Financial Performance - For the six months ended June 30, 2024, HG Semiconductor Limited reported revenue of RMB 34,252,000, a decrease from RMB 45,905,000 in the same period of 2023, representing a decline of approximately 25.5%[10] - The gross profit for the same period was RMB 2,718,000, down from RMB 3,039,000 in 2023, indicating a decrease of about 10.6%[10] - The company incurred a loss of RMB 57,205,000 for the six months ended June 30, 2024, compared to a loss of RMB 51,939,000 in the prior year, reflecting an increase in loss of approximately 10.5%[10] - Total comprehensive loss for the period was RMB 115,180,000, significantly higher than RMB 53,830,000 in the previous year, marking an increase of around 114.3%[10] - Basic and diluted loss per share was RMB 7.22, compared to RMB 8.39 in the same period last year, showing an improvement in loss per share by approximately 13.9%[10] - The company reported a loss before tax of RMB 57,205,000 for the six months ended June 30, 2024, compared to a loss of RMB 50,130,000 in the same period of 2023[30] - The company reported a loss attributable to shareholders of approximately RMB 54.2 million for the first half of 2024[91] Revenue Breakdown - Revenue from LED products for the six months ended June 30, 2024, was RMB 33,220,000, a decrease of 25% from RMB 44,310,000 in the same period of 2023[30] - Revenue from GaN and other semiconductor products was RMB 1,032,000, down 35% from RMB 1,595,000 year-over-year[30] - Revenue from LED products was approximately RMB 33.2 million, accounting for about 97.0% of total revenue, down from RMB 44.3 million and 96.5% in the previous period[102] - Revenue from GaN and other semiconductor products was approximately RMB 1.0 million, representing about 3.0% of total revenue, down from RMB 1.6 million and 3.5% in the previous period[102] Expenses and Costs - Sales and distribution expenses for the period were RMB 6,785,000, up from RMB 1,036,000 in 2023, representing a significant increase of approximately 553.5%[10] - Administrative and other expenses totaled RMB 62,949,000, compared to RMB 46,994,000 in the previous year, reflecting an increase of about 33.9%[10] - Financial costs for the six months ended June 30, 2024, were RMB 2,164,000, down from RMB 6,273,000 in the previous year, indicating a reduction of approximately 65%[31] - Share-based payment expenses for the period amounted to RMB 29.8 million, a significant increase from RMB 3.7 million in the previous period, mainly due to the employee share incentive plan[108] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,031,080 thousand, a decrease from RMB 1,064,886 thousand as of December 31, 2023, representing a decline of approximately 3.2%[11] - Non-current assets decreased from RMB 441,070 thousand to RMB 365,497 thousand, a reduction of about 17.1%[11] - Current assets increased to RMB 331,583 thousand from RMB 323,816 thousand, reflecting a growth of approximately 2.3%[11] - Total liabilities decreased from RMB 39,448 thousand to RMB 32,166 thousand, a decline of around 18.6%[11] - Net asset value as of June 30, 2024, was RMB 660,778 thousand, down from RMB 720,610 thousand, indicating a decrease of about 8.3%[11] - The equity attributable to owners of the company decreased from RMB 677,066 thousand to RMB 590,895 thousand, a drop of approximately 12.7%[11] Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2024, was a net outflow of RMB 34,679 thousand, compared to a net outflow of RMB 24,425 thousand for the same period in 2023, representing a 42% increase in cash used[15] - The company reported a cash and cash equivalents balance of RMB 21,691 thousand, down from RMB 49,287 thousand, a decrease of about 56.0%[11] - The company’s total cash and cash equivalents at the end of the first half of 2024 stood at RMB 21,691 thousand, down from RMB 52,005 thousand at the end of the same period in 2023, indicating a liquidity challenge[16] Market and Industry Insights - The LED lighting industry faced ongoing negative impacts due to a sluggish real estate market and weak consumer demand for electronic products in the first half of 2024[86] - The global semiconductor market is projected to grow by 16.0% in 2024, with an estimated valuation of USD 611 billion[88] - The demand for third-generation semiconductor materials, particularly GaN, is expected to increase significantly, driven by the growth in the new energy and electric vehicle sectors[89] - The GaN power device market is projected to grow from USD 46 million in 2020 to USD 1.1 billion by 2026, with a compound annual growth rate of 70%[97] Strategic Initiatives - The company plans to continue its market expansion and product development strategies in the upcoming quarters[12] - The company aims to become a leading supplier of third-generation semiconductors in the Greater China region by accelerating the R&D and application of GaN technology[85] - The company has successfully installed two production lines for GaN-related products at its semiconductor factory in Xuzhou, Jiangsu Province[92] - The company plans to complete the front-end process of power chips by the fourth quarter of 2024 and aims for mass production within the year[94] Shareholder and Governance Matters - The company did not declare or pay any dividends for the six months ended June 30, 2024[35] - The board did not recommend the payment of an interim dividend for the period, consistent with the previous period[114] - The company adopted the corporate governance code and confirmed compliance during the period[159] - The board composition was adjusted to meet listing rules, with three independent non-executive directors as of May 8, 2024[161] Employee and Stock Option Plans - The employee stock incentive plan resulted in a share reward expense of approximately RMB 24.8 million during the period[12] - The company has a stock option plan that granted 34,510,000 options to 26 participants at a price of HKD 1 each on June 17, 2021, and 7,890,000 options to 48 participants at the same price on July 28, 2023[68] - The company recognized an expense of approximately RMB 3.0 million related to the stock option plan, compared to RMB 3.7 million for the same period ended June 30, 2023[77] - The company adopted the 2023 Share Award Plan on December 29, 2023, with a validity period of 10 years, allowing for a maximum of 10% of the issued shares (751,054,785 shares) to be granted as rewards[78]
宏光半导体(06908) - 2024 - 中期财报