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SMIC Reports 2013 First Quarter Results

                   SMIC Reports 2013 First Quarter Results

All currency figures stated in this report are in US Dollars unless stated
otherwise.

The Company started to prepare consolidated financial statements in accordance
with International Financial Reporting Standards ("IFRS") in 2012's Annual
Report. This is the first Earnings Release under IFRS and all prior period
information reclassified to conform to IFRS presentation.

PR Newswire

SHANGHAI, April 24, 2013



SHANGHAI, April 24, 2013 /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 March 31, 2013.

First Quarter 2013 Highlights:

  oFourth consecutive quarter of record high revenue of $501.6 million in
    1Q13, an increase of  50.8% year over year, and up 3.2% quarter over
    quarter.
  oRevenues from China-based customers contributed 38.6% of overall revenue
    in 1Q13, compared to 32.5% in 1Q12 and 34.8% in 4Q12.
  oGross margin was 20.4% in 1Q13, compared to 12.0% in 1Q12 and 19.9% in
    4Q12.
  oNet income attributable to SMIC was $40.6 million in 1Q13, compared to net
    loss of $42.8 million in 1Q12 and net income of $46.6 million in 4Q12.

Second 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.

  oRevenue is expected to increase between 3% to 5% quarter over quarter.
  oGross margin is expected to range from 20% to 22%.
  oExpenses from continuing operations excluding the effect of foreign
    exchange and government R&D grants are expected to range from $85 million
    to $88 million.

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director,
commented, "I am very pleased to report that SMIC has again achieved record
high revenue of $501.6 million in the first quarter of 2013, representing year
over year growth of 50.8%. In addition, revenue from our China-based customers
grew 14.5% sequentially and 79.1% year-over-year, contributing 38.6% of total
revenue in the first quarter of 2013, an all-time high. Income attributable to
SMIC was $40.6 million in 1Q 2013 compared to a loss of $42.8 million in 1Q
2012. Despite the normal seasonally slow fourth and first quarters, we
achieved five consecutive quarters of revenue growth and four consecutive
quarters of net profit.

"40/45nm revenue contribution more than doubled to 6.4% compared to 2.6% wafer
revenue in the fourth quarter of 2012. This increase was mainly driven by
higher demand for mobile products from both U.S. and China-based customers.
Along the same line, our 28nm advanced development, for both HKMG and PolySiON
processes, continues to be on track and are targeted to be ready by the fourth
quarter of 2013.

"We currently expect 2Q 2013 to continue to grow 3% to 5% sequentially, which
means SMIC would achieve 6 consecutive quarters of growth. Our growth driver
in 2013 will continue to be 40/45nm process, servicing primarily mobile
related applications, as well as the strong demand from China.

"I'd like to reiterate that we will continue to focus on sustainable
profitability, growth, and shareholder value."

Conference Call / Webcast Announcement

Date: April 25, 2013
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:

                                                                     (Pass
United States               1-718-354-1231 code:
                                                                     SMIC)
                                                                     (Pass
Hong Kong                852-2475-0994 code:
                                                                     SMIC)
                                                                     (Pass
China          86-80-0819-0121  code:
                                                                     SMIC)
Taiwan                                     (Pass
                               886-2-2650-7825  code:
                                                                     SMIC)

The call will be webcast live with audio at
http://www.smics.com/eng/investors/ir_presentations.php, or at
http://www.media-server.com/m/p/se33etcs.

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 "Second Quarter 2013
Guidance", the statement regarding our expectation that both HKMG and PolySiON
processes will be ready by the fourth quarter of 2013, and the statement
regarding our expectation that our 2Q 2013 revenue will continue to grow 3% to
5% sequentially, 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.

Contact:

