HG Semiconductor Announces 2022 Annual Results

HONG KONG, Apr 3, 2023 – (ACN Newswire) – HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”; stock code: 6908. HK) revealed its audited combined outcomes for the year ended 31 December 2022 (the “Year”). HG Semiconductor actively established its brand-new third-generation semiconductor organization throughout the Year, by more speeding up the speed of research study and advancement (“R&D”) and application of gallium nitride (“GaN”) innovation and accomplishing numerous essential turning points.

Throughout the Year, considering that the third-generation semiconductor company was still in financial investment and R&D phase, the Group’s income was primarily contributed from the LED bead company. The repeating COVID-19 pandemic (“COVID-19” or “Pandemic”) had serious unfavorable effect on China’s economy. The short-term closure of factories due to lockdown procedures amongst cities had actually stopped the commercial chain of the Group’s LED bead service for particular amount of time and affected its production capability appropriately. Earnings for the Year was around RMB87.5 million (2021: roughly RMB126.1 million), while gross revenue reduced to RMB16.4 million (2021: around RMB25.5 million). As the Group did not tape-record any non-cash circulation products such as loss on acquisition of intangible properties, loss for the Year attributable to the owners of the Company narrowed substantially to roughly RMB101.3 million (2021: around RMB446.8 million) regardless of the boost in expense on the promo and R&D of the third-generation semiconductor company.

The management of the Group exposed that the international financial healing was hindered by numerous elements throughout the Year, and the world economy was going through a rough state. Regardless of the macroeconomic unpredictabilities, the international semiconductor need stayed robust. Dealing with the difficulties of the global environment, the Group concentrated on establishing brand-new GaN service throughout the Year to move towards the objective of ending up being an incorporated gadget producer (“IDM”) of semiconductor serving for entire commercial chain with a core concentrate on semiconductor style and production, incorporating R&D, production, product packaging and bundle screening and sales.

Service Review

Throughout the Year, the Group’s profits of LED bead company was roughly RMB87.2 million (2021: around RMB126.1 million). The reduction in income was generally due to the decline in the typical market price of LED beads throughout the Year, as the need for high-end LED items in the PRC has actually considerably reduced as an outcome of the reoccurrences of the COVID-19 break outs and the introduction of altered variations of the infection, which negatively affected the Chinese economy.

With the strong clinical research study abilities and persistent efforts in the R&D and production of the Group’s group of researchers, the epitaxial wafer and quick charging items in the third-generation GaN organization started to produce earnings for the Group throughout the Year.

GaN epitaxial wafer R&D and production advancement turbo-charges advancement of third-generation semiconductor market chain
Throughout the Year, the Group’s R&D, production and application of GaN third-generation semiconductors were understood, and rapidly transported into the production of epitaxial wafer. The Group has actually set up 2 assembly line in its semiconductor factory in Xuzhou Economic and Technological Development Zone, Jiangsu Province, PRC for the production of GaN-related items, and core devices imported from Europe and Japan have actually been provided to the factory and are prepared for chips making to fulfill the marketplace requires. With the efforts of the researcher group and their strong R&D abilities, the Group attained a significant development throughout the Year by effectively beginning the production of its own 6-inch GaN power gadget epitaxial wafer in October. The success in producing the epitaxial wafers is well ahead of the anticipated schedule, representing a crucial accomplishment in the Group’s improvement into a third-generation GaN semiconductor provider, and leading the way for mass production of GaN chips.

In addition, the Group was given 9 energy designs patents and look patents throughout the Year, consisting of GaN-based inverters and power supply modules, with a variety of development patents pending for approval. Xuzhou GSR Semiconductor Co., Ltd., the Group’s wholly-owned subsidiary, performed its very first publicised market field trial of GaN with GaN Systems in the power facilities of a web information centre. The test results marks that GaN can be commonly utilized in the power facilities of information centres.

