Dongshan Precision, 16.629 billion yuan! Silan Microelectronics, 5.274 billion yuan!

Dongshan Precision's revenue in the first half of the year was 16.629 billion yuan, with LED display device revenue at 438 million yuan

On August 19, Dongshan Precision announced its 2024 semi-annual report. During the reporting period, total operating revenue was 16.629 billion yuan, a Year-on-year (YoY) increase of 21.67%; net profit attributable to shareholders of the listed company was 561 million yuan, a Year-on-year (YoY) decrease of 32.01%; net profit attributable to shareholders of the listed company after deductions was 516 million yuan, a Year-on-year (YoY) decrease of 10.66%; basic earnings per share was 0.33 yuan.

Dongshan Precision's business includes four main parts: electronic circuit products, LED display devices, touch panels and liquid crystal display modules, and precision component products. Currently, LED display devices account for the lowest proportion among the four business segments.

During the reporting period, the LED display device business achieved revenue of RMB 438 million, accounting for 2.63% of total revenue, a Year-on-year (YoY) increase of 4.30%. The gross profit margin of LED display devices saw a loss reduction of 20.06% compared to the previous year. This was mainly due to the significant impact of price reductions in the same period last year. Meanwhile, during the reporting period, the company's active adjustment of business strategies began to show results, operational efficiency gradually improved, and losses narrowed significantly.

During the reporting period, affected by the complex and volatile industry competition environment, the operational efficiency improvement of Dongshan Precision's non-core businesses, particularly the LED business, stagnated. On one hand, the company implemented continuous cost reduction and efficiency enhancement through full-chain lean management; on the other hand, it plans to ensure the steady development of this sector by adjusting customer and product structures, striving to achieve a turnaround from loss to profit as soon as possible.

In addition, during the reporting period, Dongshan Precision continued to invest in R&D in new materials, new technologies, and new processes, constantly exploring the forefront of manufacturing processes for core devices in the field of intelligent interconnectivity, laying the foundation for industries such as AR\VR, IoT, Mini LED displays, and new energy vehicles.

Revenue of RMB 5.274 billion in the first half of the year

On the evening of August 19, Silan Micro announced its 2024 semi-annual report. In the first half of the year, it achieved revenue of RMB 5.274 billion, a Year-on-year (YoY) increase of 17.83%, reaching a new historical high for the same period; Net profit loss narrowed. Among them, the company's main business income in the second quarter of 2024 was RMB 2.809 billion, also setting a new record for single-quarter revenue.

Silan Microelectronics focuses on the design and manufacturing of silicon semiconductor and compound semiconductor products, providing customers with high-quality silicon-based integrated circuits, discrete devices, and compound semiconductor devices (LED chips and finished products, SiC and GaN power devices).

During the reporting period, the net profit showed a loss, mainly due to two reasons: first, the stock prices of and Anlu Technology held in the company's other non-current financial assets declined, resulting in a net loss after tax of 162 million yuan from changes in fair value; second, the 6-inch SiC power device chip production line of the subsidiary Silan Mingjia is still in the capacity ramp-up phase, with low output and high fixed costs such as asset depreciation, further exacerbating the loss.

Although the net profit attributable to shareholders of the parent company remains at a loss, Silan Microelectronics' total revenue increased by approximately 18% year-on-year. This growth benefited from the company's continued efforts to promote products such as analog circuits, IGBT devices, IPM intelligent power modules, power modules, silicon carbide power modules, superjunction MOSFET devices, MCU circuits, compound chips and devices in high-barrier markets including large home appliances, communications, industry, new energy, and automotive.

In the first half of this year, Silan Microelectronics' three major product categories (integrated circuits, discrete devices, and light-emitting diode products) all showed good growth momentum. Among them, the revenue from the company's light-emitting diode products (including LED chips from Silan Mingxin and Silan Mingjia, and LED color screen pixel tubes from Meikale Optoelectronics) was 417 million yuan, an increase of approximately 33% compared to the same period last year. Notably, the company's subsidiary Meikale Optoelectronics actively expanded its market, with its revenue increasing by about 84% year-on-year, and its profitability level also significantly improved.

It is reported that Silan Microelectronics' LED business is handled by its subsidiaries , Silan Mingjia, and Meikale Optoelectronics. To reverse the decline and losses in the LED business over the past year, Silan Microelectronics is actively launching new Mini LED display chip products, and while maintaining the color screen chip market, it is accelerating the promotion of new lighting chip products such as horticultural lighting, automotive lighting, high-end optocouplers, high-power lighting, and security fill-lighting.

As of now, Silan Mingjia has established a production capacity of 6,000 6-inch SiC MOS wafers per month. The production capacity is expected to reach 9,000 wafers/month by the end of Q3 and 12,000 wafers/month by the end of 2024. In the first half of 2024, the electric vehicle main motor drive modules based on the company's independently developed second-generation SiC MOSFET chips passed validation by customers such as Geely and Huichuan, and have begun mass production and delivery.