Investor Relations
+86-21-3861-0000 ext. 12804
ir@smics.com

Summary of First Quarter 2013 Operating Results

 Amounts in US$ thousands, except for EPS and operating data

                                                                                  1Q13      4Q12^(^3^) QoQ    1Q12      YoY
Revenue 501,609   485,894    3.2%   332,711   50.8%
Cost of sales                                                                     (399,471) (389,127)  2.7%   (292,867) 36.4%
Gross profit                                                                      102,138   96,767     5.6%   39,844    156.3%
Expenses from continuing                                                          (71,065)  (64,742)   9.8%   (90,127)  -21.2%
 operations
Total other income (loss), net                                                    11,975    17,072     -29.9% (3,960)   -
Profit (loss) before tax                                                          43,048    49,097     -12.3% (54,243)  -
Income tax (expenses) benefit                                                     (2,536)   (2,665)    -4.8%  11,418    -
Profit (loss)  for the period                                                     40,512    46,432     -12.7% (42,825)  -
Other comprehensive income:
Exchange differences on                                                           43        (2)        -      44        -2.3%
 translating foreign operations
Total comprehensive income                                                        40,555    46,430     -12.7% (42,781)  -
 (expense) for the period
Income (loss) attributable to                                                     40,604    46,570     -12.8% (42,825)  -
 SMIC
Gross margin                                                                      20.4%     19.9%      -      12.0%     -
Earnings (loss) per ordinary                                                      0.00      0.00       -      (0.00)    -
share (basic and diluted)^(^1^)
Earnings (loss) per ADS (basic                                                    0.06      0.07       -      (0.08)    -
and diluted)
Wafers shipped (in 8"                                                             631,776   608,372    3.8%   445,689   41.8%
equivalent wafers)
Capacity utilization^(^2^)                                                        89.0%     90.5%      -      74.1%     -

Note:
(1) Based on weighted average ordinary shares of  32,014million (basic)
and 32,182million (diluted) in
 1Q13, 31,997million (basic) and 32,044  million (diluted) in 4Q12,
and 27,504 million (basic) and
 27,504 million (diluted) in 1Q12.
(2) Based on total equivalent wafers out divided by estimated total
quarterly capacity.
(3) Revised from Q4 earnings release to reflect the reversal of
US$6.9million land appreciation tax provision
 relating to disposal of employees' living quarters as a result of
finalization of tax filing after the earning
 release, but before the issuance of the 2012 consolidated financial
statements.

  oRevenue increased to $501.6 million in 1Q13, up 3.2% QoQ from $485.9
    million in 4Q12, mainly due to the increase of 40/45nm wafer shipments.
  oCost of sales increased to $399.5 million in 1Q13, an increase of 2.7% QoQ
    from $389.1 million in 4Q12, mainly due to an increase in wafer shipments.
  oGross profit was $102.1 million in 1Q13, an increase of 5.6% QoQ from
    $96.8 million in 4Q12.
  oGross margin was 20.4% in 1Q13, up from 19.9% in 4Q12 primarily due to
    lower shipments from Wuhan Xinxin, which had a lower gross margin.
  oExpenses from continuing operations increased to $71.1 million in 1Q13, an
    increase of 9.8% QoQ from $64.7 million in 4Q12, mainly due to the reasons
    stated in Expenses from Continuing Operations Analysis.

 Analysis of Revenue

Revenue Analysis
By Application                                1Q13  4Q12  1Q12
Computer                                      1.3%  1.0%  3.2%
Communications                                47.3% 47.4% 48.3%
Consumer                                      42.5% 42.6% 40.2%
Others                                        8.9%  9.0%  8.3%
By Service Type                               1Q13  4Q12  1Q12
Wafers                                        94.1% 94.0% 94.4%
Mask making, testing, others                  5.9%  6.0%  5.6%
By Customer Type                              1Q13  4Q12  1Q12
Fabless semiconductor companies               88.7% 86.6% 91.4%
Integrated device manufacturers (IDM)         6.1%  9.3%  5.0%
System companies and others                   5.2%  4.1%  3.6%
By Geography                                  1Q13  4Q12  1Q12
North America                                 51.4% 54.4% 55.2%
China^(^1^)                                   38.6% 34.8% 32.5%
Eurasia^(^2^)                                 10.0% 10.8% 12.3%
Wafer Revenue Analysis
By Technology (logic, memory only)            1Q13  4Q12  1Q12
40/45nm                                      6.4%  2.6%  0.3%
55/65nm                                      32.1% 35.3% 22.3%
90nm                                         6.7%  8.0%  8.6%
0.13 um                                       10.7% 10.2% 22.7%
0.15/0.18um                                  39.9% 39.9% 39.4%
0.25/0.35um                               4.2%  4.0%  6.7%
Note:
(1) Including Hong Kong, but excluding Taiwan
(2) Excluding China

 Capacity*

Fab / (Wafer Size)                       1Q13    4Q12
Shanghai Mega Fab (8")                   90,000  90,000
Shanghai 12-inch Fab (12")               14,150  13,500
Beijing Mega Fab (12")                   81,000  78,750
Tianjin Fab (8")                         34,450  37,000
Total monthly wafer fabrication capacity 219,600 219,250

Note:

* Wafers per month at the end of the period in 8" equivalent wafers,
calculated on a 30-day basis for comparison purposes

  oCapacity increased to 219,600 8-inch equivalent wafers in 1Q13 from
    219,250 8-inch equivalent wafers in 4Q12, primarily due to product mix
    change in our Tianjin fab and improved efficiency in our Beijing and
    Shanghai 12-inch fabs.

