SMIC Reports 2022 First Quarter Results
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, May 12, 2022 /PRNewswire/ -- Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) ("SMIC", the "Company" or "we"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2022.
2022 First Quarter Highlights
Second Quarter 2022 Guidance
The following statements are forward looking statements based on current expectations and involved risks and uncertainties. The Company expects (in accordance with IFRS):
SMIC management commented: "In the first half of 2022, events such as the epidemic and local conflicts occurring overseas have brought uncertainties to the development of the global IC industry. While the demand for consumer electronics is soft, the demand growth in new energy vehicles, display panels and industrial sectors has led to a short-term intensification of the structural shortage of semiconductor manufacturing capacity. Thanks to the company's planning and deployment to address the shortage in the market, in the past six months, the company has carried out early capacity allocation optimization and adjustment, and has orderly promoted capacity construction.
This year, the cities where some of the company's fabs are located have experienced the epidemic at different times. Facing this challenge, the company went full force to implement various preventative and control measures to guard against the epidemic, in order to build a safety barrier for employees and ensure production, making every effort to assure customer demand.
With the efforts and dedication of all employees, the first quarter revenue and gross margin maintained growth. Gross margin exceeded guidance primarily due to two reasons: first, due to the epidemic, the company postponed the scheduled maintenance of some fabs; second, the impact of the epidemic on the Tianjin and Shenzhen fabs was lower than expected.
In the second quarter, the company expects revenue to increase 1% to 3% sequentially and gross margin to be in the range of 37% to 39%, due to the deferral of annual maintenance at some fabs into the current quarter and the short-term impact of the epidemic on utilization at the Shanghai fabs.
Based on the Company's growth expected in the first half of the year and with the gradual release of capacity, if there is no significant material adverse change in external conditions, it is expected that our annual revenue growth rate this year will be better than the foundry industry average, and the Company's gross margin will be better than expected at the beginning of the year.
Here we would like to thank all employees, customers, suppliers, investors and the community for their trust and support!"
Conference Call / Webcast Announcement
Date: Friday, May 13, 2022
Time: 8:30 A.M. - 9:30 A.M. (China Standard Time)
The call will be webcast live at:
Please register in advance for the conference call at:
Recording will be available approximately 1 hour after the event and it will be archived for 12 months.
Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) and its subsidiaries is one of the leading foundries in the world and is the front runner in manufacturing capability, manufacturing scale, and comprehensive service in the Chinese Mainland. SMIC Group provides semiconductor foundry and technology services to global customers on 0.35 micron to 14 nanometer process node technologies. Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base, with three 8-inch wafer fabrication facilities ("fabs") and three 12-inch fabs in Shanghai, Beijing, Tianjin and Shenzhen, and three 12-inch fabs under construction in Shanghai, Beijing and Shenzhen. 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.
This release contains, in addition to historical information, forward-looking statements. These forward-looking statements are based on SMIC's current assumptions, expectations, beliefs, plans, objectives, and projections about future events or performance. SMIC uses words including but not limited to "believe", "anticipate", "intend", "estimate", "expect", "project", "target", "going forward", "continue", "ought to", "may", "seek", "should", "plan", "could", "vision", "goal", "aim", "aspire", "objective", "schedule", "outlook" and other similar expressions to identify forward looking statements. 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, raw materials and software, 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 release, you should also consider the information contained in our other filings with The Stock Exchange of Hong Kong Limited ("SEHK") and Shanghai Stock Exchange ("SSE") 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 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 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 possible or actual occurrence of unanticipated events after the date on which such statement is made, 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 the presentation of non-IFRS financial measures, including EBITDA, EBITDA margin and non-IFRS operating expenses in this release. 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. 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.