Unigroup Guoxin Microelectronics (002049) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥2.87 billion, down 23.18% year-over-year, with net profit attributable to shareholders at ¥737.5 million, a 47.04% decrease year-over-year.

• Special IC segment faced weak demand and price pressure, while smart security chips maintained stable shipments amid intensified competition.

• Total assets at June 30, 2024, were ¥16.30 billion, down 7.05% from year-end 2023; shareholders' equity rose 1.37% to ¥11.82 billion.

• R&D investment remained strong at ¥677.5 million, with 80 new IP authorizations in H1 2024.

• No interim dividend was declared for the period.

Financial highlights

• Operating income: ¥2.87 billion, down 23.18% year-over-year.

• Net profit attributable to shareholders: ¥737.5 million, down 47.04% year-over-year.

• Operating cash flow: ¥632.7 million, down 44.83% year-over-year.

• Basic and diluted EPS: ¥0.8746, down 46.71% and 46.56% year-over-year, respectively.

• Gross margin for IC segment: 60.02%, down 6.14 percentage points year-over-year.

Outlook and guidance

• The company expects continued pressure in special IC due to slow demand recovery and price competition, but sees stable demand in smart security chips and a gradual recovery in crystal components.

• Will focus on R&D, product innovation, and expanding application fields to drive future growth.