Guan Cha Zhe Wang·2025-08-08 08:27Core Viewpoint - SMIC, a leading domestic chip foundry, experienced a decline in both A-shares and H-shares on August 8, with A-shares dropping by 4.34% and H-shares falling over 8% [1][3]. Financial Performance - In Q2 2025, SMIC reported total sales revenue of $2.209 billion, a year-on-year increase of 16.2% but a quarter-on-quarter decrease of 1.7% [3][6]. - The net profit attributable to shareholders for Q2 was $132 million, down 19.5% year-on-year and down 29.5% quarter-on-quarter [3][6]. - The gross margin for Q2 was 20.4%, a decrease of 2.1 percentage points from the previous quarter [3][6]. - The capacity utilization rate reached 92.5%, an increase of 2.9 percentage points from the previous quarter [3][11]. Revenue Guidance - For Q3 2025, SMIC provided revenue guidance indicating a quarter-on-quarter growth of 5% to 7%, with a gross margin forecast of 18% to 20% [4][3]. Market Segmentation - In Q2, the revenue share from industrial and automotive applications increased by 1 percentage point to 10.6%, while smartphone revenue share rose by 1% to 25.2% [7]. - The company noted a steady growth in automotive electronics, with a 20% quarter-on-quarter increase in revenue from various types of automotive chips [7][8]. Regional and Application Breakdown - In Q2 2025, revenue by region showed that China accounted for 84.1%, the US for 12.9%, and Eurasia for 3.0% [9]. - By application, smartphone revenue constituted 25.2%, while computer and tablet revenue accounted for 15% [9]. Production Capacity and Demand - The sales volume of wafers in Q2 was 2.39 million, a 4.3% increase from Q1 [11]. - The company anticipates continued tight supply conditions for wafers due to growing domestic demand, particularly for 8-inch wafers, which have seen a significant increase in orders from domestic clients [12][11].