GigaDevice Reports First Three Quarters Net Profit of 11.066 Billion Yuan, Surging Over 9x Year-on-Year
nashnova research
GigaDevice (兆易创新) reported RMB 11.07 billion in net profit for the first three quarters, a 921% year-on-year surge; profit growth far outpaced revenue growth, signaling a sharp amplification of operating leverage.
What are the headline numbers?
Revenue for the first three quarters hit RMB 20.30 billion, up 197% year-on-year — nearly tripling.
Net profit attributable to shareholders reached RMB 11.07 billion, up 921% — roughly a tenfold increase.
This means → every additional yuan of revenue is converting into profit at a far higher rate than a year ago. The bigger the top line, the more efficient the bottom line.
In plain terms = the company isn't just selling more — it is making significantly more money on each deal.
How did the third quarter alone perform?
Q3 revenue came in at RMB 8.73 billion, up 226% YoY; net profit hit RMB 4.21 billion, up 729%.
Q3 alone accounted for 43% of the first three quarters' total revenue, showing momentum is accelerating, not fading.
This means → demand stayed strong in the second half. The company did not front-load volumes in H1 to flatter the numbers.
Non-recurring adjusted profit topped reported profit — what does that tell us?
Q3 adjusted net profit — stripping out one-off items — was RMB 4.55 billion, actually higher than reported net profit of RMB 4.21 billion by about RMB 340 million.
In plain terms = the core business earned even more, but certain non-recurring items — such as asset write-downs or investment losses — dragged the headline number down.
This reflects strong underlying profitability, though the one-off deductions deserve a closer look.
Why does the RMB 1.6 billion gap matter going forward?
Over the first three quarters, reported net profit was RMB 11.07 billion vs adjusted net profit of RMB 9.43 billion — a gap of roughly RMB 1.6 billion.
This means → about RMB 1.6 billion of cumulative profit came from non-recurring gains — government subsidies, investment income, and similar items — not from the core business.
The key question the market will watch next: is that RMB 1.6 billion repeatable? If not, the company's true earnings power needs to be discounted accordingly.
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