Hua Er Jie Jian Wen·2025-05-08 11:34Core Insights - SMIC reported Q1 2025 revenue of $2.247 billion (approximately 16.3 billion RMB), a quarter-over-quarter increase of 1.8% and a year-over-year surge of 29.4% [1][4] - The company anticipates a cautious outlook for Q2, expecting revenue to decline by 4-6% quarter-over-quarter [6] Financial Performance - Total assets decreased by 2.6% from the previous year, amounting to 344.16 billion RMB [2] - Net profit reached 1.36 billion RMB, a significant year-over-year increase of 166.5% [4] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 was 9.25 billion RMB, reflecting a 46.9% increase compared to the same period last year [2][4] - The EBITDA margin improved to 56.7%, up by 6.7 percentage points year-over-year [2] Operational Metrics - Wafer sales reached 2.292 million pieces (equivalent to 8-inch wafers), marking a 15.1% increase quarter-over-quarter and a 27.7% increase year-over-year [3] - Capacity utilization improved to 89.6%, an increase of 4.1 percentage points from the previous quarter [3] Market Segmentation - The consumer electronics sector accounted for the largest share of revenue at 40.6%, while smartphone applications represented 24.2%, down from 31.2% year-over-year [5] - The revenue contribution from the Chinese market was 84.3%, a decrease from 89.1% in the previous quarter, while the U.S. market share increased from 8.9% to 12.6% [3] Capital Expenditure - Capital expenditures for Q1 were 10.16 billion RMB, a decrease of 14.3% quarter-over-quarter and a significant drop of 36% year-over-year [4] Q2 Outlook - The company expects Q2 gross margin to be between 18% and 20%, a decline from Q1's 22.5% [6] - Management emphasized the need to enhance resilience and adaptability in the face of both opportunities and challenges in the second half of the year [7]