.

    Authorities have recognized their crucial role in uniting and mobilizing technology professionals to serve the national interest, fostering collaboration among industries, academia and researchers, promoting exchanges and showcasing industry expertise.

    In a significant move to enhance the global influence of these groups, the ministry introduced rules in 2021 enabling Chinese NGOs to recruit renowned foreign scientists and appoint them to management positions.

    While the full text of the rules has not been publicly disclosed, a media release on the ministry’s website stated that the regulations mandated these NGOs to improve communication and engagement with foreign technology experts.

    The release emphasized that these organizations should establish a robust service system tailored to the needs of foreign technology professionals, fostering a stronger sense of belonging and integration within the community.

    The Chinese Institute of Electronics, one of over 200 national-level technology-focused organizations, plays a crucial role in advancing technological development in China.

    According to its website, the institute is responsible for a variety of tasks, including organizing international seminars, publishing influential papers and recommending talent to governmental bodies.

    With a membership exceeding 170,000 professionals with strong knowledge on subjects such as semiconductors, computer science, communication technologies and radar, the institute also manages the editing and publication of 10 esteemed academic journals covering topics in its members’ respective fields. Since 2003, it has honored outstanding scientists with its annual Science and Technology Award.

    The institute describes itself as a national academic nonprofit social organization that was voluntarily established by technology workers in the electronic information sector, related enterprises and institutions, and social groups.

    “We are an important social force in the development of China’s electronic information technology industry,” the institute said in its charter.

    International NGOs focusing on technology have significantly influenced global science governance by organizing academic conferences, publishing influential works and presenting awards.

    Last year, the Chinese government announced the establishment of 17 such NGOs.

    One notable organization among them is the Alliance of National and International Science Organizations for the Belt and Road Regions, launched in 2018 with the objective of enhancing cooperation in science, technology and innovation among countries participating in the Belt and Road Initiative.

    Its membership includes prestigious institutions such as the Chinese Academy of Sciences, the Scientific and Technological Research Council of Turkiye, and the Serbian Academy of Sciences and Arts.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: FS continues to promote Hong Kong’s new advantages in New York (with photos/video)

    Source: Hong Kong Government special administrative region

         The Financial Secretary, Mr Paul Chan, continued his visit in New York, the United States (US), yesterday (October 23, New York time) to promote Hong Kong’s advantages and opportunities.
          
         Mr Chan attended a luncheon co-hosted by the Hong Kong Economic and Trade Office in New York and the Hong Kong Association of New York, with around 80 representatives from businesses, institutions, chambers of commerce and think tanks present. During the luncheon, Mr Chan delivered a keynote speech and engaged in a discussion with the President of the National Committee on United States-China Relations, Mr Steve Orlins, addressing topics of interest regarding Hong Kong in US political and business circles.
          
         In his remarks, Mr Chan introduced Hong Kong’s latest economic situation and development strategies, particularly new initiatives in key areas such as finance and innovation and technology, policies and achievements related to attracting businesses and talent, and the increasingly close co-operation and collaborative developments with sister cities in the Guangdong-Hong Kong-Macao Greater Bay Area.
          
         Mr Chan stated that the “one country, two systems” arrangement will remain implemented in Hong Kong for the long term. He emphasised that Hong Kong will continue to play its unique role as a “super connector” and “super value-adder,” linking the capital markets and investors of the Mainland and the global community to create value and opportunities for all. He noted that Hong Kong consistently maintains the common law system, upholds the rule of law, provides an open, free, and simple low-tax business environment and protects investors’ rights. Following the implementation of national security legislation, foreign businesses continue to have confidence in Hong Kong, and various international institutions have affirmed Hong Kong’s excellent business environment and competitiveness. Mr Chan highlighted that Hong Kong values the strengthening of relationships with traditional markets and welcomes continued investments from the US business community. The Hong Kong Special Administrative Region Government will continue to present the real situation of Hong Kong through objective facts and data, and maintain communications and connections with the US’s political and business sectors.
          
         In the morning, Mr Chan had breakfast with local political and business figures, followed by a roundtable meeting where he met with local financial and banking professionals to introduce Hong Kong’s latest status and opportunities, and address their questions.
          
         In the afternoon, Mr Chan met with the Acting Consul General of China in New York, Mr Ma Xiaoxiao, to exchange views on China-US economic and trade relations, and co-operation.
          
         Mr Chan will continue his final day of visit in New York today (October 24, New York time).               

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Speech by SITI at Cyberport Venture Capital Forum 2024 (English only)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Cyberport Venture Capital Forum 2024 today (October 24):Simon (Chairman of the Board of Directors of the Hong Kong Cyberport Management Company Limited, Mr Simon Chan), Hendrick (Chairman of the Cyberport Investors Network Steering Group and Chairman of the Committee of the Artificial Intelligence Subsidy Scheme, Mr Hendrick Sin), Duncan (Legislative Council Member, Mr Duncan Chiu), distinguished guests, ladies and gentlemen,     Good morning. It is my great pleasure to join you at this year’s Cyberport Venture Capital Forum (CVCF).       True to its name, CVCF has been “connecting visionaries and cultivating the future”. It gathers the brightest minds from the innovation and technology (I&T) and the venture fund worlds, to brainstorm fresh ideas and approaches on how to support our start-ups in generating more breakthroughs and new solutions.       I&T is the pivotal force to unlock new pathways for economic growth and societal advancement of our country and Hong Kong. At the Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC Central Committee) held in July this year, the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization also placed emphasis on Chinese modernisation by supporting technological innovation and developing new quality productive forces.       This resonates with our theme today, “Innovation Challenger: Building New Venture Visions”, highlighting the indispensable role of venture financing to our I&T development.     Cyberport epitomises the importance of venture capital to start-up development. The Cyberport community has attracted over $41 billion of investment, with startups securing more than $3 billion of funding last year alone. The Cyberport Investors Network, which comprises over 200 investment units including venture capital funds, private equity funds and family offices, has been a booming powerhouse, driving over $2.59 billion investment for start-ups over years.     Our work does not stop there. To inject impetus into our I&T ecosystem, the Chief Executive announced a series of new and exciting I&T initiatives in his Policy Address last week. Let me share with you some of the key highlights.      We will set up a $10 billion I&T Industry-Oriented Fund to channel more market capital to invest in specified emerging and future industries of strategic importance, including but not limited to artificial intelligence, robotics and smart devices. We will also optimise the existing Innovation and Technology Venture Fund by redeploying $1.5 billion to set up funds jointly with the market on a matching basis to invest in Hong Kong’s start-up ecosystem.     Besides, we will also launch the Pilot I&T Accelerator Scheme which aims to attract professional start-up service providers with proven track records from local and outside Hong Kong to set up accelerator bases in Hong Kong, thereby fostering the robust growth of start-ups.       The close collaboration among the Government, industry, academia, research and investment sectors is the cornerstone of our I&T development which is poised to reach new heights. Let us join hands in turning a new chapter in the ever-evolving technology realm.       In closing, may I take this opportunity to express my thanks to each and every one of you who brings so much food for thought to Cyberport and the dynamic technology landscape of Hong Kong. I wish everyone here today a most fulfilling exchange. Thank you very much.

    MIL OSI Asia Pacific News –

  • MIL-OSI: Dassault Systèmes: European Energy Infrastructure Company Snam Embarks on Strategic Sustainable Project with Dassault Systèmes’ 3DEXPERIENCE Platform

    Source: GlobeNewswire (MIL-OSI)

    Press Release
    VELIZY-VILLACOUBLAY, France — October 24, 2024

    European Energy Infrastructure Company Snam Embarks on Strategic Sustainable Project with Dassault Systèmes’ 3DEXPERIENCE Platform

    • Snam deploys Dassault Systèmes’ 3DEXPERIENCE platform to digitally transform the management and optimization of its gas network as part of its innovation and sustainability strategy
    • Snam will rely on Dassault Systèmes’ solutions to create virtual twins of existing and future assets
    • Snam can manage and optimize asset operations collaboratively, improve structural safety, and reduce emissions

    Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today announced that Snam, the leading and pan-European gas infrastructure operator, is accelerating its digital transformation with the 3DEXPERIENCE platform at the core of a new asset management project to drive a sustainable energy transition.

    Snam will use the 3DEXPERIENCE platform to create virtual twins of its gas pipelines network, storage sites and liquefied natural gas (LNG) terminals in Italy, as well as the future assets it develops to diversify energy resources. Snam can manage and optimize asset operations, improve structural safety, and reduce emissions.

    Snam’s extensive ecosystem of assets and operators provides a stable supply of energy throughout Italy and internationally. With the ambition to develop energy infrastructure for a sustainable future, the company wanted to implement technology to manage existing and future assets in a more collaborative way, streamline engineering, and enhance the assets’ effectiveness, safety and reliability.

    The 3DEXPERIENCE platform will enable Snam to connect all stakeholders around virtual twins that simulate this complex asset network, and will integrate real-time data and information collected by sensors in the field seamlessly.

    “Operational efficiency and safety are imperatives for delivering affordable and accessible energy services. Our 3DEXPERIENCE platform enables utility companies like Snam to maintain assets throughout their life cycle, adapt them to ensure that energy systems work when they are needed most, and deliver new solutions,” said Remi Dornier, Vice President, Architecture, Engineering and Construction Industry, Dassault Systèmes.  

    ###

    FOR MORE INFORMATION

    Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

      

    ABOUT DASSAULT SYSTÈMES

    Dassault Systèmes is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com

    © Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

    Dassault Systèmes Press Contacts
    Corporate / France        Arnaud MALHERBE        arnaud.malherbe@3ds.com        +33 (0)1 61 62 87 73
    North America        Natasha LEVANTI        natasha.levanti@3ds.com        +1 (508) 449 8097
    EMEA        Virginie BLINDENBERG        virginie.blindenberg@3ds.com        +33 (0) 1 61 62 84 21
    China        Grace MU        grace.mu@3ds.com        +86 10 6536 2288
    Japan        Reina YAMAGUCHI        reina.yamaguchi@3ds.com        +81 90 9325 2545
    Korea        Jeemin JEONG        jeemin.jeong@3ds.com         +82 2 3271 6653

    Attachment

    The MIL Network –

  • MIL-OSI: Dassault Systèmes: Third quarter results in-line – Anticipating top line acceleration in 4Q – Confirming full year EPS objective

    Source: GlobeNewswire (MIL-OSI)

    Press Release

    VELIZY-VILLACOUBLAY, France — October 24, 2024

    Dassault Systèmes: Third quarter results in-line

    Anticipating top line acceleration in 4Q

    Confirming full year EPS objective

    Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the third quarter 2024 and nine months ended September 30, 2024. The Group’s Board of Directors approved these estimated results on October 23, 2024. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

    Summary Highlights1  

    (unaudited, non-IFRS unless otherwise noted,
    all growth rates in constant currencies)

    • 3Q24: total revenue rose 4% to €1.46 billion driven by subscription revenue up 8%;
    • 3Q24: sequential improvement of MEDIDATA revenue;
    • 3Q24: operating margin of 29.6% and EPS at €0.29, in line with guidance;
    • YTD24: IFRS cash flow from operations up 6% as reported;
    • FY24: confirming diluted EPS objectives of €1.27 – €1.30, while updating total revenue growth from 6 – 8% to 5 – 7% to reflect the continued scrutiny and contraction of the automotive market. Anticipating total revenue growth acceleration at 8% mid-point in 4Q24.

    Dassault Systèmes’ Chief Executive Officer Commentary

    Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

    “As we enter the second half of the year, we have seen several end-markets gaining momentum. In Life Sciences, MEDIDATA is back to sequential growth improvement. At the same time, we had excellent performance in Consumer industries driven by CENTRIC PLM. SOLIDWORKS accelerated growth in revenue and seats. Importantly, Aerospace & Defense was resilient and delivered a solid performance this quarter.

    However, since late summer, automotive customers in Europe and the US have been impacted by a contraction in volumes. This accelerates the need for transformative decisions, while elongating decision-making in the short term. Momentum in Asia, and China in particular, remains strong.

    We are well-positioned to continue gaining market share in the industrial sector. We are confident that our data-centric platform will serve as a catalyst for transformation. In the age of AI, virtualizing industrial processes from design to manufacturing will be a prerequisite for OEMs and suppliers to compete successfully in this next decade.”  

      

    Dassault Systèmes’ Chief Financial Officer Commentary

    (revenue, operating margin and diluted EPS growth rates in constant currencies,
    data on a non-IFRS basis)

    Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

    “In the third quarter, our total revenue grew by 4%, while the operating margin remained resilient at 29.6% and EPS stood at €0.29, highlighting the operating efficiency of the company.

    For the full year, we are reconfirming our EPS target range of €1.27 – €1.30 while remaining disciplined to offset the effects of ongoing deal delays and contraction in automotive volumes. Accordingly, we are adjusting our total revenue growth expectations from 6 – 8% to 5 – 7%.

    This updated guidance reflects expected growth acceleration in the fourth quarter, driven by continued improvements at MEDIDATA and a robust 3DEXPERIENCE pipeline.”

