Zhi Tong Cai Jing·2025-08-08 04:01Overall Performance - Semiconductor Manufacturing International (SMIC) reported a revenue of $2.2 billion for Q2 2025, slightly above market expectations of $2.16 billion, but a 1.7% decrease from the previous quarter, with guidance indicating a further decline of 4-6% [1][14] - The gross margin for Q2 2025 was 20.4%, reaching the upper limit of the guidance range (18-20%) and exceeding market expectations of 19.7% [1][4] Revenue and Pricing Dynamics - The decline in revenue was primarily attributed to a decrease in average selling prices, despite a 4.3% increase in product shipment volume [3][17] - The average selling price per wafer decreased by 5.7%, influenced by a higher proportion of lower-priced 8-inch wafer shipments [3][17] Business Segment Performance - Revenue from the smartphone segment grew by only 1.7%, significantly lower than the double-digit growth seen in the past two years, while other segments like PC and consumer electronics experienced declines [2][24] - The company maintained over 80% of its revenue from the domestic market, driven by domestic substitution trends [2][7] Expenditure and Capital Investment - Operating expenses increased, with management expenses rising by 17.6% year-on-year, primarily due to higher factory setup costs [2][31] - Capital expenditure for the quarter was $1.885 billion, indicating a commitment to maintaining high levels of investment despite weak downstream demand [2][31] Future Guidance - For Q3 2025, SMIC expects revenue to increase by 5-7%, translating to $2.32-$2.36 billion, which is below market expectations of $2.37 billion [4][19] - The gross margin guidance for the next quarter is set at 18-20%, lower than the market expectation of 21.1% [4][22] Capacity Utilization and Market Trends - The capacity utilization rate for Q2 2025 was 92.5%, reflecting a slight recovery, primarily due to preemptive stocking of 8-inch wafers by customers [2][22] - The overall semiconductor market remains weak, with cautious outlooks from management regarding demand visibility in the second half of the year [7][9] Regional Revenue Distribution - The revenue from the China region accounted for 84.1% of total revenue, with a slight decline of 1.9% quarter-on-quarter [29][31] - The company’s revenue from the U.S. and Eurasia regions remained relatively low at 12.9% and 3%, respectively [29][31]