NATIONAL SILICON INDUSTRY GROUP (688126) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 909.16 million, up 11.37% year-over-year; nine-month revenue was RMB 2.48 billion, up 3.7% year-over-year.

• Net loss attributable to shareholders was RMB -147.91 million for Q3 and RMB -536.46 million for the nine months, with losses deepening significantly year-over-year.

• The semiconductor market showed continued recovery, with total wafer shipments up 6% sequentially and 7% year-over-year, mainly driven by 300mm wafers.

Financial highlights

• Gross margin and operating profit declined due to lagging price recovery for 200mm and smaller wafers and increased fixed costs from capacity expansion.

• Basic and diluted EPS for Q3 were -0.054 RMB, and for the nine months -0.195 RMB, both showing significant declines year-over-year.

• R&D investment for Q3 was RMB 84.57 million, accounting for 9.3% of revenue, with a year-to-date ratio of 8.4%.

Outlook and guidance

• Market recovery in the semiconductor sector is ongoing, but upstream wafer price recovery, especially for 200mm and below, remains slow.

• Continued expansion projects are expected to increase fixed costs in the near term.