Fudan Microelectronics released its financial report for the first half of 2024 on August 28th, according to the Star Daily.

The data shows that in the first half of the year, Fudan Microelectronics achieved revenue of approximately 1.794 billion yuan, a decrease of 0.12% compared to the same period last year; the net income attributable to the parent company was approximately 0.348 billion yuan, a decrease of 22.52% compared to the same period last year.

Fudan Microelectronics stated that the company has accelerated the launch of new products and strengthened market development. At the same time, influenced by the recovery of downstream markets such as consumer electronics, the sales volume of various product lines of integrated circuit design business has increased. However, some products have been affected by market competition, and the company has adjusted the sales prices of its products. As a result, the revenue of the integrated circuit design business has slightly increased compared to the same period last year.

Due to the decrease in product sales prices and the impact of product structure adjustments, the comprehensive gross margin of Fudan Microelectronics in the first half of the year was 56.49%, a year-on-year decrease of 10.6 percentage points.

Fudan Microelectronics currently has four major product lines: security and identification, non-volatile memory, smart meter chips, and field-programmable gate arrays (FPGA). Through its subsidiary, Huali Corporation, it provides chip testing services to customers.

The security and identification product line of Fudan Microelectronics includes multiple sub-product series such as smart cards and security chips, radio frequency identification (RFID) and sensor chips, and smart recognition device chips. In the first half of the year, this business line achieved sales revenue of approximately 0.37 billion yuan.

Fudan Microelectronics stated in its financial report that the traditional smart card market remained relatively stable in the first half of this year. Despite the intense market price competition under the low economic operation, the company continued to maintain stable market share in the fields of banking cards, social security cards, and transportation cards.

In the institutional research conducted in July this year, Fudan Microelectronics also stated that the downstream demand for smart cards such as bank cards and social security cards did not meet expectations. The safety and identification product line of the company was under pressure in the first half of the year, and it hopes that the recovery of the consumer market will drive the recovery of the safety and identification product line.

This year, Fudan Microelectronics focuses on launching new products and expanding its market in the safety and identification product line.

According to the financial report, the company completed the EMV certification for new generation banking card products in the first half of the year, and started to layout overseas markets and channels. Fudan Microelectronics also stated that the overseas demand for ultra-high frequency RFID market is strong at present, and the demand is gradually penetrating the domestic retailers. The current market development is smooth.

In the automotive field, Fudan Microelectronics' vehicle-grade contactless card reader chip has been introduced by major OEMs and Tier 1 automotive brands in the first half of this year. In terms of products like NFC channel chip and electronic price tag, Fudan Microelectronics also stated that it is actively exploring new application markets.

In terms of storage products, Fudan Microelectronics generated approximately 0.599 billion yuan in related sales revenue in the first half of the year. Fudan Microelectronics stated that after the adjustment in 2023 and the digestion of terminal and channel inventories, the storage products have gradually recovered. The sales of storage products have greatly increased due to industry changes, and the prices of consumer and industrial grade SPI NAND and NOR products have stopped falling and started to rise.

According to the financial report, in the field of industrial instruments and meters, the company's EEPROM product market share is steadily increasing. In terms of consumer-grade products, it pays close attention to customer demand in the fields of networking, security, and wearables in order to further expand sales; sales of high-reliability products are generally stable.

In the field of smart meter chips, Fudan Microelectronics achieved approximately 0.212 billion yuan in sales revenue. Benefiting from the growth of grid tenders, Fudan Microelectronics had a good shipment situation for smart meter MCUs in the first half of the year, which drove the performance growth of this business unit.

In the general MCU market, the pressure on terminal prices has led to price pressure on the company's MCU products. Fudan Microelectronics stated that the current product line is adjusting its price strategy and increasing technical service support in order to maintain the existing customer base in the industry, while also actively expanding new customer groups and developing new dealer channels.

In terms of FPGA product line, Fudan Microelectronics achieved sales revenue of 0.553 billion yuan in the first half of the year. According to the financial report, its new generation FPGA platform development and industrialization project has completed the development of multiple products, such as tape-outs and packaging, and has provided samples for trial to multiple customers. The product's supporting tool, VultureTM, is currently undergoing internal testing and is expected to be released for the first time in the second half of the year.