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 September 30, 2013.Third Quarter 2013 Highlights:
- Revenue including wafer shipments from Wuhan Xinxin was $534.3 million in 3Q13, an increase of 15.8% year over year, and down 1.3% quarter over quarter.
- Non-GAAP revenue excluding wafer shipments from Wuhan Xinxin was $503.7 million in 3Q13, an increase of 21.7% year over year, and up 0.4% quarter over quarter.
- Revenues from China-based customers increased to 42.1% of overall revenue in 3Q13, an all-time high, compared to 35.3% in 3Q12 and 40.9% in 2Q13.
- Gross margin including wafer shipments from Wuhan Xinxin was 21.0% in 3Q13, compared to 27.5% in 3Q12 and 25.0% in 2Q13.
- Non-GAAP gross margin excluding wafer shipments from Wuhan Xinxin was 22.1% in 3Q13, compared to 30.4% in 3Q12 and 26.7% in 2Q13.
- Profit attributable to SMIC was $42.5 million in 3Q13, compared to $12.0 million in 3Q12 and $75.4 million in 2Q13.
Fourth Quarter 2013 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.
- Excluding wafer shipments from Wuhan Xinxin which SMIC began gradually phasing out in 3Q13, non-GAAP revenue is expected to be flat to down 4.5% quarter over quarter.
- Revenue including wafer shipments from Wuhan Xinxin is expected to be down 4.5% to down 9% quarter over quarter.
- Non-GAAP gross margin excluding wafer shipments from Wuhan Xinxin is expected to range from 19.0% to 22.0%.
- Gross margin including wafer shipments from Wuhan Xinxin is expected to range from 18.5% to 21.5%.
- 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 $80.0 million to $84.0 million.
Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "SMIC has achieved another good quarter. Revenue excluding Wuhan wafer shipment was $503.7 million in the third quarter of 2013, representing a robust year over year growth of 21.7% and a sequential growth of 0.4%. Total revenue including Wuhan wafer shipments declined 1.3% sequentially as we exit our relationship with Wuhan Xinxin. I'm also pleased that we made $42.5 million in profit attributable to SMIC, which is our sixth consecutive quarter of positive profit.
I am happy to announce that 40nm wafer revenue grew 50.3% sequentially to 15.7% of total wafer revenue. This growth was mainly driven by smartphone related products. Meanwhile, 40nm new tape outs grew significantly in the second half of this year, driven by both consumer and communications products like smartphones, set-top box, IPTV, and tablets. As a result, we are targeting strong growth for 40nm next year.
During the quarter, demand for our differentiated applications continued to be strong, especially in the areas of power management, CIS, and EEPROM. Revenue from our differentiated applications, specifically PMIC, CIS, and EEPROM, grew over 50% year over year in 3Q2013 compared to 3Q2012.
We target another full year of record high revenue in 2013 with sustainable profitability and growth as our priority. Looking into 2014, we aim to outgrow the industry average again. We have a number of exciting opportunities ahead of us. 1) Our 40nm ramp up will continue. 2) Our 28nm technology is coming on line. 3) Our embedded Non-Volatile Memory (e-NVM) is finding wide spread customer acceptance. 4) A number of other differentiated technologies will be rolling out in 2014. And lastly, our new capacity for high-end and mature technology is coming on line. It will be an exciting 2014."
Conference Call / Webcast Announcement
|
Date: October 23, 2013 | ||
|
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/k3yzasi5.
