China's listed tech giants post record 1st half results

China's listed tech giants, covering artificial intelligence, chips, consumer electronics and cloud services, have posted record high or rapidly growing business results, despite the pandemic and US tech sanctions.

The firms, like AMEC, dealing in chip equipment manufacturing, and iFlytek, dealing in AI services and devices, have announced business expansion plans and new strategies that will ultimately improve daily life and boost digital transformation in China.

Shanghai-based AMEC (Advanced Micro-Fabrication Equipment), a top chip-making equipment vendor, reported on Wednesday that its revenue hit a record 1.34 billion yuan (US$206.9 million) in the first half, a 36.8 percent year-on-year growth. Net profit of 397 million yuan in the period represented 233.1 percent growth from a year ago.

The STAR-listed AMEC offers essential devices that enable companies to make chips and display components that are used in smartphones, electronics and cars.

In June, AMEC announced business expansion plans, including a new 1.5-billion-yuan investment project in Lingang area.

Changdian, the Chinese mainland's top chip assembly and testing firm, posted a net profit of 1.32 billion yuan in the first half, already surpassing its 2020 whole year profit. Revenue of 13.8 billion yuan represented 15.4 percent growth year on year.

The company set up an auto electronics research center in Shanghai this year to expand its business portfolio.

Firms like AMEC, SMIC and Changdian are benefiting from surging chip demand in China and globally. Chip-making and related firms have increased supply and prices to meet demand, analysts said.

STAR-listed Kingsoft Office posted net profit of 549 million yuan in the first half with 53.5 percent growth, resulting from revenue growth of 70.9 percent. Its monthly active user base surpassed 500 million for the first time in June.

Kingsoft Office, a local rival of Microsoft Office, has benefited from demand for remote work and online education during the epidemic. It's expected to play an important role in digital economy development in China.

iFlytek, one of the top listed AI firms in China, reported net profit of 420 million yuan, translating to 62.1 percent growth from a year ago. Its revenue hit 6.32 billion yuan thanks to its booming education and consumer-oriented business.

The AI giant offers voice recognition services in several industries. It plans to spin off its medical information service business to list independently, the company said.

Ti Gong