All currency figures stated in this report are in US Dollars unless stated otherwise.
(PRNewswire) — Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2013.Fourth Quarter 2013 Highlights:
- Revenue including wafer shipments from Wuhan Xinxin was $491.8 million in 4Q13, an increase of 1.2 % year over year, and down 7.9% quarter over quarter.
- Non-GAAP revenue excluding wafer shipments from Wuhan Xinxin was $483.6 million in 4Q13, an increase of 10.6 % year over year, and down 4.0 % quarter over quarter.
- Gross margin including wafer shipments from Wuhan Xinxin was 18.9% in 4Q13, compared to 19.9% in 4Q12 and 21.0% in 3Q13.
- Non-GAAP gross margin excluding wafer shipments from Wuhan Xinxin was 19.2% in 4Q13, compared to 21.9% in 4Q12 and 22.1% in 3Q13.
First Quarter 2014 Guidance:
The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.
- Revenue is expected to be down 5% to down 9% quarter over quarter [$440 million to $460 million]. This revenue guidance is given in relation to the revenue without wafer shipments from Wuhan Xinxin in 4Q13. There will not be any wafer shipments from Wuhan Xinxin from 1Q14 onwards.
- Gross margin is expected to range from 16% to 19%.
- Non-GAAP operating expenses excluding the effect of foreign exchange, employee bonus accrual, funding of R&D contracts from the government and gain from the disposal of living quarters are expected to range from $88 million to $92 million.
Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "2013 was another record-breaking year for SMIC. Based on our unaudited financial statements for the full year of 2013, revenue in 2013 reached a record high, of $2.07B, an annual growth of 21.6% when compared to 2012. If we remove the Wuhan Xinxin revenue contribution, SMIC revenue growth rate was a robust 27%. Our net profit attributable to owners of the Company also reached a historical high of $173.2 million compared to $22.8 million in 2012, an increase of 6.6 times. Our monthly capacity at year-end grew 6.7% year over year, to 234 thousand wafers per month compared to the end of 2012.
"I'm happy to announce that our 28nm High-K Metal Gate (HKMG) and PolySiON processes are both process frozen successfully, and are in Multi Project Wafer stage. We target modest revenue from 28nm process technology at the end of 2014 and more significant ramp up in 2015.
"China continues to be a leading source of high growth for SMIC. In 2013, China revenue accounted for 40.4% of our revenues, with a noteworthy growth rate of 44.9% compared to 2012.
"In the long-run, we have confidence in our strategy and capability to capture growth opportunities, especially those in the China IC market. And we continue to work with our new and existing customers to capture opportunities in 2014 and onward."
Conference Call / Webcast Announcement
|
Date: February 18, 2014 | ||
|
Time: 8:30 a.m. Shanghai time | ||
|
Dial-in numbers and pass code: | ||
|
| ||
|
China |
400-620-8038 |
(Pass code: SMIC) |
|
Hong Kong |
852-2475-0994 |
(Pass code: SMIC) |
|
Taiwan |
886-2-2650-7825 |
(Pass code: SMIC) |
|
United States, New York |
1-845-675-0437 |
(Pass code: SMIC) |
The call will be webcast live with audio at http://www.smics.com/eng/investors/ir_presentations.php or http://www.media-server.com/m/p/8n4tcoc7.
An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.
About SMIC
Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai, a 300mm mega-fab in Beijing, a 200mm fab in Tianjin, and a 200mm fab project under development in Shenzhen. SMIC also has customer service and marketing offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.
For more information, please visit www.smics.com.
Safe Harbor Statements
(Under the Private Securities Litigation Reform Act of 1995)
This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements under "First Quarter 2014 Guidance" and the statements regarding future revenue from 28nm process technology in the end of 2014 and more significant ramp up in 2015, our confidence in our strategy and capability to capture growth opportunities, especially those in the China IC market, and our expectation to capture opportunities in 2014 and onward, as well as the statements regarding future 2014 capital expenditures are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project," "target" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with the global economic slowdown, orders or judgments from pending litigation and financial stability in end markets.
Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on April 15, 2013, as amended on December 19, 2013, especially the consolidated financial statements, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including current reports on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.