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 "Fourth Quarter 2013 Guidance" and in the last paragraph of the quote of SMIC's Chief Executive Officer, as well as the statements regarding future 2013 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" 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, 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 fourth quarter 2013 guidance for non-GAAP revenues and non-GAAP gross margin, which exclude such shipments, and 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:
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Investor Relations |
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+86-21-3861-0000 ext. 12804 |
|
Summary of Third Quarter 2013 Operating Results | |||||
|
Amounts in US$ thousands, except for EPS and operating data | |||||
|
| |||||
|
|
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Revenue |
534,256 |
541,302 |
-1.3% |
461,168 |
15.8% |
|
Cost of sales |
(422,274) |
(406,075) |
4.0% |
(334,347) |
26.3% |
|
Gross profit |
111,982 |
135,227 |
-17.2% |
126,821 |
-11.7% |
|
Operating expenses |
(63,447) |
(56,095) |
13.1% |
(106,455) |
-40.4% |
|
Profit from operations |
48,535 |
79,132 |
-38.7% |
20,366 |
138.3% |
|
Other expense, net |
(4,681) |
(3,292) |
42.2% |
(7,335) |
-36.2% |
|
Profit before tax |
43,854 |
75,840 |
-42.2% |
13,031 |
236.5% |
|
Income tax expenses |
(914) |
(510) |
79.2% |
(1,112) |
-17.8% |
|
Profit for the period |
42,940 |
75,330 |
-43.0% |
11,919 |
260.3% |
|
Other comprehensive income: |
|
|
|
|
|
|
Exchange differences on translating foreign operations |
77 |
278 |
-72.3% |
258 |
-70.2% |
|
Total comprehensive income for the period |
43,017 |
75,608 |
-43.1% |
12,177 |
253.3% |
|
|
|
|
|
|
|
|
Profit attributable to SMIC |
42,491 |
75,401 |
-43.6% |
11,966 |
255.1% |
|
|
|
|
|
|
|
|
Gross margin |
21.0% |
25.0% |
- |
27.5% |
- |
|
|
|
|
|
|
|
|
Earnings per ordinary share
|
0.00 |
0.00 |
- |
0.00 |
- |
|
Earnings per ADS (basic and diluted) |
0.07 |
0.12 |
- |
0.02 |
- |
|
|
|
|
|
|
|
|
Wafers shipped (in 8" equivalent wafers) |
653,090 |
687,651 |
-5.0% |
605,543 |
7.9% |
|
|
|
|
|
|
|
|
Capacity utilization(2) |
88.2% |
98.5% |
- |
92.0% |
- |
|
| |||||
|
Note: | |||||
|
(1) Based on weighted average ordinary shares of 32,084 million (basic) and 32,355 million (diluted) in 3Q13, 32,051 million (basic) and 32,312 million (diluted) in 2Q13, and 31,983 million (basic) and 31,993 million (diluted) in 3Q12. | |||||
|
(2) Based on total equivalent wafers out divided by estimated total quarterly capacity. | |||||
| |||||
|
Analysis of Revenue | |||
|
| |||
|
Revenue Analysis |
|
|
|
|
By Application |
3Q13 |
2Q13 |
3Q12 |
|
Computer |
1.8% |
1.5% |
1.5% |
|
Communications |
44.4% |
45.6% |
46.7% |
|
Consumer |
43.9% |
45.3% |
43.1% |
|
Others |
9.9% |
7.6% |
8.7% |
|
By Service Type |
3Q13 |
2Q13 |
3Q12 |
|
Wafers |
93.8% |
96.2% |
94.9% |
|
Mask making, testing, others |
6.2% |
3.8% |
5.1% |
|
By Customer Type |
3Q13 |
2Q13 |
3Q12 |
|
Fabless semiconductor companies |
87.7% |
87.7% |
86.8% |
|
Integrated device manufacturers (IDM) |
5.5% |
7.0% |
8.8% |
|
System companies and others |
6.8% |
5.3% |
4.4% |
|
By Geography |
3Q13 |
2Q13 |
3Q12 |
|
North America |
46.0% |
48.3% |
55.2% |
|
China(1) |
42.1% |
40.9% |
35.3% |
|
Eurasia(2) |
11.9% |
10.8% |
9.5% |
|
Wafer Revenue Analysis |
|
|
|
|
By Technology (logic, memory only) |
3Q13 |
2Q13 |
3Q12 |
|
40/45 nm |
15.7% |
10.0% |
0.8% |
|
55/65 nm |
27.1% |
30.9% |
34.8% |
|
90 nm |
4.7% |
4.6% |
9.4% |
|
0.13 micrometers |