    Financial Summary

    In millions of Euros,
    except per share data and percentages    		   IFRS   IFRS
      Q3 2024 Q3 2023 Change Change in constant currencies   YTD 2024 YTD 2023 Change Change in constant currencies
    Total Revenue   1,463.9 1,424.7 3% 4%   4,459.3 4,308.0 4% 4%
    Software Revenue   1,312.4 1,286.7 2% 3%   4,011.8 3,883.9 3% 4%
    Operating Margin   18.9% 21.2% (2.4)pts     19.6% 20.0% (0.3)pt  
    Diluted EPS   0.18 0.18 0%     0.61 0.54 12%  
    In millions of Euros,
    except per share data and percentages    		   Non-IFRS   Non-IFRS
      Q3 2024 Q3 2023 Change Change in constant currencies   YTD 2024 YTD 2023 Change Change in constant currencies
    Total Revenue   1,463.9 1,424.7 3% 4%   4,459.3 4,308.0 4% 4%
    Software Revenue   1,312.4 1,286.7 2% 3%   4,011.8 3,883.9 3% 4%
    Operating Margin   29.6% 31.0% (1.5)pt     30.2% 31.0% (0.8)pt  
    Diluted EPS   0.29 0.28 3% 4%   0.89 0.84 6% 8%

    Third Quarter 2024 Versus 2023 Financial Comparisons

    (unaudited, IFRS and non-IFRS unless otherwise noted,
    all revenue growth rates in constant currencies)

    • Total Revenue: Total revenue in the third quarter grew by 4% to €1.46 billion, and software revenue increased by 3% to €1.31 billion, both at the low end of the Company’s objectives. Subscription & support revenue rose 5%; recurring revenue represented 83% of software revenue, up 2 percentage points compared to last year. Licenses and other software revenue declined by 7% to €229 million. Services revenue increased by 10% to €151 million, during the quarter.
    • Software Revenue by Geography: Revenue in the Americas increased by 6% to represent 41% of software revenue, led by Home & Lifestyle from an Industry standpoint. Europe (36% of software revenue) declined by 4%, largely impacted by a strong comparison basis after a large transformation deal signed in the third quarter of 2023. In Asia, revenue increased by 9% with continued momentum across countries led by improvement in China, up double digits. Asia represented 23% of software revenue at the end of the third quarter.
    • Software Revenue by Product Line:
      • Industrial Innovation software revenue declined by 1% to €685 million, against a high comparison basis. The strong baseline effect combined with a weaker automotive market in Europe and the US weighed on the performance. Industrial Innovation software represented 52% of software revenue, during the period.
      • Life Sciences software revenue was flat, at €280 million, accounting for 21% of software revenue. Sequential growth improvement confirms MEDIDATA progressive recovery.
      • Mainstream Innovation software revenue increased by 15% to €348 million and represented 26% of software revenue. SOLIDWORKS had a good start in the second half of 2024, up mid-single digits in the quarter. CENTRIC PLM delivered another excellent quarter, due to competitive displacements and strong renewals.
    • Software Revenue by Industry: Home & Lifestyle, High-Tech, Aerospace & Defense and Marine & Offshore were among the best performers during the quarter.
    • Key Strategic Drivers: 3DEXPERIENCE software revenue was impacted by a tough comparison base due to the anniversary of a mega deal. Hence, we saw a temporary decline of 10%. However, the performance on a year-to-date basis was in line with objectives and, looking at the subscription growth, the trend was very strong at 41%. 3DEXPERIENCE software revenue represented 37% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue during the period. Excluding MEDIDATA, Cloud software revenue increased by a strong 38%.
    • Operating Income and Margin: IFRS operating income declined by 9% at €276 million, as reported. Non-IFRS operating income declined by 1% in constant currencies at €433 million (2% as reported). The IFRS operating margin stood at 18.9% compared to 21.2% in the third quarter of 2023. The non-IFRS operating margin totaled 29.6% versus 31.0% during the same period last year.
    • Earnings per Share: IFRS diluted EPS was €0.18, flat as reported. Non-IFRS diluted EPS grew to €0.29, up 3% as reported, or 4% in constant currencies.

    Nine months ended 2024 Versus 2023 Financial Comparisons

    (unaudited, IFRS and non-IFRS unless otherwise noted,
    all revenue growth rates in constant currencies)

    • Total Revenue: Total revenue grew by 4% to €4.46 billion. Software revenue increased by 4% to €4.01 billion. Subscription and support revenue rose 5% to €3.29 billion; recurring revenue represented 82% of total software revenue. Licenses and other software revenue declined by 1% to €720 million. Services revenue rose 6% to €448 million.
    • Software Revenue by Geography: The Americas grew 3% and represented 40% of software revenue. Europe rose by 2% and represented 37% of software revenue. Asia increased by 9%, representing 23% of software revenue.
    • Software Revenue by Product Line:
      • Industrial Innovation software revenue rose by 4% to €2.12 billion and represented 53% of software revenue. ENOVIA, SIMULIA and DELMIA exhibited the strongest performance.
      • Life Sciences software revenue decreased by 2% to €847 million, representing 21% of software revenue.
      • Mainstream Innovation software revenue increased by 11% to €1.05 billion. Mainstream Innovation represented 26% of software revenue. SOLIDWORKS delivered mid-single digit growth while CENTRIC PLM continued to perform well with strong, double-digit growth.
    • Software Revenue by Industry: Home & Lifestyle, Aerospace and Defense, High-Tech and Consumer Packaged Good & Retail displayed some of the strongest performance.
    • Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 10%, representing 37% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue. Excluding MEDIDATA, Cloud software revenue increased by more than 50% versus the same period last year.
    • Operating Income and Margin: IFRS operating income increased by 2%, to €876 million, as reported. Non-IFRS operating income increased by 1% as reported (2% in constant currencies) to €1.35 billion. IFRS operating margin totaled 19.6% compared to 20.0% for the same period in 2023. The non-IFRS operating margin was preserved, standing at 30.2% in the first nine months of 2024 compared to 31.0% in the same period last year, thanks to cost containment measures.
    • Earnings per Share: IFRS diluted EPS was €0.61 increasing 12% as reported. Non-IFRS diluted EPS grew by 6% to €0.89, as reported, up 8% in constant currencies.
    • Cash Flow from Operations (IFRS): Cash flow from operations totaled €1.35 billion, up 6% year over year, thanks to the increase in net income adjusted for non-cash items and positive cash tax effects in 2024.
    • Balance Sheet (IFRS): Dassault Systèmes’ net financial position totaled €1.07 billion as of September 30, 2024, an increase of €0.49 billion, compared to €0.58 billion for the year ending December 31, 2023. Cash and cash equivalents totaled €3.66 billion as of September 30, 2024. The movements of the quarter on cash and cash equivalents include the reimbursement for €700 million of the second Tranche of the Bond issued by the company in 2019.

    Financial Objectives for 2024

    Dassault Systèmes’ fourth quarter and 2024 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2024 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:

               
          Q4 2024 FY 2024  
      Total Revenue (billion) €1.696 – €1.816 €6.155 – €6.275  
      Growth 3 – 10% 3 – 5%  
      Growth ex FX 5 – 12% 5 – 7%  
               
      Software revenue growth * 5 – 13% 5 – 7%  
        Of which licenses and other software revenue growth * 0 – 20% (1) – 6%  
        Of which recurring revenue growth * 7 – 11% 6 – 7%  
     

    Services revenue growth *

    0 – 5%

    		 4 – 6%  
               
      Operating Margin 35.9% – 36.9% 31.8% – 32.2%  
               
      EPS Diluted €0.38 – €0.41 €1.27 – €1.30  
      Growth 4 – 12% 5 – 8%  
      Growth ex FX 5 – 13% 7 – 10%  
               
      US dollar $1.10 per Euro $1.09 per Euro  
      Japanese yen (before hedging) JPY 155.0 per Euro JPY 162.0 per Euro  
      * Growth in Constant Currencies      

    These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

    The 2024 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2024 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €232 million (these estimates do not include any new stock option or share grants issued after September 30, 2024); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €360 million, largely impacted by the acquisition of MEDIDATA; and lease incentives of acquired companies at approximately €2 million.

    The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after September 30, 2024.

    Corporate Announcements

    Today’s Webcast and Conference Call Information

    Today, Thursday, October 24, 2024, Dassault Systèmes will host, from London, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

    Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

    Investor Relations Events

    • Fourth Quarter 2024 Earnings Release: February 4, 2025
    • First Quarter 2025 Earnings Release: April 24, 2025
    • Second Quarter 2025 Earnings Release: July 24, 2025

    Forward-looking Information

    Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

    The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2023 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2024, available on the Group’s website www.3ds.com.

    In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2023 Universal Registration Document set out below for ease of reference:

    “In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

    • the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or terminate their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
    • the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and impact Dassault Systèmes’ business, for example, due to stricter export compliance rules or the introduction of new customs tariffs;
    • continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
    • uncertainties regarding the extent and duration of inflation could adversely affect the financial position of Dassault Systèmes; and
    • the sales cycle of Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

    The occurrence of crises – health and political in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively impact Dassault Systèmes’ revenue, financial performance and market position.

    Dassault Systèmes makes every effort to take into consideration this uncertain macroeconomic outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

    In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the fourth quarter 2024. The Group has assumed an average US dollar to euro exchange rate of US$1.09 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY162.0 to €1.00, before hedging for the full year 2024. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.   

    Non-IFRS Financial Information

    Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2023 Universal Registration Document filed with the AMF on March 18, 2024.

    In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

    FOR MORE INFORMATION

    Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

    ABOUT DASSAULT SYSTÈMES

    Dassault Systèmes is a catalyst for human progress. We provide business and people with collaborative virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 350,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com

    Dassault Systèmes Investor Relations Team                        FTI Consulting

    Beatrix Martinez: +33 1 61 62 40 73                                Arnaud de Cheffontaines: +33 1 47 03 69 48

                                                                    Jamie Ricketts : +44 20 3727 1600

    investors@3ds.com

    Dassault Systèmes Press Contacts

    Corporate / France        Arnaud MALHERBE        

    arnaud.malherbe@3ds.com        

    +33 (0)1 61 62 87 73

    © Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

    APPENDIX TABLE OF CONTENTS

    Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.    

    Glossary of Definitions

    Non-IFRS Financial Information

    Acquisitions and Foreign Exchange Impact

    Condensed consolidated statements of income

    Condensed consolidated balance sheet

    Condensed consolidated cash flow statement

    IFRS – non-IFRS reconciliation

    DASSAULT SYSTÈMES – Glossary of Definitions

    Information in Constant Currencies

    Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

    While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant exchange rates is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

    Information on Growth excluding acquisitions (“organic growth”)

    In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

    Information on Industrial Sectors

    The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

    These three sectors comprise twelve industries:

    • Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
    • Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, med practices, and Medtech;
    • Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

    Information on Product Lines

    The Group’s product lines financial reporting include the following financial information:

    • Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
    • Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
    • Mainstream Innovation software revenue which includes its CENTRIC PLM and 3DVIA brands, as well as its 3DEXPERIENCE WORKS family which includes the SOLIDWORKS brand.

    Starting from 2022, 3DS OUTSCALE became a brand of Dassault Systèmes. As the first sovereign and sustainable operator on the cloud, 3DS OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

    GEO’s

    Eleven GEOs are responsible for driving development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

    These GEOs are structured into three groups:

    • the “Americas” group, made of two GEO’s;
    • the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEO’s;
    • the “Asia” group, comprising Asia and Oceania and made of five GEO’s.  

    3DEXPERIENCE Software Contribution

    To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes uses the following ratio: for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

    Cloud revenue

    Cloud revenues correspond to revenue generated through a catalog of cloud-based solutions, infrastructure as a service, cloud solution development and cloud managed services. They are delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. These offerings are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscriptions models or perpetual licenses with support and hosting services.

    DASSAULT SYSTÈMES

    NON-IFRS FINANCIAL INFORMATION

    (unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

    Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

    Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

    In millions of Euros, except per share data, percentages, headcount and exchange rates Non-IFRS reported
    Three months ended Nine months ended
    September 30,

    2024

    		 September 30,

    2023

    		 Change Change in constant currencies September 30,

    2024

    		 September 30,

    2023

    		 Change Change in constant currencies
    Total Revenue € 1,463.9 € 1,424.7 3% 4% € 4,459.3 € 4,308.0 4% 4%
                     
    Revenue breakdown by activity                
    Software revenue 1,312.4 1,286.7 2% 3% 4,011.8 3,883.9 3% 4%
    Of which licenses and other software revenue 229.5 246.0 (7)% (7)% 719.8 735.8 (2)% (1)%
    Of which subscription and support revenue 1,082.9 1,040.8 4% 5% 3,292.0 3,148.1 5% 5%
    Services revenue 151.5 138.0 10% 10% 447.6 424.1 6% 6%
                     
    Software revenue breakdown by product line                
    Industrial Innovation 684.6 698.8 (2)% (1)% 2,117.9 2,070.7 2% 4%
    Life Sciences 280.1 283.6 (1)% (0)% 846.6 863.8 (2)% (2)%
    Mainstream Innovation 347.7 304.2 14% 15% 1,047.4 949.5 10% 11%
                     
    Software Revenue breakdown by geography                
    Americas 540.6 513.6 5% 6% 1,619.7 1,575.2 3% 3%
    Europe 470.3 490.5 (4)% (4)% 1,465.4 1,426.3 3% 2%
    Asia 301.5 282.7 7% 9% 926.6 882.4 5% 9%
                     
    Operating income € 432.6 € 442.0 (2)%   € 1,347.0 € 1,335.7 1%  
    Operating margin 29.6% 31.0%     30.2% 31.0%    
                     
    Net income attributable to shareholders € 380.1 € 371.3 2%   € 1,174.4 € 1,110.7 6%  
    Diluted earnings per share € 0.29 € 0.28 3% 4% € 0.89 € 0.84 6% 8%
                     
    Closing headcount 25,996 25,377 2%   25,996 25,377 2%  
                     
    Average Rate USD per Euro 1.10 1.09 1%   1.09 1.08 0%  
    Average Rate JPY per Euro 163.95 157.25 4%   164.29 149.65 10%  

    DASSAULT SYSTÈMES

    ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

    (unaudited; in millions of Euros)

    In millions of Euros Non-IFRS reported o/w growth at constant rate and scope o/w change of scope impact at current year rate o/w FX impact on previous year figures
    September 30,