About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures
To supplement SMIC's consolidated financial results presented in accordance with IFRS, SMIC uses in this press release measures of operating results that are adjusted to exclude wafer shipments from Wuhan Xinxin Semiconductor Manufacturing Corporation ("Wuhan Xinxin"), which SMIC began gradually phasing out in 3Q13. This earnings release includes non-GAAP revenue, non-GAAP cost of sales and non-GAAP gross margin. It also includes first quarter 2014 guidance for non-GAAP operating expenses, which is adjusted to exclude the effect of foreign exchange, employee bonus accrual, funding of R&D contracts from the government and gain from the disposal of living quarters. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS.
SMIC believes that use of these non-GAAP financial measures facilitates investors' and management's comparisons to SMIC's historical performance. The Company's management regularly uses these non-GAAP financial measures to understand, manage and evaluate the Company's business and make financial and operational decisions.
The accompanying table has more information and reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
Contact:
Investor Relations
+86-21-3861-0000 ext. 12804
Email Contact
Summary of Fourth Quarter 2013 Operating Results
Amounts in US$ thousands, except for EPS and operating data
|
|
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Revenue |
491,797 |
534,256 |
-7.9% |
485,894 |
1.2% |
|
Cost of sales |
(398,858) |
(422,274) |
-5.5% |
(389,127) |
2.5% |
|
Gross profit |
92,939 |
111,982 |
-17.0% |
96,767 |
-4.0% |
|
Operating expenses |
(84,840) |
(63,447) |
33.7% |
(45,079) |
88.2% |
|
Profit from operations |
8,099 |
48,535 |
-83.3% |
51,688 |
-84.3% |
|
Other income (expense), net |
7,756 |
(4,681) |
- |
(2,591) |
- |
|
Profit before tax |
15,855 |
43,854 |
-63.8% |
49,097 |
-67.7% |
|
Income tax expenses |
(170) |
(914) |
-81.4% |
(2,665) |
-93.6% |
|
Profit for the period |
15,685 |
42,940 |
-63.5% |
46,432 |
-66.2% |
|
Other comprehensive income: |
|
|
|
|
|
|
Exchange differences on translating foreign operations |
333 |
77 |
332.5% |
(2) |
- |
|
Total comprehensive income for the period |
16,018 |
43,017 |
-62.8% |
46,430 |
-65.5% |
|
|
|
|
|
|
|
|
Profit attributable to SMIC |
14,681 |
42,491 |
-65.4% |
46,570 |
-68.5% |
|
|
|
|
|
|
|
|
Gross margin |
18.9% |
21.0% |
- |
19.9% |
- |
|
|
|
|
|
|
|
|
Earnings per ordinary share (basic and diluted)(1) |
0.00 |
0.00 |
- |
0.00 |
- |
|
Earnings per ADS (basic and diluted) |
0.02 |
0.07 |
- |
0.07 |
- |
|
|
|
|
|
|
|
|
Wafers shipped (in 8" equivalent wafers) |
601,602 |
653,090 |
-7.9% |
608,372 |
-1.1% |
|
|
|
|
|
|
|
|
Capacity utilization(2) |
87.4% |
88.2% |
- |
90.5% |
- |
|
| |||||
|
Note: (1) Based on weighted average ordinary shares of 32,102 million (basic) and 33,693 million (diluted) in 4Q13, 32,084 million (basic) and 32,355 million (diluted) in 3Q13, and 31,997 million (basic) and 32,044 million (diluted) in 4Q12. (2) Based on total equivalent wafers out divided by estimated total quarterly capacity. | |||||
- Revenue decreased to $491.8 million in 4Q13, down 7.9% QoQ from $534.3 million in 3Q13, mainly due to a decrease of wafer shipments in 4Q13.
- Non-GAAP revenue excluding wafer shipments from Wuhan Xinxin was $483.6 million in 4Q13, compared to $503.7 million in 3Q13.
- Cost of sales decreased to $398.9 million in 4Q13, down 5.5% QoQ from $422.3 million in 3Q13, mainly due to the same reason mentioned in the change of revenue.
- Gross profit was $92.9 million in 4Q13, a decrease of 17.0 % QoQ from $112.0 million in 3Q13.
