SMIC Announces Resignation of Chairman Dr. Gao Yonggang, Names Dr. Liu Xunfeng as Replacement
July 17, 2023
SMIC (688981.SH) made a significant announcement today, revealing that Dr. Gao Yonggang has resigned from his position as the company’s chairman, executive director, and chairman of the nomination committee of the board of directors. Dr. Gao’s departure comes as a result of work adjustments. Effective immediately, Dr. Liu Xunfeng, the vice chairman of SMIC, will assume the roles of chairman, executive director, and chairman of the nomination committee of the board of directors.
Background of Dr. Gao Yonggang and Dr. Liu Xunfeng
Dr. Gao Yonggang has an impressive career history. Aside from being the former chairman and executive director of SMIC, he also held positions as director or chairman in several subsidiaries and joint stock companies of the company. Currently, he serves as the chairman of Jiangsu Changdian Technology Co., Ltd. and as an independent director of Shanghai Yirui Optoelectronics Technology Co., Ltd. Dr. Gao has over 30 years of experience in corporate management and has held important roles in various esteemed organizations. He is known for his expertise in finance and has served as the chief accountant of the Institute of Telecommunications Science and Technology and the chairman of Datang Telecom Group Finance Co., Ltd.
On the other hand, Dr. Liu Xunfeng, the newly appointed chairman, comes with a wealth of experience in corporate management. He previously served as the vice chairman and executive director of SMIC and held the position of vice chairman at Shanghai Chemical Industry Park Development Co., Ltd. In addition, Dr. Liu has had an extensive career in the industrial sector, including roles at Sinopec Shanghai Petrochemical Co., Ltd. and Shanghai Huayi (Group) Company. He has been recognized for his contributions and achievements, earning titles such as Shanghai Industrial and Commercial Leader and Shanghai Outstanding Entrepreneur.
Last Year’s Sales Exceeded 500100 Million Yuan
Last year, SMIC reported impressive financial performance in its annual report. The company achieved annual sales revenue of approximately RMB 516 billion (equivalent to $72 billion USD), representing a 34% year-on-year increase. Furthermore, the gross profit margin rose to 38%, and the net profit attributable to shareholders of the listed companies surpassed RMB 129.1 billion (approximately $18 billion USD), an all-time high. These record-breaking results have consolidated SMIC’s position as a key player in the integrated circuit manufacturing industry.
SMIC boasts a stable asset structure, with total assets reaching $43.8 billion USD by the end of the year, reflecting a 21% increase compared to the previous year. The company’s asset-liability ratio stands at 34%, indicating a healthy financial position.
As one of the world‘s leading integrated circuit wafer foundry companies, SMIC holds a dominant position in mainland China’s integrated circuit manufacturing industry. The company is known for its advanced process manufacturing capabilities, production capacity advantages, and comprehensive technical services. It offers a wide range of technologies, ranging from 0.35 micron to FinFET Node wafer foundry, catering to customers worldwide.
SMIC is headquartered in Shanghai, China, and operates globally. It currently operates three 8-inch wafer fabs and four 12-inch wafer fabs in Shanghai, Beijing, Tianjin, and Shenzhen. Additionally, the company has a 12-inch fab under construction in Shanghai, Beijing, and Tianjin.
Despite the recent news, SMIC’s stock (688981.SH) experienced a slight decline of 1.40% on July 17, closing at 48.77 yuan per share. The company’s total market value stands at 386.55 billion yuan.
Disclaimer: This article was written by Duan Lian, Huang Sheng, and Gai Yuanyuan and sourced from Everyjing.com with the original title: “100 Billion Chip Giants Sudden Change of Coach! SMIC announced: the chairman resigned and he took over! Because…”
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