(Yicai) Aug. 29 -- Goertek, a main supplier of AirPods to Apple, said profit plunged 80 percent in the first half from a year ago, as a downturn in the consumer electronics market put pressure on manufacturing suppliers.

Net profit was CNY422 million (USD57.9 million) in the six months ended June 30, according to the Weifang-based company’s financial results out yesterday. Revenue rose 3.6 percent to CNY45.2 billion (USD6.2 billion).

Sales were lower than expected in the period, as the demand for traditional and smart electronic products was lackluster, Goertek said.

Operating revenue rose, but the gross profit margin of its three main businesses -- precision components, smart acoustic devices, and smart hardware -- narrowed 1.6 percent, 5.1 percent, and 6.9 percent, respectively, hitting profit. 

Breakthroughs in artificial intelligence technologies, investment by leading firms in the metaverse field, and the release of highly innovative virtual reality and mixed reality products will go on powering the development of smart products and content ecology, Goertek noted.

In the second quarter, Goertek had net profit of CNY316 million, down 73 percent from a year ago but up nearly three-fold on the first quarter. Operating revenue fell 10.4 percent to CNY21 billion.

Goertek’s shares [SHE: 002241] closed up 3 percent at CNY15.16 (USD2.08) apiece today. The Shenzhen Component Index jumped 2.2 percent.

Editor: Futura Costaglione