- Gross margin was 18.9 % in 4Q13, down from 21.0% in 3Q13 primarily due to product mix change, lower utilization and a provision for customer claim in 4Q13.
- Non-GAAP gross margin excluding wafer shipments from Wuhan Xinxin was 19.2% in 4Q13, down from 22.1% in 3Q13.
- Operating expenses increased to $84.8 million in 4Q13, an increase of 33.7% QoQ from $63.4 million in 3Q13, mainly due to the reasons stated in Operating Expenses (Income) Analysis below.
Analysis of Revenue
|
Revenue Analysis |
|
|
|
|
By Application |
4Q13 |
3Q13 |
4Q12 |
|
Computer |
1.9% |
1.8% |
1.0% |
|
Communications |
39.8% |
44.4% |
47.4% |
|
Consumer |
48.3% |
43.9% |
42.6% |
|
Others |
10.0% |
9.9% |
9.0% |
|
By Service Type |
4Q13 |
3Q13 |
4Q12 |
|
Wafers |
93.2% |
93.8% |
94.0% |
|
Mask making, testing, others |
6.8% |
6.2% |
6.0% |
|
By Customer Type |
4Q13 |
3Q13 |
4Q12 |
|
Fabless semiconductor companies |
86.7% |
87.7% |
86.6% |
|
Integrated device manufacturers (IDM) |
6.0% |
5.5% |
9.3% |
|
System companies and others |
7.3% |
6.8% |
4.1% |
|
By Geography |
4Q13 |
3Q13 |
4Q12 |
|
North America |
48.3% |
46.0% |
54.4% |
|
China(1) |
40.0% |
42.1% |
34.8% |
|
Eurasia(2) |
11.7% |
11.9% |
10.8% |
|
Wafer Revenue Analysis |
|
|
|
|
By Technology (logic, memory only) |
4Q13 |
3Q13 |
4Q12 |
|
40/45 nm |
16.3% |
15.7% |
2.6% |
|
55/65 nm |
21.1% |
27.1% |
35.3% |
|
90 nm |
3.5% |
4.7% |
8.0% |
|
0.13 micrometers |
12.2% |
10.1% |
10.2% |
|
0.15/0.18 micrometers |
41.5% |
38.4% |
39.9% |
|
0.25/0.35 micrometers |
5.4% |
4.0% |
4.0% |
|
| |||
|
Note: (1) Including Hong Kong, but excluding Taiwan (2) Excluding China | |||
Capacity*
|
Fab / (Wafer Size) |
4Q13 |
3Q13 |
|
Shanghai Mega Fab (8") |
90,000 |
90,000 |
|
Shanghai 12-inch Fab (12") |
27,000 |
24,750 |
|
Beijing Mega Fab (12") |
81,000 |
81,000 |
|
Tianjin Fab (8") |
36,000 |
36,000 |
|
Total monthly wafer fabrication capacity |
234,000 |
231,750 |
Note:
|
* |
Wafers per month at the end of the period in 8" equivalent wafers, calculated on a 30-day basis for comparison purposes |
- Monthly capacity increased to 234,000 8-inch equivalent wafers in 4Q13 from 231,750 8-inch equivalent wafers in 3Q13, primarily due to the expansion of capacity in our Shanghai 12-inch fab.
Shipment and Utilization
|
8" equivalent wafers |
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Wafer shipments |
601,602 |
653,090 |
-7.9% |
608,372 |
-1.1% |
|
Utilization rate(1) |
87.4% |
88.2% |
- |
90.5% |
- |
|
| |||||
|
Note: (1) Based on total equivalent wafers out divided by estimated total quarterly capacity. | |||||
Detailed Financial Analysis
Gross Profit Analysis
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Cost of sales |
398,858 |
422,274 |
-5.5% |
389,127 |
2.5% |
|
Depreciation |
113,289 |
126,433 |
-10.4% |
112,290 |
0.9% |
|
Other manufacturing costs |
284,327 |
294,374 |
-3.4% |
276,367 |
2.9% |
|
Share-based compensation |
1,242 |
1,467 |
-15.3% |
470 |
164.3% |
|
Gross profit |
92,939 |
111,982 |
-17.0% |
96,767 |
-4.0% |
|
Gross margin |
18.9% |
21.0% |
- |
19.9% |
- |
- Cost of sales was $398.9 million in 4Q13, down 5.5 % QoQ from $422.3 million in 3Q13.