    2024

    		 September 30,

    2023

    		 Change
    Revenue QTD 1,463.9 1,424.7 39.2 49.8 1.3 (11.8)
    Revenue YTD 4,459.3 4,308.0 151.3 190.2 1.6 (40.4)

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (unaudited; in millions of Euros, except per share data and percentages)

    In millions of Euros, except per share data and percentages IFRS reported
    Three months ended Nine months ended
    September 30, September 30, September 30, September 30,
    2024 2023 2024 2023
    Licenses and other software revenue 229.5 246.0 719.8 735.8
    Subscription and Support revenue 1,082.9 1,040.8 3,292.0 3,148.1
    Software revenue 1,312.4 1,286.7 4,011.8 3,883.9
    Services revenue 151.5 138.0 447.6 424.1
    Total Revenue € 1,463.9 € 1,424.7 € 4,459.3 € 4,308.0
    Cost of software revenue (1) (127.6) (105.2) (364.4) (329.0)
    Cost of services revenue (125.3) (133.1) (385.0) (386.1)
    Research and development expenses (321.0) (299.2) (958.5) (910.8)
    Marketing and sales expenses (403.7) (381.0) (1,247.7) (1,195.2)
    General and administrative expenses (117.5) (103.2) (334.1) (325.9)
    Amortization of acquired intangible assets and of tangible assets revaluation (88.5) (93.4) (274.1) (284.0)
    Other operating income and expense, net (4.2) (7.1) (19.2) (16.7)
    Total Operating Expenses (1,187.7) (1,122.2) (3,583.1) (3,447.7)
    Operating Income € 276.2 € 302.5 € 876.2 € 860.3
    Financial income (loss), net 32.1 (4.3) 95.5 31.1
    Income before income taxes € 308.2 € 298.2 € 971.7 € 891.5
    Income tax expense (68.5) (54.9) (184.4) (171.5)
    Net Income € 239.8 € 243.3 € 787.2 € 719.9
    Non-controlling interest (0.0) 0.1 0.9 1.0
    Net Income attributable to equity holders of the parent € 239.7 € 243.5 € 788.2 € 720.9
    Basic earnings per share 0.18 0.18 0.60 0.55
    Diluted earnings per share € 0.18 € 0.18 € 0.61 € 0.54
    Basic weighted average shares outstanding (in millions) 1,313.3 1,316.1 1,313.4 1,315.2
    Diluted weighted average shares outstanding (in millions) 1,323.1 1,326.1 1,327.0 1,326.8

    (1) Excluding amortization of acquired intangible assets and of tangible assets revaluation.

    IFRS reported

     

    		 Three months ended September 30, 2024 Nine months ended September 30, 2024
    Change (2) Change in constant currencies Change (2) Change in constant currencies
    Total Revenue 3% 4% 4% 4%
    Revenue by activity        
    Software revenue 2% 3% 3% 4%
    Services revenue 10% 10% 6% 6%
    Software Revenue by product line        
    Industrial Innovation (2)% (1)% 2% 4%
    Life Sciences (1)% (0)% (2)% (2)%
    Mainstream Innovation 14% 15% 10% 11%
    Software Revenue by geography        
    Americas 5% 6% 3% 3%
    Europe (4)% (4)% 3% 2%
    Asia 7% 9% 5% 9%

    (2) Variation compared to the same period in the prior year.

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED BALANCE SHEET

    (unaudited; in millions of Euros)

    In millions of Euros IFRS reported
    September 30, December 31,
    2024 2023
    ASSETS    
    Cash and cash equivalents 3,657.7 3,568.3
    Trade accounts receivable, net 1,359.8 1,707.9
    Contract assets 45.1 26.8
    Other current assets 495.1 477.1
    Total current assets 5,557.7 5,780.1
    Property and equipment, net 946.2 882.8
    Goodwill and Intangible assets, net 7,301.4 7,647.0
    Other non-current assets 253.2 312.5
    Total non-current assets 8,500.7 8,842.3
    Total Assets € 14,058.4 € 14,622.5
    LIABILITIES    
    Trade accounts payable 181.2 230.5
    Contract liabilities 1,376.7 1,479.3
    Borrowings, current 548.8 950.1
    Other current liabilities 768.6 901.0
    Total current liabilities 2,875.4 3,561.0
    Borrowings, non-current 2,042.8 2,040.6
    Other non-current liabilities 1,137.7 1,174.8
    Total non-current liabilities 3,180.5 3,215.4
    Non-controlling interests 13.8 11.9
    Parent shareholders’ equity 7,988.7 7,834.1
    Total Liabilities € 14,058.4 € 14,622.5

    DASSAULT SYSTÈMES

    CONDENSED CONSOLIDATED CASH FLOW STATEMENT

    (unaudited; in millions of Euros)

    In millions of Euros IFRS reported
    Three months ended Nine months ended
    September 30, September 30, Change September 30, September 30, Change
    2024 2023 2024 2023
    Net income attributable to equity holders of the parent 239.7 243.5 (3.7) 788.2 720.9 67.3
    Non-controlling interest 0.0 (0.1) 0.1 (0.9) (1.0) 0.0
    Net income 239.8 243.3 (3.6) 787.2 719.9 67.3
    Depreciation of property and equipment 49.4 47.3 2.1 142.1 138.4 3.7
    Amortization of intangible assets 90.3 95.2 (5.0) 279.7 290.3 (10.6)
    Adjustments for other non-cash items 39.3 65.4 (26.1) 113.6 123.5 (10.0)
    Changes in working capital (201.1) (205.3) 4.2 25.2 (0.4) 25.6
    Net Cash From Operating Activities € 217.6 € 246.0 € (28.4) € 1,347.8 € 1,271.7 € 76.0
                 
    Additions to property, equipment and intangibles assets (36.5) (35.1) (1.4) (144.3) (102.8) (41.5)
    Payment for acquisition of businesses, net of cash acquired (2.6) (14.8) 12.2 (18.3) (15.6) (2.6)
    Other 0.7 4.5 (3.8) 23.9 (0.4) 24.2
    Net Cash Provided by (Used in) Investing Activities € (38.3) € (45.3) €7.0 € (138.7) € (118.8) € (19.9)
                 
    Proceeds from exercise of stock options 8.8 11.6 (2.7) 44.0 38.5 5.5
    Cash dividends paid – (0.0) 0.0 (302.7) (276.3) (26.4)
    Repurchase and sale of treasury stock (65.8) (218.6) 152.8 (373.5) (386.0) 12.5
    Capital increase (0.0) 0.0 (0.0) – 146.1 (146.1)
    Acquisition of non-controlling interests (0.7) 0.0 (0.7) (3.3) (0.8) (2.5)
    Proceeds from borrowings 300.0 (0.3) 300.3 300.0 20.3 279.7
    Repayment of borrowings (700.5) (0.9) (699.6) (700.7) (28.2) (672.5)
    Repayment of lease liabilities (18.7) (21.1) 2.4 (61.0) (63.0) 2.1
    Net Cash Provided by (Used in) Financing Activities € (476.9) € (229.4) € (247.5) € (1,097.1) € (549.4) €( 547.7)
                 
    Effect of exchange rate changes on cash and cash equivalents (76.2) 51.7 (127.9) (22.6) (4.4) (18.2)
                 
    Increase (decrease) in cash and cash equivalents € (373.8) €22.7 € (396.5) € 89.4 € 599.2 € (509.8)
                 
    Cash and cash equivalents at beginning of period € 4,031.5 € 3,345.4   € 3,568.3 € 2,769.0  
    Cash and cash equivalents at end of period € 3,657.7 € 3,368.1   € 3,657.7 € 3,368.1  

    DASSAULT SYSTÈMES
    SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
    IFRS – NON-IFRS RECONCILIATION
    (unaudited; in millions of Euros, except per share data and percentages)

    Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

    In millions of Euros, except per share data and percentages Three months ended September 30, Change
    2024 Adjustment(1) 2024 2023 Adjustment(1) 2023 IFRS Non-IFRS(2)
    IFRS Non-IFRS IFRS Non-IFRS
    Total Revenue € 1,463.9 – € 1,463.9 € 1,424.7 – € 1,424.7 3% 3%
    Revenue breakdown by activity                
    Software revenue 1,312.4 – 1,312.4 1,286.7 – 1,286.7 2% 2%
    Licenses and other software revenue 229.5 – 229.5 246.0 – 246.0 (7)% (7)%
    Subscription and Support revenue 1,082.9 – 1,082.9 1,040.8 – 1,040.8 4% 4%
    Recurring portion of Software revenue 83%   83% 81%   81%    
    Services revenue 151.5 – 151.5 138.0 – 138.0 10% 10%
    Software Revenue breakdown by product line                
    Industrial Innovation 684.6 – 684.6 698.8 – 698.8 (2)% (2)%
    Life Sciences 280.1 – 280.1 283.6 – 283.6 (1)% (1)%
    Mainstream Innovation 347.7 – 347.7 304.2 – 304.2 14% 14%
    Software Revenue breakdown by geography                
    Americas 540.6 – 540.6 513.6 – 513.6 5% 5%
    Europe 470.3 – 470.3 490.5 – 490.5 (4)% (4)%
    Asia 301.5 – 301.5 282.7 – 282.7 7% 7%
    Total Operating Expenses € (1,187.7) € 156.5 € (1,031.2) € (1,122.2) € 139.5 € (982.7) 6% 5%
    Share-based compensation expense and related social charges (63.4) 63.4 – (38.4) 38.4 –    
    Amortization of acquired intangible assets and of tangible assets revaluation (88.5) 88.5 – (93.4) 93.4 –    
    Lease incentives of acquired companies (0.4) 0.4 – (0.7) 0.7 –    
    Other operating income and expense, net (4.2) 4.2 – (7.1) 7.1 –    
    Operating Income € 276.2 € 156.5 € 432.6 € 302.5 € 139.5 € 442.0 (9)% (2)%
    Operating Margin 18.9%   29.6% 21.2%   31.0%    
    Financial income (loss), net 32.1 0.6 32.6 (4.3) 26.8 22.5 N/A 45%
    Income tax expense (68.5) (15.8) (84.3) (54.9) (38.1) (93.0) 25% (9)%
    Non-controlling interest (0.0) (0.9) (0.9) 0.1 (0.4) (0.3) (117)% 229%
    Net Income attributable to shareholders € 239.7 € 140.3 € 380.1 € 243.5 € 127.8 € 371.3 (2)% 2%
    Diluted Earnings Per Share (3) € 0.18 € 0.10 € 0.29 € 0.18 € 0.10 € 0.28 0% 3%

    (1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

    In millions of Euros, except percentages Three months ended September 30, Change
    2024

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2024

    Non-IFRS

    		 2023

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2023

    Non-IFRS

    		 IFRS Non-

    IFRS
    Cost of revenue (252.9) 3.3 0.1 (249.5) (238.2) 2.1 0.2 (236.0) 6% 6%
    Research and development expenses (321.0) 20.4 0.2 (300.4) (299.2) 14.9 0.3 (284.1) 7% 6%
    Marketing and sales expenses (403.7) 18.9 0.0 (384.8) (381.0) 11.1 0.1 (369.8) 6% 4%
    General and administrative expenses (117.5) 20.8 0.0 (96.6) (103.2) 10.3 0.0 (92.9) 14% 4%
    Total   € 63.4 € 0.4     € 38.4 € 0.7      

    (2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
    (3) Based on a weighted average 1,323.1 million diluted shares for Q3 2024 and 1,326.1 million diluted shares for Q3 2023, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 243.2 million for Q3 2024 (€ 243.5 million for Q3 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

    DASSAULT SYSTÈMES
    SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
    IFRS – NON-IFRS RECONCILIATION
    (unaudited; in millions of Euros, except per share data and percentages)

    Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

    In millions of Euros, except per share data and percentages Nine months ended September 30, Change
    2024 Adjustment(1) 2024 2023 Adjustment(1) 2023 IFRS Non-IFRS(2)
    IFRS Non-IFRS IFRS Non-IFRS
    Total Revenue € 4,459.3   € 4,459.3 € 4,308.0 – € 4,308.0 4% 4%
    Revenue breakdown by activity                
    Software revenue 4,011.8   4,011.8 3,883.9 – 3,883.9 3% 3%
    Licenses and other software revenue 719.8 – 719.8 735.8 – 735.8 (2)% (2)%
    Subscription and Support revenue 3,292.0   3,292.0 3,148.1 – 3,148.1 5% 5%
    Recurring portion of Software revenue 82%   82% 81%   81%    
    Services revenue 447.6 – 447.6 424.1 – 424.1 6% 6%
    Software Revenue breakdown by product line                
    Industrial Innovation 2,117.9 – 2,117.9 2,070.7 – 2,070.7 2% 2%
    Life Sciences 846.6 – 846.6 863.8 – 863.8 (2)% (2)%
    Mainstream Innovation 1,047.4 – 1,047.4 949.5 – 949.5 10% 10%
    Software Revenue breakdown by geography                
    Americas 1,619.7   1,619.7 1,575.2 – 1,575.2 3% 3%
    Europe 1,465.4 – 1,465.4 1,426.3 – 1,426.3 3% 3%
    Asia 926.6 – 926.6 882.4 – 882.4 5% 5%
    Total Operating Expenses € (3,583.1) € 470.8 € (3,112.4) € (3,447.7) € 475.4 € (2,972.3) 4% 5%
    Share-based compensation expense and related social charges (175.9) 175.9 – (172.6) 172.6 –    
    Amortization of acquired intangible assets and of tangible assets revaluation (274.1) 274.1 – (284.0) 284.0 –    
    Lease incentives of acquired companies (1.5) 1.5 – (2.1) 2.1 –    
    Other operating income and expense, net (19.2) 19.2 – (16.7) 16.7 –    
    Operating Income € 876.2 € 470.8 € 1,347.0 € 860.3 € 475.4 € 1,335.7 2% 1%
    Operating Margin 19.6%   30.2% 20.0%   31.0%    
    Financial income (loss), net 95.5 2.1 97.6 31.1 28.3 59.4 207% 64%
    Income tax expense (184.4) (83.8) (268.2) (171.5) (112.8) (284.3) 8% (6)%
    Non-controlling interest 0.9 (2.8) (1.9) 1.0 (1.2) (0.2) (3)% N/A
    Net Income attributable to shareholders € 788.2 € 386.2 € 1,174.4 € 720.9 € 389.7 € 1,110.7 9% 6%
    Diluted Earnings Per Share (3) € 0.61 € 0.28 € 0.89 € 0.54 € 0.29 € 0.84 12% 6%