10.1% |
10.5% |
11.8% |
|
0.15/0.18 micrometers |
38.4% |
40.1% |
37.5% |
|
0.25/0.35 micrometers |
4.0% |
3.9% |
5.7% |
|
| |||
|
Note: | |||
|
(1) Including Hong Kong, but excluding Taiwan | |||
|
(2) Excluding China | |||
|
Capacity* | ||
|
| ||
|
Fab / (Wafer Size) |
3Q13 |
2Q13 |
|
Shanghai Mega Fab (8") |
90,000 |
90,000 |
|
Shanghai 12-inch Fab (12") |
24,750 |
18,000 |
|
Beijing Mega Fab (12") |
81,000 |
81,000 |
|
Tianjin Fab (8") |
36,000 |
34,500 |
|
Total monthly wafer fabrication capacity |
231,750 |
223,500 |
|
| ||
|
Note: | ||
|
* Wafers per month at the end of the period in 8" equivalent wafers, calculated on a 30-day basis for comparison purposes | ||
| ||
|
Shipment and Utilization | |||||
|
| |||||
|
8" equivalent wafers |
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Wafer shipments |
653,090 |
687,651 |
-5.0% |
605,543 |
7.9% |
|
Utilization rate(1) |
88.2% |
98.5% |
- |
92.0% |
- |
|
| |||||
|
Note: | |||||
|
(1) Based on total equivalent wafers out divided by estimated total quarterly capacity. | |||||
|
Detailed Financial Analysis | |||||
|
Gross Profit Analysis | |||||
|
| |||||
|
Amounts in US$ thousands
|
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Cost of sales |
422,274 |
406,075 |
4.0% |
334,347 |
26.3% |
|
Depreciation |
126,433 |
107,759 |
17.3% |
93,258 |
35.6% |
|
Other manufacturing costs |
294,374 |
295,840 |
-0.5% |
240,620 |
22.3% |
|
Share-based compensation |
1,467 |
2,476 |
-40.8% |
469 |
212.8% |
|
Gross profit |
111,982 |
135,227 |
-17.2% |
126,821 |
-11.7% |
|
Gross margin |
21.0% |
25.0% |
- |
27.5% |
- |
|
| |||||
| |||||
|
Operating Expenses (Income) Analysis | |||||
|
| |||||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Operating expenses |
63,447 |
56,095 |
13.1% |
106,455 |
-40.4% |
|
Research and development |
37,564 |
36,736 |
2.3% |
72,945 |
-48.5% |
|
General and administrative |
24,718 |
42,636 |
-42.0% |
24,859 |
-0.6% |
|
Selling and marketing |
9,324 |
9,775 |
-4.6% |
8,178 |
14.0% |
|
Other operating expense (income) |
(8,159) |
(33,052) |
-75.3% |
473 |
- |
|
| |||||
| |||||
|
Other Income (expense), Net | |||||
|
| |||||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Other income (expense), net |
(4,681) |
(3,292) |
42.2% |
(7,335) |
-36.2% |
|
Interest income |
1,394 |
936 |
48.9% |
1,088 |
28.1% |
|
Finance costs |
(8,673) |
(9,080) |
-4.5% |
(11,150) |
-22.2% |
|
Foreign exchange gains or losses |
2,404 |
2,949 |
-18.5% |
1,405 |
71.1% |
|
Other gains or losses |
(357) |
1,126 |
- |
537 |
- |
|
Share of profits of associates |
551 |
777 |
-29.1% |
785 |
-29.8% |
|
| |||||
| |||||
|
Depreciation and Amortization | |||||
|
| |||||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
QoQ |
3Q12 |
YoY |
|
Depreciation and amortization |
136,725 |
135,712 |
0.7% |
143,219 |
-4.5% |
|
Liquidity | ||
|
| ||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
|
Cash and bank balances |
473,507 |
262,955 |
|
Restricted cash |
195,813 |
214,430 |
|
Other financial assets |
2,574 |
2,881 |
|
Trade and other receivables |
396,108 |
472,426 |
|
Prepaid operating expenses |
48,383 |
57,231 |
|
Inventories |
289,954 |
308,328 |
|
Assets classified as held-for-sale |
210 |
922 |
|
Total current assets |
1,406,549 |
1,319,173 |
|
|
|
|
|
Current tax liabilities |
85 |
143 |
|
Other financial liabilities |
10 |
107 |
|
Promissory notes |
14,895 |
14,791 |
|
Accrued liabilities |
105,497 |
104,678 |
|
Deferred government grant |
17,833 |
26,924 |
|
Borrowings |
548,385 |
586,425 |
|
Trade and other payables |
