Click the blue text above to follow us
On April 29, Loongson Technology released its performance report for 2024. During the reporting period, the market recognized the cost-effectiveness of the Loongson 4-core desktop chip 3A6000, and with the gradual recovery of the e-government market, revenue from information technology chips increased by 193.70% year-on-year, with a gross margin increase of 21.69 percentage points, driven by a significant increase in chip sales.
As the competitiveness of the new generation of products improves, the results of the three-year transformation are beginning to show. Starting in the second half of 2024, Loongson Technology’s business will enter a new growth cycle, with a quarter-on-quarter revenue increase of 29.64% and a year-on-year increase of 43.91%. The company continues to maintain a high level of R&D investment, reaching 531 million yuan, accounting for 105.34% of operating revenue, of which R&D expenses are 430 million yuan and development expenditures are 101 million yuan, aimed at accelerating CPU R&D iterations and ecosystem development.
The company implements a development strategy of “combining points and surfaces,” significantly enhancing the cost-effectiveness of Loongson general-purpose CPUs and improving the software ecosystem. Based on general-purpose CPUs, it develops dedicated solutions such as storage servers and cloud terminals that are competitive in the open market, and develops embedded/specialized chips that meet specific application needs.
During the reporting period, the company was affected by macroeconomic conditions and changes in the industry cycle, leading to a significant decline in revenue from the industrial control market, which has traditional advantages in security applications. However, it seized the opportunity of the e-government market’s recovery, fully leveraging the cost-effectiveness advantages of new products like 3A6000 and 2K0300, driving the company’s revenue back into a growth cycle in the second half of the year, achieving an annual operating revenue of 504 million yuan in 2024, which is basically flat compared to the previous year, indicating a stable and positive trend in the company’s overall business.
During the reporting period, the overall revenue from the company’s chip products increased by 41.44% year-on-year. As the e-government market began to warm up, the company proactively reduced its solution business, which achieved revenue of 146 million yuan, with gross margins remaining basically flat compared to the same period last year. Among them, revenue from information technology chip products reached 269 million yuan, a year-on-year increase of 193.70%, with a significant increase in sales driving the gross margin back up to 26.99%.
END
Source: Shanghai Securities News ยท China Securities Network
Disclaimer: The content is sourced from Chip Ranking. For reference and communication only. The copyright of the reprinted articles belongs to the original authors and institutions. If there is any infringement, please contact us for deletion.
Previous Reviews01Expert Think Tank | Expert Introduction (1)02Expert Think Tank | Expert Introduction (2)03Expert Think Tank | Expert Introduction (3)05
Expert Think Tank | Expert Introduction (4)
06
Expert Think Tank | Expert Introduction (5)
