Q1 net profit increased 36.45% year over year, surpassing the full year of last year.
On Friday, April 19, China's memory chip leader, Zhaoyi Innovation released its financial report for the first quarter of 2024. The performance was impressive. The company said that the recovery in demand in the memory chip market is the main driving force for performance growth.
According to financial reports, GigaYi Innovation Q1 achieved revenue of 1,627 million yuan, an increase of 21.32% over the previous year; net profit attributable to shareholders of listed companies was 205 million yuan, exceeding 161 million yuan for the whole of last year, an increase of 36.45% over the previous year. Net profit attributable to mother after deducting non-recurring profit and loss was 184 million yuan, an increase of 41.26% over the previous year.
The first-quarter results also meant that the company gradually got out of last year's predicament. According to the 2023 annual report of Zhaoyi Innovation, for the whole of last year, Zhaoyi Innovation achieved operating income of 5.761 billion yuan, a year-on-year decrease of 29.14%; net profit attributable to shareholders of listed companies was 161 million yuan, a year-on-year decrease of 92.15%. The company's consolidated gross margin fell from 47.66% to 34.42%.
The company said in its financial report that the increase in Q1 performance was mainly due to a recovery in demand in the consumer electronics market and an increase in memory chip shipments. In the first quarter of 2024, the net cash flow from GigaYi's innovative operating activities reached 627 million yuan, a significant increase of 175.29% over the previous year.
In terms of gross margin, the comprehensive gross margin of Q1 MegaYi Innovation was 41.12%, a significant increase compared with 38.21% in the same period last year and 34.42% for the full year of 2023. The company said that the increase in gross profit was mainly due to product structure optimization and proper cost control.
In terms of cost ratio, GigaYi Innovation's Q1 sales expense ratio was 5.00%, management expense ratio was 5.98%, and R&D expenses rate was 17.62%, totaling 28.60%, a slight decrease from 29.59% in the same period last year, showing the company's good cost control capabilities.
As of the end of March 2024, the company's total assets were 17.066 billion yuan, owners' equity attributable to shareholders of listed companies was 15.338 billion yuan, the balance ratio was 10.13%, and the financial situation was stable.
As a leading enterprise in the domestic memory chip field, GigaYi Innovation occupies a leading position in the market in NOR Flash, NAND Flash and other products. With the rapid development of downstream applications such as 5G, the Internet of Things, and automotive electronics, demand for memory chips is expected to continue to improve, providing a strong impetus for the company's future performance growth.