All currency figures stated in this report
are in US Dollars unless stated otherwise.
The consolidated financial
statements are prepared in
accordance with International Financial Reporting Standards
("IFRS").
SHANGHAI, Aug. 8, 2019 /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 June
30, 2019.
2019 Second Quarter Highlights
- Revenue was $790.9 million in
2Q19, an increase of 18.2% QoQ from $668.9
million in 1Q19, compared to $890.7
million in 2Q18 and $837.9
million (excluding technology licensing revenue) in
2Q18.
- Gross profit was $151.2 million
in 2Q19, an increase of 23.8% QoQ from $122.1 million in 1Q19, compared to $217.8 million in 2Q18 and $165.0 million (excluding technology licensing
revenue) in 2Q18.
- Gross margin was 19.1% in 2Q19, compared to 18.2% in 1Q19,
24.5% in 2Q18 and 19.7% (excluding technology licensing revenue) in
2Q18.
Third Quarter
2019 Guidance:
The following statements are forward looking statements based on
current expectations and involved risks and uncertainties,
some of which are set forth under "Safe Harbor Statements"
below. The Company expects:
- Revenue to increase by 0% to 2% QoQ and to increase by
2% to 4% QoQ (excluding the
contribution from the Avezzano fab).
- Gross margin to range from 19% to 21%.
- Non-GAAP operating expenses, excluding 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, gain from the disposal of living quarters, and gain from
the disposal of subsidiary, to range from $294 million to $300
million.
- Non-controlling interests of our majority-owned subsidiaries to
range from positive $25 million to
positive $27 million (losses to be
borne by non-controlling interests).
Dr. Zhao Haijun and Dr. Liang Mong
Song, SMIC's Co-Chief Executive Officers commented, "Though
uncertainty in the macro environment remains, as the industry
recovers, we continue to optimize internally and exit this period
of transition. At the same time, we are seeing significant business
growth in our mature-node technology platforms accompanied by
consistent breakthroughs in leading-edge technology.
Our second quarter growth was strong, as smartphones and IoT
devices drove demand; as a result, revenue grew 18% quarter over
quarter. Meanwhile, the sequential growth of revenue from
China and Eurasia regions was
significant, increasing 25% and 34% respectively.
Furthermore, FinFET research and development continues to
accelerate. Our 14nm is in risk production and is expected to
contribute meaningful revenue by year-end. In addition, our second
generation FinFET N+1 has already begun customer engagement. We
maintain long-term and steady cooperation with customers and clutch
onto the opportunities emerging from 5G, IoT, automotive and other
industry trends."
To see the complete results including financial tables, please
click here:
http://www.smics.com/uploads/2019Q2EarningsReleaseEN.pdf
Conference Call / Webcast Announcement
Date: August 9, 2019
Time: 8:30 a.m.
Beijing time
Dial-in numbers:
China +86
400-620-8038 (Pass code: SMIC)
Hong Kong +852
3018-6771 (Pass code:
SMIC)
Taiwan
+886 2-5572-3895 (Pass code: SMIC)
United States +1
845-675-0437 (Pass code:
SMIC)
The call will be webcast live with audio at:
http://www.smics.com/en/site/company_activity
or https://edge.media-server.com/m6/p/fmzrieg5.
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), 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
provides integrated circuit (IC) foundry and technology services on
process nodes from 0.35 micron to 14
nanometer. Headquartered in Shanghai, China, SMIC has an international
manufacturing and service base. In China, SMIC has a 300mm wafer fabrication
facility (fab) and a 200mm fab 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 also has marketing and
customer service 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 and Section 27A of the U.S. Securities Act of
1933 and Section 21E of the U.S. Securities Exchange Act of 1934.
These forward-looking statements 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
are necessarily 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, timely wafer acceptance by SMIC's customers,
bad debt risk, 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 and financial stability in end markets.
In addition to the information contained in this press release,
you should also consider the information contained in our other
filings with the SEC, including our annual report on Form 20-F
filed with the SEC on April 30, 2019,
especially in the "Risk Factors" section and such other documents
that we 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 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 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 non-GAAP
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 third
quarter 2019 guidance for non-GAAP operating expenses. 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. This
earnings release includes EBITDA, EBITDA margin and non-GAAP
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-GAAP 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-GAAP financial measures may be different from
similarly-titled non-GAAP financial measures used by other
companies.
SMIC believes that use of these non-GAAP financial measures
facilitates investors' and management's comparisons to SMIC's
historical performance. The Group's management regularly uses these
non-GAAP 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-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 because the effect of these adjustment items
excluded for the purpose of non-GAAP operating expenses guidance
are subject to some unpredictable conditions that cannot be
estimated with reasonable certainty.
Contact:
Investor Relations
+86-21-2081-2804
ir@smics.com
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SOURCE Semiconductor Manufacturing International Corporation
