NATIONAL SILICON INDUSTRY GROUP (688126) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 1.57 billion, nearly flat year-over-year, with 300mm wafer shipments increasing but 200mm and below remaining weak.

• Net loss attributable to shareholders was RMB -388.6 million, down from a profit of RMB 187.4 million in H1 2023, mainly due to lower ASPs, higher depreciation, and R&D costs.

• Cash flow from operations was negative RMB 444.6 million, reflecting profit decline and increased working capital needs.

• The company maintained high R&D investment, with R&D expenses up 16.8% year-over-year, accounting for 7.87% of revenue.

Financial highlights

• Revenue: RMB 1,569 million, -0.28% year-over-year.

• Net loss attributable to shareholders: RMB -388.6 million (vs. profit of RMB 187.4 million in H1 2023).

• Operating cash flow: RMB -444.6 million (vs. RMB -36.9 million in H1 2023).

• Gross margin declined due to lower ASPs and higher fixed costs.

• Basic and diluted EPS: -0.141 yuan (vs. 0.069 yuan and 0.068 yuan in H1 2023).

Outlook and guidance

• 300mm wafer capacity expected to reach 600,000 wafers/month by end-2024, with further expansion projects underway in Shanghai and Taiyuan.

• Industry recovery is ongoing but wafer price pressure remains; recovery in wafer demand lags downstream chip manufacturing.

• Company will continue to invest in R&D and capacity to capture future market upturn.