SMIC’s 2025 revenue increased by 36.6% year-on-year, net profit attributable to shareholders rose by 30.7%, with a proposed dividend of 3.50 yuan and 4.9 bonus shares for every 10 shares | Earnings Report Highlights

SMIC’s 2025 revenue increased by 36.6% year-on-year, net profit attributable to shareholders rose by 30.7%, with a proposed dividend of 3.50 yuan and 4.9 bonus shares for every 10 shares | Earnings Report Highlights

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AMEC disclosed its 2025 annual report on Monday:

Full-year revenue reached 12.385 billion RMB, up 36.62% year-on-year; parent net profit was 2.111 billion RMB, up 30.69% year-on-year.

In terms of pace, the company’s Q4 single-quarter revenue was 4.322 billion RMB and parent net profit was 900 million RMB, both hitting yearly highs, with shipment and recognition pace clearly accelerating in the second half.

Looking at the structure, the "main engine" of growth is still etching equipment: In 2025, etching equipment sales were 9.832 billion RMB, up 35.12% year-on-year. Of even greater note, thin film equipment began to "scale up"—LPCVD equipment sales reached 506 million RMB, up an explosive 224.23% year-on-year. The company states multiple new thin film equipment models received repeat orders, cumulative shipments exceeded 300 reaction chambers, and the second growth curve is becoming clear.

The company also proposed a "cash dividend + bonus share" plan: For every 10 shares, a cash dividend of 3.50 RMB (including tax), totaling about 219 million RMB; and every 10 shares will receive 4.9 bonus shares, bringing the total shares from 626 million to 933 million.

Revenue: Q4 “scale-up” supports high full-year growth

Breaking down by quarter, 2025 revenue climbed each quarter: Q1–Q4 are 2.173 billion, 2.787 billion, 3.102 billion, and 4.322 billion RMB, respectively; parent net profit per quarter is 313 million, 393 million, 505 million, and 900 million RMB. Q4 accounts for about 35% of annual revenue, reflecting the seasonality of semiconductor equipment delivery, acceptance, and revenue recognition, and also showing smoother customer expansion and introduction in the second half.

Operating cash flow also shows "late-stage power": Q2 operating cash flow was -174 million RMB, but Q3 and Q4 turned positive to 1.095 billion and 997 million RMB, respectively, totaling 2.295 billion RMB for the year, significantly stronger than 2023 (-977 million RMB) and still higher than 2024 (1.458 billion RMB). For equipment companies, this usually relates to delivery payments, improvements in advance/receivable structure, supply chain and delivery efficiency.

Business structure: Etching stabilizes the base, LPCVD picks up high growth

The company gave a breakdown of key categories in the annual report:

  • Etching equipment: 2025 sales of 9.832 billion RMB, year-on-year **+35.12%**. The company emphasized that the delivery volume of high-end products for advanced logic and memory etching processes increased notably, and achieved "large-scale mass production" for multiple advanced logic and memory device etching processes.
  • LPCVD equipment: 2025 sales of 506 million RMB, year-on-year **+224.23%**. This kind of "from 0 to 1 to N" acceleration often means moving from verification to more widespread production line introduction. The company also disclosed increased thin film equipment repeat orders, with cumulative shipments of reaction chambers exceeding 300.

From an industry logic perspective, advanced logic depends more on multiple mask processes (more etching/thin film steps) under lithography constraints. Combined with 3DNAND pushing toward higher stack layers and increased aspect ratio demand, the value and importance of etching and thin film deposition continues to rise. This is why AMEC recently accelerated to supplement its thin film portfolio (LPCVD, ALD, EPI) beyond the "main etching channel".

Parent net profit jumps 30.69%

1) Net profit margin remains strong, R&D expenses rise fast

In 2025, parent net profit was 2.111 billion RMB, with a net profit margin of about 17%; non-recurring parent net profit was 1.55 billion RMB, and non-recurring net profit margin around 12.5%. Despite substantial revenue growth, the company chose to significantly ramp up R&D: R&D investment reached 3.744 billion RMB (30.23% of revenue), with R&D expenses of 2.475 billion RMB (up 74.61% year-on-year).

This structure implies two points:

  • In the short term, pressure on the profit statement comes from “active attack on expenses”, not from weaker demand;
  • In the medium to long term, whether high R&D input can be continually converted into client verification, repeat orders, and scale deployments will be key for valuation and earning elasticity.

2) Non-recurring income amplifies parent metrics

In 2025, non-recurring income totaled 562 million RMB (2024: 228 million RMB). Large items include:

  • Disposal gains on non-current assets: 446 million RMB;
  • Fair value changes and disposal gains on financial assets: 177 million RMB;
  • Government subsidies: 39 million RMB.

The company also disclosed: External equity investments valued at fair value with changes recorded in current gains produced combined fair value changes and investment income totaling about 661 million RMB in 2025 (about 198 million RMB in 2024). This explains why parent profit growth is much faster than non-recurring profit growth—the profitability structure relies more on “investment and disposal” for this period, so investors need to distinguish these when comparing annual profit quality.

Additionally, in the company’s disclosure, non-recurring profit is affected by share-based payments: In 2025, share-based payment expenses were 513 million RMB. If adjusted to exclude share-based payments, non-recurring parent net profit would be 2.063 billion RMB (2024: 1.846 billion RMB), closer to the operational profit trend.

 

Product progress and strategic moves: advanced processes, advanced packaging, plus “dry + wet” puzzle

The product and customer progress disclosed in the annual report focuses on “penetration rate in advanced processes + category expansion”:

  • Etching equipment (CCP/ICP): The company says etching equipment now covers a wide range of applications from 65nm to 3nm and more advanced processes; In 2025, CCP etching equipment shipped over 1,000 reaction chambers in a single year, with cumulative installations now over 5,000. ICP double-chamber machines emphasize etching speed control precision between chambers at the 0.2 Å/min level, validated for multiple thin film etching processes.
  • Thin film equipment: Tungsten series CVD/HAR/ALD, metal gate series ALD TiN/TiAl/TaN are advancing client verification and repeat orders; EPI equipment has entered mass production verification phase with clients.
  • MOCVD: The company continues to emphasize its leading market share in GaN-based LED MOCVD since 2017, and is progressing in Mini-LED, Micro-LED, GaN power devices, and 8-inch SiC epitaxy.
  • Advanced packaging: TSV etching equipment continues to receive repeat orders in 2.5D/3D advanced packaging scenarios, and is moving towards more platform equipment.

A more “strategic signal” is the company’s intention to acquire control of Hangzhou Zhonggui Electronic Technology Co., Ltd. via share issuance and cash payment to purchase assets and raise supporting funds, aiming to progress from “dry” solution to “dry + wet” integrated solution. If the transaction goes through, AMEC will move from competing on single-point equipment to “process synergy + integrated introduction,” boosting customer stickiness and production line penetration speed theoretically. However, it also presents execution challenges in M&A integration and synergy across R&D and product lines.

Dividend and Bonus Issue: Stable cash return, large capital expansion

The company proposes a cash dividend of 3.50 RMB (tax included) for every 10 shares, with total payout assessed at about 219 million RMB (based on current share capital). Calculating roughly against parent net profit of 2.111 billion RMB for 2025, the cash dividend ratio is just over 10%, showing a preference for “steady return + retaining ammunition for R&D and expansion.”

Meanwhile, the company plans to issue 4.9 bonus shares for every 10 shares, expanding total share capital from 626 million to 933 million shares. For the secondary market, bonus issues do not alter intrinsic value but do change the presentation of per-share metrics, typically reflecting management’s expectations for medium-to-long term expansion and capital operation.

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