- Depreciation within the cost of sales decreased to $113.3 million in 4Q13, compared to $126.4 million in 3Q13 mainly due to a decrease of wafer shipments in 4Q13.
- Other manufacturing costs within the cost of sales decreased to $284.3 million in 4Q13, compared to $294.4 million in 3Q13.
- Gross profit was $92.9 million in 4Q13, a decrease of 17.0 % QoQ from $112.0 million in 3Q13.
- Gross margin was 18.9% in 4Q13, down from 21.0% in 3Q13 primarily due to product mix change, lower utilization and higher provision for customer claim in 4Q13.
Operating Expenses (Income) Analysis
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Operating expenses |
84,840 |
63,447 |
33.7% |
45,079 |
88.2% |
|
Research and development |
46,256 |
37,564 |
23.1% |
26,676 |
73.4% |
|
General and administrative |
36,610 |
24,718 |
48.1% |
29,437 |
24.4% |
|
Selling and marketing |
8,385 |
9,324 |
-10.1% |
8,629 |
-2.8% |
|
Other operating income |
(6,411) |
(8,159) |
-21.4% |
(19,663) |
-67.4% |
- R&D expenses increased to $46.3 million in 4Q13, compared to $37.6 million in 3Q13. The increase was primarily due to an increase in R&D expenses associated with higher R&D activities from quarter to quarter and a decrease in funding of R&D contracts from the government in 4Q13 of $4.3 million compared to 3Q13.
- General and administrative expenses increased to $36.6 million in 4Q13, up 48.1 % QoQ from $24.7 million in 3Q13, mainly due to 1) increased bad debt expense recognized in 4Q13 and 2) a bonus accrual relating to an increase in employee productivity in 4Q13.
- Other operating income was $6.4 million in 4Q13, compared to $8.2 million in 3Q13. The change was mainly due to 1) a decrease of gain arising from the disposal of part of the Company-owned living quarters in Shanghai, and 2) gain arising from the deconsolidation of Brite Semiconductor Corporation and its subsidiaries due to loss of control.
Other Income (expense), Net
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Other income (expense), net |
7,756 |
(4,681) |
- |
(2,591) |
- |
|
Interest income |
2,206 |
1,394 |
58.2% |
1,276 |
72.9% |
|
Finance costs |
(5,789) |
(8,673) |
-33.3% |
(10,449) |
-44.6% |
|
Foreign exchange gains or losses |
6,228 |
2,404 |
159.1% |
4,434 |
40.5% |
|
Other gains or losses |
4,607 |
(357) |
- |
2,044 |
125.4% |
|
Share of profits of associates |
504 |
551 |
-8.5% |
104 |
384.6% |
- The change of other gains or losses was mainly due to 1) lower revenue from our schools as a result of summer vacation in 3Q13 and 2) a reversal of impairment loss from an available-for-sale investment which was recognized in 3Q13 due to subsequent recovery of the cost.
