Thanks to the expansion of revenue scale and the increase in gross profit margin, Willsemi's net profit in the first half of the year surged nearly 8 times, with its main business achieving significant growth in the smartphone and automotive electronics sectors.
On Monday, August 19, the chip leader Willsemi with a market value of hundreds of billions announced its 2024 interim performance report.
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1) Key Financial Data
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Revenue: The company's revenue in the first half of the year was 12.091 billion yuan, a year-on-year increase of 36.5%.
Profit: The company's net profit attributable to shareholders of the parent company in the first half of the year was 1.367 billion yuan, a year-on-year increase of 792.79%. The net profit after deducting non-recurring gains and losses was 1.372 billion yuan, a significant increase of 1837.73% year-on-year. The report stated that the profit growth mainly came from the increase in operating income and the improvement in gross profit margin.
R&amp;D Expenses: The company's R&amp;D expenses in the first half of the year increased by 33.84% year-on-year to 1.255 billion yuan, mainly due to the increase in employee compensation and share-based payment expenses during the reporting period.
</blockquote>
2) Key Business Revenue Data
<blockquote>
Image Sensor Solutions: Achieved sales revenue of 9.312 billion yuan in the first half of the year, accounting for 77.15% of the main business income, an increase of 49.9% compared to the same period last year.
Display Solutions: Achieved sales revenue of 0.472 billion yuan in the first half of the year, a decrease of 28.57% year-on-year, accounting for 3.91% of the main business income, mainly affected by industry supply and demand relationships.
Analog Solutions: Achieved sales revenue of 0.634 billion yuan in the first half of the year, a year-on-year increase of 24.67%, accounting for 5.25% of the main business income, with a strong performance in the automotive analog chip field.
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In the first half of 2024, Willsemi's net profit surged year-on-year. The report pointed out that this was mainly due to the following two factors:
<blockquote>
(1) With the further recovery of the consumer market and the growth in downstream customer demand, along with the company's product introduction in the high-end smartphone market and the continuous penetration of automatic driving applications in the automotive market, the company achieved significant growth in operating income;
(2) At the same time, influenced by factors such as product structure optimization and cost control, the company's product gross profit margin gradually recovered. The comprehensive gross profit margin of the company during the reporting period was 29.14%, an increase of 8.21 percentage points year-on-year.
</blockquote>
The financial report also shows that in the first half of the year, Willsemi's main business achieved revenue of 12.07 billion yuan, a year-on-year increase of 36.64%.
Among them, the semiconductor design sales business achieved revenue of 10.418 billion yuan, accounting for 86.31% of the main business income, an increase of 41.14% compared to the same period last year; the semiconductor agency sales business achieved revenue of 1.633 billion yuan, accounting for 13.53% of the company's main business income, an increase of 13.4% compared to the same period last year
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Among the company's three main business segments, the image sensor solution business has shown strong performance, mainly benefiting from significant revenue growth in the smartphone and automotive electronics markets.
Specifically, in the field of smartphone applications, the company's 50-megapixel series main camera products with different pixel sizes have significantly increased their market share. During the reporting period, the company's revenue from the image sensor business in the smartphone market reached approximately 4.868 billion yuan, an increase of 78.51% compared to the same period last year.
Furthermore, in the automotive electronics product field, Willsemi's CIS solution covers automotive applications such as ADAS, in-cabin monitoring, electronic rearview mirrors, dashboard cameras, rearview, and panoramic imaging. During the reporting period, the company's revenue from the image sensor business in the automotive market reached approximately 2.914 billion yuan, an increase of 53.06% compared to the same period last year.

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Willsemi's net profit attributable to the parent company's shareholders in the first half of the year was RMB 1.367 billion, a year-on-year increase of 792.79%. The net profit after deducting non-recurring gains and losses surged by 1837.73% year-on-year

- In the first half of 2024, Weir Semiconductor's net profit surged nearly 8 times due to revenue growth and gross margin improvement, driven by significant growth in its main businesses in the smartphone and automotive electronics sectors.
- The company reported a revenue of 120.91 billion RMB, a 36.5% year-on-year increase, with a net profit attributable to shareholders of 13.67 billion RMB, up by 792.79%. R&D expenses rose by 33.84% to 1.255 billion RMB, mainly due to increased employee compensation and stock payment costs.
- Weir Semiconductor's main revenue came from its Image Sensor Solutions, achieving 93.12 billion RMB in sales, representing 77.15% of total revenue, and Analog Solutions saw a 24.67% growth, particularly strong in automotive applications, reaching 6.34 billion RMB in sales.

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Net profit soared 8 times! Willsemi achieved revenue of RMB 12.09 billion in the first half of the year, a year-on-year increase of 36.5% | Financial Report Insights