Zhi Tong Cai Jing·2024-02-06 11:12Core Viewpoint - Semiconductor industry is experiencing a downturn, impacting the financial performance of the company, with a significant decrease in profits and margins in 2023 compared to previous years [1] Financial Performance - In Q4 2023, the company reported sales revenue of $1.678 billion, a quarter-on-quarter increase of 3.56% and a year-on-year increase of 3.52% [1] - Gross profit for Q4 2023 was $275 million, a quarter-on-quarter decrease of 14.49% and a year-on-year decrease of 46.98%, resulting in a gross margin of 16.4% [1] - For the full year 2023, total sales revenue was $6.322 billion, a year-on-year decrease of 13.08%, with a profit attributable to shareholders of $903 million, down 50.4% year-on-year, and a gross margin of 19.3% [1] Capacity and Utilization - By the end of 2023, the company had an 8-inch monthly production capacity of 806,000 wafers, with an average annual capacity utilization rate of 75% [1] Future Guidance - For Q1 2024, the company expects sales revenue to remain flat or grow by 2% quarter-on-quarter, with a gross margin projected between 9% and 11% [1] - The company provided guidance for 2024, indicating that sales revenue growth will not be less than the average of comparable peers, with a year-on-year single-digit growth expected [1] - Capital expenditures are expected to remain roughly the same as in 2023 [1] Industry Context - The decrease in profit for 2023 is attributed to the semiconductor industry being at the bottom of the cycle, characterized by weak global market demand, high industry inventory, slow destocking, and intense competition [1] - The company faced reduced average capacity utilization and a decrease in wafer sales volume, alongside changes in product mix and increased depreciation compared to 2022, all contributing to the financial performance in 2023 [1]