Investments in Privately-held Raw Material Companies (Tables)

12 Months Ended

Dec. 31, 2023

Investments in Privately-Held Raw Material Companies

Summary of investments

The investments are summarized below (in thousands):

	Investment Balance as of
	December 31,		December 31,		Accounting	Ownership	*
Company	2023		2022		Method	Percentage
Nanjing JinMei Gallium Co., Ltd.	$	592	$	592	Consolidated	** 85.5	%
ChaoYang JinMei Gallium Co., Ltd.		1,820		1,820	Consolidated	** 85.5	%
Beijing BoYu Semiconductor Vessel Craftwork Technology Co., Ltd.		1,346		1,346	Consolidated	** 85.5	%
ChaoYang ShuoMei High Purity Semiconductor Materials Co., Ltd.		3,122		1,000	Consolidated	**** 75.0	%
ChaoYang XinMei High Purity Semiconductor Materials Co., Ltd.		7,331		7,331	Consolidated	*** 58.5	%
	$	14,211	$	12,089
Beijing JiYa Semiconductor Material Co., Ltd.	$	3,806		6,381	Equity	39	%
Xiaoyi XingAn Gallium Co., Ltd.		5,516		5,094	Equity	** 25	%
ChaoYang KaiMei Quartz Co., Ltd.		3,154		827	Equity	***** 40	%
Emeishan Jia Mei High Purity Metals Co., Ltd.		N/A		418	Equity	****** 25	%
	$	12,476	$	12,720
Emeishan Jia Mei High Purity Metals Co., Ltd.		551		N/A	Fair value	****** 10	%
	$	551	$	—
Donghai County Dongfang High Purity Electronic Materials Co., Ltd.		—		1,887	N/A	******* 0	%
	$	—	$	1,887

Summarized balance sheet information

These minority investment entities that are not consolidated, but rather are accounted for under the equity method, had the following summarized balance sheet information (in thousands) as of December 31, 2023 and 2022, respectively: (The 2023 balance sheet information excludes Jia Mei.)

	As of December 31,
	2023		2022
Current assets	$	31,636	$	43,091
Noncurrent assets		19,751		12,520
Current liabilities		7,367		10,552
Noncurrent liabilities		—		—

Schedule of gain (loss) on sale and re measurement of equity method investments

	Amount
	(in thousands)
Fair value of the consideration received	$	779
Foreign income tax withholding		48
Carrying value of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.		(252)
Gain recognized on sale of 15% of Emeishan Jia Mei High Purity Metals Co., Ltd.	$	575
	Amount
	(in thousands)
Fair value of the retained investment in Emeishan Jia Mei High Purity Metals Co., Ltd.	$	551
Carrying value of retained noncontrolling investment (10%)		(168)
Gain on retained noncontrolling investment due to remeasurement (10%)	$	383

	Amount
	(in thousands)
Fair value of the consideration received	$	585
Carrying value of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.		(1,710)
Loss recognized on sale of 46% of Donghai County Dongfang High Purity Electronic Materials Co., Ltd.	$	(1,125)

Summarized income information

AXT’s minority investment entities are not consolidated and are accounted for under the equity method. The equity entities had the following summarized income information (in thousands) for the years ended December 31, 2023, 2022 and 2021, respectively: (The 2023 income information includes results of Jia Mei for Q1 and Q2.)

							Our share for the
		Year Ended					Year Ended
		December 31,					December 31,
	2023		2022		2021		2023		2022		2021
Net revenue	$	32,544	$	48,139	$	35,939	$	10,033	$	15,031	$	11,424
Gross profit		11,698		27,000		17,465		3,365		8,229		5,482
Operating income		10,115		24,987		14,293		2,724		7,532		4,495
Net income		8,681		19,104		12,560		1,884		5,957		4,409