Huan Qiu Lao Hu Cai Jing·2025-05-09 03:43Core Viewpoint - SMIC reported significant growth in revenue and net profit for Q1 2025, driven by increased wafer sales and a shift in high-end process product mix [1] Financial Performance - Revenue for Q1 2025 reached 16.301 billion yuan, a year-on-year increase of 29.4% [1] - Net profit attributable to shareholders was 1.356 billion yuan, up 166.5% year-on-year [1] - Wafer sales volume was 2.2922 million pieces, compared to 1.7949 million pieces in the same period last year, marking a 27.7% increase [1] - Monthly production capacity at the end of the quarter was 973,300 pieces, up from 814,500 pieces year-on-year [1] - Capacity utilization rate for the quarter was 89.6%, compared to 80.8% in the same period last year [1] Challenges and Outlook - The average selling price declined in the latter half of Q1 due to unexpected issues in production lines and the need for performance improvements in new equipment, impacting revenue expectations [1] - SMIC anticipates a revenue decline of 4% to 6% in Q2, with gross margin expected to be between 18% and 20% [1] - The company aims to enhance its adaptability and risk resistance while focusing on its core operations in the second half of the year [1] Shareholder Activity - Significant reduction in shareholding by Xin Xin (Hong Kong) Investment Co., Ltd., which decreased its holdings from 7.74% to 6.91% by selling approximately 65.9772 million H-shares [2] - This marks the first reduction in holdings by the National Integrated Circuit Industry Investment Fund (commonly known as "Big Fund") since Q2 2021 [2] - The Big Fund has been in a capital recovery phase since its establishment in 2014, and this reduction is seen as a normal operation to reinvest in more promising semiconductor sectors or emerging enterprises [2]