OmniVision Integrated Circuits' First-Half Profit Drops Amid Weak Demand
OmniVision Integrated Circuits' (HKG:0501, SHA:603501) profit attributable to owners fell in the first half as weaker semiconductor design revenue and lower margins weighed on earnings.Profit attributable to owners of the parent declined to 1.22 billion yuan from 2.03 billion yuan a year earlier, according to the company's interim report filed after market hours on Monday.Revenue inched up 0.5% to 14 billion yuan from 13.9 billion yuan, while earnings per share fell to 0.97 yuan from 1.68 yuan.Revenue from semiconductor design and sales fell, mainly due to weaker demand in consumer and automotive electronics amid supply-demand fluctuations in the global semiconductor industry.Conversely, semiconductor distribution revenue jumped, driven by a rebound in the AI supply chain that lifted shipment volumes and selling prices.Gross profit declined to 4 billion yuan from 4.2 billion yuan, while the gross profit margin narrowed to 29% from 30%, mainly due to the expansion of the lower-margin semiconductor distribution business.R&D expenses rose 7.9% to 1.5 billion yuan as the company increased spending on employee remuneration, R&D materials, and related services.The company said it continued to invest in core technologies, including CMOS image sensors, display solutions, and analog products.R&D investment in its semiconductor design and sales business reached about 1.944 billion yuan, up 13% from the previous year.The company said shareholders had authorized the board to determine an interim dividend for 2026, but the board has not recommended any interim dividend.
