SHANGHAI, May 13, 2020
/PRNewswire/ -- Semiconductor Manufacturing International
Corporation (SEHK: 981; OTCQX: SMICY) ("SMIC", the "Company" or
"our"), one of the leading semiconductor foundries in the world,
today announced its consolidated results of operations for the
three months ended March 31, 2020.
2020 First Quarter
Highlights
- Revenue was $904.9 million in
1Q20, an increase of 7.8% QoQ from $839.4
million in 4Q19, and 35.3% YoY from $668.9 million in 1Q19.
- Gross profit was $233.6 million
in 1Q20, an increase of 17.1% QoQ from $199.4 million in 4Q19 and 91.4% YoY from
$122.1 million in 1Q19.
- Gross margin was 25.8% in 1Q20, compared to 23.8% in 4Q19 and
18.2% in 1Q19.
2020 Second Quarter
Guidance
The following statements are forward looking statements based on
current expectations and involved risks and uncertainties,
some of which are set forth under "Forward-Looking Statements"
below. The Company expects:
- Revenue to increase by 3% to 5% QoQ.
- Gross margin to range from 26% to 28%.
- Non-IFRS operating expenses to range
from $240 million to $245 million.
- Non-controlling interests of our majority-owned subsidiaries to
range from $0 to positive $10 million (losses to be borne
by non-controlling interests).
Dr. Zhao Haijun and Dr. Liang Mong
Song, SMIC's Co-Chief Executive Officers commented, "The
company's revenue in the first quarter has reached a historical
high of $905 million, an increase of
8% quarter over quarter, and 35% year over year, as market demand
and product mix are better than expected. Revenue related to
communications, computer and consumer electronics
grew, gradually increasing in market share.
Our capacity for mature technology platform applications
continue to be fully loaded; the demand for CIS related ICs, power
management, fingerprint sensors, specialty memory and other related
applications are strong. Advanced technology R&D and business
are progressing smoothly, as we continue to expand in
communications, smartphone, automotive and consumer electronics
related fields. Our customers' feedback on 14nm is positive; our
14nm is covering both communications and automotive sectors with
applications including low-end application processors, baseband and
consumer related products. We decided to increase capital
expenditure by $1.1 billion to a
total of $4.3 billion, to meet
the market demand.
We are confident in leading the company in continued growth
momentum, focusing on building up competitiveness under
uncertainty, providing comprehensive technology and business
platform solutions for domestic and global customers, and capturing
growth opportunities in the semiconductor industry."
To see the complete results including
financial tables, please click here:
http://www.smics.com/uploads/2020%20Q1%20Earnings%20Release_ENG_final.pdf
Conference Call / Webcast Announcement
Date: May 14, 2020
Time: 8:30 a.m. Beijing time
Dial-in:
Teleconference call services are affected by the COVID-19,
operator assisted conference calls are not available at the moment.
You must preregister online in order to receive the dial-in
numbers.
Online registration:
You may register for the conference call at:
http://apac.directeventreg.com/registration/event/1749469
Once preregistration has been complete, you will receive dial-in
numbers, the passcode, and a unique registrant ID. To join the
conference, dial the number you receive in the email, enter the
passcode followed by your registrant ID, and you will join the
conference instantly.
The call will be webcast live with audio at:
http://www.smics.com/en/site/company_activity
or https://edge.media-server.com/mmc/p/n7zzr3yk
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"
SEHK: 981; OTCQX: SMICY) and its subsidiaries collectively
constitute one of the leading foundries in the world, is Mainland
China's most advanced and largest foundry, broadest in technology
coverage, and most comprehensive in semiconductor manufacturing
services. SMIC Group provides integrated circuit (IC) foundry and
technology services on process nodes from 0.35 micron to 14
nanometer. Headquartered in Shanghai,
China, SMIC Group has an international manufacturing and
service base. In China, SMIC has a
300mm wafer fabrication facility (fab) , a 200mm fab and a
majority-owned joint-venture 300mm fab for advanced nodes in
Shanghai; a 300mm fab and a
majority-owned 300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-owned joint-venture
300mm bumping facility in Jiangyin. SMIC Group also has marketing
and customer service offices in the U.S., Europe, Japan, and Taiwan China, and a representative
office in Hong Kong China.