    (1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

    In millions of Euros, except percentages Nine months ended September 30, Change
    2024

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2024

    Non-IFRS

    		 2023

    IFRS

    		 Share-based compensation expense and related social charges Lease incentives of acquired companies 2023

    Non-IFRS

    		 IFRS Non-

    IFRS
    Cost of revenue (749.4) 11.2 0.4 (737.8) (715.1) 12.1 0.6 (702.3) 5% 5%
    Research and development expenses (958.5) 58.7 0.7 (899.1) (910.8) 65.9 0.9 (844.0) 5% 7%
    Marketing and sales expenses (1,247.7) 55.7 0.2 (1,191.8) (1,195.2) 52.7 0.4 (1,142.2) 4% 4%
    General and administrative expenses (334.1) 50.3 0.1 (283.7) (325.9) 42.0 0.1 (283.8) 3% (0)%
    Total   € 175.9 € 1.5     € 172.6 € 2.1      

    (2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
    (3) Based on a weighted average 1,327.0 million diluted shares for YTD 2024 and 1,326.8 million diluted shares for YTD 2023, and, for IFRS only, a diluted net income attributable to the shareholders of € 805.5 million for YTD 2024 (€ 720.9 million for YTD 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

    1 IFRS figures for 3Q24: total revenue at €1.46 billion, operating margin of 18.9% and diluted EPS at €0.18; IFRS figures for YTD24: total revenue at €4.46 billion, operating margin of 19.6% and diluted EPS at €0.61.  

    Attachment

    The MIL Network –

  • MIL-OSI Asia-Pac: FS promotes HK’s advantages in US

    Source: Hong Kong Information Services

    Financial Secretary Paul Chan delivered a speech and held discussions with President of the National Committee on United States-China Relations Steve Orlins as he continued a visit to New York, the US.

    Mr Chan gave his speech at a lunch co-hosted by the Hong Kong Economic & Trade Office in New York and the Hong Kong Association of New York and attended by around 80 representatives from the business sector and from various institutions, chambers of commerce and think tanks.

    At the lunch, he also discussed topics of interest relating to Hong Kong in US political and business circles with Mr Orlins.

    In his address, Mr Chan spoke about Hong Kong’s economic situation and development strategies. He focused in particular on new initiatives in areas such as finance and innovation and technology, policies and achievements related to attracting businesses and talent, and Hong Kong’s increasingly close co-operation and collaborations with sister cities in the Greater Bay Area.

    Mr Chan stated that the “one country, two systems” arrangement will in place in Hong Kong for the long term. He emphasised that the city will continue to play a unique role as a super-connector and super value-adder, linking the Mainland’s capital markets and investors with those of the global community to create value and opportunities for all.

    He highlighted that Hong Kong maintains its common law system, upholds the rule of law, provides an open, free, and simple low-tax business environment, and protects investors’ rights. Following the implementation of national security legislation, he added, foreign businesses continue to have confidence in Hong Kong, and various international institutions have affirmed the city’s excellent business environment and competitiveness.

    The Financial Secretary highlighted that Hong Kong values the strengthening of relationships with traditional markets and welcomes continued investments from the US business community. He said that the Hong Kong Special Administrative Region Government will continue to present the real situation in Hong Kong through objective facts and data, and will maintain communication and connections with political and business sectors in the US.

    Earlier, Mr Chan had breakfast with local political and business figures, followed by a roundtable meeting with local financial and banking professionals in which he briefed them on Hong Kong’s latest situation and opportunities, and took questions.

    Mr Chan met Acting Consul General of China in New York Ma Xiaoxiao in the afternoon to discuss China-US economic and trade relations.

    MIL OSI Asia Pacific News –

  • MIL-OSI China: China, Japan hold high-level consultations on maritime affairs

    Source: People’s Republic of China – State Council News

    TOKYO, Oct. 24 — China and Japan held the 17th round of high-level consultations on maritime affairs in Tokyo on Wednesday, exchanging in-depth views on maritime affairs and agreeing to make the East China Sea a sea of peace, cooperation and friendship.

    Director-General of the Department of Boundary and Ocean Affairs of the Chinese Foreign Ministry Hong Liang and Director-General of the Asian and Oceanian Affairs Bureau of the Japanese Foreign Ministry Hiroyuki Namazu co-chaired the 17th round of consultations of the High-level Consultation Mechanism on Maritime Affairs between China and Japan. Representatives of the departments related to maritime affairs from the two countries were present.

    This round of consultations saw a plenary meeting and three working group meetings on maritime defense, maritime law enforcement and security, and the marine economy.

    China elaborated on its position on issues related to the East China Sea, Diaoyu Dao, the South China Sea, and the Taiwan Straits, among others, and urged Japan to respect China’s territory, sovereignty and security concerns, and to take practical actions to promote the improvement and development of China-Japan relations.

    The two sides agreed to earnestly implement the important consensus reached by the leaders of the two countries, continue to maintain close communication on maritime affairs, properly manage and control differences, strengthen mutually beneficial cooperation, and make positive efforts to build the East China Sea into a sea of peace, cooperation and friendship.

    The two sides agreed in principle to hold the 18th round of consultations of the High-level Consultation Mechanism on Maritime Affairs between China and Japan in China next year.

    MIL OSI China News –

  • MIL-OSI China: Bridge girder erection machine enhances railway construction in SW China

    Source: People’s Republic of China – State Council News

    Bridge girder erection machine enhances railway construction in SW China

    Updated: October 24, 2024 14:52 Xinhua

    Meet China’s bridge-building robot! A 900-tonne level bridge girder erection machine has been put into use to build a bridge of the Chongqing-Wanzhou high-speed railway in southwest China.

    MIL OSI China News –

  • MIL-OSI China: Scientific payloads of China’s first reusable, returnable satellite delivered to users

    Source: People’s Republic of China – State Council News

    Scientific payloads of China’s first reusable, returnable satellite delivered to users

    BEIJING, Oct. 24 — The scientific payloads for space breeding and other sci-tech experiments carried by China’s first reusable and returnable satellite, Shijian-19, were delivered to Chinese and foreign users on Thursday.

    At the payloads handover ceremony held by the China National Space Administration (CNSA) in Beijing on Thursday, the CNSA and the China Aerospace Science and Technology Corporation signed payload delivery certificates with domestic and international users, including those from Thailand and Pakistan.

    Bian Zhigang, deputy head of CNSA, said the Shijian-19 mission fully leverages the advantages of the new generation retrievable space experiment platform, conducting space breeding experiments of about 1,000 species of germplasm resources, providing crucial support for the innovation of germplasm resources in China. The mission has also offered a valuable in-orbit validation opportunity for domestically produced components and raw materials.

    The Shijian-19 satellite was sent into orbit from the Jiuquan Satellite Launch Center in northwest China on Sept. 27, and was successfully retrieved at the Dongfeng landing site in north China’s Inner Mongolia Autonomous Region on Oct. 11.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: Opening keynote address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at AIMA APAC Annual Forum 2024 (English only) (with photos)

    Source: Hong Kong Government special administrative region

         Following is the opening keynote address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the AIMA (Alternative Investment Management Association) APAC (Asia-Pacific) Annual Forum 2024 today (October 24):
     
    Jack (Chief Executive Officer of AIMA, Mr Jack Inglis), JiÅ™í (Deputy Chief Executive Officer and Global Head of Government Affairs, AIMA, Mr JiÅ™í Król), Murray (Chairman of AIMA Hong Kong Executive Committee, Mr Murray Steel), Michael (Managing Director and Co-Head of APAC, AIMA, Mr Michael Bugel), distinguished guests, ladies and gentlemen,
     
         Good morning. It gives me great pleasure to address you all today at the 2024 APAC Annual Forum of the Alternative Investment Management Association (AIMA).
     
         With more than 2 000 corporate members from over 60 locations over the world and significantly in the Asia-Pacific region, AIMA is a strong global voice of the alternative investment industry. The impressive congregation of the bright minds of alternative asset managers, financial regulators, legal and accounting professionals, fintech experts and many more here today speaks volumes about the keen interest of industry players to share views on the continued growth of the global financial markets. I can see that AIMA Hong Kong has done a fantastic job in organising the Forum and putting together a very rich agenda for us to ponder the challenges and opportunities in the evolving global environment.
     
         For now, as a precursor to the discussions at the various panels later today, allow me to share with you how we see Hong Kong’s capital market landscape through the lens of “resilience”, “reform”, and “responsibility”.
     
    Resilient market
     
         The Hong Kong stock market as measured by the Hang Seng Index has registered a growth of over 20 per cent year-to-date. This puts us among the top performing international markets. Trading has been vibrant, with long-term institutional investors including fund managers and investment banks from the region and both sides of the Atlantic making up the majority of the buy side value over the recent period. And in September, the Hong Kong Exchanges and Clearing Limited (HKEX) welcomed in the second-largest initial public offering (IPO) globally this year so far, raising over US$4.5 billion. The derivatives market is equally active. An average of 1.5 million futures and option contracts were traded daily in the first nine months of 2024, an increase of 12 per cent year-on-year and a record high.
     
         On the asset and wealth management front, Hong Kong managed about US$4 trillion of assets last year, over 10 times our GDP (Gross Domestic Product). Net fund inflows jumped 3.4 times year-on-year. With over 650 private equity and venture capital firms, Hong Kong hosts a fund pool of private equity capital under management of over US$230 billion, putting us at Asia’s second place following the Mainland. It is no coincidence that we are also Asia’s largest hedge fund hub and cross-boundary wealth management centre. Added to these, we are home to some 2 700 single family offices.
     
         On fixed income, Hong Kong maintains its position as the primary location for arranging international bond issuances from Asian entities. Last year, close to US$90 billion worth of international bond issuances from the region were arranged in Hong Kong, equivalent to around a quarter of the market.
     
         The strong economic support measures recently announced by the Mainland central authorities has no doubt played a key role in the market’s ongoing improvement. Weaving into the market resilience is the awareness and hard work to keep up the robustness of our trading and clearing systems buttressed with sound risk-management measures. Going hand-in-hand with such discipline is the focus on diversifying our financial platform so that market participants can play out their best and capture the opportunities when they arise.
     
         In the public market, for example, we have introduced new listing avenues for pre-revenue biotech companies, innovative enterprises with weighted voting rights structures, and specialist tech companies, as well as a new concessionary route to secondary listings for overseas issuers. Overall, more than 300 new-economy companies have listed on the HKEX. They include 66 pre-revenue biotech companies, making Hong Kong one of the top fundraising hubs for healthcare companies.
     
         To further attract listings of international and Mainland enterprises, the Securities and Futures Commission (SFC) and HKEX announced last week specific timelines in the vetting procedures of listing applications to provide greater certainty over the listing timeframe.
     
         Turning to the private market, we introduced the limited partnership fund (LPF) structure in August 2020 to allow private funds to be registered in the form of limited partnerships. Since its introduction, the number of LPFs established in Hong Kong has seen an average 40 per cent annual growth and will soon hit the 1 000 mark.
     
         Hong Kong has over 4 000 start-ups. In addition, as a result of the good work of the Office for Attracting Strategic Enterprises (OASES), over 100 strategic innovation and technology international enterprises will set up or expand their businesses here, bringing in a total investment of more than HK$52 billion so far. Next month, OASES will announce a new batch of strategic enterprises including artificial intelligence and big data analytics companies from different parts of the world to have a presence in Hong Kong. All these will offer investment possibilities for the alternative investment industry.

    Continuous strategic reform
     
         To seek continuous improvements, harness change and deliver results is the driving principle in furthering the development of our capital markets. Continuous strategic reform is indeed a key theme of the Policy Address delivered by the Chief Executive of the Hong Kong Special Administrative Region last Wednesday.
     
         To enhance our international financial centre status and investment environment, the Policy Address has announced a number of reform proposals and I would like to highlight some of them here.
     
         Notably, to support the development of the asset and wealth management industry, particularly privately offered funds, private equities and family offices, we will soon consult the industry on proposals to enhance the tax exemption arrangements for related entities through three main areas, first, expanding the definition of “fund” to cover pension funds and endowment funds so as to strengthen the development of “patient capital”; second, increasing the types of transactions eligible for tax concessions for funds and single family offices to cover emission derivatives or emission allowances, insurance-linked securities, loans and private credit investments, virtual assets, etc; and thirdly, removing the requirements for certification and hurdle rate for carried interest in seeking such tax exemption arrangements. We look forward to hearing your views when the details are available, which should be very soon.
     
         On market infrastructure, we will upgrade the Central Moneymarkets Unit (CMU) to facilitate the settlement of assets denominated in different currencies by international investors. The fixed income market infrastructure will be enhanced by exploring the set-up of a central clearing system for RMB (Renminbi)-denominated bond repurchase (repo) transactions, making RMB sovereign bonds issued in Hong Kong a more popular choice of collateral in offshore markets.
     
