Performance | SMIC's profit increased by 39% last year

SMIC (00981) announced that for the year ending December 31 last year, the attributable net profit to shareholders was 685 million USD, up 39.04% year-on-year; earnings per share were 0.09 USD, with no dividend payout.

During the period, revenue reached 9.327 billion USD, an increase of 16.15% year-on-year; capacity utilization rate rose to 93.5%, an increase of 8 percentage points; despite a significant increase in depreciation, gross profit margin increased to 21%, up 3 percentage points.

Looking ahead to 2026, the company stated that the effects of overseas return of the supply chain and domestic customers replacing old overseas products with new ones will continue, providing sustained growth opportunities for the domestic industry chain. The strong demand for storage driven by artificial intelligence has squeezed the supply of storage chips available for other applications such as mobile phones, especially in the mid-to-low-end segments, causing end manufacturers in these fields to face shortages and price increases.

SMIC pointed out that even if end manufacturers pass on the cost increases through price hikes, it will lead to a decline in demand for end products. Leveraging its technological reserves and leading advantages in segments such as BCD, analog, storage, MCU, and mid-to-high-end display drivers, along with its customer product layout, the company remains well-positioned during this industry cycle. The company will actively respond to market demand and promote continued revenue growth in 2026.

Assuming no major changes in the external environment, the company’s guidance for 2026 is a sales revenue growth rate higher than the average of comparable peers, with capital expenditures roughly the same as in 2025.