SMIC(HK:00981)2024-04-09 08:42Financial Performance - In 2023, the company achieved a total sales revenue of $6.32 billion, with a gross margin of 19.3% and an average capacity utilization rate of 75%[14]. - Revenue for 2023 was $6,321,560, a decrease of 13.1% compared to $7,273,284 in 2022[29]. - Net profit attributable to shareholders was $902,526, down 50.4% from $1,817,942 in 2022[29]. - Gross margin decreased to 19.3% in 2023 from 38.0% in 2022, a decline of 18.7 percentage points[34]. - Basic earnings per share were $0.11, down 52.2% from $0.23 in 2022[34]. - Cash flow from operating activities was $465,963, a significant decrease of 69.5% compared to $1,525,696 in 2022[29]. - The company reported a net profit of $1,124,935 thousand for the year ended December 31, 2023, down from $2,198,082 thousand in 2022[42]. - The company's EBITDA for 2023 was $4,064,164 thousand, compared to $4,611,048 thousand in 2022, indicating a decline in operational profitability[42]. - The company reported a significant increase in revenue, achieving a total of $XX billion for the fiscal year, representing a YY% growth compared to the previous year[148]. - Net profit fell to $1,124.9 million, down 48.8% from $2,198.1 million year-over-year[104]. Assets and Liabilities - As of the end of 2023, the company's total assets amounted to $47.8 billion, with equity attributable to shareholders reaching $20.1 billion[14]. - Total assets at the end of 2023 were $47,787,312, an increase from $43,807,784 at the end of 2022[30]. - The company reported a net asset attributable to shareholders of $20,116,102 at the end of 2023, up from $19,149,976 at the end of 2022[30]. - Total liabilities were $16,941.7 million[44]. - The total interest-bearing debt as of December 31, 2023, was $10,208.7 million, up from $8,694.4 million in 2022, with cash and cash equivalents at $6,215.1 million[117]. - The company's net debt decreased to $(6,496.9) million in 2023 from $(9,967.0) million in 2022, indicating improved liquidity[118]. Research and Development - R&D expenses accounted for 11.2% of operating revenue, an increase of 1.1 percentage points from 10.1% in 2022[34]. - The company maintains a comprehensive R&D process to ensure successful project conversion and technological advancement[49]. - The company achieved a total of 707,275 thousand USD in R&D expenses for 2023, representing a decrease of 3.5% compared to 2022, with the R&D expenses as a percentage of revenue increasing by 1.1 percentage points to 11.2%[61]. - The company is focusing on expanding its product offerings in power management and automotive chips through ongoing R&D projects[62]. - The company is investing heavily in R&D, with a budget allocation of $500 million for the development of new technologies and products in the semiconductor sector[181]. Market and Competition - The company is addressing the intense competition in the global semiconductor market and the profound changes in China's semiconductor industry[14]. - The semiconductor industry is experiencing structural supply-demand adjustments, with high inventory levels persisting despite signs of recovery in the second half of 2023[53]. - The semiconductor market is seeing a divergence in recovery cycles across different application sectors, with storage chips facing significant demand declines[53]. - The company is focusing on cost reduction and efficiency improvements amid a challenging semiconductor market[47]. - The company is actively pursuing market expansion and innovation in technology to meet increasing local manufacturing demands[47]. Strategic Goals and Future Outlook - In the new year, the company aims to focus on stabilizing production capacity, controlling costs, maintaining technological leadership, and prioritizing customer needs[14]. - The company plans to enhance its core competitiveness by building technological leadership, manufacturing capabilities, and cost optimization[14]. - The company plans to continue expanding its market presence and investing in new technologies[32]. - The company anticipates a moderate growth in 2024, with a projected revenue increase in the mid-single digits year-over-year, aligning with the semiconductor industry's recovery[137]. - Future strategies include potential mergers and acquisitions to bolster market position and operational efficiency[177]. Governance and Compliance - The company is committed to maintaining governance structures that align with both Cayman Islands and Chinese regulations, which may differ[92]. - The company maintains a strong governance structure, with independent directors enhancing decision-making processes[152]. - The board emphasized compliance with legal regulations, ensuring that all operations align with relevant laws and standards[151]. - The company has established a transparent process for determining executive compensation, which is crucial for maintaining operational success[186]. Risks and Challenges - The company faces risks related to high customer concentration, which could impact operational efficiency and profitability if major customers encounter significant operational issues[85]. - The company is exposed to macroeconomic fluctuations, which can impact market demand for integrated circuit products, potentially affecting profitability[90]. - Geopolitical tensions and export control policies from the US may create uncertainties in the semiconductor market and supply chain stability[90]. - Supply chain risks are present due to reliance on a limited number of qualified suppliers for critical materials and components, which could affect production and operational continuity[86]. Production and Capacity - The company's 8-inch equivalent monthly production capacity reached 806,000 wafers[14]. - The average capacity utilization rate decreased, leading to a reduction in wafer sales volume and changes in product mix, which negatively impacted financial performance[35]. - The company shipped 5,866,683 wafers during the year, reflecting a decrease from previous years[45]. - The company is focusing on expanding production capacity and developing new processes to strengthen capital, technology, and industry ecosystem barriers[59]. Shareholder Information - The company reported a reserve of $5,680.3 million available for distribution to shareholders as of December 31, 2023[142]. - No cash dividends were declared or paid for ordinary shares during the reporting period[141]. - The company confirmed that over 25% of its issued share capital is held by the public as of the reporting date[150]. - The company has a total of 7,946,555,760 shares issued as of December 31, 2023[198].