Zhong Guo Ji Jin Bao·2025-08-28 13:50Core Viewpoint - SMIC reported a 39.8% increase in net profit for the first half of 2025, driven by strong market demand and a 23.1% rise in revenue to 32.348 billion yuan [1][5] Financial Performance - Revenue for the first half of 2025 reached 32.348 billion yuan, a year-on-year increase of 23.1% - Net profit attributable to shareholders was 2.301 billion yuan, reflecting a 39.8% year-on-year growth [1][2] - Gross profit amounted to 7.087 billion yuan, up 94% year-on-year, with a gross margin of 21.9%, an increase of 8 percentage points [3] Market Demand and Trends - The demand for semiconductor products is expected to continue into the third quarter of 2025, with a traditional slowdown anticipated in the fourth quarter [5][6] - The automotive electronics sector shows signs of recovery, with a trend of localizing supply chains and increased domestic wafer foundry demand [4] Revenue Breakdown - In the first half of 2025, revenue from consumer electronics accounted for 40.8% of total revenue, up from 33.4% in the same period of 2024 [4] - Revenue contributions from different regions for the first half of 2025 were 84.2% from China, 12.7% from the US, and 3.1% from Europe, compared to 80.9%, 15.5%, and 3.6% respectively in 2024 [8] R&D and Industry Position - R&D expenditure for the first half of 2025 was 2.375 billion yuan, a decrease of 9.4% year-on-year, representing 7.3% of total revenue, down 2.7 percentage points [4] - The company aims to exceed the average performance of comparable peers in 2025, assuming no significant changes in the external environment [7]