Shulou(Shulou.com)11/24 Report--

Beijing, February 17 (Xinhua) net profit plummeted 96% in 2022, although ARM China's revenue grew by more than 30% in 2022, according to a financial document. Last year was the first year that the management appointed by Softbank Corp. Group took over ARM China.

Son is pushing for ARM to go public, according to the unaudited financial statements of ARM China obtained by foreign media in 2022, the company's net profit plunged to $3.2 million last year from $79.2 million in 2021, while revenue rose to nearly $890 million from $665 million the year before. This report is confirmed by another independent source. According to a footnote to the statement, ARM China recorded a foreign exchange loss of $37 million in 2022, compared with a gain of $9 million the previous year.

The decline in ARM's profits in China will not have a financial impact on ARM, which pays royalties and royalties before calculating profits, according to people familiar with the matter. In 2021, the Chinese business paid about $500m to ARM. It is not clear how much money ARM made in China last year.

"ARM China's intellectual property business has performed very well and we are ready for continued growth in the future. The new management team has quickly restored its confidence in our Chinese ecosystem, and we are pleased to have solved the previous management problems in the process of extending ARM technology to the Chinese market." Phil Hughes, vice president of external communications at ARM, said in a prepared statement.

According to previous reports, ARM China laid off nearly 100 employees last week, most of them engineers. ARM China, a joint venture company established by ARM in China in 2018, is the exclusive distributor of ARM chip technology in China, and develops and sells its own chip designs based on ARM technology. China accounts for 20 per cent of ARM's global revenue, according to two people familiar with the matter. 25 per cent.

Softbank Corp. said at the beginning of last year that he planned to list ARM by the end of March this year, but now it looks unlikely. ARM CEO said in an interview last week that the company is committed to going public this year.

However, ARM's previous move to oust Wu Xiongang, CEO of ARM China, sparked a battle for control. Wu Xiongang has won praise for expanding his business in China, according to people familiar with the matter. However, relations between Mr Wu and some major shareholders have deteriorated because of conflicts of interest surrounding his own investment fund. It turned into a two-year open war, with Softbank Corp. trying to oust Wu Xiongang.

In order to prevent ARM's listing process from being affected by business disputes in China, Softbank Corp. transferred his stake in ARM's Chinese joint venture to a separate special purpose company in March last year. At the end of April 2022, Softbank Corp. announced that ARM China had completed the industrial and commercial change in accordance with the law, and Wu Xiongang would no longer serve as chairman, CEO and legal representative, and appointed Liu Renchen, vice dean of Research Institute of Tsinghua University in Shenzhen, and Chen Jie, managing partner of Softbank Corp. Vision Fund, as the new joint CEO.

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