2 1 Shi Ji Jing Ji Bao Dao·2025-05-09 08:46Core Viewpoint - SMIC reported a significant year-on-year increase in net profit for Q1 2025, but revenue growth fell short of expectations due to price declines and production fluctuations [2][4][6]. Financial Performance - Q1 2025 revenue reached 16.301 billion yuan, a year-on-year increase of 29.4% and a quarter-on-quarter increase of 2.41% [2]. - Net profit attributable to shareholders was 1.356 billion yuan, showing a year-on-year increase of 166.5% and a quarter-on-quarter increase of 36.67% [2]. - The company expects Q2 revenue to decline by 4% to 6%, with a gross margin forecasted between 18% and 20% [2][6]. Revenue Breakdown - In Q1 2025, wafer revenue accounted for 95.2% of total revenue, with a quarter-on-quarter growth of 5% [4]. - The company shipped 2.29 million wafers, reflecting a 15% quarter-on-quarter increase [4]. - Revenue from the automotive sector grew over 20% quarter-on-quarter, increasing its share from 8% to 10% [4]. Market Outlook - The CEO expressed optimism about recovery signals in various sectors, including industrial and automotive, despite challenges [2][8]. - The company noted that the impact of the U.S. "reciprocal tariffs" on the semiconductor industry is minimal, with less than a 1% direct effect [7]. - There are concerns about potential downward adjustments in customer inventory and orders, particularly in the smartphone and PC markets [7][8]. Strategic Initiatives - SMIC is focusing on cost reduction and efficiency improvements to counteract price volatility [2][6]. - The company is committed to maintaining production capacity and responding to customer demands amid a recovering market [5][6].