HONG KONG, Aug 30, 2022 - (ACN Newswire via SEAPRWire.com) - HG Semiconductor Limited ("HG Semiconductor", together with its subsidiaries, "the Group"; stock code: 6908.HK) is pleased to announce its unaudited consolidated results for the six months ended 30 June 2022 (the "first half of 2022" or the "Period"). Business ReviewDuring the Period, while developing its existing LED beads, the Group continued to expand its business presence in the third-generation semiconductor industry chain. In the first half of 2022, the economic situation in China was challenging due to the pandemic. Supply chains and manufacturing industry were hard hit by various pandemic precautions and control measures, including mandatory lockdowns. The Group's business was inevitably affected. Revenue decreased by approximately 42.4% to approximately RMB43.4 million during the Period (first half of 2021: approximately RMB75.3 million). The Group recorded a loss of approximately RMB51.5 million for the Period (first half of 2021: loss of approximately RMB41.2 million), mainly attributable to the decrease in revenue under the poor market environment with suppressed demand and delayed procurement plans from the Group's customers in China. Loss per share for the Period was approximately RMB9.14 cents (first half of 2021: loss per share of approximately RMB9.70 cents).The management of the Group revealed that since its gradual strategic transformation, the Group remained committed to accelerating its research and development ("R&D") efforts to rapidly expand into the third-generation semiconductor design and production markets, and to providing integrated solutions that offer higher efficiency and keener competitiveness in terms of system costs. The Group is determined to evolve as an integrated device manufacturing ("IDM") enterprise covering full-chain operation including R&D, manufacturing, packaging, testing and sales. Because of the extensive use of GaN in the fast-charging segment, the technology has steadily rolled out to electric vehicles, wireless charging, 5G infrastructure and other areas, pointing to great market potential in the future. The Group will continue to strengthen its business presence along the GaN industry chain, promote the rapid development of various businesses, and speed up GaN production capacity and swiftly move to a period of yielding returns on investment.Active Development of the New-Energy Vehicle and Fast-charging Pile Segment; Accelerated Development of the GaN BusinessDuring the Period, the Group strategically invested in multiple leading third-generation semiconductor enterprises in China and overseas, and actively entered into strategic and framework cooperation agreements, with the aim of leveraging its existing platform and resource advantages and to speed up R&D and the technological applications of GaN. Following the acquisition of GSR GO Holding Corporation (which is primarily engaged in R&D of fast-charging solutions for battery system) and its subsidiaries ("GSR GO Group") the previous year, the Group also focused on high-voltage new energy vehicles by investing in VisIC Technologies Ltd ("VisIC"), an Israel-based developer of GaN-related products, and also focused on consumer products by investing in GaN Systems Inc. ("GaN Systems"), a Canadian GaN technology leader. In the first half of 2022, the Group continued to seek cooperation with domestic and overseas enterprises in the GaN segment, and to develop GaN products alongside related sales and marketing.In March 2022, the Group entered into a strategic cooperation agreement with Cogobuy Group (stock code: 400.HK), a leading enterprise service platform in the integrated circuit industry. The aim of this cooperation includes helping the Group to sell its own chips in China, and to engage the two parties into a long-term strategic cooperation arrangement involving chip application and development. In addition, the Group entered into a strategic cooperation agreement with China Titans Energy Technology Group Co., Limited (stock code: 2188.HK) in May 2022. The two parties will jointly engage in R&D of next-generation fast-charging stations using third-generation semiconductor technology developed by the Group in the next three years, develop fast-charging pile services in Hong Kong, and jointly launch a fast-charging system solution. The Group also entered into a non-legally binding memorandum of understanding with GUH Holdings Berhad (stock code: 3247.KL). Through this cooperation, the Group will expand its sales of fast-charging batteries and GaN components to Malaysia and Southeast Asia with a view to increasing its sources of income.Actively Promoting GaN Site Testing and Positively Contributing to "Carbon Peak" and "Carbon Neutrality"The Group is committed to implementing a strategic transformation by actively developing its third-generation semiconductor business and has established a semiconductor production factory covering more than 7,000 square metres in the Xuzhou Economic and Technological Development Zone in Jiangsu Province, China. At the same time, the Group also owns an R&D centre in Shenzhen that enhances the design and production of materials and components. Alongside its entry into the third-generation semiconductor business last year, the Group is continuing to strengthen its R&D capabilities. During the Period, the Group has applied for the registration of five invention patents, one utility model and one appearance patent. All of the above patent applications have been accepted.Xuzhou GSR Semiconductor Company Ltd., a wholly-owned subsidiary of the Group, entered an important milestone during the Period by conducting the first publicised industry field trial of GaN with GaN systems in the power infrastructure of an internet data centre ("IDC"). The test results showed that the total energy consumption of IDCs could be reduced by 10%. Compared to traditional silicon-based power supplies, this is expected to yield power savings of up to 20%. This energy-saving result potentially increases the profit margins of IDCs, reduces operating costs and lowers energy consumption, supporting a sustainable future as the Group hopes to reduce the carbon footprints of IDCs. As part of the overall drive to achieve a green environment, the use of GaN power transistors for more energy-efficient power supply units and power modules offers a solid technical foundation for the high-quality, green development of IDCs, which also aligns with China's goal of "carbon neutrality".Focusing on R&D; World-class R&D Standards and the Management TeamWhile strengthening its R&D capabilities, the Group has continued to recruit cutting-edge talent and management expertise from the semiconductor industry to provide valuable guidance to its third-generation semiconductor business, and for strategic investment and development. During the Period, the Group's Global Strategic Advisory Committee was formally established. Members of the committee have extensive experience of the GaN semiconductor industry, as well as of strategic investment and development, to provide effective strategies and tactical advice to the Group. Furthermore, the Group engaged a number of experts in the semiconductor sector to manage its Xuzhou Factory and scientific research projects, giving strong technical support to its semiconductor product operations. Core experts include Dr. Chen Zhen, who is in the GaN semiconductor business, and Dr. Thomas Hu, in device design and technical manufacturing of GaN high-electron mobility transistors (HEMT), alongside Mr. Lu Ruilin and Mr. Min Junhui, who each have extensive experience in the semiconductor industry and of wafer fabrication technology and management. These experts bring years of experience in the fields of third-generation semiconductor production and management, mergers and acquisitions, investment, fund management and business administration, and are poised to lead the Group into a bright future.OutlookThe year 2022 has represented a crucial phase of industrial upgrading and the implementation of China's "dual- carbon" policy, with the semiconductor industry thus becoming a focus of attention. The Third-Generation Semiconductor Industry Development Report, issued by the China Advanced Semiconductor Industry Innovation Alliance, predicts that the market for third-generation semiconductor electronic devices in China will be worth nearly RMB20 billion in 2024, with a compound annual growth rate (CAGR) exceeding 40% in the next five years. Consulting firm Grand View Research predicts that the global GaN semiconductor device market will reach US$5.85 billion in 2027, with a CAGR of 20% from 2020 to 2027, as third-generation semiconductors boasting high efficiency and low power consumption become hot items. GaN, as a third-generation semiconductor material, has higher bandgap, and is the material with theoretically the highest enhancement of electro-optical and photoelectric conversion efficiency in theory.At present, third-generation semiconductor devices are moving rapidly into applications in new-energy vehicles, photovoltaic inverters, 5G base stations, power delivery and fast-charging, among other GaN devices are mainly used in 5G base stations. Thanks to the support of the "14th Five-Year Plan", led by the central government, the Group will further develop and explore third-generation semiconductor products, with a particular focus on GaN, and is committed to becoming an IDM enterprise specialising in third-generation semiconductors. Looking ahead, as the Group continues to expand its market presence in GaN, quality and efficiency improvements at related businesses along the industry chain will take place. The future of GaN business should be more than just promising. The Group will continue to promote the construction and commissioning of production lines at its Xuzhou Factory, which is currently undergoing renovation, and for which machinery is being purchased, with production expected to commence by early 2024. The Group will also strengthen its existing business and its R&D capabilities, and in the future, it will continue to cooperate with leading enterprises and attract more semiconductor industry talent to further accelerate R&D and expand the applications of GAN-related products.The management of the Group believes that the increasing popularity of electric vehicles in Mainland China and Hong Kong will provide a promising future for the development and commercialisation of the next generation charging piles in both jurisdictions. The Group will explore every opportunity to establish a strong foothold in the fast-charging battery solution business in both Mainland China and Hong Kong, aims to inject new life into its business development, and bring long-term returns to its shareholders, while at the same time pressing ahead with R&D and the manufacture of GaN-related products, aiming to be the industry leader in supplying third-generation GaN semiconductors to the Greater China market.About HG Semiconductor LimitedHG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode ("LED") beads, new generation of semiconductor gallium nitride ("GaN") chips, GaN components and related application products, as well as fast charging products. Leveraging its industry expertise in LED manufacturing, the Group is dedicated to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, as well as providing total solutions with higher efficiency and competitive system cost. For more details, please visit www.hg-semiconductor.com Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)