Depreciation and Amortization
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
QoQ |
4Q12 |
YoY |
|
Depreciation and amortization |
138,721 |
136,725 |
1.5% |
140,021 |
-0.9% |
Liquidity
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
|
Cash and bank balances |
462,483 |
473,507 |
|
Restricted cash |
147,625 |
195,813 |
|
Other financial assets |
240,311 |
2,574 |
|
Trade and other receivables |
379,361 |
396,108 |
|
Prepaid operating expenses |
43,945 |
48,383 |
|
Inventories |
286,251 |
289,954 |
|
Assets classified as held-for-sale |
3,265 |
210 |
|
Total current assets |
1,563,241 |
1,406,549 |
|
|
|
|
|
Current tax liabilities |
158 |
85 |
|
Other financial liabilities |
- |
10 |
|
Promissory notes |
- |
14,895 |
|
Accrued liabilities |
127,593 |
105,497 |
|
Deferred government funding |
26,349 |
17,833 |
|
Borrowings |
390,547 |
548,385 |
|
Trade and other payables |
393,890 |
402,827 |
|
Total current liabilities |
938,537 |
1,089,532 |
|
|
|
|
|
Cash Ratio |
0.5x |
0.4x |
|
Quick Ratio |
1.4x |
1.0x |
|
Current Ratio |
1.7x |
1.3x |
Capital Structure
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
|
Cash and bank balances |
462,483 |
473,507 |
|
Restricted cash |
147,625 |
195,813 |
|
|
|
|
|
Current portion of promissory notes |
- |
14,895 |
|
|
|
|
|
Short-term borrowings |
390,547 |
548,385 |
|
Long-term borrowings |
600,975 |
553,435 |
|
Convertible bonds |
180,563 |
- |
|
Total debt |
1,172,085 |
1,101,820 |
|
|
|
|
|
Equity |
2,593,182 |
2,559,381 |
|
|
|
|
|
Total debt to equity ratio(1) |
45.2% |
43.1% |
|
| ||
|
Note: (1) Total debt divided by equity, total debt including short-term and long-term borrowings and convertible bonds. | ||
Other financial assets increased to $240.3 million in 4Q13 from $2.6 million in 3Q13, primarily because the Company issued US$200.0 million zero coupon convertible bonds in 4Q13 and temporarily invested them in short-term investments carried at fair value through profit or loss.
Cash Flow
|
Amounts in US$ thousands |
4Q13 |
3Q13 |
|
Net cash from operating activities |
205,437 |
269,581 |
|
Net cash used in investing activities |
(269,147) |
(213,133) |
|
Net cash from financing activities |
52,749 |
154,045 |
|
Effect of exchange rate changes |
(63) |
59 |
|
Net change in cash |
(11,024) |
210,552 |
Capex Summary
- Capital expenditures for 4Q13 were $114.3 million.
- Capital expenditures for foundry operations in 2013 were $651 million. Capital expenditures for non-foundry operations were $119 million, which were mainly for the construction of living quarters for employees as part of the Company's employee retention program.
- The planned 2014 capital expenditure for our foundry operation is approximately $880 million of which around $570 million is for our new Beijing project, which is 55% funded by SMIC and 45% funded by the other shareholders of the project.
- In addition, we have budgeted 2014 capital expenditures for non-foundry operations of approximately $110 million mainly for the construction of living quarters.
Recent Highlights and Announcements
- ARM and SMIC Broaden IP Partnership with 28nm Process for Mobile and Consumer Applications (2014-02-09)
- Circulars - Notification Letter and Request Form to Non-registered Shareholders (2014-01-28)
- Circulars - Notification Letter to Registered Shareholders (2014-01-28)
- Notice of Extraordinary General Meeting (2014-01-28)
- Proxy Forms - Form of Proxy for Use at the Extraordinary General Meeting to be Held on 17 February 2014 (2014-01-28)
- Circulars - Non-exempt Connected Transactions (1) Pre-emptive Subscription of Bonds by Datang and Country Hill (2) Proposed Further Special Mandates to Issue Conversion Shares on Conversion of the Pre-emptive Bonds (3) Notice of Extraordinary General Meeting (2014-01-28)
