2022 SMIC Net Income Up 13% YOY, Revenue Up 39% YOY

Technology, Financials Author: Yunfeng Zhang Mar 29, 2023 10:30 PM (GMT+8)

SMIC(Chinese:中芯国际): In terms of industry patterns, the international environment of the semiconductor industry is undergoing a new round of changes, with the global supply chain showing a trend of regionalization.

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On March 28, SMIC announced the summary of the 2022 A-share financial report. In FY2022, SMIC's revenue was CNY49.516 billion, up 39% year on year; net profit attributable to listed shareholders was CNY12.133 billion, up 13% year on year; and no profit distribution is proposed for FY2022.

For the period under review, SMIC's cash generated from operating activities was CNY36.5 billion, an increase of 75.5% over the same period of last year; cash paid for purchase and construction of property, plant and equipment, intangible assets and other non-current assets was CNY42.205 billion, an increase of 48.8% over the same period of last year.

SMIC stated that the increase in operating income in 2022 is mainly due to an increase in the number of wafers sold and higher average selling prices.

In 2022, SMIC's IC wafer manufacturing foundry revenue was CNY45.293 billion, up 41% year on year, with a gross margin of 37.9%, up 9.6 percentage points year on year, accounting for 92.65% of main business revenue; other main business revenue was CNY3.591 billion, up 21.9% year on year, with a gross margin of 49.2%, up 5.6 percentage points year on year, accounting for 7.35% of main business revenue.

By region, SMIC's business in China and the U.S. both achieved growth in 2022, while the Eurasia region contracted. Specifically, the main business revenue in China was CNY36.253 billion, accounting for 74.2% of the total, up 48% year on year; the main business revenue in the U.S. was CNY10.197 billion, accounting for 20.8% of the total, up 30% year on year; and the main business revenue in Eurasia was CNY2.435 billion, down 11.2% year on year from 7.8% in the previous year.

According to SMIC, looking ahead to 2023, it will take time for the smartphone and consumer electronics industries to recover, the industrial sector is relatively stable, and additional demand from the automotive electronics industry can only partially offset the negative impact of weakness in mobile phones and consumer electronics. In the first half of the year, the industry cycle is still at the bottom and the impact of external uncertainties remains complex. Although the second half of the year remains unpredictable, the company has seen a slight improvement in customer confidence.

SMIC has made its latest global industry research assessment: From the perspective of the industry pattern, the international environment of the semiconductor industry is undergoing a new round of changes, with the global supply chain showing a regionalization trend. The Company is actively seeking diversified cooperation with the upstream and downstream of the industry chain, and strengthening the development and optimization of differentiated process technology in response to the current dilemma facing the industry.