China's SMIC says 2024 profit down 45.4% from last year

China's SMIC says 2024 profit down 45.4% from last year
by AFP Staff Writers
Beijing (AFP) Feb 11, 2025

China's top chipmaker SMIC said Tuesday its 2024 profit had plunged significantly from the previous year, against a backdrop of surging trade tensions between the United States and China.

Beijing has been seeking in recent years to shore up its self-reliance in the increasingly vital field of semiconductors, and Shanghai-based SMIC is the country's chipmaking champion.

Washington has taken steps in recent years to cut off Chinese firms from accessing advanced US technology, working with its allies to impose tough restrictions on the flow of state-of-the-art chips and the equipment needed to make them.

"Unaudited profit attributable to owners of the Company was $492.7 million in 2024, a decrease of 45.4% from $902.5 million in 2023, mainly due to the decrease of investment income and financial income," SMIC reported in a filing to the Hong Kong Stock Exchange.

Profit in the final quarter of 2024 also slumped, the filing showed, dropping 38.4 percent year-on-year to $107.6 million.

SMIC's fourth-quarter revenue, meanwhile, grew 31.5 percent to reach a total of $2.2 billion, it added.

SMIC said that, "based on the premise that there are no significant changes in the external environment", it expects revenue growth in the year ahead "to be higher than industry average in the same markets".

Chinese battery giant CATL starts Hong Kong listing process
Hong Kong (AFP) Feb 11, 2025 - Chinese battery giant CATL started the application process on Tuesday to be listed in Hong Kong and named seven banks as overall coordinators, according to stock exchange filings.

CATL, which produces more than a third of the EV batteries sold worldwide, filed a 527-page document to the Hong Kong Stock Exchange with offer-related information redacted.

It is the first step in what analysts say could be a jumbo initial public offering that could boost Hong Kong's fortunes as a listing hub.

"This Application Proof is in draft form," the firm said in the document, which includes financial information and corporate details with redactions.

CATL said in another exchange filing dated Tuesday it has "appointed... overall coordinators" and listed seven financial institutions.

The company is publicly traded in Shenzhen and its plans to seek a secondary listing in Hong Kong were announced in an exchange filing in December.

Founded in 2011 in the eastern coastal Chinese city of Ningde, CATL has grown into the world's largest EV battery maker and supplies firms including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.

In January, the US Department of Defense added CATL to a list of companies it says are affiliated with Beijing's military.

China has denounced the move as "suppression", while CATL denied engaging "in any military related activities".