- Notification of Board Meeting (2014-01-27)
- SMIC Unveils 28nm Readiness and MPW Milestone (2014-01-26)
- Dual-interface Financial IC Card Chip Based on SMIC's eEEPROM Platform Gains CC EAL4+ Certification (2014-01-22)
- "SMIC Liver Transplant Program for Children" Helps 18 Kids (2014-01-13)
- Delay in Despatch of Circular (2014-01-13)
- eMemory and SMIC Expand Partnership in eNVM Technical Development (2013-12-30)
- (1) Non-exempt Connected Transactions and (2) Pre-emptive Subscription of Bonds by Datang and Country Hill (2013-12-18)
- (1) Non-exempt Connected Transactions (2) Exercise of Pre-emptive Rights by Datang and Country Hill (2013-11-08)
- Completion of the Issue of US$200,000,000 Zero Coupon Convertible Bonds Due 2018 (2013-11-07)
- Grant of Options (2013-11-04)
- (1) Proposed Issue of US$200 Million Zero Coupon Convertible Bonds Due 2018 (2) Pre-emptive Right of Datang and (3) Pre-emptive Right of Country Hill (2013-10-25)
- Potential Non-exempt Connected Transactions; Potential Exercise of Pre-emptive Rights by Datang and Country Hill (2013-10-24)
- SMIC Reports Unaudited Results for the Three Months Ended September 30, 2013 (2013-10-22)
- List of Directors and Their Roles and Functions (2013-10-22)
- Appointment of Alternate Director (2013-10-22)
- SMIC Announces Formation of Center for Vision, Sensors and 3DIC (2013-10-21)
- SMIC Offers Differentiated 0.13um Low-Leakage Embedded Flash Manufacturing Process (2013-10-15)
- Notification of Board Meeting (2013-10-08)
- Bank Card IC Products Adopting SMIC eEEPROM Platform Certified by China Union Pay (2013-10-08)
- SMIC IP R&D Center Applies EDA Solution of Beijing Empyrean (2013-10-04)
Please visit SMIC's website at http://www.smics.com/eng/press/press_releases.php and http://www.smics.com/eng/investors/ir_filings.php for further details regarding the recent announcements.
|
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME (In US$ thousands except share data) | |||||||
|
|
|
|
|
| |||
|
|
|
|
|
For the three months ended | |||
|
|
|
|
|
December 31, 2013 |
|
September 30, 2013 | |
|
|
|
|
|
(Unaudited) |
|
(Unaudited) | |
|
|
|
|
|
|
|
| |
|
Revenue |
|
|
|
491,797 |
|
534,256 | |
|
Cost of sales |
|
|
|
(398,858) |
|
(422,274) | |
|
Gross profit |
|
|
|
92,939 |
|
111,982 | |
|
Research and development expenses |
|
|
|
(46,256) |
|
(37,564) | |
|
General and administration expenses |
|
|
|
(36,610) |
|
(24,718) | |
|
Sales and marketing expenses |
|
|
|
(8,385) |
|
(9,324) | |
|
Other operating income |
|
|
|
6,411 |
|
8,159 | |
|
Profit from operation |
|
|
|
8,099 |
|
48,535 | |
|
Other income (expense), net |
|
|
|
7,756 |
|
(4,681) | |
|
Profit before tax |
|
|
|
15,855 |
|
43,854 | |
|
Income tax expense |
|
|
|
(170) |
|
(914) | |
|
Profit for the period |
|
|
|
15,685 |
|
42,940 | |
|
Other comprehensive income |
|
|
|
|
|
| |
|
Item that may be reclassified subsequently to profit or loss |
|
|
|
|
|
| |
|
Exchange differences on translating foreign operations |
|
|
|
333 |
|
77 | |
|
Total comprehensive income for the period |
|
|
|
16,018 |
|
43,017 | |
|
Profit for the period attributable to: |
|
|
|
|
|
| |
|
Owners of the Company |
|
|
|
14,681 |
|
42,491 | |
|
Non-controlling interests |
|
|
|
1,004 |
|
449 | |
|
|
|
|
|
15,685 |
|
42,940 | |
|
Total comprehensive income for the period attributable to: |
|
|
|
|
|
| |
|
Owners of the Company |
|
|
|
15,014 |
|
42,568 | |
|
Non-controlling interests |
|
|
|
1,004 |
|
449 | |
|
|
|
|
|
16,018 |
|
43,017 | |
|
|
|
|
|
|
|
| |
|
Earnings per share attributable to Semiconductor Manufacturing International Corporation ordinary shareholders, basic and diluted |
|
|
|
0.00 |
|
0.00 | |
|
