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SMIC(00981) - 2024 Q4 - Earnings Call Transcript
2025-02-12 01:32
Financial Data and Key Metrics Changes - Revenue for Q4 2024 was RMB 2,070 million, up 1.7% sequentially, with a gross margin of 22.6%, an increase of 2.1 percentage points sequentially [5][11] - Full year 2024 revenue reached RMB 8,300 million, a 27% year-over-year increase, while gross margin was 18%, down 1.3 percentage points year-over-year [6][12] - Profit attributable to the company for 2024 was RMB 493 million, with capital expenditure of RMB 7,330 million [6][16] - The company generated RMB 176 million in cash from operating activities in 2024, with total assets of RMB 49,200 million and total liabilities of RMB 17,300 million [8][7] Business Line Data and Key Metrics Changes - Revenue from Chinese customers increased by 34% year-over-year, driven by the reshuffling of the industry chain and increased market share [13] - Revenue from 12-inch wafers increased by 35% year-over-year, attributed to capacity expansion and quick ramp-up of new capacity [14] - The product mix included significant contributions from consumer electronics, smartphones, and automotive applications, with respective revenue shares of 28%, 16%, and 8% [14][15] Market Data and Key Metrics Changes - Revenue distribution by region showed China at 85%, America at 12%, and Eurasia at 3% [13] - The overall semiconductor market showed a recovery trend in 2024, with inventory levels returning to a healthy state [12] Company Strategy and Development Direction - The company aims to strengthen its management on supply chain security and resilience, focusing on localization to meet growing market demand [21] - Capital expenditure is expected to remain flat compared to the previous year, with a focus on building capacity and supporting customer market expansion [20] - The company plans to maintain a consistent pricing strategy while addressing competitive pressures through product innovation [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter of 2025 shows an uptick, uncertainties in the external environment and intensified industry competition are concerns for the second half of the year [19] - The company anticipates revenue growth in 2025 to exceed the industry average, despite expected increases in depreciation [20][21] Other Important Information - The company achieved a total shipment of over 8 million wafers in 2024, with an annualized capacity utilization rate of 85.6% [17] - The company is actively engaging in high-performance automotive electronics technologies to meet increasing demands in the automotive market [16] Q&A Session Summary Question: What is the outlook for the semiconductor market in 2025? - Management indicated that demand is expected to be flat or grow moderately across various fields, with AI expected to continue growing rapidly [19] Question: How is the company addressing competitive pressures? - The company is focusing on enhancing core competitiveness through technology advantages and will engage in price competition when necessary to maintain market share [22]