Demand for storage chips rebounds, Zilliant Innovation sees double growth in Q1 revenue and profit | Financial Report Insights
ZTE Microelectronics released its first quarter financial report for 2024, with both revenue and profit showing double-digit growth. In Q1, the company achieved operating income of 1.627 billion RMB, a year-on-year increase of 21.32%; net profit of 205 million RMB, a year-on-year increase of 36.45%. The recovery of demand in the storage chip market served as the main driving force. The company gradually emerged from last year's difficulties in the first quarter, with a significant increase of 175.29% in net cash flow. Comprehensive gross profit margin improved, and expense control was effective. Total assets amounted to 17.066 billion RMB, with attributable equity to shareholders reaching 15.338 billion RMB, indicating a solid financial position. ZTE Microelectronics holds a leading position in the storage chip market
On Friday, April 19th, China's leading storage chip company, GigaDevice Innovation, released its first quarter financial report for 2024, with impressive performance. The company stated that the recovery in demand for storage chips in the market was the main driver of the revenue growth.
According to the financial report, GigaDevice Innovation achieved operating income of 1.627 billion RMB in Q1, a year-on-year increase of 21.32%; net profit attributable to shareholders of the listed company was 205 million RMB, exceeding last year's full-year profit of 161 million RMB, a year-on-year increase of 36.45%. After deducting non-recurring gains and losses, the net profit attributable to the parent company was 184 million RMB, a year-on-year increase of 41.26%.
The first quarter performance also indicates that the company is gradually emerging from the difficulties of the previous year. According to GigaDevice Innovation's 2023 annual report, the company achieved operating income of 5.761 billion RMB for the full year of last year, a year-on-year decrease of 29.14%; net profit attributable to shareholders of the listed company was 161 million RMB, a year-on-year decrease of 92.15%. The company's comprehensive gross profit margin decreased from 47.66% to 34.42%.
In the financial report, the company stated that the growth in Q1 performance was mainly due to the recovery in demand in the consumer electronics market and an increase in the shipment of storage chips. In the first quarter of 2024, GigaDevice Innovation's net cash flow from operating activities reached 627 million RMB, a significant increase of 175.29% year-on-year.
In terms of gross profit margin, GigaDevice Innovation's comprehensive gross profit margin in Q1 was 41.12%, a significant increase compared to the same period last year at 38.21% and the full year of 2023 at 34.42%. The company attributed the increase in gross profit to product structure optimization and effective cost control.
Regarding expense ratios, in Q1, GigaDevice Innovation's sales expense ratio was 5.00%, management expense ratio was 5.98%, research and development expense ratio was 17.62%, totaling 28.60%, slightly lower than the 29.59% in the same period last year, demonstrating the company's good expense control capabilities.
As of the end of March 2024, the company's total assets were 17.066 billion RMB, owner's equity attributable to shareholders of the listed company was 15.338 billion RMB, with an asset-liability ratio of 10.13%, indicating a healthy financial condition.
As a leading enterprise in the domestic storage chip industry, GigaDevice Innovation holds a market-leading position in products such as NOR Flash and NAND Flash. With the rapid development of downstream applications such as 5G, Internet of Things, and automotive electronics, the demand for storage chips is expected to continue to improve, providing strong momentum for the company's future performance