Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for the delivery of clues about the past. CTOnews.com news on July 27, according to the preliminary verification data disclosed by Samsung Electronics, based on the consolidated financial statements, Samsung Electronics' operating profit in the second quarter of this year was 668.5 billion won (CTOnews.com Note: currently about 3.75 billion yuan), down 95.26% from the same period last year; sales were 60 trillion won (currently about 336.6 billion yuan), down 22.28% from the same period last year The net profit is 1.55 trillion won (currently about 8.695 billion yuan), with an estimated 925.01 billion won.

Samsung said it reported comprehensive revenue of 60.01 trillion won, down 6% from a month earlier, mainly due to a decline in smartphone shipments. Revenue from the DS (device Solutions) division recovered slightly, with operating profit rising to 670 billion won from the previous month, while the profitability of Samsung's display and digital home appliance businesses improved.

In addition, the performance of the memory business improved from the previous quarter, as strong demand for AI applications is expected to cause DRAM shipments to be above guidance, so the business focuses on high-bandwidth memory (HBM) and DDR5 products. Due to the weak demand for major applications, the utilization rate decreased, and the semiconductor profit of the system decreased.

In the mobile panel business, earnings were similar to the previous quarter due to stable sales of high-end panels, while the large panel business continued to focus on QD-OLED in the high-end market.

The equipment experience (DX) division has achieved strong profitability due to increased sales of high-quality televisions and digital appliances, improved cost structure and increased operational efficiency. Revenue from the Internet business has declined in major overseas markets such as North America and Japan.

Samsung Electronics said it expects global demand to recover gradually in the second half of the year, with the parts business leading to improved profits. However, ongoing macroeconomic risks could pose a challenge to demand recovery.

Samsung SDC's mobile panel business is expected to improve profitability as major customers introduce new smartphone models (expected to be Apple's new iPhone), while the large panel business will supply very large panels to meet seasonal demand at the end of the year.

Samsung Electronics's total capital expenditure in the second quarter was 14.5 trillion won (currently about 81.345 billion yuan), of which semiconductor capital expenditure was 13.5 trillion won (currently about 75.735 billion yuan), showing capital expenditure of 600 billion won (currently about 3.366 billion yuan). Memory expenditure is mainly focused on the completion of P3 infrastructure and P4 framework to achieve medium-and long-term supply. Foundry investment continues to be concentrated in wafer plants in Taylor and Pinzer, Texas, to meet the demand for advanced nodes, while investment in displays focuses on enhanced infrastructure and module production.

Samsung also said that thanks to the stability of the 3nm process, the OEM business is successfully mass-producing the third product using GAA technology, and the development of the second generation of 3nm GAA technology and 2nm GAA technology has been on the right track and is progressing smoothly.

In the mobile business, sales of Samsung's mobile experience (MX) business declined month-on-month as the impact of the Galaxy S23 release faded in the first quarter. Samsung Electronics said that due to the continued economic downturn, the mass market recovery has also been delayed, affecting sales in the second quarter. In spite of this, the Galaxy S23 series achieved higher results in both sales and sales in the first half of the year than the previous generation. Supported by stable prices of major raw materials, MX strives to optimize the operational efficiency of R & D, manufacturing and logistics to maintain double-digit profit margins. The overall smartphone market is expected to return to year-on-year growth in the second half of 2023, especially at the high end of the market. However, external forecasts for market growth have also been lowered due to the risk of a prolonged downturn in the global economy.

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