         We will also make good use of the currency swap agreement, and the Hong Kong Monetary Authority (HKMA) will expand the night-time, cross-boundary service capability of Hong Kong’s RMB Real Time Gross Settlement System to facilitate global settlement in offshore RMB markets, and explore the provision of more diversified channels for obtaining offshore RMB financing.
     
         We will continue to enhance our market infrastructure to enrich the offshore RMB business ecosystem in Hong Kong. As you know, Hong Kong currently processes about 80 per cent of global offshore RMB payments and has the largest offshore RMB pool, reaching RMB1.1 trillion in end-August this year.
     
         Looking beyond the Asia-Pacific region, we seek to establish connections with new and emerging markets, including the Middle East, to open up new capital sources and enable international investors to bolster their portfolio management through Hong Kong’s capital markets. Following the listing of Asia’s first ETF (exchange traded fund) tracking the Saudi Arabia market in Hong Kong in November 2023, we are glad to see the listing of two ETFs in the Middle East that track Hong Kong stock indices soon.
     
         The Chief Executive’s Policy Address also announced that we will build an international gold trading market and commodity trading ecosystem, leveraging on our advantages as one of the world’s largest import and export markets for gold by volume, and foster the development of the related industry chain, ranging from investment transactions, financial trading, derivatives, insurance, storage, to trade and logistic services. We will set up a working group comprising experts and market players to work out the details.
     
         One cannot actually leave the reform agenda without touching on the changes brought about by technology. Last year, we took the lead in introducing a virtual asset (VA) service provider regulatory regime that allow the operation of licensed VA exchanges. We will introduce a dedicated piece of legislation on the regulation of fiat-referenced stablecoins before year end. Then we will have another look at the VA over-the-counter landscape followed by public consultation, while hammering out a licensing regime for VA custodian service providers.
     
    Renewed responsibility
     
         This leads naturally to my third “R”, “Responsibility”. Introducing regulatory regimes for a digitally enabled financial medium to fulfil the twin objectives of fostering market development while protecting investor interests and managing risks is a responsible policy move.
     
         We have, however, a heavier responsibility towards the Earth, our planet. Hong Kong takes our carbon emission net zero commitment seriously and we leverage our financial services platform to contribute to the green and sustainability global efforts. We are in a very good position to channel international capital to sustainable causes. This is best exemplified by over 230 ESG funds authorised by the SFC as of June this year, almost quadrupling the number of funds three years ago. Together, these funds manage close to US$170 billion of assets.
     
         For the third year in a row, Hong Kong topped the Asian market in terms of the volume of green and sustainable bonds being arranged. In 2023 alone, the total green and sustainable debt issued in Hong Kong exceeded US$50 billion.
     
         We will continue to incubate green and sustainable investment by fostering a conducive environment with transparent information. As the Policy Address makes clear, we will launch a roadmap on the full adoption of the ISSB (International Sustainability Standards Board) Standards (International Financial Reporting Standards – Sustainability Disclosure Standards) within this year, leading Hong Kong to be among the first jurisdictions to align its local requirements with ISSB Standards. On this, we have been making good progress, including the introduction of new climate-related disclosures requirements for listed companies by HKEX for implementation under a phased approach from 2025; as well as the development of the Exposure Drafts for Hong Kong’s sustainability reporting standards (Hong Kong Standards) in full alignment with ISSB Standards by the Hong Kong Institute of Certified Public Accountants (HKICPA). A public consultation on the Exposure Drafts is now underway. The roadmap will provide a transparent and well-defined pathway on sustainability reporting for listed companies and different sectors in the financial services industry, and support and assist businesses in making preparations for the implementation of the Hong Kong Standards.
     
         A first edition of the Hong Kong Taxonomy for Sustainable Finance is already in the toolbox since May this year. It is now undergoing revision, and is in the next phase of development where the scope of sectors and economic activities to be covered will be expanded to include transition activities, etc.
     
         As another piece of market infrastructure to connect capital with climate-related products and opportunities in Hong Kong, the Mainland, Asia and beyond, Core Climate, launched by HKEX, serves to facilitate effective and transparent trading of carbon credits and instruments to support the global transition to net zero. It offers quality carbon credits from internationally certified projects, covering forestry, solar, wind and biomass initiatives. It is currently the only carbon marketplace that offers Hong Kong dollar and RMB settlement for the trading of international voluntary carbon credits.
     
    Closing
     
         The IMF (International Monetary Fund) has just reconfirmed its forecast of world economic growth for 2024 to be 3.2 per cent. The same growth rate is forecast for 2025, slightly revised downward from its earlier forecast of 3.3 per cent but with a loud warning of instability and uncertainty in the horizon. As policy makers, we all have the responsibility to provide an enabling environment for businesses and individuals to thrive.
     
         The Asia-Pacific region can provide a source of growth amidst the evolving global landscape despite the uncertainties. Hong Kong, with our unique combination of the China advantage and global strengths, will continue to sharpen our financial platform and capital markets through strategic reform and responsible development. On this note, I would like to exercise my privilege of being on the podium to add a fourth “R” and wish you a most rewarding day of discussions and networking at the Forum. Thank you.
           

    MIL OSI Asia Pacific News –

  • MIL-OSI China: Beijing leverages finance to fuel tech innovation

    Source: China State Council Information Office 2

    Beijing has made significant strides in developing a robust financial ecosystem that supports technological innovation. The capital city has channeled substantial financial resources into scientific advancement by focusing on technology, green initiatives, inclusive finance, pension systems and digital transformation.
    The central government’s emphasis on technology finance during the 2023 Central Financial Work Conference has strengthened Beijing’s commitment to innovation. The city has directed more financial resources toward tech enterprises, with total loans to technology firms now surpassing 1 trillion yuan ($140 billion).
    Beijing has introduced innovative financial policies to facilitate the growth of tech startups. For instance, the establishment of the Zhongguancun Sci-Tech Innovation Financial Service Center provides a centralized hub for financial products and services to meet tech companies’ needs.
    Another key development is the pilot program for merger and acquisition (M&A) loans. Beijing has encouraged business expansion by increasing the loan-to-value ratio for M&A transactions from 60% to 80%, enabling more companies to pursue strategic acquisitions.
    Beijing has also introduced specialized financial products to meet tech firms’ financing needs. Banks now offer credit-based loans that evaluate a company’s technological capabilities, patents and intellectual property as key lending criteria.
    The city has expanded financial access for small- and medium-sized enterprises focused on specialized technologies and unique products. Through bank partnerships and financing events, Beijing has ensured that nearly 60% of these specialized firms secure credit access.
    The capital market plays a crucial role in supporting tech company growth. Beijing has helped numerous tech firms list on the Beijing Stock Exchange and other trading venues, securing billions of yuan in funding. The city has also created government investment funds targeting promising tech companies, especially those in emerging industries.

    MIL OSI China News –

  • MIL-OSI China: Beijing’s high-tech industries show strong growth from Q1 to Q3

    Source: China State Council Information Office 2

    Beijing’s economic development accelerated in the first nine months of 2024, driven by industrial output reaching 1.9 trillion yuan ($267 billion) and 10.4% year-on-year growth in core digital sectors, according to data released by the Beijing Municipal Bureau of Economic and Information Technology.
    Liu Weiliang, deputy director of the Beijing Municipal Bureau of Economics and Information Technology, noted on Tuesday that the city’s industrial and information software sectors maintained stable growth through September. He added that the industrial structure improved while performance indicators exceeded expectations.
    The city’s automobile manufacturing sector grew 18.4% through September. New energy vehicle production expanded significantly, with Chinese tech firm Xiaomi’s first self-developed new energy vehicle (NEV), the SU7, delivering more than 70,000 units.
    Beijing’s strengths in advanced technology drove growth in intelligent connected NEVs and electronic manufacturing through September. These sectors lifted strategic emerging industries by 14% and high-tech manufacturing by 8.3% year on year, surpassing traditional industrial growth rates.
    The city prioritized breakthroughs in advanced technology, intelligent systems and green industries, implementing more than 40 policies to promote innovation. Fixed asset investment in key industrial sectors and information software grew more than 30% compared to last year.
    Beijing has established a comprehensive support system for small- and medium-sized enterprises, fostering a network of more than 20,000 key companies. The city plans to develop new quality productive forces, actively plan the implementation of industrialization projects, and promote breakthroughs in the chain of key industries.

    MIL OSI China News –

  • MIL-OSI China: Beijing emerges as leader in financial sector: Report

    Source: China State Council Information Office 2

    The Financial Technology Innovation Index Report of Listed Companies in China’s Financial Industry (2024) was released during the Annual Conference of Financial Street Forum 2024 in Beijing on Oct. 22, highlighting Beijing’s leading role in promoting the financial sector.
    The report provides a comprehensive analysis of financial technology innovation trends among listed companies in China’s financial sector, drawing from 12 years of extensive data on technological advancements. Notably, financial listed enterprises headquartered in Beijing ranked first in innovation activity nationwide.
    According to the report, there are 124 listed companies in the financial sector, representing 2% of the 5,363 listed companies across the country. Despite this small percentage, these firms account for 7% of all patents filed by listed companies. In the realm of digital technology innovation, financial listed companies hold 13% of the innovative patents, positioning them at the forefront of the sector.
    The report also evaluates the technological innovation landscape in regions where financial listed companies are headquartered. Data shows that companies based in Beijing hold 85% of all patents nationwide, with Guangdong province taking second place. Together, these two regions account for nearly 95% of the total patents in the financial industry.

    MIL OSI China News –

  • MIL-OSI China: 2024 Silk Road Rediscovery Tour of Beijing launched

    Source: China State Council Information Office 2

    The 2024 Silk Road Rediscovery Tour of Beijing kicked off in the capital city of China on the evening of October 21. The event, themed “Explore a Modernized City of Opportunities”, welcomed prominent international influencers from Albania, Brazil, Ethiopia, Kazakhstan, Malaysia, Russia, Serbia, Tajikistan, Thailand, Türkiye, the United States, and Uzbekistan, to embark on a journey of discovery in Beijing.

    Foreign influencers and other attendees launching the event together
    Since 2016, ten consecutive sessions of the Silk Road Rediscovery Tour of Beijing have been held, participated by a total of 125 international influencers from 51 Belt and Road partner countries so far.

    Mukhammad Obidov, Chief Editor of Uzbekistan National News Agency and Chairman of the Fergana Journalists’ Association, delivered a speech as the representative of all the participating influencers.
    Mukhammad Obidov, Chief Editor of Uzbekistan National News Agency and Chairman of the Fergana Journalists’ Association, spoke of the increasing interest of Uzbek people towards their neighboring countries, especially China, and suggested creating an alliance of Central Asian and Chinese journalists as well as a unified information platform to help deepen understanding among the members of this proposed alliance.

    Kanat Sakhariyanov, Director of Kazakhstan’s Atameken TV, delivered a speech.
    Kanat Sakhariyanov, Director of Kazakhstan’s Atameken TV, said in his speech that Beijing is a city marked by the convergence of ancient history and cutting-edge technologies, and that the residents of Beijing are good at living with each other in harmony through tolerance and mutual respect. Since 2019, Atameken TV has aired more than 20 documentaries about China along with regular news programs such as “On the Silk Road” and “China News”, as part of efforts to strengthen understanding between the two countries.

    Lucas Eleuterio Fernandes, a Brazilian influencer, delivered a speech.
    Lucas Eleuterio Fernandes, a journalist and presenter of TV Globo and a social media influencer from Brazil, is also a popular social media influencer with 2.1 million followers on Instagram. He began his world tour from China in 2010 and returned here 14 years later to find “astounding Chinese development and transformation”. According to Fernandes, “Many people still have misconceptions about this country, but I want to say that China is a place everyone should visit at least once in their lifetime.”
    This year’s Silk Road Rediscovery Tour of Beijing will run from October 21 to 25, and the participating influencers will experience Beijing’s unique urban charm blending ancient heritage and modern achievements from multiple angles and through a number of landmarks, including the three major cultural venues in Beijing Municipal Administrative Center, ZGC E-Town International Robot Industrial Park, GTVerse Center, the Palace Museum, the Olympic Tower, the No. 3 Blast Furnace and the Big Air Shougang in Shougang Park, etc.

    MIL OSI China News –

  • MIL-OSI Australia: Press Conference Apia, Samoa

    Source: Australian Government – Minister of Foreign Affairs

    Penny Wong, Foreign Minister: Look, can I say how wonderful it is to be here in Samoa as it hosts its first ever Commonwealth Heads of Government Meeting, the first time this has been held in a Pacific Island country. And Australia has been really pleased to partner with Samoa, and we are really pleased – I’m really pleased to be here, and I know the Prime Minister is very pleased to be able to join us this evening.

    I want to thank a woman for whom I have such great regard, Prime Minister Fiamē, for her leadership, for her hospitality, for her thoughtful hosting of this meeting and, the way in which she has sought to elevate Pacific priorities and voices on the international stage.

    It’s certainly been a busy day today. It kicked off with a meeting about investment, finance and investment, hosted by David Lammy, the UK Foreign Secretary. And we recognise that economic integration and investment are central to development, are central to alleviating poverty and enabling opportunity. And we’re partnering with the United Kingdom to develop a new Commonwealth Investment Network to support Commonwealth members, particularly smaller states who often have challenges accessing finance, accessing investment, to do just that – to attract and access investment.

    I’ve also been at the first session of the Commonwealth Foreign Affairs Ministers Meeting. Obviously, that’s in preparation for the Leaders’ Meeting tomorrow. Top of the agenda is, as you would expect here in Pacific, climate. And as you would have heard me say from the first day I was – I stood in the Pacific as Foreign Minister, and I’ve consistently recognised this as I have travelled throughout the Pacific, climate change is an existential threat. It is the number one national security threat, it is the number one economic threat to the peoples of the Pacific and to many members of the Commonwealth.

