SMIC(688981)2024-05-09 12:40Revenue and Financial Performance - Q1 2024 revenue reached $1.75 billion, a 4.3% quarter-over-quarter increase, with a gross margin of 13.7%, exceeding guidance[6] - Q2 2024 revenue guidance projects a 5% to 7% quarter-over-quarter growth, with gross margin expected between 9% and 11%[5] - Q1 2024 revenue in RMB was 12.59 billion, a 23.4% year-over-year increase, while net profit attributable to shareholders decreased by 68% year-over-year to 508.96 million RMB[7] - Total revenue for Q1 2024 reached 12,593,782 thousand RMB, a 23.4% increase compared to 10,208,898 thousand RMB in Q1 2023[25] - Net profit for Q1 2024 was 450,160 thousand RMB, a significant decrease from 1,838,878 thousand RMB in Q1 2023[25] - Basic earnings per share (EPS) for Q1 2024 was 0.06 RMB, down from 0.20 RMB in Q1 2023[26] - Total comprehensive income for Q1 2024 was 138,368 thousand RMB, compared to a loss of 389,601 thousand RMB in Q1 2023[26] Wafer Shipments and Capacity Utilization - Q1 2024 wafer shipments totaled 1.79 million 8-inch equivalent wafers, a 7% quarter-over-quarter increase, with a capacity utilization rate of 80.8%[6] - 12-inch wafers accounted for 75.6% of Q1 2024 revenue, up from 71.9% in Q1 2023, while 8-inch wafers decreased to 24.4% from 28.1%[10] R&D Investment - R&D investment in Q1 2024 was 1.34 billion RMB, accounting for 10.6% of revenue, a 15.7% year-over-year increase[7] - R&D expenses increased to 1,335,715 thousand RMB in Q1 2024, up 15.7% from 1,154,235 thousand RMB in Q1 2023[25] Regional Revenue Distribution - China region accounted for 81.6% of Q1 2024 revenue, up from 75.5% in Q1 2023, while the U.S. region decreased to 14.9% from 19.6%[10] Application Revenue Distribution - Smartphone applications contributed 31.2% of Q1 2024 revenue, up from 23.5% in Q1 2023, while computer and tablet applications decreased to 17.5% from 22.4%[10] Capital Expenditure and Assets - Capital expenditure in Q1 2024 was 15.87 billion RMB, a significant increase from 8.66 billion RMB in Q1 2023[11] - Total assets increased to 341,757,727 thousand yuan, up from 338,463,197 thousand yuan in the previous quarter[21][22] - Fixed assets increased significantly to 106,605,881 thousand yuan, up from 92,432,359 thousand yuan, reflecting ongoing capital expenditures[22] - Construction in progress decreased to 73,790,165 thousand yuan from 77,003,145 thousand yuan, reflecting progress in capital projects[22] - Other non-current assets decreased to 47,620,139 thousand yuan from 50,709,305 thousand yuan, indicating a reduction in long-term investments or assets[22] Liabilities and Equity - Current liabilities increased to 56,730,572 thousand yuan from 52,613,732 thousand yuan, driven by higher short-term borrowings and other payables[22] - Contract liabilities decreased to 13,596,765 thousand yuan from 14,680,669 thousand yuan, indicating a reduction in advance payments from customers[22] - Total liabilities decreased to 123,040,099 thousand RMB in Q1 2024 from 119,992,951 thousand RMB in the previous period[23] - Total equity slightly increased to 218,717,628 thousand RMB in Q1 2024 from 218,470,246 thousand RMB in the previous period[23] Non-Recurring Gains and Losses - Non-recurring gains and losses for the quarter totaled -113,371 thousand RMB, primarily driven by government subsidies of 161,763 thousand RMB and losses from financial asset transactions of -45,839 thousand RMB[12] - The company's share of joint venture and associate financial asset fair value changes resulted in a loss of -147,729 thousand RMB[13] Shareholder Information - Total issued shares stand at 7,948,722,724, with 75.2% listed on the Hong Kong Stock Exchange and 24.8% on the Shanghai Stock Exchange STAR Market[15] - HKSCC NOMINEES LIMITED holds 53.18% of the company's shares, representing 4,227,030,728 shares[16] - Datang Holdings (Hong Kong) Investment Co., Ltd. holds 14.05% of the company's shares, totaling 1,116,852,595 shares[16] - Xincore (Hong Kong) Investment Co., Ltd. holds 7.76% of the company's shares, amounting to 617,214,804 shares[16] - The National Integrated Circuit Industry Investment Fund Phase II holds 1.60% of the company's shares, totaling 127,458,120 shares[17] - China Information Communication Technology Group Co., Ltd. holds 0.91% of the company's shares, amounting to 72,470,855 shares[17] - The total number of ordinary shareholders is 246,045, with 234,098 A-share holders and 11,947 H-share holders[16] Cash Flow and Financial Activities - Sales revenue from goods and services received in cash was RMB 12,342,796 thousand, a decrease from RMB 13,348,932 thousand in the same period last year[28] - Tax refunds received increased significantly to RMB 2,784,406 thousand from RMB 861,103 thousand in the previous year[28] - Total cash inflow from operating activities was RMB 15,894,513 thousand, compared to RMB 14,874,760 thousand in the first quarter of 2023[28] - Cash outflow for purchasing goods and accepting services rose to RMB 9,269,636 thousand from RMB 6,893,859 thousand year-over-year[28] - Net cash flow from operating activities decreased to RMB 3,566,576 thousand from RMB 5,300,145 thousand in the same period last year[28] - Cash inflow from investment activities dropped to RMB 5,545,838 thousand from RMB 22,055,556 thousand year-over-year[28] - Cash outflow for the acquisition of fixed assets, intangible assets, and other long-term assets increased to RMB 13,544,328 thousand from RMB 9,140,759 thousand[28] - Net cash flow from investment activities was negative RMB 9,270,319 thousand, compared to a positive RMB 730,172 thousand in the previous year[29] - Net cash flow from financing activities was negative RMB 1,597,828 thousand, a significant decline from the positive RMB 5,978,978 thousand in the first quarter of 2023[29] - The net increase in cash and cash equivalents was negative RMB 6,073,774 thousand, compared to a positive RMB 11,671,993 thousand in the same period last year[29] Inventory and Accounts Receivable - Inventory levels rose slightly to 19,640,207 thousand yuan from 19,377,706 thousand yuan, indicating stable production activity[21] - Accounts receivable increased to 3,572,115 thousand yuan from 3,501,291 thousand yuan, suggesting a slight rise in sales on credit[21] Interest Income and Sales Expenses - Interest income for Q1 2024 was 1,165,317 thousand RMB, a decrease from 1,235,379 thousand RMB in Q1 2023[25] - Sales expenses increased to 63,731 thousand RMB in Q1 2024, up 15.8% from 55,056 thousand RMB in Q1 2023[25] Long-Term Equity Investments - Long-term equity investments remained stable at 14,380,864 thousand yuan, showing no significant changes in strategic holdings[21]