402,827 |
537,003 |
|
Total current liabilities |
1,089,532 |
1,270,071 |
|
|
|
|
|
Cash Ratio |
0.4x |
0.2x |
|
Quick Ratio |
1.0x |
0.8x |
|
Current Ratio |
1.3x |
1.0x |
|
Capital Structure | ||
|
| ||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
|
Cash and bank balances |
473,507 |
262,955 |
|
Restricted cash |
195,813 |
214,430 |
|
|
|
|
|
Current portion of promissory notes |
14,895 |
14,791 |
|
|
|
|
|
Short-term borrowings |
548,385 |
586,425 |
|
Long-term borrowings |
553,435 |
474,692 |
|
Total debt |
1,101,820 |
1,061,117 |
|
|
|
|
|
Equity |
2,559,381 |
2,403,738 |
|
|
|
|
|
Total debt to equity ratio(1) |
43.1% |
44.1% |
|
| ||
|
Note: | ||
|
(1) Total debt divided by equity, total debt including short-term and long-term borrowings. | ||
|
Cash and bank balances increased to $473.5 million in 3Q13, up 80.1% QoQ from $263.0 million in 2Q13 primarily because 1) of the receipt of $108.0 million in cash as partial capital contribution for the joint venture company established in Beijing from the other shareholders of the joint venture and 2) the Company drew down some of the bank borrowings during 3Q13. | ||
|
Cash Flow | ||
|
| ||
|
Amounts in US$ thousands |
3Q13 |
2Q13 |
|
Net cash from operating activities |
269,581 |
108,360 |
|
Net cash used in investing activities |
(213,133) |
(242,559) |
|
Net cash from financing activities |
154,045 |
104,167 |
|
Effect of exchange rate changes |
59 |
55 |
|
Net change in cash |
210,552 |
(29,977) |
Capex Summary
- Capital expenditures for 3Q13 were $169.3 million.
- The planned 2013 capital expenditure for our foundry operation is $675 million.
- The 2013 planned capital expenditure does not account for additional expenditures for the joint venture company in Beijing, which was established in July 2013. The joint venture company will principally engage in, among other things, the testing, development, design, manufacturing, packaging and sale of integrated circuits.
- In addition, we have budgeted capital expenditures of another $130 million in 2013 for the construction of living quarters for employees as part of the Company's employee retention program. We plan to either rent out or sell these living quarter units to employees in the future.
Recent Highlights and Announcements
-
SMIC IP R&D Center Applies EDA Solution of Beijing Empyrean (2013-10-04)
-
SMIC Introduces Its Diversifying Embedded Non-Volatile Memory Platform (2013-09-23)
-
SMIC Selected as Constituent of Hang Seng Corporate Sustainability Index Series for Third Consecutive Year (2013-09-11)
-
Grant of Options (2013-09-09)
-
SMIC Adopts Cadence Digital Flow with Advanced Features for Improving Area, Power and Performance (2013-09-04)
-
SMIC's 2013 Technology Symposiums Kicks Off in Shanghai (2013-09-04)
-
Circulars - Notification Letter and Request Form to Non-registered Holders (2013-09-03)
-
Circulars - Notification Letter and Change Request Form to Registered Holders (2013-09-03)
-
Announcement of Unaudited Interim Results for the Six Months Ended June 30, 2013 (2013-08-26)
-
Notification of Board Meeting (2013-08-14)
-
List of Directors and Their Roles and Functions (2013-08-08)
-
Appointment of Independent Non-executive Director (2013-08-08)
-
SMIC Reports Unaudited Results for the Three Months Ended June 30, 2013 (2013-08-08)
-
Notification of Board Meeting (2013-07-19)
Please visit SMIC's website at http://www.smics.com/eng/press/press_releases.php and http://www.smics.com/eng/investors/ir_filings.php for further details regarding the recent announcements.
