SoftBank’s Arm China profit to fall more than 90% in 2022 – document | – #SoftBanks #Arm #China #profit #fall #document
OAKLAND, Calif./HONG KONG, Feb 16 (Reuters) – Chip technology firm Arm China posted a 90% drop in profit last year despite revenue rising more than 30% during first-year guidance set by SoftBank Group Corp ( 9984.T ) . It made the commitment, according to a financial filing reviewed by Reuters.
2018Founded in 2011 as a joint venture with British chip technology firm Arm Ltd, the company, which is mostly made up of engineers, last week 10It laid off about 0,000 employees, Reuters reported exclusively on Friday.
Arm technology powers most global smartphones and the company Apple Inc (AAPL.O) and Qualcomm Inc (QCOM.O) as clients.
SoftBank said early last year it aimed to take Arm Ltd public by the end of March; Arm’s CEO told Reuters last week that the firm was sticking to one list this year.
The Chinese business is the exclusive distributor of Arm chip technology in China and develops and sells its own chip designs based on Arm. According to two sources familiar with the situation, it is Arm Ltd’s global revenue 20%-25%.
Latest UpdatesFuture of MoneycategoryExclusive: Cryptocurrency giant Binance USA 400 million from his partner to a firm run by CEO Zhao dollars transferred, article with galleryGalleryBusinesscategoryTesla 362,000 USA recalls its car over its Fully Self-Driving app, article with gallery
See 2 more stories
One of the sources said the decline in Arm China’s profits would have no financial impact on Arm Ltd, whose royalty and license fee payments come before earnings. About 500 million to Arm of Chinese business in 2021, two sources dollars he said he paid. It is unclear how much Arm Ltd produced from China last year.
“Arm China’s Arm Ltd IP business is performing very well and we are positioned for continued growth going forward. The new management team has quickly restored confidence in our Chinese ecosystem, and we are pleased to put the previous management challenges behind us as we expand Arm’s technology into the Chinese market,” said Phil Hughes, Arm’s vice president of external communications. prepared a statement.
SoftBank and Arm China did not respond to requests for comment.
Arm China’s net profit fell to $3.2 million last year from $79.2 million in 2021, according to the company’s 2022 unaudited earnings report, seen by Reuters and confirmed by another independent source, on revenue of $665 million last year. increased from USD to approximately USD 890 million. .
37 million in foreign currency in 2022, according to the statement dollars there is a loss, compared to the previous year, the income is 9 million dollars.
Both sources declined to be named because the information is confidential.
Arm Ltd is considered one of the better-performing holdings at SoftBank, where startup investment Vision Fund has suffered four quarters of losses. The bulk of the fund’s losses in the last reported quarter were due to sharp declines in the valuation of investments in unlisted companies, but listed portfolio companies, Indonesia’s ride-hailing company Goto Gojek Tokopedia PT ( GOTO.JK ), South Korea e. -commerce platform Coupang Inc ( CPNG.N ) and workspace provider WeWork Inc ( WE.N ) also led the loss.
THE STRUGGLES OF CHINA
Arm China has been a difficult task for SoftBank. 2018Founded in 2010 with longtime Arm executive Allen Wu as CEO, SoftBank allowed Chinese funds to take a large stake in the joint venture.
Wu is committed to expanding its China business, according to two sources familiar with the company. But relations between Wu and some major shareholders have soured over issues of conflict of interest surrounding Wu’s own investment fund. It turned into a two-year public battle as SoftBank tried to oust Wu.
SoftBank transferred Arm Ltd’s stake in the joint venture to a separate special purpose vehicle last March in an effort to take Arm Ltd public to protect Arm Ltd from Chinese challenges, two people with knowledge of the matter said. Official Chinese records still show Arm Ltd as a shareholder, one of them said.
of 2022 April By late May, SoftBank had ousted Wu from Arm China, physically and digitally blocking it, and replacing him with two CEOs, SoftBank’s Eric Chen and Liu Renchen, vice dean of the Research Institute of Tsinghua University in Shenzhen.
Reporting by Jane Lanhee Li in Oakland, California and Kane Wu in Hong Kong Additional reporting by Josh Horwitz in Shanghai Editing by Kenneth Lee, Gerry Doyle and Matthew Lewis
Our standards: Thomson Reuters Trust Principles.
2023-02-17 01:07:39
Source – reuters
Translation“24 HOURS”