On April 14th, semiconductor company SMIC released their first-quarter financial results. Their revenue for the first three months of 2023 amounted to 2.527 billion yuan, representing a year-on-year increase of 11.9%. Their pre-tax profit was 319 million yuan, while the adjusted net profit stood at 305.6 million yuan. This marks a 44.8% decrease compared to the same period last year.
According to a statement from Simal, the main reasons for their decrease in profits are as follows:
Revenue from the Mainland China market has decreased. In the first quarter of 2023, revenue from Mainland China was approximately 15.5 million yuan, a decrease of approximately 97.7% compared to the same period last year.
In Q1 2023, revenue from overseas markets amounted to about RMB 2.512 billion, a YoY increase of approximately 58.2%. This was mainly due to the growth of low-margin disposable products and the introduction of "replacement-style" products in overseas markets. However, the increase in profits from overseas markets was not yet enough to offset the decline in profits from the mainland Chinese market.
Overall, there was an increase of approximately RMB 172 million from the previous year in sales expenses, management expenses, research and development expenses, other income and expenses, as well as other gains and losses.
Simo International Financial Information for Q1 | Image Source: Simo International Announcement
As of the time of writing on April 17th, the stock price of Semiconductors International has reached a high of HK$10.26, representing an increase of over 8% at one point.
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Simo International expects a net profit of 2.3 to 2.8 billion yuan in 2022, a year-on-year decrease of 46.8% to 56.2%.
Reference:
Simmor International: Financial Update for the period ending March 31, 2023.
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