On May 19th, Chinese EDA company Empyrean Technology held its 2022 annual shareholders' meeting.
Empyrean released its financial report for the first quarter of 2023, stating that it achieved a revenue of CNY160 million (US$23 million) from January to March, representing a year-on-year growth of 64.71%. The net profit attributable to the shareholders was CNY21.1462 million, an increase of 101.71% compared to the previous year. The net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was CNY1.7283 million, turning losses into profits.
In 2022, Empyrean achieved a revenue of CNY678 million from EDA software sales, a year-on-year increase of 39.4%. The revenue from technology development services reached CNY90 million, representing a growth of 9.6% compared to the previous year. The gross profit margin for 2022 was 90.25%, an increase of 0.89 percentage points compared to the previous year. The increased proportion of high-margin EDA software sales contributed to the continuous improvement of the overall gross profit margin.
In the EDA software sales business, the revenue from the full-process EDA tool system, digital circuit design EDA tools, and wafer manufacturing EDA tools was CNY488 million, CNY119 million, and CNY71 million, respectively, with year-on-year increases of 38.74%, 36.18%, and 50.07%. In 1Q23, the company's revenue and profits further increased, achieving a gross profit margin of 97.02%.
Empyrean attributed the first-quarter growth to the continuous growth of China's EDA industry and the company's increasing market share. According to Empyrean, it has been increasing its R&D investment, actively promoting product upgrades and new product development. With continuous R&D investment and strong technical capabilities, the company has been meeting the needs of existing customers while actively expanding into new customers.
Compared to its international peers, China's domestic EDA industry is challenged by the incomplete product line up, with many gaps in tool offerings. As China's national EDA champion, as a result, Empyrean stated that its future development plan is to fill in the gaps and build a comprehensive product lineup, in addition to continuous support for China's advanced chip manufacturing process development. According to Empyrean, its analog tools can already partially support 5nm process, while its digital tools can fully support 7nm process.