Earnings per ADS attributable to Semiconductor Manufacturing International Corporation ordinary ADS holders, basic and diluted |
|
|
|
0.02 |
|
0.07 | |
|
|
|
|
|
|
|
| |
|
Shares used in calculating basic earnings per share |
|
|
|
32,102,304,565 |
|
32,083,651,959 | |
|
Shares used in calculating diluted earnings per share |
|
|
|
33,692,855,386 |
|
32,354,552,218 | |
|
|
|
|
|
|
|
| |
|
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures(1) |
|
|
|
|
|
| |
|
Non-GAAP revenue |
|
|
|
483,597 |
|
503,669 | |
|
Non-GAAP cost of sales |
|
|
|
(390,879) |
|
(392,407) | |
|
Non-GAAP gross margin |
|
|
|
19.2% |
|
22.1% | |
|
| |||||||
|
Note: | |||||||
|
(1) |
SMIC defines non-GAAP revenue, non-GAAP cost of sales and non-GAAP gross margin, which are non-GAAP financial measures, as revenue, cost of sales and gross margin, in each case excluding wafer shipments from Wuhan Xinxin. SMIC reviews non-GAAP financial measures together with revenue, cost of sales and gross margin to understand, manage and evaluate its business and make financial and operational decisions. The Company also believes it is useful supplemental information for investors and analysts to assess its operating performance without the effect of wafer shipments from Wuhan Xinxin, which were not output through its production capacity. SMIC announced in March 2013 that it had ceased to manage and operate the 300mm wafer fab in Wuhan owned by Wuhan Xinxin, and began gradually phasing out wafer shipments from Wuhan Xinxin in 3Q13. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact our net profit for the period. In addition, because non-GAAP financial measures are not calculated in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to revenue, cost of sales and gross margin prepared in accordance with IFRS.
The following table sets forth the reconciliation of each of non-GAAP revenue, non-GAAP cost of sales and non-GAAP gross margin to its most directly comparable financial measure presented in accordance with IFRS, for the periods indicated. | ||||||
|
|
|
|
| ||||
|
|
|
|
For the three months ended | ||||
|
|
|
|
December 31, 2013 |
|
September 30, 2013 |
|
December 31, 2012 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Revenue |
|
491,797 |
|
534,256 |
|
485,894 |
|
|
Revenue from Wuhan Xinxin |
|
(8,200) |
|
(30,587) |
|
(48,510) |
|
|
Non-GAAP revenue |
|
483,597 |
|
503,669 |
|
437,384 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(398,858) |
|
(422,274) |
|
(389,127) |
|
|
Cost of sales of Wuhan Xinxin |
|
7,979 |
|
29,867 |
|
47,370 |
|
|
Non-GAAP cost of sales |
|
(390,879) |
|
(392,407) |
|
(341,757) |
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
18.9% |
|
21.0% |
|
19.9% |
|
|
Non-GAAP gross margin |
|
19.2% |
|
22.1% |
|
21.9% |
|
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In US$ thousands) | ||||
|
|
|
| ||
|
|
|
As of | ||
|
|
|
December 31, 2013 |
|
September 30, 2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
2,528,834 |
|
2,558,563 |
|
Prepaid land use right |
|
136,725 |
|
123,974 |
|
Intangible assets |
|
215,265 |
|
227,380 |
|
Investments in associates |
|
29,200 |
|
23,758 |
|
Deferred tax assets |
|
43,890 |
|
43,889 |
|
Other assets |
|
6,237 |
|
36,969 |
|
Total non-current assets |
|
2,960,151 |
|
3,014,533 |
|
Current assets |
|
|
|
|
|
Inventories |
|
286,251 |
|
289,954 |
|
Prepaid operating expenses |
|
43,945 |
|
48,383 |
|
Trade and other receivables |
|
379,361 |
|
396,108 |
|
Other financial assets |
|
240,311 |
|
2,574 |
|
Restricted cash |
|
147,625 |
|
195,813 |
|
Cash and bank balances |
|
462,483 |
|
473,507 |
|
|
|
1,559,976 |
|
1,406,339 |
|
Assets classified as held-for-sale |
|
3,265 |
|
210 |
|
Total current assets |
|
1,563,241 |
|
1,406,549 |
|
TOTAL ASSETS |
|
4,523,392 |
|
4,421,082 |