Shipment and Utilization

8" equivalent wafers                        1Q13    4Q12    QoQ  1Q12    YoY
Wafer shipments including copper            631,776 608,372 3.8% 445,689 41.8%
interconnects
Utilization rate^(^1^)                      89.0%   90.5%   -    74.1%   -

Note: 
(1) Based on total equivalent wafers out divided by estimated total quarterly
capacity.

 Detailed Financial Analysis

Gross Profit Analysis

Amounts in US$ thousands    1Q13    4Q12    QoQ   1Q12    YoY
Cost of sales               399,471 389,127 2.7%  292,867 36.4%
 Depreciation              127,339 112,290 13.4% 106,317 19.8%
 Other manufacturing costs 271,687 276,367 -1.7% 186,254 45.9%
 Share-based compensation  445     470     -5.3% 296     50.3%
Gross profit                102,138 96,767  5.6%  39,844  156.3%
Gross margin                20.4%   19.9%   -     12.0%   -

  oCost of sales increased to $399.5 million in 1Q13, an increase of 2.7% QoQ
    from $389.1 million in 4Q12, mainly due to the increase in wafer
    shipments.
  oDepreciation within the cost of sales increased in 1Q13 relative to 4Q12
    primarily due to lower utilization of our Beijing fab.
  oGross profit was $102.1 million in 1Q13, an increase of 5.6% QoQ from
    $96.8 million in 4Q12.
  oGross margin was 20.4% in 1Q13, up from 19.9% in 4Q12 primarily due to
    lower shipments from Wuhan Xinxin which had a lower gross margin.

 Expenses from Continuing Operations Analysis

Amounts in US$ thousands           1Q13   4Q12   QoQ    1Q12   YoY
Total expenses from continuing 71,065 64,742 9.8%   90,127 -21.2%
 operations
 Research and development         23,408 26,677 -12.3% 59,311 -60.5%
 General and administrative       39,783 29,436 35.2%  23,924 66.3%
 Selling and marketing            7,874  8,629  -8.7%  6,892  14.2%

  oR&D expenses decreased to $23.4 million in 1Q13, down 12.3% QoQ from $26.7
    million in 4Q12 mainly due to lower usage of wafers and masks for our R&D
    activities.
  oGeneral and administrative expenses increased to $39.8 million in 1Q13, up
    35.2% QoQ from $29.4 million in 4Q12, mainly due to the employee bonus
    accrual and the recovery of bad debt in 4Q12.

 Total Other Income (Loss), Net

Amounts in US$ thousands         1Q13     4Q12     QoQ    1Q12    YoY
Total other income (loss), net   11,975   17,072   -29.9% (3,960) -
Finance costs                    (10,850) (10,449) 3.8%   (7,687) 41.1%
Interest income                  1,352    1,276    6.0%   1,199   12.8%
Other income or expenses         (1,366)  2,125    -      1,763   -
 Other gains or losses          22,393   24,016   -6.8%  392     5612.5%
 Share of profits of associates 446      104      328.8% 373     19.6%

Other gains or losses include mostly the gain arising from the disposal of
part of the living quarters in Shanghai.

 Depreciation and Amortization

Amounts in US$ thousands     1Q13    4Q12    QoQ   1Q12    YoY
Deprecation and amortization 135,752 140,021 -3.0% 142,888 -5.0%

 Liquidity 

Amounts in US$ thousands           1Q13      4Q12
Cash and bank balances             292,932   358,490
Restricted cash                    185,031   217,603
Other financial assets             1,239     18,730
Trade and other receivables        355,293   328,211
Prepaid operating expenses         51,061    46,986
Inventories                        284,653   295,728
Assets classified as held-for-sale 1,428     4,239
Total current assets               1,171,637 1,269,987
Current tax liabilities            60        2,321
Other financial liabilities        8         25
Promissory notes                   29,582    29,374
Accrued liabilities                73,696    84,611
Borrowings                         529,440   567,803
Trade and other payables           459,235   423,952
Total current liabilities          1,092,021 1,108,086
Cash Ratio                         0.3x      0.3x
Quick Ratio                        0.8x      0.9x
Current Ratio                      1.1x      1.1x