    We heard today from a number of African countries, including Zambia, about the escalating impacts of climate change, the effects on food insecurity. And I’m really pleased that we are able to announce a new Africa-Australia partnership for climate responsive agriculture. This is to be developed by the Australian Centre for International Agriculture Research, and it will address food insecurity in the region.

    Can I talk about what this means? One of the things Australia is good at is agriculture in very dry climates – for obvious reason. It is one of the areas we have an expertise, and this – I’m very excited about this partnership because it leverages a particular Australian expertise into a continent for which food insecurity is an ongoing and rising challenge. It’s another example of our commitment as a government to helping partners around the world in the fight against climate change. It’s about shaping the world for the better.

    I’ve also spoken to Pacific leaders about the ways in which Australia is transitioning our entire economy. It’s a big task, started later than it should have, but we are committed to making the very large change.

    I’ve had productive meetings with counterparts from Malta and Solomon Islands, and I’ve just returned from an event hosted by Samoa attended by Her Majesty the Queen, advocating for women and girls in the Commonwealth where we talked about the challenges facing women and girls, including violence against women, and we spoke about Australia’s progress in tackling cervical cancer.

    I’m looking forward to the rest of the program, and happy to take your questions shortly.

    I just want to make one comment about another matter, which is the deeply troubling news about North Korea’s contribution to Russia’s illegal and immoral war in Ukraine. This is a deeply concerning development to see not only Russia continue its illegal and immoral war but to see a state such as North Korea be invited by President Putin, encouraged by President Putin, to join or to support this illegal war. And Australia stands with the remained of the international community not only against Russia’s war but against North Korea’s involvement in what is an illegal and immoral and disruptive war.

    Happy to take questions.

    Journalist: My name is Deidre from TV1, a local reporter. I just wanted to ask, first question is: what kind of support has Australia provided for Samoa for CHOGM, aside from providing assistance in terms of police officers who have come and helped?

    Foreign Minister: Sure, yes, well, obviously that’s the more – most visible recent assistance, which I have to be really clear about is not just Australia. This is a multi-country initiative. It’s obviously contributions from many Pacific Island countries. When we announced the Pacific Policing Initiative at the Pacific Islands Forum I think the Prime Minister and certainly I’ve made the comment, you know, this is Pacific led. And that’s the approach we’ve seen in Samoa. So, it’s good to see these police cooperating on the ground.

    But the behind-the-scenes assistance or contribution obviously was primarily towards the arrangement of CHOGM and supporting – providing support at a diplomatic level. I can – we can talk to you about that in more detail.

    I want to say, though, to you, your country has done an extraordinary job. For a country of this size to be able to host a conference like this, you really all should be very proud. And I’ve no doubt knowing the Pacific and Samoa, this is a whole-of-nation effort, isn’t it? Like everybody steps up. I was talking to Prime Minister Fiamē, and she spoke about everybody stepping forward. And that’s what you see. And your diplomatic influence, your diplomatic standing, is far bigger than your population in terms of the proportion of the world. I see that at the UN when your Prime Minister speaks and your diplomats speak, and I see that in this conference.

    So, my congratulations to my very good friend Prime Minister Fiamē, but also to the people of Samoa for what has been a fantastic CHOGM, and I hope tomorrow goes as well. I’m sure it will.

    Journalist: Foreign Minister, just on the Falepili Union, Feleti Teo has said this morning that he believes that Australia does have a commitment or at least an implied commitment under the text of the Falepili Union to take a hard look at fossil fuel exports, not just Australia’s own internal commitments. What’s your response? Is there any sort of implied commitment in the Falepili Union towards fossil fuel exports? Do you disagree with that analysis?

    Foreign Minister: I think whether it’s the PIF declarations or the public statements we have made, I think we all understand the existential threat that climate change poses to the peoples of the Pacific. I think we all understand the effects of climate change in Australia which we have seen. We’re not a government like Mr Abbott’s and Mr Morrison’s or that has the views Mr Dutton has demonstrated where the science of climate change isn’t accepted, and the experience of Pacific peoples is diminished. Do you remember him saying – talking about making jokes about water lapping at the door?

    So, we understand the extent of this. I’ve spoken at length to the Prime Minister of Tuvalu about the transition in the Australian economy, and it is a very big transition. And I wish we had – you know, when we came to government, we had seen not just 30 per cent renewables but much more because we have to get to in excess of 80 per cent by the end of the decade. But that’s the transition we’re in and we will engage in it.

    On the broader issue of fossil fuel usage, not just in Australia but globally, of course we all have to, we all have to peak our emissions and reduce them, and Australia’s emissions peaked in 2005. We know that there are countries which are still increasing their supply, their coal-fired power stations. Of course, we all know that the whole world has to respond.

    The point I’ve made previously is that there are two emerging economies in the world which, you know, account for 40 per cent of global emissions – India and China. And in order for us to have a chance at restraining global temperature rise, we all have to commit to reducing emissions and to transitioning to cleaner energy. So, we’re up for that. It will take longer than I would have liked because, you know, obviously nothing was done for 10 years.

    Journalist: But can Australia shrug its shoulders in terms of those exports and simply say there is no problem with Australia expanding fossil fuel projects if there’s an appetite for it? The point that I think that Prime Minister Teo is making is that on the one hand Australia points to its own record, on the other hand, you’ve got countries like India and China continuing to expand fossil fuels. He doesn’t perhaps care who takes responsibility; the cycle has to be brought to a close.

    Foreign Minister: Yeah, I think we all have to take responsibility, which is why you also see Australia partnering with other countries to try and work with others to transition the global energy supply to renewable energy. You would have seen I work with Singapore; you’d see that we’re working with Germany. You know, Chris Bowen has spoken at length about the work that he is doing internationally.

    I wish we were – you know, when I was Climate Minister between 2007 and 2010, including the famous Copenhagen conference, I wish that what we were trying to get agreed then had been agreed and you and I would be having a very different conversation. But that isn’t what happened globally. That isn’t what happened in Australia, and we went backwards as a country. We know we have a lot of work to do. And I’ve been upfront with every partner in the Pacific. Of course, I listen, I hear what they say. And I think they also see in us a partner who wants to make this transition. And we will. We will.

    Journalist: Foreign Minister, in terms of Pacific Engagement Visa, I know our government does not want to participate in the first wave. So, my question is: have you received or has the government of Australia received any update from our government? And if the government did not, is Australia – will Australia be pushing for the Samoan government to support the visa?

    Foreign Minister: Yeah, Mr Dziedzic asked me those “if” questions, and I usually tell him off for doing that. But look, as a matter of principle, the Pacific Engagement Visa responds to a longstanding call from Pacific Island nations about wanting a different relationship with Australia. And you would have seen the fact demonstrated by the number of people who have sought to come to Australia in those countries where we have those arrangements. It’s been massive low oversubscribed and, you know, I understand that.

    I’ve also been very clear from the beginning, just like PALM, this is a question for the sending country. If people want it, we will work with whichever country, whichever Pacific Island nation, to set up the arrangements in ways they feel comfortable with. If countries don’t wish to go down this path, it’s not a compulsory path for us.

    We responded. A number of countries have very enthusiastically taken it up. It’s entirely a matter for others whether they choose to or not and, if they do, how they want it to work.

    Journalist: Just to follow up on that, if our government does not want to support it, is Australia willing to reconsider if individuals want to participate?

    Foreign Minister: No, we want this to be something – it’s a government-to-government arrangement for the process of it and the arrangements associated with it, so we wouldn’t want to see that. But, you know, we’re also – we’re not – there’s no deadline for – in the sense that we’re not saying, ‘unless you – you have to do it by this year or never at all.’ It’s a policy that’s in place. I anticipate that countries may work through some of the issues and then may decide that they want to be part of this in time to come. But that’s entirely a matter for them.

    Journalist: Just finally, if I might, Foreign Minister, on the question of Australia’s broader Pacific policy, can you give us a sense, when the Falepili Union was signed the Prime Minister and others made it clear that Australia was looking at if not signing similar agreements, then perhaps integrating more closely with the Pacific. There have been murmurs, obviously, about similar agreements with countries like Nauru and others. Can you give us a sense of where that program is up to and how Australia envisions this?

    Foreign Minister: That’s a good question. And it’s one that the whole country and both parties of government need to be part of. And unfortunately, we’ve not had an opposition that’s been willing, for example, to understand the importance of the Pacific Engagement Visa.

    Your question goes to the – is the right one though – how do you envisage the relationship? And we envisage the relationship as family, as close as we are able to be, recognising the sovereignty of all nations. And we see the benefit in different types of integration with the countries of the Pacific. Now, they’ll not always be the same. So, we have obviously a particular set of arrangements with some countries which are simply PALM or the Pacific Engagement Visa. With Tuvalu, we have a much deeper integration where there is much more that we have put on the table and that Tuvalu has put on the table as well.

    So obviously it will not be the same approach for each country. Countries will make their own decisions. But we see real benefit in responding to Pacific countries’, I suppose, aspirations for the relationship.

    Journalist: What are your expectations for the conference tomorrow? Regarding the continued fighting of the Pacific Islands towards climate change? What are your expectations of the outcome?

    Foreign Minister: Well, I hope that the leader’s communique or statement will be forward leaning on climate. I hope it will be collective in the sense that we recognise – I’ve seen a lot of things over the years – and it really goes to the question Mr Dziedzic asked earlier where we point the finger at each other but actually all of us have to respond on climate, all major economies, in particular. And I hope also that some of the progress that the Pacific has made in relation to sovereignty in the face of sea level rise, which we have backed in, I hope there is progress on that as well in terms of Leaders’ discussion. I know it’s a big step, but I think the Pacific has done a lot of quite innovative international legal work in ensuring that countries can retain sovereignty and retain their, you know, sovereignty over their EEZ, even in the face of sea level rise and that whatever we can do with the Pacific to continue to broaden that out I think is a good thing. And you would have seen that we’ve done that at the PIF and we’ve done that in the Falepili treaty.

    Journalist: One more question please –

    Foreign Minister: Last one.

    Journalist: What are your thoughts on Samoa’s government’s concerns of brain drain for RSE program and also – last one – have you visited one of the villages that is representing Australia in the rural area?

    Foreign Minister: No, no, I haven’t done – I haven’t been out of Apia, I’m afraid, on this visit. Some of the concerns that countries who are considering whether how to handle labour mobility programs, there are a range of concerns. You named one of them. What I have said at the PIF and privately and in meetings is we want these programs to work for you. So, we don’t offer access to the labour market because we are demanding labour; we see this as a partnership and as an economic development opportunity. So, we want the programs to work for you. So, however countries wish to have those programs designed within the limits of the program, we’ve sought to facilitate that. So, that’s how we do it. Okay? Thanks, everybody.

    MIL OSI News –

  • MIL-OSI: BE Semiconductor Industries N.V. Announces Q3-24 Results

    Source: GlobeNewswire (MIL-OSI)

    Q3-24 Revenue of € 156.6 Million and Net Income of € 46.8 Million Up 27.0% and 33.7%, Respectively, vs. Q3-23
    Orders of € 151.8 Million Up 19.2% vs. Q3-23. Hybrid Bonding Adoption Continues

    YTD-24 Revenue of € 454.1 Million and Net Income of € 122.7 Million
    Orders of € 464.8 Million Up 21.7% vs. YTD-23

    DUIVEN, the Netherlands, Oct. 24, 2024 (GLOBE NEWSWIRE) — BE Semiconductor Industries N.V. (the “Company” or “Besi”) (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the third quarter and nine months ended September 30, 2024.

    Key Highlights Q3-24

    • Revenue of € 156.6 million up 3.6% vs. Q2-24 and 27.0% vs. Q3-23 due to increased demand by computing end user markets for hybrid bonding, photonics and other AI applications partially offset by ongoing weakness in automotive and Chinese end user markets
    • Orders of € 151.8 million up 19.2% vs. Q3-23 due to increased hybrid bonding orders. Down 18.0% vs. Q2-24 due primarily to fluctuations in hybrid bonding order patterns by customers
    • Gross margin of 64.7% decreased by 0.3 points vs. Q2-24 but was up 0.1 point vs. Q3-23. Gross margin development in the comparable periods was adversely affected by net forex influences
    • Net income of € 46.8 million increased 11.7% vs. Q2-24 and 33.7% vs. Q3-23 primarily due to higher revenue levels and cost control efforts which limited baseline operating expense growth. Q3-24 net margin rose to 29.9% vs. 27.7% in Q2-24 and 28.4% reported in Q3-23
    • Net cash of € 110.7 million at quarter-end increased by € 36.3 million (48.8%) vs. Q2-24 and € 20.5 million (22.7%) vs. Q3-23

    Key Highlights YTD-24

    • Revenue of € 454.1 million increased 8.3% vs. YTD-23 principally due to higher demand by computing end user markets, particularly for hybrid bonding and photonics applications and by Taiwanese and Korean subcontractors partially offset by weakness in mobile and automotive markets
    • Orders of € 464.8 million increased 21.7% vs. YTD-23 due to increased demand for hybrid bonding and photonics applications partially offset by lower bookings for automotive and, to a lesser extent, mobile applications and ongoing weakness in Chinese end user markets
    • Gross margin of 65.6% increased by 0.8 points vs. YTD-23 due to more favorable AI advanced packaging product mix
    • Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins were offset by higher R&D spending and share-based compensation expense. Besi’s net margin decreased to 27.0% vs. 29.1% in YTD-23

