When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

According to Cailian Press on August 26th, downstream demand recovery combined with AIoT penetration has driven performance growth. Rockchip Electronics' revenue and net income both increased in the first half of the year, with non-profit net income increasing more than 10 times year-on-year.

Cailian Press noticed that the company's profit in the first half of this year exceeded 0.183 billion yuan, surpassing the full-year level of last year but not the profitability situation of the same period in 2021 and 2022. Data shows that in H1 2021, H2 2021, and 2023, the company achieved net income of 0.265 billion yuan, 0.272 billion yuan, and 0.135 billion yuan respectively. Rockchip Electronics also admitted that the gross margin of the company increased by 1.99 percentage points to 35.91% compared to the same period last year.

The financial report released by Rockchip Electronics, an AIoT SoC chip manufacturer, shows that the company's operating revenue, net income, and non-profit net income in the first half of the year were 1.249 billion yuan, 0.183 billion yuan, and 0.177 billion yuan, respectively, with year-on-year growth rates of 46.44%, 636.99%, and 1079.15%. The company stated that the market has significantly recovered in the first half of this year, especially in the AIoT product lines. Various AIoT computing platforms, represented by RK3588, RK356X, and RV1103/1106 series, have continued to grow rapidly, especially the flagship chip RK3588.

Inventory has been declining for four consecutive quarters, from 1.507 billion yuan at the end of June 2023 to 1.031 billion yuan at the end of June this year. Rockchip Electronics attributes the changes in inventory in the first half of the year to the growth in chip sales and the decrease in inventory levels.

From a macro perspective, after experiencing weak market demand and declining industry prosperity in 2023, the global semiconductor market is returning to a growth track. According to the Semiconductor Industry Association (SIA), global semiconductor sales in the second quarter increased by 18.3% to $149.9 billion, marking the first sequential growth since the fourth quarter of 2023, with the Chinese market growing by 21.6%.

The mid-year performance of several A-share semiconductor companies has also signaled the recovery of the industry. For example, the net profit of listed SoC chip companies such as Espressif Systems (688018.SH), Allwinner Technology (300458.SZ), Amlogic (688099.SH), and Espressif Systems (688049.SH) all increased by more than 65% year-on-year in the first half of the year, with Espressif Systems experiencing a net profit growth of 134.85%.

Looking ahead, many companies are optimistic about the market demand in the second half of the year. According to the latest forecast from the World Semiconductor Trade Statistics Organization (WSTS), it has raised the global semiconductor market growth from 13.1% to 16.0% in 2024, and the market is expected to reach 611.2 billion dollars.

It is reported that Rockchip released a series of new chips in the first half of this year, including the advanced process high-end AIoT processor RK3576 and the new smart audio processor RK2118. The company stated that through close cooperation with top customers in target scenarios, they have quickly completed the research and development and mass production work. The new products such as RK3576 and RK2118 will gradually become new growth points in the second half of the year.