 Capital Structure

Amounts in US$ thousands            1Q13      4Q12
Cash and cash equivalents           292,932   358,490
Restricted cash                     185,031   217,603
Current portion of promissory notes 29,582    29,374
Short-term borrowings               529,440   567,803
Long-term debt                      429,000   528,612
Total debt                          958,440   1,096,415
Equity^(1)                          2,319,036 2,276,452
Total debt to equity ratio^(2)      41.3%     48.2%

Note:
(1) Including portion of noncontrolling interest.
(2) Total debt divided by equity, total debt including short-term
borrowings and long-term debt.

Cash and cash equivalents decreased to $292.9 million in 1Q13, down 18.3% QoQ
from $358.5 million in 4Q12 primarily because the Company used the cash on
hand to retire some of the bank borrowings.

Cash Flow

Amounts in US$ thousands                               1Q13      4Q12
Net cash generated from operating activities           154,638   183,799
Net cash used in investing activities                  (82,628)  (74,719)
Net cash (used in) generated from financing activities (137,503) 17,835
Effect of exchange rate changes                        (65)      (210)
Net change in cash                                     (65,558)  126,705

Capex Summary

  oCapital expenditures for 2013Q1 were $184.7 million.
  oThe Company has increased the planned 2013 capital expenditures for
    foundry operations by $75 million to $675 million. The additional capital
    expenditures will be used for the expansion of our Shanghai 12-inch fab to
    meet the customer demand for our 40/45 nm capacity.

Recent Highlights and Announcements

  oSMIC Donates 2 Million Chinese Yuan to Fund Liver Transplants for
    Disadvantaged Children (2013-04-12)
  oNotification of Board Meeting (2013-04-03)
  oAnnouncement of 2012 Annual Results (2013-03-25)
  oUpdate on Major Transaction in Relation to Establishment of a Joint
    Venture with Hubei Science & Technology Investment Group Co., Ltd.
    (2013-03-25)
  oNotification of Approval of the Publication of 2012 Annual Results by the
    Board (2013-03-13)
  oSMIC CEO TY Chiu Re-Elected to GSA Board (2013-03-13)
  oResignation of Chief Business Officer (2013-02-28)
  oSMIC Reports Unaudited Results for the Three Months Ended December 31,
    2012 (2013-02-06)
  oSMIC Added to Ocean Tomo 300 Patent Index (2013-02-01)
  oKilopass NVM IP Achieves JEDEC Qualification on High-Demand SMIC
    65/55/40nm Processes (2013-01-31)
  oNotification of Board Meeting (2013-01-09)
  oSMIC Selected Again for Hang Seng Corporate Sustainability Index Series
    (2013-01-07)

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 COMPREHENSIVE INCOME
(In US$ thousands except share data)
                                                For the three months ended
                                                March 31,      December 31, 
                                                2013            2012
                                                (Unaudited)    (Unaudited)
Continuing operations
Revenue                                         501,609         485,894
Cost of sales                                   (399,471)       (389,127)
Gross profit                                    102,138         96,767
Research and development                        (23,408)        (26,676)
General and administration expenses             (39,783)        (29,437)
Sales and marketing expenses                    (7,874)         (8,629)
Total other income, net                         11,975          17,072
Profit before tax                               43,048          49,097
Income tax expense                              (2,536)         (2,665)
Profit for the period                           40,512          46,432
Other comprehensive income
Item that may be reclassified subsequently to
profit or loss
Exchange differences on translating foreign     43              (2)
operations
Total comprehensive income for the period       40,555          46,430
Profit (loss) for the period attributable to:
Owners of the Company                           40,604          46,570
Non-controlling interests                      (92)            (138)
                                                40,512          46,432
Total comprehensive income for the period
attributable to:
Owners of the Company                           40,647          46,568
Non-controlling interests                      (92)            (138)
                                                40,555          46,430
Earnings per share attributable to
Semiconductor Manufacturing                     0.00            0.00
 International Corporation ordinary
shareholders, basic and diluted
Earnings per ADS attributable to Semiconductor
Manufacturing                                   0.06            0.07
 International Corporation ordinary ADS
holders, basic and diluted
Shares used in calculating basic earnings per   32,014,142,052  31,996,848,100
share
Shares used in calculating diluted earnings     32,182,139,336  32,044,388,752
per share