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Ordinary shares, $0.0004 par value, 50,000,000,000 shares authorized, 32,112,307,101 and 32,088,989,727 shares issued and outstanding at December 31, 2013 and September 30, 2013, respectively |
|
12,845 |
|
12,836 |
|
Share premium |
|
4,089,846 |
|
4,088,854 |
|
Reserves |
|
74,940 |
|
56,993 |
|
Accumulated deficit |
|
(1,693,859) |
|
(1,708,540) |
|
Equity attributable to owners of the Company |
|
2,483,772 |
|
2,450,143 |
|
Non-controlling interests |
|
109,410 |
|
109,238 |
|
Total equity |
|
2,593,182 |
|
2,559,381 |
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
600,975 |
|
553,435 |
|
Convertible bonds |
|
180,563 |
|
- |
|
Deferred tax liabilities |
|
167 |
|
207 |
|
Deferred government funding |
|
209,968 |
|
213,098 |
|
Long-term financial liabilities |
|
- |
|
5,429 |
|
Total non-current liabilities |
|
991,673 |
|
772,169 |
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
393,890 |
|
402,827 |
|
Borrowings |
|
390,547 |
|
548,385 |
|
Deferred government funding |
|
26,349 |
|
17,833 |
|
Accrued liabilities |
|
127,593 |
|
105,497 |
|
Promissory notes |
|
- |
|
14,895 |
|
Other financial liabilities |
|
- |
|
10 |
|
Current tax liabilities |
|
158 |
|
85 |
|
Total current liabilities |
|
938,537 |
|
1,089,532 |
|
Total liabilities |
|
1,930,210 |
|
1,861,701 |
|
TOTAL EQUITY AND LIABILITIES |
|
4,523,392 |
|
4,421,082 |
|
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In $US thousands) | ||||
|
|
|
| ||
|
|
|
For the three months ended | ||
|
|
|
December 31, 2013 |
|
September 30, 2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Cash flow from operating activities |
|
|
|
|
|
Profit for the period |
|
15,685 |
|
42,940 |
|
Depreciation and amortization |
|
138,721 |
|
136,725 |
|
Share of profits of associates |
|
(504) |
|
(551) |
|
Changes in working capital and others |
|
51,535 |
|
90,467 |
|
Net cash from operating activities |
|
205,437 |
|
269,581 |
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
Payments for property, plant and equipment |
|
(83,459) |
|
(255,561) |
|
Payments for intangible assets |
|
(6,517) |
|
(9,414) |
|
Payments for land use right |
|
(14,641) |
|
- |
|
Proceeds from disposal of property, plant and equipment and intangible assets |
|
46,822 |
|
15,140 |
|
Changes in restricted cash relating to investing activities |
|
30,961 |
|
7,305 |
|
Payments to acquire financial assets |
|
(248,498) |
|
(5,225) |
|
Proceeds on sale of financial assets |
|
13,546 |
|
5,518 |
|
Proceeds from disposal of subsidiaries |
|
- |
|
29,104 |
|
Changes in cash relating to deconsolidation of subsidiaries due to loss of control |
|
(6,799) |
|
- |
|
Others |
|
(562) |
|
- |
|
Net cash used in investing activities |
|
(269,147) |
|
(213,133) |
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
Proceeds from borrowings |
|
108,343 |
|
434,170 |
|
Repayment of borrowings |
|
(236,959) |
|
(388,671) |
|
Proceeds from convertible bonds |
|
195,800 |
|
- |
|
Repayment of promissory notes |
|
(15,000) |
|
- |
|
Proceeds from exercise of employee stock options |
|
565 |
|
546 |
|
Proceeds from non-controlling interests |
|
- |
|
108,000 |
|
Net cash from financing activities |
|
52,749 |
|
154,045 |
|
|
|
|
|
|
|
Effects of exchange rate changes on the balance of cash held in foreign currencies |
|
(63) |
|
59 |
|
|
|
|
|
|
|
Net (decrease) increase in cash and bank balances |
|
(11,024) |
|
210,552 |
|
Cash and bank balances, beginning of period |
|
473,507 |
|
262,955 |
|
|
|
|
|
|
|
Cash and bank balances, end of period |
|
462,483 |
|
473,507 |
SOURCE Semiconductor Manufacturing International Corporation
| Contact: |
| Semiconductor Manufacturing International Corporation
Brite Semiconductor Corporation Web: http://www.smics.com |