Core Viewpoint - Semiconductor industry is experiencing a "stronger gets stronger" effect, with SMIC positioned as the second-largest pure foundry globally, following TSMC [1][2] Financial Performance - In the first half of 2025, SMIC reported revenue of 32.348 billion RMB, a year-on-year increase of 23.1% [1] - The net profit attributable to shareholders was 2.301 billion RMB, reflecting a year-on-year growth of 39.8% [1] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same period reached 17.418 billion RMB, up 26.5% year-on-year [1][2] Market Dynamics - SMIC's wafer sales volume increased by 19.9%, from 3.907 million wafers in the previous year to 4.682 million wafers [1] - The average selling price of wafers rose to 6,482 RMB, compared to 6,171 RMB in the same period last year [1] - The global semiconductor industry is witnessing a continuous rise in output value, driven by diverse downstream application scenarios [3] Capacity and Innovation - SMIC has added nearly 20,000 pieces of 12-inch standard logic monthly capacity in the first half of 2025, maintaining a leading overall capacity utilization rate [3] - The company is actively collaborating with supply chain partners and educational institutions to enhance talent development and innovation [3] Future Outlook - For the second half of 2025, SMIC aims to focus on annual performance growth, new application development, and deep cooperation in research and education [4][5] - The company anticipates challenges from U.S. tariff policies and geopolitical uncertainties, but remains committed to achieving performance targets above industry averages [5]

Core 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]

Core Viewpoint - SMIC reported a 39.8% increase in net profit for the first half of 2025, driven by strong market demand and improved capacity utilization [2][3][5]. Financial Performance - Revenue for the first half of 2025 reached 32.348 billion yuan, a year-on-year increase of 23.1% [3][5]. - Net profit attributable to shareholders was 2.301 billion yuan, reflecting a 39.8% year-on-year growth [3][5]. - The company's non-GAAP net profit was 1.904 billion yuan, up 47.8% year-on-year [3][5]. - Gross profit for the first half of 2025 was 7.087 billion yuan, a significant increase of 94% year-on-year, with a gross margin of 21.9%, up 8 percentage points [10][12]. Market Demand and Trends - The semiconductor industry is experiencing a recovery, with increased inventory replenishment and strong demand expected to continue into the third quarter of 2025 [5][17]. - The sales volume of wafers (equivalent to 8-inch standard logic) increased by 19.9% to 4.682 million pieces, with an average selling price of 6,482 yuan [12][14]. - The consumer electronics market is gradually recovering, driven by the upgrade of smart terminals, while the automotive electronics sector shows signs of rebound [13][14]. Revenue Breakdown - The revenue from consumer electronics remains the largest segment, accounting for 40.8% of total revenue, up from 33.4% in the previous year [14][15]. - Revenue distribution by region shows that the Chinese market accounted for 84.2% of total revenue, an increase from 80.9% the previous year, while the U.S. market's share decreased to 12.7% from 15.5% [15][18]. Research and Development - 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 [9][16].