Shenzhen Goodix Technology (603160) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 2.26 billion, up 11.6% year-over-year, driven by increased end-customer demand and shipment growth.

• Net profit attributable to shareholders was RMB 317 million, reversing a loss from the prior year.

• Gross margin improved due to product iteration and lower wafer costs.

• Key product launches included ultrasonic fingerprint sensors and new NFC chips, with large-scale commercialization expected in Q4.

• The company maintained a strong R&D focus, with over 80% of staff in R&D and more than 7,000 patents filed or granted.

Financial highlights

• Operating income: RMB 2.26 billion, up 11.58% year-over-year.

• Net profit attributable to shareholders: RMB 317 million, compared to a loss of RMB 136 million in H1 2023.

• Basic and diluted EPS: RMB 0.69, up from -0.30 year-over-year.

• Operating cash flow: RMB 530 million, down 44.58% year-over-year due to higher payments for inventory last year.

• Gross margin improved, with cost optimization from lower wafer prices and product upgrades.

Outlook and guidance

• Global semiconductor industry is expected to continue its recovery in H2 2024, with WSTS forecasting 16% growth for the year.

• Company expects large-scale commercialization of new products in Q4 and continued expansion in smartphone, PC, IoT, and automotive markets.