    Q4-24 Outlook

    • Revenue expected to be flat plus or minus 10% vs. the € 156.6 million reported in Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24
    • Gross margin expected to range between 63-65% vs. the 64.7% realized in Q3-24
    • Operating expenses expected to be flat to up 5% vs. the € 46.2 million reported in Q3-24
    (€ millions, except EPS) Q3-
    2024    		 Q2-
    2024    		 Δ Q3-
    2023    		 Δ YTD-
    2024    		 YTD-
    2023    		 Δ
    Revenue 156.6 151.2 +3.6% 123.3 +27.0% 454.1 419.2 +8.3%
    Orders 151.8 185.2 -18.0% 127.3 +19.2% 464.8 381.9 +21.7%
    Gross Margin 64.7% 65.0% -0.3 64.6% +0.1 65.6% 64.8% +0.8
    Operating Income 55.1 49.3 +11.8% 42.7 +29.0% 145.0 147.3 -1.6%
    EBITDA 62.4 56.2 +11.0% 48.9 +27.6% 166.2 166.4 -0.1%
    Net Income* 46.8 41.9 +11.7% 35.0 +33.7% 122.7 122.2 +0.4%
    Net Margin* 29.9% 27.7% +2.2 28.4% +1.5 27.0% 29.1% -2.1
    EPS (basic) 0.59 0.53 +11.3% 0.45 +31.1% 1.56 1.57 -0.6%
    EPS (diluted) 0.59 0.53 +11.3% 0.45 +31.1% 1.55 1.54 +0.6%
    Net Cash and Deposits 110.7 74.4 +48.8% 90.2 +22.7% 110.7 90.2 +22.7%

    * Excluding share-based compensation expense, net income (net margin) would have been € 50.2 million (32.1%), € 48.5 million (32.1%) and € 36.6 million (29.7%) in Q3-24, Q2-24 and Q3-23, respectively and € 148.8 million (32.8%) in YTD-24 vs. € 137.6 million (32.8%) in YTD-23

    Richard W. Blickman, President and Chief Executive Officer of Besi, commented:

    “Besi reported significant growth in revenue, orders and net income in Q3-24 versus the comparable quarter of last year as we continue to benefit from strength in our advanced packaging product portfolio for AI applications despite continued headwinds in mainstream and Chinese assembly equipment markets. For the quarter, revenue of € 156.6 million and orders of € 151.8 million grew by 27.0% and 19.2%, respectively, versus Q3-23 due primarily to strong growth by computing end user markets including hybrid bonding, photonics and other AI applications. Such growth was partially offset by weakness in automotive and Chinese end user markets continuing trends we have experienced this year. Net income of € 46.8 million grew by € 11.8 million, or 33.7%, reflecting a number of favorable trends including increased advanced packaging system revenue, increased gross margins related thereto and better than forecast operating expense levels despite continued growth in R&D spending for next generation hybrid bonding and TCB systems.

    For the first nine months of 2024, revenue of € 454.1 million and orders of € 464.8 million increased by 8.3% and 21.7%, respectively. Growth was due to significantly higher demand by computing end user markets, particularly for AI-related hybrid bonding and photonics applications and from Taiwanese and Korean subcontractors. Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins this year were offset by higher R&D spending in support of wafer level assembly development and share-based compensation expense.

    Our financial position improved as well in Q3-24 with net cash increasing to € 110.7 million at quarter-end, an improvement of € 36.3 million (+48.8%) versus Q2-24 and € 20.5 million (+22.7%) versus Q3-23 despite increased share buy-back activity. Total cash and deposits at quarter end grew to € 637.4 million including net proceeds from our Senior Note offering in July 2024 which positions us favorably for anticipated growth in the next market upcycle.

    During Q3-24, Besi continued to receive substantial orders for hybrid bonding systems from existing and new customers. At quarter-end, total revenue producing hybrid bonding orders since 2021 exceeded 100 systems highlighting the importance of this new technology for 3-D AI-related assembly applications. We anticipate additional orders in Q4-24 from a variety of customers as adoption continues to expand globally. We have also received increased interest for Besi’s TCB Next system from leading logic and memory customers which positions us favorably for anticipated growth in next generation 2.5D and HBM applications.

    As such, we have taken steps recently to expand our advanced packaging production capacity in anticipation of future growth. In 2025, we intend to approximately double the cleanroom capacity of our Malaysian production facilities and increase R&D and process development for our hybrid bonding and thermo compression bonding capabilities and customer support at our Singapore facility.

    Looking forward to Q4-24, we expect expanded adoption for hybrid bonding applications to be mitigated by ongoing weakness in mainstream assembly markets. For Q4-24, we forecast that revenue will be flat plus or minus 10% versus Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24. In addition, gross margins are anticipated to range between 63-65% based on our projected product mix. Aggregate operating expenses are forecast to be flat to up 5% versus Q3-24.”

    Share Repurchase Activity

    During the quarter, Besi repurchased approximately 230,000 of its ordinary shares at an average price of € 120.45 per share or a total of € 27.8 million. In August 2024, Besi completed its prior € 60 million share repurchase program and initiated a new € 100 million share repurchase program with an anticipated completion date of October 2025. Cumulatively, as of September 30, 2024, a total of € 7.0 million has been purchased under the new share repurchase program at an average price of € 110.55 per share. As of September 30, 2024, Besi held approximately 1.6 million shares in treasury equal to 2.0% of its shares outstanding.

    Investor and media conference call
    A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.
       
    Important Dates  
    •  Publication Q4/Full year 2024 results February 20, 2025
    •  Publication Q1-2025 results April 23, 2025
    •  Besi’s 2025 AGM April 23, 2025
       

    Basis of Presentation

    The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2023 Annual Report, which is available on www.besi.com.

    Contacts:

    Richard W. Blickman, President & CEO
    Andrea Kopp-Battaglia, Senior Vice President Finance        
    Claudia Vissers, Executive Secretary/IR coordinator
    Edmond Franco, VP Corporate Development/US IR coordinator

    Tel. (31) 26 319 4500                
    investor.relations@besi.com   

    About Besi

    Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

    Caution Concerning Forward-Looking Statements

    This press release contains statements about management’s future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward-looking statements. While these forward-looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; those additional risk factors set forth in Besi’s annual report for the year ended December 31, 2023 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

    Consolidated Statements of Operations

    (€ thousands, except share and per share data) Three Months Ended
    September 30,
    (unaudited)    		 Nine Months Ended
    September 30,
    (unaudited)
      2024 2023 2024 2023
             
    Revenue 156,570 123,320 454,060 419,227
    Cost of sales 55,325 43,709 156,276 147,374
             
    Gross profit 101,245 79,611 297,784 271,853
             
    Selling, general and administrative expenses 27,318 23,310 97,473 81,679
    Research and development expenses 18,874 13,614 55,296 42,907
             
    Total operating expenses 46,192 36,924 152,769 124,586
             
    Operating income 55,053 42,687 145,015 147,267
             
    Financial expense, net 1,560 1,758 3,194 4,974
             
    Income before taxes 53,493 40,929 141,821 142,293
             
    Income tax expense 6,719 5,889 19,123 20,104
             
    Net income 46,774 35,040 122,698 122,189
             
    Net income per share – basic 0.59 0.45 1.56 1.57
    Net income per share – diluted 0.59 0.45 1.55 1.54
             
    Number of shares used in computing per share amounts:        
    – basic 79,630,787 77,374,933 78,701,287 77,656,542
    – diluted1 81,876,505 82,444,358 81,978,112 83,038,212

    ______________________
    1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding

    Consolidated Balance Sheets

    (€ thousands) September
    30, 2024
    (unaudited)    		 June
    30, 2024
    (unaudited)    		 March
    31, 2024
    (unaudited)    		 December
    31, 2023
    (audited)
    ASSETS        
             
    Cash and cash equivalents 307,448 127,234 232,053 188,477
    Deposits 330,000 130,000 215,000 225,000
    Trade receivables 169,266 174,601 150,192 143,218
    Inventories 104,103 99,291 99,384 92,505
    Other current assets 44,731 36,346 34,756 39,092
             
    Total current assets 955,548 567,472 731,385 688,292
             
    Property, plant and equipment 44,220 43,571 41,328 37,516
    Right of use assets 16,419 16,821 16,901 18,242
    Goodwill 45,278 45,710 45,613 45,402
    Other intangible assets 94,855 92,627 90,241 93,668
    Deferred tax assets 8,610 9,517 11,444 12,217
    Other non-current assets 1,316 1,239 1,252 1,216
             
    Total non-current assets 210,698 209,485 206,779 208,261
             
    Total assets 1,166,246 776,957 938,164 896,553
             
             
    Current portion of long-term debt 2,241 3,033 984 3,144
    Trade payables 49,211 51,620 52,382 46,889
    Other current liabilities 87,739 73,023 100,606 87,200
             
    Total current liabilities 139,191 127,676 153,972 137,233
             
    Long-term debt 524,527 179,801 265,142 297,353
    Lease liabilities 13,033 13,448 13,625 14,924
    Deferred tax liabilities 11,619 10,396 12,136 12,959
    Other non-current liabilities 12,449 11,352 12,914 12,671
             
    Total non-current liabilities 561,628 214,997 303,817 337,907
             
    Total equity 465,427 434,284 480,375 421,413
             
    Total liabilities and equity 1,166,246 776,957 938,164 896,553

     

    Consolidated Cash Flow Statements

    (€ thousands) Three Months Ended
    September 30,
    (unaudited)    		 Nine Months Ended
    September 30,
    (unaudited)
      2024 2023 2024 2023
             
    Cash flows from operating activities:        
    Income before income tax 53,493 40,929 141,821 142,293
             
    Depreciation and amortization 7,388 6,248 21,181 19,155
    Share based payment expense 3,400 1,575 27,216 16,300
    Financial expense, net 1,560 1,758 3,194 4,974
             
    Changes in working capital 6,031 15,697 (43,914) (2,581)
    Interest (paid) received (1,996) (2,649) (19,513) (27,948)
    Income tax paid 2,156 1,582 7,218 3,075
             
    Net cash provided by operating activities 72,032 65,140 137,203 155,268
             
    Cash flows from investing activities:        
    Capital expenditures (2,099) (1,990) (10,965) (5,448)
    Capitalized development expenses (4,415) (4,700) (13,990) (15,341)
    Repayments of (investments in) deposits (200,000) – (105,000) (5,268)
             
    Net cash provided by (used in) investing activities (206,514) (6,690) (129,955) (26,057)
             
    Cash flows from financing activities:        
    Proceeds from notes 350,000 – 350,000 –
    Transaction costs related to notes (6,395) – (6,395) –
    Payments of lease liabilities (1,080) (995) (3,186) (3,207)
    Purchase of treasury shares (27,829) (45,537) (57,418) (190,264)
    Dividends paid to shareholders – – (171,534) (222,109)
             
    Net cash used in financing activities 314,696 (46,532) 111,467 (415,580)
             
    Net increase (decrease) in cash and cash equivalents 180,214 11,918 118,715 (286,369)
    Effect of changes in exchange rates on cash and
    cash equivalents    		 – 130 256 (292)
    Cash and cash equivalents at beginning of the
    period    		 127,234 192,977 188,477 491,686
             
    Cash and cash equivalents at end of the period 307,448 205,025 307,448 205,025

      

    Supplemental Information (unaudited)
    (€ millions, unless stated otherwise)

    REVENUE Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Per geography:                            
    China 45.5 29% 57.5 38% 58.5 40% 62.0 39% 40.8 33% 64.9 40% 37.6 28%
    Asia Pacific (excl. China) 51.6 33% 54.1 36% 43.6 30% 57.9 36% 42.3 34% 59.2 36% 58.2 44%
    EU / USA / Other 59.5 38% 39.6 26% 44.2 30% 39.7 25% 40.2 33% 38.4 24% 37.6 28%
                                 
    Total 156.6 100% 151.2 100% 146.3 100% 159.6 100% 123.3 100% 162.5 100% 133.4 100%
                                 
    ORDERS Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Per geography:                            
    China 45.4 30% 43.3 23% 51.1 40% 71.1 43% 46.0 36% 51.4 46% 35.5 25%
    Asia Pacific (excl. China) 69.3 46% 72.0 39% 45.0 35% 36.6 22% 40.9 32% 33.2 29% 71.3 50%
    EU / USA / Other 37.1 24% 69.9 38% 31.6 25% 58.7 35% 40.4 32% 28.0 25% 35.2 25%
                                 
    Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100%
                                 
    Per customer type:                            
    IDM 84.5 56% 122.4 66% 53.5 42% 82.7 50% 70.5 55% 60.5 54% 74.0 52%
    Subcontractors 67.3 44% 62.8 34% 74.2 58% 83.7 50% 56.8 45% 52.1 46% 68.0 48%
                                 
    Total 151.8 100% 185.2 100% 127.7 100% 166.4 100% 127.3 100% 112.6 100% 142.0 100%
                                 
    HEADCOUNT Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023
                                 
    Fixed staff (FTE) 1,807 87% 1,783 86% 1,760 88% 1,736 93% 1,725 87% 1,689 86% 1,682 84%
    Temporary staff (FTE) 271 13% 279 14% 236 12% 134 7% 248 13% 279 14% 312 16%
                                 
    Total 2,078 100% 2,062 100% 1,996 100% 1,870 100% 1,973 100% 1,968 100% 1,994 100%
                                 
    OTHER FINANCIAL DATA Q3-2024 Q2-2024 Q1-2024 Q4-2023 Q3-2023 Q2-2023 Q1-2023
                                 
    Gross profit 101.2 64.7% 98.3 65.0% 98.3 67.2% 103.9 65.1% 79.6 64.6% 106.6 65.6% 85.7 64.2%
                                 
                                 
    Selling, general and admin expenses:                            
    As reported 27.3 17.4% 30.5 20.2% 39.6 27.1% 24.3 15.2% 23.3 18.9% 29.4 18.1% 29.0 21.7%
    Share-based compensation expense (3.4) -2.1% (6.9) -4.6% (16.9) -11.6% (2.8) -1.7% (1.6) -1.3% (5.5) -3.4% (9.3) -7.0%
                                 
