Nexchip profit falls as backers buy and it refocuses on core chips
Major customer keeps buying Nexchip shares Huaqin Technology, a big customer, bought more Nexchip H shares in July, lifting its group stake to about 11%. A large customer putting more money in signals it expects Nexchip to do well, which supports the share price.
Shows a real, repeated vote of confidence from an industrial backer, a positive force on the stock.
First-half profit dropped 26% despite higher sales Nexchip's first-half revenue rose 14.6% to 5.96 billion yuan, but net profit fell 26.1% to 245 million yuan, and core profit fell more. Selling more but keeping less profit means margins are squeezed, a real drag on the stock.
This is the period's main negative fundamental fact and the clearest counterweight to the bullish news.
Shedding non-core unit to sharpen chip focus Nexchip moved its wafer backside grinding and metallization business into Anhui Ruijing, taking a 26.4% stake and dropping it from core operations. Focusing on its main display, sensor, power and logic chip platforms should help it compete better over time.
A strategic simplification that shapes Nexchip's long-term competitive position, not just a one-day event.
Tightening grip on photomask supply Nexchip will inject a 908 million yuan subsidiary into Anhui Jingmei Photomask, raising its direct stake to 32.2%. Photomasks are a key input for making chips, so more control there supports supply security and self-reliance, though shareholders must still approve.
A supply-chain move that reduces dependence on outside suppliers, a structural positive for the company.