Will Semiconductor (603501) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 reached RMB 12.09 billion, up 36.5% year-over-year, driven by strong growth in high-end smartphone and automotive markets.

• Net profit attributable to shareholders was RMB 1.37 billion, a 792.8% increase year-over-year, with significant gross margin recovery.

• Gross profit margin improved to 29.14%, up 8.21 percentage points year-over-year, due to product mix optimization and cost control.

• R&D investment was RMB 1.58 billion, accounting for 15.18% of semiconductor design and sales revenue.

Financial highlights

• Revenue: RMB 12.09 billion for H1 2024, up 36.5% year-over-year.

• Net profit attributable to shareholders: RMB 1.37 billion, up 792.8% year-over-year.

• Basic and diluted EPS: RMB 1.14, up 776.9% year-over-year.

• Net cash flow from operating activities: RMB 1.82 billion, down 41.8% year-over-year.

• Net assets: RMB 21.70 billion as of June 30, 2024.

• Total assets: RMB 37.13 billion as of June 30, 2024.

Outlook and guidance

• Global semiconductor market expected to grow 16% in 2024, with continued expansion in 2025.

• Company aims to further penetrate high-end smartphone and automotive markets, and expand in emerging areas like AR/VR and medical imaging.

• Ongoing focus on R&D, product innovation, and supply chain optimization to sustain growth.