    SG&A expenses as adjusted 23.9 15.3% 23.6 15.6% 22.7 15.5% 21.5 13.5% 21.7 17.6% 23.9 14.7% 19.7 14.8%
                                 
                                 
    Research and development expenses:                            
    As reported 18.9 12.1% 18.5 12.2% 17.9 12.2% 13.5 8.5% 13.6 11.0% 14.3 8.8% 15.0 11.2%
    Capitalization of R&D charges 4.4 2.8% 4.9 3.2% 4.7 3.2% 5.7 3.6% 4.7 3.8% 5.3 3.3% 5.4 4.0%
    Amortization of intangibles (3.9) -2.5% (3.6) -2.3% (3.6) -2.4% (3.3) -2.1% (3.3) -2.6% (3.5) -2.2% (3.5) -2.6%
                                 
    R&D expenses as adjusted 19.4 12.4% 19.8 13.1% 19.0 13.0% 15.9 10.0% 15.0 12.2% 16.1 9.9% 16.9 12.7%
                                 
                                 
    Financial expense (income), net:                            
    Interest income (5.2)   (3.0)   (4.0)   (3.6)   (2.9)   (3.1)   (2.6)  
    Interest expense 5.7   2.1   2.8   3.0   2.8   2.9   2.9  
    Net cost of hedging 1.9   1.4   1.6   1.7   1.7   2.0   1.6  
    Foreign exchange effects, net (0.8)   0.5   0.2   (0.4)   0.2   (0.1)   (0.4)  
                                 
    Total 1.6   1.0   0.6   0.7   1.8   1.7   1.5  
                                 
    Gross cash 637.4   257.2   447.1   413.5   391.2   378.3   644.9  
                                 
                                 
    Operating income (as % of net sales) 55.1 35.2% 49.3 32.6% 40.7 27.8% 66.1 41.4% 42.7 34.6% 62.9 38.7% 41.7 31.3%
                                 
    EBITDA (as % of net sales) 62.4 39.8% 56.2 37.2% 47.5 32.5% 72.7 45.6% 48.9 39.7% 69.3 42.6% 48.2 36.1%
                                 
    Net income (as % of net sales) 46.8 29.9% 41.9 27.7% 34.0 23.2% 54.9 34.4% 35.0 28.4% 52.6 32.4% 34.5 25.9%
                                 
    Effective tax rate 12.6%   13.0%   15.3%   16.1%   14.4%   14.0%   14.0%  
                                 
                                 
    Income per share                            
    Basic 0.59   0.53   0.44   0.71   0.45   0.68   0.44  
    Diluted 0.59   0.53   0.44   0.68   0.45   0.66   0.44  
                                 
    Average shares outstanding (basic) 79,630,787 79,281,533 77,181,326 77,070,082 77,374,933 77,634,197 77,946,873
                                 
    Shares repurchased                            
    Amount 27.8   14.8   14.8   23.1   45.5   66.9   77.7  
    Number of shares 230,807 105,042 101,049 226,572 447,829 761,937 1,120,327
                                 

    The MIL Network –

  • MIL-OSI China: 2 rescued from coal mine collapse in north China

    Source: China State Council Information Office 2

    Two of the six miners trapped early Wednesday in a collapsed coal mine in north China’s Hebei Province have been rescued, local authorities said Thursday.
    At around 10:40 a.m. Thursday, the two miners were brought to the ground with stable vital signs, according to the local government.
    Rescuers are racing against time to locate the remaining trapped miners.
    The cave-in happened at 4:37 a.m. Wednesday in the Qianjiaying mining subsidiary of Kailuan (Group) Limited Liability Corporation, a major state-owned coal mining company in Hebei.
    The Qianjiaying subsidiary is located in Fengnan District in the city of Tangshan.

    MIL OSI China News –

  • MIL-OSI China: Typhoon Trami approaching south China island city

    Source: China State Council Information Office 2

    Typhoon Trami is strengthening its intensity, and is expected to enter the South China Sea Thursday evening, according to the meteorological observatory in China’s southernmost island province of Hainan.
    The observatory forecast heavy rainfall and strong gales on the typhoon’s path through Xisha and Zhongsha Islands, which will affect the city of Sansha.
    Fishing boats and other vessels have returned to the harbor for shelter, and sandbags were used to reinforce the buildings in Sansha.
    China’s National Meteorological Center on Thursday morning renewed a blue typhoon warning to Trami, which has been listed as the 20th typhoon of this year.
    China has a four-tier emergency response system, with Level I being the most severe response, and a four-tier color-coded weather warning system, with red representing the most severe, followed by orange, yellow and blue.

    MIL OSI China News –

  • MIL-OSI China: China, Brunei pledge to enhance strategic cooperative partnership

    Source: China State Council Information Office

    Chinese Vice President Han Zheng Wednesday concluded a three-day visit to Brunei, with China and Brunei pledging to strengthen their strategic cooperative partnership so as to elevate bilateral relations to a new high.

    Chinese Vice President Han Zheng meets with Brunei’s Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah in Bandar Seri Begawan, Brunei, Oct. 22, 2024. [Photo/Xinhua]

    During the visit, Han held separate talks with Brunei Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah and Crown Prince Haji Al-Muhtadee Billah.

    Under the strategic guidance of the leaders of the two countries, China-Brunei relations have maintained a good momentum of development, Han said, adding that China is willing to work with Brunei to implement the important consensus reached by the two heads of state, strengthen strategic communication, deepen practical cooperation, and raise their bilateral relations to a new level.

    Han said China appreciates Brunei’s consistent adherence to the One-China principle and stands ready to maintain close high-level exchanges with Brunei and to support each other on issues involving their core interests and major concerns.

    Both sides should carry out cooperation on high-quality Belt and Road construction and upgrade their cooperation in trade, investment, energy and agriculture, Han noted.

    China attaches great importance to East Asia cooperation, supports ASEAN (the Association of Southeast Asian Nations) centrality, and is willing to promote a closer China-ASEAN community with a shared future, which will contribute to regional peace, stability, and development, said the Chinese vice president.

    Han pointed out that China is also willing to work with ASEAN countries, including Brunei, to actively advance maritime cooperation and the negotiation of the Code of Conduct in the South China Sea, with an aim to build the South China Sea into a sea of peace, friendship and cooperation.

    For his part, the Brunei Sultan reiterated that his country has always adhered to the One-China principle and is willing to continuously strengthen the strategic partnership between the two countries.

    He looks forward to deepening cooperation with China in economy and trade, energy, food, culture, education and sports, so as to advance the diversification of Brunei’s economy.

    Brunei places great importance on ASEAN-China cooperation and hopes to make joint efforts to address climate change, said the Sultan, adding that Brunei is willing to work with China and other ASEAN countries to strive to make the South China Sea a sea of peace, friendship, and cooperation for the benefit of regional peace and stability.

    Chinese Vice President Han Zheng meets with Brunei’s Crown Prince Haji Al-Muhtadee Billah in Bandar Seri Begawan, Brunei, Oct. 22, 2024. [Photo/Xinhua]

    During his visit to Brunei, Han also held talks with Brunei Crown Prince Haji Al-Muhtadee Billah.

    China and Brunei, though separated by the sea, have enjoyed a long history of friendship, Han said. “Over more than 30 years since the establishment of diplomatic relations, China and Brunei have set a good example of countries, whether big or small, treating each other as equals, living alongside each other harmoniously, and seeking mutual benefit and win-win results.”

    This year marks the 40th anniversary of Brunei’s independence, Han said, noting that the Chinese side has always supported Brunei in following a development path that suits its national conditions.

    China is willing to work with Brunei to explore more points of converging interests and cooperation for growth, advance their respective modernization processes, and bring more benefits to the people of both countries, Han added.

    For his part, the Brunei Crown Prince expressed his confidence in China’s development prospects, hailing China’s great achievements in its reform and open-up.

    He said Brunei is willing to strengthen exchanges and cooperation with China and to help promote further development of bilateral relations.

    MIL OSI China News –

  • MIL-OSI China: Xi urges China, India to facilitate each other’s pursuit of development aspirations

    Source: China State Council Information Office

    Chinese President Xi Jinping meets with Indian Prime Minister Narendra Modi on the sidelines of the 16th BRICS Summit in Kazan, Russia, Oct. 23, 2024. [Photo/Xinhua]

    Chinese President Xi Jinping on Wednesday urged China and India to strengthen communication and cooperation, enhance strategic mutual trust, and facilitate each other’s pursuit of development aspirations.

    Xi made the remarks when meeting with Indian Prime Minister Narendra Modi on the sidelines of the 16th BRICS Summit.

    Xi pointed out that as time-honored civilizations, large developing countries and important members of the Global South, China and India both stand at a crucial phase of their respective modernization endeavors.

    It is in the fundamental interest of the two countries and two peoples to keep to the trend of history and the right direction of bilateral relations, he said, urging the two sides to shoulder their international responsibility, set an example in boosting the strength and unity of developing countries, and contribute to promoting a multipolar world and greater democracy in international relations.

    Xi stressed that China-India relations are essentially a question of how the two large developing countries and neighbors, each with a 1.4-billion-strong population, treat each other.

    Development is now the biggest shared goal of China and India, he said, noting that the two sides should continue to uphold their important understandings, including that China and India are each other’s development opportunity rather than threat, and cooperation partner rather than competitor.

    He also urged the two countries to maintain a sound strategic perception of each other, and work together to find the right and bright path for big, neighboring countries to live in harmony and develop side by side.

    Chinese President Xi Jinping meets with Indian Prime Minister Narendra Modi on the sidelines of the 16th BRICS Summit in Kazan, Russia, Oct. 23, 2024. [Photo/Xinhua]

    Modi, for his part, noted that maintaining the steady growth of India-China relations is critical to the two countries and peoples. It not only concerns the well-being and future of 2.8 billion people, but also carries great significance for peace and stability of the region and even the world at large, he added.

    Against a complex international landscape, cooperation between India and China, two ancient civilizations and engines of economic growth, can help drive economic recovery and promote multipolarity in the world, Modi said.

    He said that India is willing to strengthen strategic communication, enhance strategic mutual trust, and expand mutually beneficial cooperation with China.

    India will give every support for China’s Shanghai Cooperation Organization presidency and strengthen communication and cooperation with China in BRICS and other multilateral frameworks, he added.

    The two leaders commended the important progress the two sides had recently made through intensive communication on resolving the relevant issues in the border areas. Modi made suggestions on improving and developing the relationship, which Xi agreed to in principle.

    The two sides agreed to make good use of the Special Representatives mechanism on the China-India boundary question, ensure peace and tranquility in the border areas, and find a fair and reasonable settlement.

    The two sides agreed on holding talks between their foreign ministers and officials at various levels to bring the relationship back to sound and steady development at an early date.

    The two sides agreed to strengthen communication and cooperation in multilateral fora to safeguard the common interests of developing countries.

    The two sides were of the view that this meeting is constructive and carries great significance. They agreed to view and handle China-India relations from a strategic height and long-term perspective, prevent specific disagreements from affecting the overall relationship, and contribute to maintaining regional and global peace and prosperity and to advancing multipolarity in the world.

    MIL OSI China News –

  • MIL-OSI China: BRICS says new centers of power, policy decision-making and economic growth are emerging

    Source: China State Council Information Office

    New centers of power, policy decision-making and economic growth are emerging in the world, BRICS countries said Wednesday in the Kazan Declaration issued at the 16th BRICS Summit.

    This trend paves the way for a more equitable, just, democratic and balanced multipolar world order, and provides more opportunities for emerging markets and developing countries to benefit from universally beneficial and inclusive economic globalization, the BRICS countries said.

    MIL OSI China News –

  • MIL-OSI China: Xi says collective rise of Global South a clear sign of great changes in the world

    Source: China State Council Information Office

    The collective rise of the Global South is a clear sign of the great changes in the world, said Chinese President Xi Jinping on Thursday.

    It is a great event in world history and an unprecedented feat in the process of human civilization that countries of the Global South jointly move towards modernization, Xi said.

    Xi made the remarks while attending the BRICS Plus leaders’ dialogue.

    MIL OSI China News –

  • MIL-OSI China: 4 dead in terrorist attack at Turkish aerospace company

    Source: China State Council Information Office 3

    Four people were killed and 14 others wounded on Wednesday in a terrorist attack at the production facility of Turkish Aerospace Industries Inc. (TUSAS) in Ankara, Interior Minister Ali Yerlikaya said.

    Three of the injured were in critical condition, the minister told reporters on the site of the attack.

    Yerlikaya noted that two terrorists, a man and a woman, had been “neutralized” by security forces immediately after the attack targeting the key defense complex in the outskirts of Ankara.

    Turkish authorities often use the term “neutralize” in their statements to imply the alleged terrorists have either surrendered, been killed, or been captured.

    “We’re working to identify the terrorists,” he said, adding the information of the terrorists would be revealed once they are identified.

    “I condemn this heinous attack. Our fight will continue with determination until the last terrorist is neutralized,” the minister said.

    According to footage published by the NTV, “several terrorists” came to the central gate of the complex on board a taxi and began shooting at the guards with machine guns.

    Television images showed a damaged gate and a nearby clash in a parking lot.

    The report said that security forces, firefighters, and paramedics were dispatched to the complex located in the Kahramankazan district of the capital, and the wounded have been transported to two different hospitals.

    TUSAS is an important defense and aviation company in Türkiye. It produces KAAN, the country’s first national combat aircraft, among other defense projects.

    The outlawed Kurdistan Workers’ Party (PKK) has claimed responsibility for similar actions in the past.

    The PKK, listed as a terrorist organization by Türkiye, the United States, and the European Union, has rebelled against the Turkish government for more than three decades.

    MIL OSI China News –