Executive Summary
HG Semiconductor Limited delivered QQ2 2024 revenue of 17.13 million CNY, down 25.4% year over year from 21st/22.95 million CNY in QQ2 2023, with gross profit of 1.36 million CNY and a gross margin of 7.9%. The quarter featured a heavy operating expense base, including 31.47 million CNY in general and administrative costs and 5.70 million CNY in R&D, contributing to an operating loss of 36.61 million CNY and an EBITDA of -27.56 million CNY. Net income registered -27.12 million CNY, translating to an EPS of -0.0361. Cash flow remained negative on an operating basis (-17.34 million CNY) with negative free cash flow (-21.96 million CNY), driven by the dissenting combination of high SG&A, ongoing R&D spend, and working-capital dynamics. Management commentary is not reflected in the supplied transcript data, limiting quotes to two placeholder quotes (see transcriptQuotes).
Key Performance Indicators
Key Insights
Revenue: 17.13m CNY in Q2 2024; YoY -25.39%, QoQ 0.0%
Gross Profit: 1.36m CNY; Gross Margin 7.94%; YoY -10.56%, QoQ 0.0%
Operating Income: -36.61m CNY; Operating Margin -2.14%; YoY -56.33%, QoQ 0.0%
Net Income: -27.12m CNY; Net Margin -158% (negative); YoY -10.45%, QoQ 0.0%
EPS (diluted): -0.0361 CNY; YoY +14.05%, QoQ 0.00%
EBITDA: -27.56m CNY; EBITDA Margin/Ratio: -1.609 (negative)
Cash Flow: Operating cash flow -17.34m; Free cash flow -21.96m; Net cash from financing/investing activities negat...
Financial Highlights
Revenue: 17.13m CNY in Q2 2024; YoY -25.39%, QoQ 0.0%
Gross Profit: 1.36m CNY; Gross Margin 7.94%; YoY -10.56%, QoQ 0.0%
Operating Income: -36.61m CNY; Operating Margin -2.14%; YoY -56.33%, QoQ 0.0%
Net Income: -27.12m CNY; Net Margin -158% (negative); YoY -10.45%, QoQ 0.0%
EPS (diluted): -0.0361 CNY; YoY +14.05%, QoQ 0.00%
EBITDA: -27.56m CNY; EBITDA Margin/Ratio: -1.609 (negative)
Cash Flow: Operating cash flow -17.34m; Free cash flow -21.96m; Net cash from financing/investing activities negative; FX effect +0.515m
Balance Sheet: Total assets 697.08m CNY; Cash & equivalents 21.69m CNY; Short-term investments 34.60m CNY; Total cash & investments 56.29m CNY; Total current assets 315.03m CNY; Total liabilities 36.30m CNY; Total stockholders’ equity 597.56m CNY; Net debt position implied by data shows net cash ~ -5.63m CNY.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
17.13M |
-25.39% |
0.00% |
| Gross Profit |
1.36M |
-10.56% |
0.00% |
| Operating Income |
-36.61M |
-56.33% |
0.00% |
| Net Income |
-27.12M |
-10.45% |
0.00% |
| EPS |
-0.04 |
14.05% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-214%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.03
Management Commentary
Key earnings-call transcript data was not provided in the supplied material. As a result, cannot extract management quotes or thematic insights from a verbatim call. The analysis below incorporates the quantitative data and notes the absence of transcript context.
Forward Guidance
No formal forward guidance was disclosed in the provided materials. In absence of explicit guidance, the outlook is assessed against the company’s fixed-cost structure and the broader LED/electronics components cycle. Likely catalysts include: (1) cost discipline and SG&A optimization to improve operating leverage; (2) potential monetization or strategic reallocation of long-term investments and non-core assets; (3) product mix shifts or new subcontracting opportunities to lift utilization and gross margins. Risks include sustained pricing pressure in LED components, volatility in supplier costs, and slower-than-expected demand in key backlight/LCD markets. Investors should monitor management commentary on cost-reduction initiatives, product-roadmap progress, and any changes to capital allocation strategy.