Shares of GigaDevice Semiconductor declined despite the company’s impressive 1,092 percent surge in net profit during the first half of the year, driven by robust demand. The company closed 7.6 percent lower at CNY403.71 (USD59.87) in Shanghai today.
For the six months ending June 20, net profit approached CNY6.9 billion (USD1 billion), compared to CNY575.5 million (USD85.3 million) a year earlier, according to its semiannual earnings report released yesterday. Revenue skyrocketed by 179 percent to CNY11.6 billion (USD1.7 billion).
The memory chip sector experienced tight supply in the first half, which increased both sales and prices of the company’s products and enhanced the profitability of its memory segment. Additionally, shipments of microcontroller products saw solid growth, fueled by strong demand from industrial, consumer, and automotive markets.
The company’s overall operating performance saw significant improvement due to increases in both revenue scale and quality, GigaDevice noted.
Gains from fair value changes increased by CNY2.221 billion, reaching CNY2.228 billion as of June 30, up from the previous year, mainly reflecting higher fair value of the company’s securities holdings at the end of the reporting period.
Research and development spending of the company jumped 41 percent to approximately CNY966 million during the period.