Huirong Technology Announces Third Quarter Earnings

Huirong Technology, the main control manufacturer of NAND flash memory, announced its third-quarter financial report, with revenue of 250.81 million US dollars, which decreased compared with the second quarter and the same period last year. 1%. In the third quarter, the gross profit margin was 47.6%, and the net profit after tax was US$51.16 million.

Gou Jiazhang, CEO of Huirong Technology, said that the current PC and smartphone terminal markets are still full of challenges, especially the slowdown in SSD demand, which affects the revenue of SSD control chips. From the beginning of the year to the present, Huirong's SSD controller chip revenue has remained flat compared with the same period last year. The PC OEM market revenue has increased by 50% compared with the same period last year, but the channel market revenue has decreased by 40%. The PCIe Gen4 SSD controller chips mainly shipped to PC OEMs accounted for more than half of SSD revenue in the first half of this year, and continued to expand in the third quarter. Although SSD end markets including brick-and-mortar retail, e-commerce, or system integration are showing weakness, it is believed that market conditions will improve in the future as major NAND manufacturers have begun to release excess inventory to NAND module manufacturers.

Gou Jiazhang said that Huirong's MonTitan enterprise-class PCIe Gen5 SM8366 SSD controller chip has made important progress recently. At the booth of the OCP Global Summit held in San Jose, U.S.A., Huirong Real Machine demonstrated an SSD reference design kit with a layered firmware stack design, equipped with a flash-verified NAND partner flash memory, and is expected to be available for sampling in early 2023. , and will enter the mass production stage at the end of the year.

From the beginning of the year to the present, Huirong's eMMC/UFS control chip revenue has grown by about one-third compared with the same period last year. Both control chips are growing, and the eMMC control chip is growing twice as fast as the UFS control chip. . The driving force for the growth of eMMC / UFS control chips mainly comes from the cooperation with the NAND manufacturers with a competitive market position, and the module manufacturers benefit from the transfer orders brought by some NAND manufacturers fading out of the eMMC market. In addition, in the third quarter, affected by product mix changes and price adjustments, the overall gross profit decreased. Huirong expects that the overall revenue will be flat towards the end of the year.

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