Multi-party tactical cooperation accomplishments continue to drive GaN company
Throughout the Year, HG Semiconductor participated in tactical structure arrangements with a variety of industry-leading business to develop equally advantageous tactical collaborations and boost the Group’s abilities in development and production, consisting of participating in a tactical cooperation contract with Ingdan Inc. (Stock Code: 400. HK) in March, to help the Group in the sale of its manufactured chips in the PRC, and a long-lasting tactical cooperation in between the 2 celebrations in the application and advancement of chips. In May, the Group reached a tactical cooperation arrangement with China Titans Energy Technology Group Co., Limited (Stock Code: 2188. HK) in regard of innovation R&D and exchange, to work together in the R&D of the brand-new generation of fast-charging stacks utilizing the Group’s third-generation semiconductor innovation in the next 3 years. While in regards to overseas, the Group likewise participated in a non-legally binding memorandum of comprehending with GUH Holdings Berhad (“GUH”; Stock code: 3247. KL) to broaden the sales of fast-charge batteries and GaN gadgets to Malaysia and Southeast Asia. At the exact same time, the Group will supply GUH with prepare for the building of a battery factory and the procurement of associated devices, in addition to the arrangement of a total set of module devices for a 100 MWh energy storage station. The Group continued to work together with Hong Kong’s statutory bodies, in which both sides will collectively research study and promote “wise city” advancement in Hong Kong, as well as research study the upgrade of regional electrical car and charging centers.

Intro of significant tactical investors to speed up the rate of getting in the brand-new energy field
GaN, as an emerging brand-new innovation, its broad potential customers are favoured by financiers. Throughout the Year, the Group effectively presented a variety of tactical investors to raise more capital for the advancement of crucial innovations and to additional expand its investor base. Amongst them, the Group participated in a contract with Profit Act Limited (“Strategic Investor”) in August, a business that is indirect wholly-owned by Mr. Zhu Gongshan (“Mr. Zhu”), the Founder, Chairman and Executive Director of GCL Technology Holdings Limited (“GCL Technology”; Stock Code: 3800. HK), and the Strategic Investor consented to subscribe for 60 million membership shares and 60 million membership warrants. Consequently, the Group likewise participated in a tactical cooperation structure arrangement with Golden Concord Group Limited (“Golden Concord Group”), for a long-lasting tactical cooperation in the application of GaN power chips in the brand-new energy sector. This collaboration will help HG Semiconductor in getting in the supply chain market in the brand-new energy market.


With the increase of innovations such as 5G and expert system, the R&D and application of third-generation semiconductors represented by GaN are likewise consisted of in the nationwide tactical preparation. The Group will continue to make increased efforts to the third-generation semiconductor GaN market chain in order to speed up the rate of R&D and broaden the applications of GaN-related items. Together with the upgrade of Xuzhou Factory and the assembly line and makers are well in location, the Group’s R&D group and professionals will continue to concentrate on production research study, intending to speed up the realisation of production capability.

As market penetration of electrical lorries in Mainland China and Hong Kong increases, paired with policy assistance and strong market need, the more advancement of GaN power items is anticipated to be quick. The Group will continue to establish and commercialise new-generation charging stacks in both China and Hong Kong, and actively check out the facility of a fortress for fast-charging battery services in Hong Kong. In addition, the Group anticipates that GaN innovation will play an essential function in fantastic energy systems in the future. The Group plans to develop a new-energy joint endeavor business with Golden Concord Group in China and offer technical assistance to the endeavor for the function of co-developing silicon-based power chips and items that utilize third-generation semiconductors. In this method, the Group can even more speed up the rate of R&D of innovations and applications of GaN in the new-energy field.

Looking ahead, the Group will actively look for tactical partners and update its commercial chain while promoting the concept of accomplishing synergy in usage of resources and dual-win cooperation. The Group will likewise continue to bring in impressive professionals and skills in the field of semiconductor to improve its production and R&D. Buoyed by 3 elements – the federal government’s beneficial policies, substantial downstream application markets, and domestic alternative chances – the Group will take advantage of tailwinds in more establishing and checking out third-generation semiconductor items and applications with GaN at their core, continue to increase quality and effectiveness, increasing worth for its investors.

About HG Semiconductor Limited
HG Semiconductor Limited (6908. HK) is mainly taken part in semiconductor item service in China, consisting of the style, advancement, production, subcontracting services and sales of light-emitting diode (“LED”) beads and a brand-new generation of semiconductor gallium nitride (“GaN”). The Group is devoted to accelerating its research study and advancement and growth in the application of GaN associated items, with a goal to end up being a leading semiconductor business with the combination of style, production and sales of semiconductor chips, along with offering overall services with greater performance and competitive system expense.

For more information, please see www.hg-semiconductor.com

Subject: Press release summary

Source: HG Semiconductor Limited

Sectors: Electronics


From the Asia Corporate News Network

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