|
Semiconductor Manufacturing International Corporation | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME | ||||
|
(In US$ thousands except share data) | ||||
|
| ||||
|
|
|
For the three months ended | ||
|
|
|
September 30, 2013 |
|
June 30, 2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
Revenue |
|
534,256 |
|
541,302 |
|
Cost of sales |
|
(422,274) |
|
(406,075) |
|
Gross profit |
|
111,982 |
|
135,227 |
|
Research and development |
|
(37,564) |
|
(36,736) |
|
General and administration expenses |
|
(24,718) |
|
(42,636) |
|
Sales and marketing expenses |
|
(9,324) |
|
(9,775) |
|
Other operating income |
|
8,159 |
|
33,052 |
|
Profit from operation |
|
48,535 |
|
79,132 |
|
Other expense, net |
|
(4,681) |
|
(3,292) |
|
Profit before tax |
|
43,854 |
|
75,840 |
|
Income tax expense |
|
(914) |
|
(510) |
|
Profit for the period |
|
42,940 |
|
75,330 |
|
Other comprehensive income |
|
|
|
|
|
Item that may be reclassified subsequently to profit or loss |
|
|
|
|
|
Exchange differences on translating foreign operations |
|
77 |
|
278 |
|
Total comprehensive income for the period |
|
43,017 |
|
75,608 |
|
Profit for the period attributable to: |
|
|
|
|
|
Owners of the Company |
|
42,491 |
|
75,401 |
|
Non-controlling interests |
|
449 |
|
(71) |
|
|
|
42,940 |
|
75,330 |
|
Total comprehensive income for the period attributable to: |
|
|
|
|
|
Owners of the Company |
|
42,568 |
|
75,679 |
|
Non-controlling interests |
|
449 |
|
(71) |
|
|
|
43,017 |
|
75,608 |
|
|
|
|
|
|
|
Earnings per share attributable to Semiconductor Manufacturing
|
|
0.00 |
|
0.00 |
|
Earnings per ADS attributable to Semiconductor Manufacturing
|
|
0.07 |
|
0.12 |
|
|
|
|
|
|
|
Shares used in calculating basic earnings per share |
|
32,083,651,959 |
|
32,051,257,487 |
|
Shares used in calculating diluted earnings per share |
|
32,354,552,218 |
|
32,311,620,628 |
|
|
|
|
|
|
|
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures(1) |
|
|
|
|
|
Non-GAAP revenue |
|
503,669 |
|
501,844 |
|
Non-GAAP cost of sales |
|
(392,407) |
|
(367,610) |
|
Non-GAAP gross margin |
|
22.1% |
|
26.7% |
|
| ||||
|
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 believe 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 does 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.
|
Semiconductor Manufacturing International Corporation | ||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME | ||||||
|
(In US$ thousands) | ||||||
|
| ||||||
|
|
|
For the three months ended | ||||
|
|
|
September 30, 2013 |
|
June 30, 2013 |
|
September 30, 2012 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Revenue |
|
534,256 |
|
541,302 |
|
461,168 |
|
Revenue from Wuhan Xinxin |
|
(30,587) |
|
(39,458) |
|
(47,391) |
|
Non-GAAP revenue |
|
503,669 |
|
501,844 |
|
413,777 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(422,274) |
|
(406,075) |
|
(334,347) |
|
Cost of sales of Wuhan Xinxin |
|
29,867 |
|
38,465 |
|
46,204 |
|
Non-GAAP cost of sales |
|
(392,407) |
|
(367,610) |
|
(288,143) |
|
|
|
|
|
|
|
|
|
Gross margin |
|
21.0% |
|
25.0% |
|
27.5% |
|
Non-GAAP gross margin |
|
22.1% |
|
26.7% |
|
30.4% |
|
Semiconductor Manufacturing International Corporation | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
|
(In US$ thousands) | ||||
|
| ||||
|
|
|
As of | ||
|
|
|
September 30, 2013 |
|
June 30, 2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
2,558,563 |
|
2,523,893 |
|
Prepaid land use right |
|
123,974 |
|
124,818 |
|
Intangible assets |
|
227,380 |
|
228,898 |
|
Investments in associates |
|
23,758 |
|
23,189 |
|
Deferred tax assets |
|
43,889 |
|
43,802 |
|
Other assets |
|
36,969 |
|
37,926 |
|
Total non-current assets |
|
3,014,533 |
|
2,982,526 |
|
Current assets |
|
|
|
|
|
Inventories |
|
289,954 |
|
308,328 |
|
Prepaid operating expenses |
|
48,383 |
|
57,231 |
|
Trade and other receivables |
|
396,108 |
|
472,426 |
|
Other financial assets |
|
2,574 |
|
2,881 |
|
Restricted cash |
|
195,813 |
|
214,430 |
