BRIEF: GigaDevice profit skyrockets sixfold in first quarter
Integrated circuit (IC) designer GigaDevice Semiconductor Inc. (3986.HK) on Wednesday reported its revenue more than doubled year-on-year to 4.19 billion yuan ($613 million) in the first quarter, while its profit skyrocketed more than sixfold to 1.46 billion yuan.
In its first financial report since its January Hong Kong IPO, the company attributed the explosive profit growth partly to a global memory chip shortage, which lifted both its prices and sales volumes. Its micro-controller shipments also grew substantially, fueled by demand from the industrial, consumer electronics, and automotive customers.
GigaDevice added the sharp increases in both sales volumes and product prices during the quarter caused its cash collection from sales to surge. Its net cash flow from operating activities rose more than fivefold to 1.78 billion yuan during the quarter from 336 million yuan in the same period last year.
Shares of GigaDevice opened higher on Thursday, but later reversed course and closed down 1.8% at HK$468.40. The stock has still doubled since its listing in January
By Lau Chi Hang
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