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Chinese Chipmaker CR Micro's Half-Year Net Income Soars 145%
COVID-19 and China
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On July 29, power system semiconductor manufacturer CR Micro (688396:SH) reported its half-year financials. In the first six months of 2020, its net revenue reached CNY 3.06 billion, increasing by 16% compared to last year. The net income jumped 145% to CNY 403.09 million. The cash flow generated from operating activities also increased by 573.74% to CNY 5.11 million year-on-year. As of June 30, the company's return on equity (ROE) is 4.88%. 

The stock price is currently waving at around CNY 55.19 per share. It opened trading slightly down, then bounced back by the midday break on July 30.

CR Micro is a state-backed company, based in Jiangsu, leveraging its business through product and solution segments. The firm focuses on manufacturing semiconductor built-in power systems, mainly marketing them in China's mainland. Besides, its business scope covers Integrated Circuit (IC) design, wafer fabrication, testing and packaging.

In February 2020, CR Micro became the first red-chip stock on the Star Market. It raised CNY 4.30 billion through an initial offering there, issuing 336.94 million shares at CNY 12.80 apiece. The price went up by over 200% on its IPO day.

Attempting to build a self-sufficient semiconductor industry, the Chinese government launched the Star Market last year to lower the listing requirements for the country's technology companies. Despite the uneven business performance of most of the Star Market stocks, the new equities are famous among the local investors, which have been propelling the companies' market caps.

So far, the combined market value of the Star Market-listed shares exceeds CNY 1.6 trillion, whereas the newly public companies have raised over CNY 200 billion in capital.

ANALYST
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