Sou Hu Cai Jing·2025-08-28 23:55Core Insights - SMIC reported significant growth in its financial performance for the first half of 2025, with a 23.1% year-on-year increase in revenue, reaching 32.348 billion yuan, and a 39.8% rise in net profit to 2.301 billion yuan [1][3] - The growth is attributed to strong market demand and effective supply chain management, with expectations for continued robust demand into the third quarter [1][4] Financial Performance - Revenue for the first half of 2025 was 32.348 billion yuan, up from 26.269 billion yuan in the same period last year, marking a 23.1% increase [3] - Gross profit reached 7.087 billion yuan, a substantial increase of 94% year-on-year, with a gross margin improvement of 8 percentage points to 21.9% [1][3] - R&D expenses decreased by 9.4% to 2.375 billion yuan, representing 7.3% of revenue, down 2.7 percentage points from the previous year [2][3] Business Segments - The consumer electronics segment remains dominant, accounting for 40.8% of total revenue, up from 33.4% in the first half of 2024 [1] - The automotive electronics sector is showing a positive rebound, with increased domestic demand for wafer foundry services [1] Market Outlook - The company anticipates that market demand will maintain the strong momentum seen in the first half of 2025, despite the typical seasonal slowdown in the fourth quarter [3] - Overall capacity utilization is expected to remain unaffected by any potential slowdown in orders and shipments [3] Regional Development - Revenue from the Chinese market increased to 84.2%, while contributions from the U.S. and European markets decreased to 12.7% and 3.1%, respectively [4] - This shift reflects a broader trend in the global supply chain towards nearshore industrial layouts as a strategic priority for major economies [4]