By Li Panpan

Eighty-two of China’s 160 A-shares listed IC companies saw their net profits decline in the first three quarters of 2022 year-on-year, learned JW Insights from those companies’ performance reports.

Since the beginning of 2022, the weakened consumer electronics market has slowed down the demand for consumer electronics chips, resulting in a record-high inventory, intensified price competition, and a rapid decline in product gross profit margins, affecting IC companies’ net profits.

As of October 31, 160 A-share IC companies have disclosed their performance reports for the first three quarters of 2022. They achieved a total operating income of RMB464.675 ($63.93 billion). Twelve of them have a revenue of more than RMB10 billion ($1.38 billion), led by Wingtech(闻泰科技) with RMB42.085 billion ($5.79 billion); 65% of them have achieved revenue growth, a decline from more than 90% last year.

In terms of net profit growth, only 78 companies saw a year-on-year increase in net profit, with Anlogic(安路科技)'s net profit attributable to its shareholders increased by 2963.05% year-on-year, ranking first.

Other 82 companies saw a year-on-year decline in net profit, accounting for 51.25% of the total, and 17 companies suffered losses in net profit, with a total loss of RMB3.121 billion ($429.36 million).