For more information, please visit www.smics.com.
Forward-Looking Statements
This press release contains, in addition to historical
information, forward-looking statements. These forward-looking
statements, including statements under "First Quarter 2020
Guidance", "Capex Summary" and the statements contained in the
quotes of our Co-Chief Executive Officers are based on SMIC's
current assumptions, expectations, beliefs, plans, objectives, and
projections about future events or performance. SMIC uses
words like "believe," "anticipate," "intend," "estimate," "expect,"
"project," "target, "going forward", "continue", "ought to", "may",
"seek", "should", "plan", "could", "vision", "goals", "aim",
"aspire", "objective", "schedules", "outlook" and similar
expressions to identify forward looking statements, although not
all forward-looking statements contain these words. These
forward-looking statements are necessary estimates reflecting
judgment of SMIC's senior management and 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 cyclicality and market conditions in the
semiconductor industry, intense competition in the
semiconductor industry, SMIC's reliance on a small number of
customers, timely wafer acceptance by SMIC's customers, timely
introduction of new technologies, SMIC's ability to ramp new
products into volume, supply and demand for semiconductor foundry
services, industry overcapacity, shortages in equipment, components
and raw materials, availability of manufacturing capacity,
financial stability in end markets, orders or judgments from
pending litigation, intensive intellectual property litigation in
the semiconductor industry, general economic conditions and
fluctuations in currency exchange rates.
In addition to the information contained in this press release,
you should also consider the information contained in our other
filings with The Hong Kong Stock Exchange Limited ("SEHK") from
time to time. Other unknown or unpredictable factors also could
have material adverse effects on our 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 required by
applicable laws, SMIC undertakes no obligation and does
not intend to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is
made or to reflect the occurrence of unanticipated events after the
date on which such statement is made or to reflect the occurrence
of unanticipated events, whether as a result of new information,
future events or otherwise.
About Non-International Financial Reporting
Standards ("non-IFRS") Financial Measures
To supplement SMIC's consolidated financial results presented in
accordance with IFRS, SMIC uses in this press release non-IFRS
measures of operating results that are adjusted to exclude finance
cost, depreciation and amortization, income tax benefits and
expenses, the effect of employee bonus accrual, government funding,
impairment loss of tangible and intangible assets, gain or loss on
the disposal of machinery and equipment and gain from the disposal
of living quarters. This earnings release also includes first
quarter 2020 guidance for non-IFRS operating expenses. The
presentation of non-IFRS 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. This
earnings release includes EBITDA, EBITDA margin and non-IFRS
operating expenses which consist of total operating expenses as
adjusted to exclude the effect of employee bonus accrual,
government funding, impairment loss of tangible and intangible
assets, gain or loss on the disposal of machinery and equipment and
gain from the disposal of living quarters. These non-IFRS financial
measures are not calculated or presented in accordance with, and
are not alternatives or substitutes for financial measures prepared
in accordance with IFRS, and should be read only in conjunction
with the Group's financial measures prepared in accordance with
IFRS. The Group's non-IFRS financial measures may be different from
similarly-titled non-IFRS financial measures used by other
companies.
SMIC believes that use of these non-IFRS financial measures
facilitates investors' and management's comparisons to SMIC's
historical performance. The Group's management regularly uses these
non-IFRS financial measures to understand, manage and evaluate the
Group's business and make financial and operational decisions.
The accompanying table has more information and reconciliations
of each non-IFRS financial measure to its most directly comparable
IFRS financial measure. A reconciliation of non-IFRS guidance
measures to corresponding IFRS measures is not available on a
forward-looking basis because the effect of these adjustment items
excluded for the purpose of non-IFRS operating expenses guidance
are subject to some unpredictable conditions that cannot be
estimated with reasonable certainty.
Investor Relations
+86-21-2081-2804
ir@smics.com
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SOURCE Semiconductor Manufacturing International Corporation
