Sou Hu Cai Jing·2025-08-28 10:08Core Viewpoint - SMIC reported a 22.0% year-on-year revenue growth to $4.456 billion in the first half of 2025, with significant improvements in key operating metrics, including a gross margin increase to 21.4% and a net margin of 10.5% [1][4]. Financial Performance - Revenue reached $4.456 billion, up from $3.651 billion in the same period last year, marking a 22.0% increase [2][4]. - Gross profit was $956 million, a substantial increase of 89.3% year-on-year, with the gross margin rising from 13.8% to 21.4% [3][4]. - Net profit attributable to shareholders was $320.5 million, reflecting a 35.6% increase compared to the previous year [2][4]. - EBITDA reached $2.421 billion, a 24.6% increase, with an EBITDA margin of 54.3%, up 1.1 percentage points from the previous year [3][4]. Operational Highlights - The wafer foundry business, which is the largest segment, generated $4.229 billion in revenue, a 24.6% year-on-year increase [1][4]. - The company added nearly 20,000 pieces of 12-inch standard logic monthly capacity, maintaining a leading utilization rate in the industry [5]. - The revenue structure shows that consumer electronics accounted for 40.8%, smartphones 24.6%, and computers and tablets 16.2%, with industrial and automotive applications increasing from 7.7% to 10.1% [5]. Market Outlook - Management anticipates that the trend of channel stocking and inventory replenishment will continue into the third quarter, despite the traditional seasonal slowdown in the fourth quarter [6][7]. - The company aims to exceed the average growth rate of comparable peers, targeting a revenue increase of 22.0% and a net profit growth of 35.6% for the full year [6][7]. - SMIC is positioned as the second-largest pure-play foundry globally and the largest in mainland China, benefiting from the growth in semiconductor demand driven by emerging applications like AI and smart driving [7].