CR Microelectronics 2024 profit falls amid investment surge

China Resources Microelectronics (SSE:688396) reported a preliminary net profit attributable to the parent company of 775.83 million yuan for 2024, a 47.55% decrease compared to the previous year. The decline comes despite a slight revenue increase of 2.20% to 10.12 billion yuan, mainly due to increased competition in product pricing due to capacity expansion and inventory destocking within the industry. Simultaneously, the company continued to increase its investment in research and development. Major projects like the packaging base, and 12-inch production lines in Chongqing and Shenzhen, are in their ramp-up and construction phases, impacting the company’s profit margins, with asset depreciation adding to the pressure.