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$SMIC (00981.HK)$ $Semiconductor Manufacturing International Corporation (688981.SH)$
Last night, Semiconductor Manufacturing International Corporation's Q3 financial report was released. It's somewhat unimaginable that the financial reports of domestically listed A-share companies can be so detailed and thorough, with every detail explained in great detail, giving the feeling of Tencent's benchmark. Upon closer inspection, it turns out they are listed in Hong Kong. Well... If every A-share financial report could be this way, the rationality of this market will improve.
Semiconductor Manufacturing International Corporation's main business revenue, with over 80% contributed by mainland China, over 10% by the USA, and meager single-digit percentages from Europe and other regions. Their chips mainly serve the terminal field, particularly in mobile phones and electric vehicles, with the rest being minor. The growth of electric vehicles relies on government subsidies, the extent of which is hard to predict.
The economic growth model of Semiconductor Manufacturing International Corporation is a typical development model of last century Japan and the USA, with one-third of the annual budget spent on research and development, one-third on expanding production, and one-third on sales. Currently, the domestic market is very saturated, after all, Semiconductor Manufacturing International Corporation still cannot produce high-end chips. Export seems to be the next focus area, allowing a portion of domestic production to be used for overseas markets...