Semiconductor giant sees profits triple in H1

Semiconductor Manufacturing International Corp (SMIC), the biggest chipmaker on the Chinese mainland, saw net profits triple during the first half, the company announced on Friday.

These results were contained in SMIC's first earnings report since listing on the STAR Market in July, when its IPO became the largest on the Chinese mainland in a decade.

In the first six months, SMIC's net profit jumped 329 percent to 1.39 billion yuan (US$200 million). Revenue reached a record high of 13.16 billion yuan, up 29.4 percent from a year earlier.

For the whole of 2020, SMIC aims to realize 15 to 19 percent revenue growth, the company said.

Analysts say mature manufacturing technologies and booming demand for chips have been fueling growth across the industry.

China’s integrated circuit industry revenue jumped 16.1 percent in the first half, despite COVID-19 and its influence, the China Semiconductor Industry Association said on Wednesday.

SMIC’s gross profit margin increased 2.52 percentage points to 23.5 percent in the first half. 

SMIC’s share price surged 202 percent in its STAR Market debut last month, making it biggest company by market value on the innovation board. Before that, it was already listed in Hong Kong.

The domestic listing will help SMIC consolidate market position and get more technology and capital support to expand its advantages in the Chinese mainland, a Zheshang Securities report said on Friday.