SMIC 2024 Net Profit Drops 23.3% to 3.7 Billion RMB

On the evening of March 27, Semiconductor Manufacturing International Corporation (SMIC) released its financial report for the fiscal year 2024. During the reporting period, the company achieved a record high in sales revenue, totaling 57.8 billion RMB, marking a 27.7% year-on-year increase. The gross margin stood at 18.6%, with a capacity utilization rate of 85.6%. However, the net profit attributable to shareholders decreased by 23.3% to 3.7 billion RMB, with earnings per share at 0.46 RMB.

SMIC's core business revenue for the year amounted to 57.1 billion RMB, reflecting a 28.1% increase compared to the previous year. Of this, revenue from wafer foundry services reached 53.2 billion RMB, up by 30.3% year-on-year.

The wafer foundry revenue, categorized by application, showed significant changes. The smartphone sector accounted for 27.8%, slightly up from 26.7% in the previous year. The computer and tablet segment saw a decline, dropping from 26.7% to 16.6%. The consumer electronics sector, however, experienced a notable rise, increasing from 25% to 37.8%. The internet and wearables category decreased slightly from 12.1% to 10%, while industrial and automotive applications also saw a reduction from 9.5% to 7.8%.

When broken down by wafer size, 8-inch wafer revenue accounted for 22.7% of total sales, down from 26.3% the previous year, while 12-inch wafer revenue made up 77.3%, an increase from 73.7% in the prior year.

In 2024, SMIC's total wafer shipments (converted to 8-inch standard logic) increased by 36.7% from 5.87 million units in 2023 to 8.02 million units. The average selling price per wafer was 6,639 RMB, slightly lower than the 6,967 RMB in 2023.

Operating cash flow for 2024 amounted to 22.66 billion RMB, a 1.7% decrease year-on-year. Cash used for the purchase of fixed assets, intangible assets, and other long-term assets was 54.56 billion RMB, reflecting a 1.3% increase from the previous year. By the end of 2024, the company's total assets stood at approximately 353.4 billion RMB.

Regarding dividends, SMIC has decided not to distribute profits for the fiscal year 2024. This proposal will be submitted for review at the 2025 annual shareholders' meeting. Since its listing on the STAR Market in July 2020, the company has not issued any dividends.

Looking ahead to 2025, SMIC anticipates that, in addition to the continued rapid growth of artificial intelligence, demand across various market sectors will remain stable or see moderate growth. However, the external environment may introduce uncertainties in the second half of 2025, with intensifying competition within the industry.

Unless there are significant changes in the external environment, SMIC expects its sales revenue growth in 2025 to exceed the average of comparable industry peers, with capital expenditures remaining on par with the previous year. For the first quarter of 2025, the company has guided a sales revenue increase of 6%-8% quarter-over-quarter, with a gross margin forecast of 19%-21%.