Semiconductor Manufacturing International Corporation
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In US$ thousands)
                                                  As of
                                                  March 31,    December 31, 
                                                  2013         2012
                                                  (Unaudited)  (Unaudited)
ASSETS
Non-current assets
Property, plant and equipment                  2,443,230    2,385,435
Prepaid Land use right                            73,576       73,962
Intangible assets                                 226,787      235,378
Investments in associates                         22,190       21,636
Deferred tax assets                               43,461       43,380
Other assets                                      41,065       43,382
Total non-current assets                          2,850,309    2,803,173
Current assets
Inventories                                       284,653      295,728
Prepaid operating expenses                      51,061       46,986
Trade and other receivables                    355,293      328,211
Other financial assets                          1,239        18,730
Restricted cash                                  185,031      217,603
Cash and bank balances                            292,932      358,490
                                                  1,170,209    1,265,748
Assets classified as held-for-sale             1,428        4,239
Total current assets                              1,171,637    1,269,987
TOTAL ASSETS                                      4,021,946    4,073,160
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shares, $0.0004 par value,
50,000,000,000
 shares authorized, 32,023,168,050 and
32,000,139,623                                    12,809       12,800
 shares issued and outstanding at
March 31, 2013 and
December 31, 2012 , respectively
Share premium                                     4,084,942    4,083,588
Reserves                                          46,857       46,148
Accumulated deficit                              (1,826,432)  (1,867,036)
Equity attributable to owners of the Company      2,318,176    2,275,500
Non-controlling interests                        860          952
Total equity                                      2,319,036    2,276,452
Non-current liabilities
Borrowings                                        429,000      528,612
Deferred tax liabilities                          314          440
Deferred government grant                       171,987      150,347
Long-term financial liabilities                 4,588        4,223
Other liabilities                                5,000        5,000
Total non-current liabilities                   610,889      688,622
Current liabilities
Trade and other payables                          459,235      423,952
Borrowings                                        529,440      567,803
Accrued liabilities                               73,696       84,611
Promissory notes                                 29,582       29,374
Other financial liabilities                     8            25
Current tax liabilities                         60           2,321
Total current liabilities                         1,092,021    1,108,086
Total liabilities                                 1,702,910    1,796,708
TOTAL EQUITY AND LIABILITIES                      4,021,946    4,073,160





Semiconductor Manufacturing International Corporation
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In $US thousands)
                                             For the three months ended
                                             March 31, 2013  December 31, 2012
                                             (Unaudited)     (Unaudited)
Cash flow from operating activities
Profit for the period                        40,512          46,432
Depreciation and amortization                135,752         140,021
Share of profits of associates              (446)           (104)
Changes in working capital and others        (21,180)        (2,550)
Net cash generated from operating            154,638         183,799
activities
Cash flow from investing activities:
Payments for property, plant and equipment   (123,132)       (97,392)
Payments for intangible assets               (14,580)        (17,927)
Proceeds from disposal of property, plant    (8,416)         36,237
and equipment and intangible assets
Changes in restricted cash relating to       46,388          16,623
investing activities
Payments to acquire financial assets         (1,527)         (21,617)
Proceeds on sale of financial assets         18,966          9,357
Others                                       (327)           -
Net cash used in investing activities        (82,628)        (74,719)
Cash flow from financing activities:
Proceeds from borrowings                     55,675          300,229
Repayment of borrowings                      (193,745)       (267,500)
Repayment of promissory notes                -               (15,000)
Proceeds from exercise of employee stock     567             106
options
Net cash (used in) generated from financing  (137,503)       17,835
activities
Effects of exchange rate changes on the
balance of cash held in foreign              (65)            (210)
currencies
Net (decrease)  increase  in  cash and cash  (65,558)        126,705
equivalents
Cash and bank balances, beginning of period  358,490         231,785
Cash and bank balances, end of period        292,932         358,490



SOURCE Semiconductor Manufacturing International Corporation

Website: http://www.smics.com
Website: http://www.smics.com/eng/investors/ir_presentations.php
Website: http://www.media-server.com/m/p/se33etcs
 
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