|
Cash and bank balances |
|
473,507 |
|
262,955 |
|
|
|
1,406,339 |
|
1,318,251 |
|
Assets classified as held-for-sale |
|
210 |
|
922 |
|
Total current assets |
|
1,406,549 |
|
1,319,173 |
|
TOTAL ASSETS |
|
4,421,082 |
|
4,301,699 |
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Ordinary shares, $0.0004 par value, 50,000,000,000 shares authorized, 32,088,989,727 and 32,075,631,400 shares issued and
|
|
12,836 |
|
12,830 |
|
Share premium |
|
4,088,854 |
|
4,088,071 |
|
Reserves |
|
56,993 |
|
53,079 |
|
Accumulated deficit |
|
(1,708,540) |
|
(1,751,031) |
|
Equity attributable to owners of the Company |
|
2,450,143 |
|
2,402,949 |
|
Non-controlling interests |
|
109,238 |
|
789 |
|
Total equity |
|
2,559,381 |
|
2,403,738 |
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
|
553,435 |
|
474,692 |
|
Deferred tax liabilities |
|
207 |
|
257 |
|
Deferred government grant |
|
213,098 |
|
147,952 |
|
Long-term financial liabilities |
|
5,429 |
|
4,989 |
|
Total non-current liabilities |
|
772,169 |
|
627,890 |
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
402,827 |
|
537,003 |
|
Borrowings |
|
548,385 |
|
586,425 |
|
Deferred government grant(1) |
|
17,833 |
|
26,924 |
|
Accrued liabilities |
|
105,497 |
|
104,678 |
|
Promissory notes |
|
14,895 |
|
14,791 |
|
Other financial liabilities |
|
10 |
|
107 |
|
Current tax liabilities |
|
85 |
|
143 |
|
Total current liabilities |
|
1,089,532 |
|
1,270,071 |
|
Total liabilities |
|
1,861,701 |
|
1,897,961 |
|
TOTAL EQUITY AND LIABILITIES |
|
4,421,082 |
|
4,301,699 |
|
| ||||
|
Note: | ||||
|
(1) The Company made a reclassification of part of non-current deferred government grant to current liability as of June 30, 2013. | ||||
|
Semiconductor Manufacturing International Corporation | ||||
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
|
(In $US thousands) | ||||
|
|
|
For the three months ended | ||
|
|
|
September 30, 2013 |
|
June 30, 2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Cash flow from operating activities |
|
|
|
|
|
Profit for the period |
|
42,940 |
|
75,330 |
|
Depreciation and amortization |
|
136,725 |
|
135,712 |
|
Share of profits of associates |
|
(551) |
|
(777) |
|
Changes in working capital and others |
|
90,467 |
|
(101,905) |
|
Net cash from operating activities |
|
269,581 |
|
108,360 |
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
Payments for property, plant and equipment |
|
(255,561) |
|
(188,008) |
|
Payments for intangible assets |
|
(9,414) |
|
(14,914) |
|
Payments for land use right |
|
- |
|
(61,391) |
|
Proceeds from disposal of property, plant and equipment and intangible assets |
|
15,140 |
|
7,553 |
|
Changes in restricted cash relating to investing activities |
|
7,305 |
|
(12,721) |
|
Payments to acquire financial assets |
|
(5,225) |
|
(2,852) |
|
Proceeds on sale of financial assets |
|
5,518 |
|
1,215 |
|
Proceeds from disposal of subsidiary |
|
29,104 |
|
28,639 |
|
Others |
|
- |
|
(80) |
|
Net cash used in investing activities |
|
(213,133) |
|
(242,559) |
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
Proceeds from borrowings |
|
434,170 |
|
306,939 |
|
Repayment of borrowings |
|
(388,671) |
|
(189,323) |
|
Repayment of promissory notes |
|
- |
|
(15,000) |
|
Proceeds from exercise of employee stock options |
|
546 |
|
1,551 |
|
Proceeds from non-controlling interests |
|
108,000 |
|
- |
|
Net cash from financing activities |
|
154,045 |
|
104,167 |
|
|
|
|
|
|
|
Effects of exchange rate changes on the balance of cash held in foreign currencies |
|
59 |
|
55 |
|
|
|
|
|
|
|
Net increase (decrease) in cash and bank balances |
|
210,552 |
|
(29,977) |
|
|
|
|
|
|
|
Cash and bank balances, beginning of period |
|
262,955 |
|
292,932 |
|
|
|
|
|
|
|
Cash and bank balances, end of period |
|
473,507 |
|
262,955 |
SOURCE Semiconductor Manufacturing International Corporation
| Contact: |
| Semiconductor Manufacturing International Corporation
Web: http://www.smics.com |