According to the Zhitong Financial App, Hard Egg Innovation (00400) announced its interim results for the six months ended June 30, 2023. The group achieved revenue of RMB 3,864 million (same unit), a year-on-year decrease of 17.8%; profit attributable to equity shareholders of the company was 92.5 million yuan, a year-on-year decrease of 29.8%; and basic profit of 0.068 yuan per share.
The announcement stated that the decline in revenue was mainly due to a slowdown in the growth rate of chip demand in the consumer electronics category.
Gross profit for the reporting period was approximately $482 million, an increase of approximately 13.7% from approximately $424 million for the six months ended June 30, 2022. This increase was mainly driven by an increase in gross margin from 9.0% in the six months ending June 30, 2022 to 12.5% in the same period in 2023. The amount of revenue and cost of sales offset the increase in gross margin. The increase in gross margin is due to changes in the sales mix. Among them, the gross margin of sales of products developed by Hard Egg, sales of FPGA products for the AI industry, and revenue from developing customized technical solutions for V2X and 5G applications is relatively higher than the gross profit margin of IC components.