Nexchip Semiconductor (688249) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 4.40 billion, up 48.09% year-over-year, driven by industry recovery and strong sales growth.

• Net profit attributable to shareholders was RMB 187 million, a significant turnaround from a loss of RMB 43.6 million in H1 2023.

• Operating cash flow was RMB 1.30 billion, up 533.48% year-over-year, reflecting improved sales and cash collection.

• Gross margin for H1 2024 was 24.43%, with improved product mix and cost control.

Financial highlights

• Revenue: RMB 4.40 billion, up 48.09% year-over-year.

• Net profit attributable to shareholders: RMB 187 million, up 528.81% year-over-year.

• Operating cash flow: RMB 1.30 billion, up 533.48% year-over-year.

• Basic and diluted EPS: RMB 0.10, up from -0.03 last year.

• R&D expenses: RMB 614 million, up 22.27% year-over-year, representing 13.97% of revenue.

Outlook and guidance

• Plans to expand wafer foundry capacity by 30,000–50,000 wafers/month in 2024, focusing on advanced CIS and 40/55nm nodes.

• Continued investment in OLED, CIS, and automotive semiconductor platforms.

• Management expects ongoing demand recovery in downstream markets and further margin improvement.