2023-08-10 08:58Financial Performance - In Q2 2023, the company's revenue was $1,560.4 million, a 6.7% increase from Q1 2023, but an 18.0% decrease from Q2 2022[3]. - Gross profit for Q2 2023 was $316.5 million, with a gross margin of 20.3%, down from 20.8% in Q1 2023 and significantly lower than 39.4% in Q2 2022[3][7]. - The company reported a net profit of $464.2 million in Q2 2023, a 73.8% increase from Q1 2023, but a 26.2% decrease from Q2 2022[7]. - The company’s diluted earnings per share for Q2 2023 was $0.05, compared to $0.03 in Q1 2023 and $0.07 in Q2 2022[7]. - Q2 2023 sales revenue reached $1,560.4 million, up 6.7% from Q1 2023's $1,462.3 million, primarily due to increased wafer sales volume[8]. - Q2 2023 gross profit was $316.5 million, compared to $304.7 million in Q1 2023, with a gross margin of 20.3%[8][13]. - Operating profit for Q2 2023 was $79,798, slightly down from $83,283 in Q1 2023[21]. - The company reported a net profit of $464,171 for Q2 2023, significantly higher than $267,120 in Q1 2023[21]. - The company reported a profit of $464,171 for the three months ended June 30, 2023, compared to $267,120 for the three months ended March 31, 2023, indicating a significant increase in profitability[25]. Operational Efficiency - The utilization rate for 8-inch wafers was 78.3% in Q2 2023, an improvement from 68.1% in Q1 2023, but down from 97.1% in Q2 2022[7]. - The utilization rate for 8-inch wafers increased to 78.3% in Q2 2023 from 68.1% in Q1 2023, indicating improved operational efficiency[11]. - The company anticipates continued increases in shipment volumes in Q3 2023, despite rising depreciation costs[3]. - The company has a strong demand for 12-inch capacity, while 8-inch customer demand remains weak[3]. Expenses and Costs - The company’s operating expenses increased by 6.9% quarter-over-quarter to $236.7 million in Q2 2023[7]. - Q2 2023 operating expenses increased to $236.7 million from $221.4 million in Q1 2023, driven by higher R&D and administrative costs[8][15]. - Research and development expenses rose to $177,633 in Q2 2023 from $167,668 in Q1 2023[21]. Future Outlook - The company expects Q3 2023 revenue to grow by 3% to 5% quarter-over-quarter, with a gross margin projected between 18% and 20%[2][3]. - The company plans to continue focusing on technology R&D and platform development to prepare for the next growth cycle[3]. Cash Flow and Liquidity - Net cash from operating activities for Q2 2023 was $796,185, a decrease from $801,520 in Q1 2023[19]. - Total cash and cash equivalents decreased to $7,559,268 in Q2 2023 from $8,703,465 in Q1 2023[23]. - The company’s cash ratio decreased to 0.9 in Q2 2023 from 1.2 in Q1 2023, indicating tighter liquidity[17]. - The company reported a net cash outflow from investing activities of $2,348,079 for the three months ended June 30, 2023, compared to a net inflow of $22,611 for the previous quarter[25]. - Cash and cash equivalents decreased by $1,144,197 during the three months ended June 30, 2023, resulting in an ending balance of $7,559,268[25]. Assets and Liabilities - The company’s total assets reached $16,185.4 million in Q2 2023, reflecting a stable financial position[17]. - The total assets as of June 30, 2023, were $45,844,378, compared to $45,015,730 as of March 31, 2023[23]. - The company's total liabilities amounted to $15,858,759 as of June 30, 2023, compared to $15,431,048 as of March 31, 2023, indicating an increase of about 2.77%[24]. - The total amount of borrowings as of June 30, 2023, was $6,653,113, a decrease from $6,872,271 as of March 31, 2023, reflecting a reduction of about 3.19%[24]. - The company’s trade and other payables increased to $3,176,360 as of June 30, 2023, compared to $3,106,847 as of March 31, 2023, indicating a rise of approximately 2.24%[24]. - The net debt to equity ratio improved to -28.9% in Q2 2023 from -33.5% in Q1 2023[23]. Capital Expenditures - Capital expenditures in Q2 2023 totaled $1,731.5 million, up from $1,258.6 million in Q1 2023[12].