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SMIC Reports 2015 Second 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").
Semiconductor Manufacturing International Corporation
2015-08-11 18:03 4308

SHANGHAI, Aug. 11, 2015 /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 June 30, 2015.

Second Quarter 2015 Highlights

  • Revenue was a record high of $546.6 million in 2Q15, increased 7.2% QoQ from $509.8 million in 1Q15 and increased 6.9% YoY from $511.3 million in 2Q14.
  • Gross profit was a record high of $176.4 million in 2Q15, increased 17.7% QoQ from $149.9 million in 1Q15 and increased 23.3% YoY from $143.1 million in 2Q14
  • Gross margin was a record high of 32.3% in 2Q15, compared to 29.4% in 1Q15 and 28.0% in 2Q14.
  • Profit for the period attributable to SMIC was $ 76.7 million in 2Q15, compared to $55.5 million in 1Q15 and $56.8 million in 2Q14. Excluding the gain of commitment to grant shares and warrants in 2Q10, profit for the period attributable to SMIC was a record high in 2Q15.
  • China-region revenue contributed 51.1% of overall revenue in 2Q15, a record high for the Group.  

Third Quarter 2015 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. The Company expects:

  • Revenue to increase by 1% to 3% quarter over quarter.
  • Gross margin to range from 28% to 30%.
  • Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $134 million to $139 million.
  • Non-controlling interests of our majority-owned subsidiaries to range from positive $11 million to positive $13 million (losses to be borne by non-controlling interests).

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "SMIC has achieved two quarters of consecutive growth in 2015 and we are guiding an additional quarter of growth for the third quarter. With some customers undergoing inventory adjustments, SMIC has successfully ramped up new products keeping our fabs well utilized.

The second quarter of 2015 was our best quarter to date with record-high revenue of $546.6 million and gross margin of 32.3%. In the second quarter shipments and utilization exceeded our expectations, resulting in 7.2% quarter over quarter revenue growth. We achieved a profit attributable to SMIC of $76.7 million, an increase of 38.3% quarter over quarter and 35.0% year over year.

Our China revenue share has continued to increase in the past quarters and in Q2 China-region revenue contributed more than half our revenue for the first time. SMIC is in a key position as the largest and most advanced foundry in China to capture the many opportunities stemming from China."

Conference Call / Webcast Announcement

Date: August 12, 2015
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:

China

+86 400-620-8038

(Pass code: SMIC)

Hong Kong

+852 3018-6771

(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://edge.media-server.com/m/p/ijmh7wth.

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. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a second majority owned 300mm fab under development for advance nodes in Beijing; and 200mm fabs in Tianjin and Shenzhen. 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. These forward-looking statements, including statements under "Third Quarter 2015 Guidance", "CapEx Summary" and the statements contained in the quotes of our CEO regarding our expectations for our growth and opportunities in China 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 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 cyclical nature of the semiconductor industry, changes in demand for our products, competition in our markets, our reliance on a small number of customers, orders or judgments from pending litigation, intensive intellectual property lawsuits in semiconductor industry 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 28, 2015, 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 non-GAAP operating expenses which consist of total operating expenses as adjusted to exclude the effect of employee bonus accrual, government funding and gain from the disposal of living quarters. This earnings release also includes third quarter 2015 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.

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.

Contact:

Investor Relations

+86-21-3861-0000 ext. 12804

ir@smics.com

 

Summary of Second Quarter 2015 Operating Results

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







2Q15

1Q15

QoQ

2Q14

YoY

Revenue

546,615

509,798

7.2%

511,344

6.9%

Cost of sales

(370,210)

(359,871)

2.9%

(368,291)

0.5%

Gross profit

176,405

149,927

17.7%

143,053

23.3%

Operating expenses

(115,728)

(104,423)

10.8%

(84,861)

36.4%

Profit from operations

60,677

45,504

33.3%

58,192

4.3%

Other income (expense), net

11,943

6,125

95.0%

(1,105)

-

Profit before tax

72,620

51,629

40.7%

57,087

27.2%

Income tax (expense) benefit

(924)

(54)

1611.1%

93

-

Profit for the period

71,696

51,575

39.0%

57,180

25.4%

Other comprehensive income:




Exchange differences on
    translating foreign operations

397

(400)

-

(858)

-

Change in value of available-
   for-sale financial assets

(1,006)

1,451

-

-

-

Total comprehensive income 
   for the period

71,087

52,626

35.1%

56,322

26.2%






Profit for the period attributable to:




SMIC

76,704

55,477

38.3%

56,801

35.0%

Non-controlling interests

(5,008)

(3,902)

28.3%

379

-

Profit for the period

71,696

51,575

39.0%

57,180

25.4%






Gross margin

32.3%

29.4%

-

28.0%

-






Earnings per ordinary share(1)
Basic

0.00

0.00

0.00

Diluted

0.00

0.00

0.00

Earnings per ADS(2)

Basic

0.10

0.08

0.09

Diluted

0.10

0.07

0.08

 

Wafers shipped (in 8"
equivalent wafers)

731,730

692,131

5.7%

648,764

12.8%






Capacity utilization(3)

102.1%

99.7%

-

94.6%

-




Note:

(1) Based on weighted average ordinary shares of 37,192 million (basic) and 41,572 million (diluted) in 2Q15, 35,877 million (basic) and 40,181 million (diluted) in 1Q15, and 32,766 million (basic) and 35,291 million (diluted) in 2Q14.

(2) Each ADS represents 50 ordinary shares.

(3) Based on total equivalent wafers out divided by estimated total quarterly capacity.
  • Revenue increased 7.2% QoQ from $509.8 million in 1Q15 to $546.6 million in 2Q15 mainly because of an increase of wafer shipments in 2Q15.
  • Cost of sales was $370.2 million in 2Q15, up 2.9% QoQ from $359.9 million in 1Q15.
  • Gross profit was $176.4 million in 2Q15, an increase of 17.7% QoQ from $149.9 million in 1Q15.
  • Gross margin was 32.3% in 2Q15, up from 29.4% in 1Q15, primarily due to an increase in fab utilization in 2Q15.
  • Operating expenses were $115.7 million in 2Q15, an increase of 10.8% QoQ from $104.4 million in 1Q15, mainly due to the reasons stated in Operating Expenses (Income) Analysis below.

Analysis of Revenue

Revenue Analysis


By Application

2Q15

1Q15

2Q14

Computer

4.5%

3.6%

2.8%

Communications

49.4%

44.2%

41.4%

Consumer

37.7%

46.3%

48.0%

Others

8.4%

5.9%

7.8%

By Service Type

2Q15

1Q15

2Q14

Wafers

95.4%

96.3%

95.4%

Mask making, testing, others

4.6%

3.7%

4.6%

By Customer Type

2Q15

1Q15

2Q14

Fabless semiconductor companies

72.7%

81.3%

85.2%

Integrated device manufacturers (IDM)

2.7%

2.5%

3.0%

System companies and others

24.6%

16.2%

11.8%

By Geography

2Q15

1Q15

2Q14

North America

32.0%

41.1%

42.0%

China(1)

51.1%

47.0%

44.4%

Eurasia(2)

16.9%

11.9%

13.6%

Wafer Revenue Analysis


By Technology

2Q15

1Q15

2Q14

40/45 nm

15.3%

16.0%

13.2%

55/65 nm

25.2%

26.1%

26.3%

90 nm

4.8%

4.6%

3.4%

0.13 µm

10.9%

10.2%

12.1%

0.15/0.18 µm

39.9%

39.7%

40.2%

0.25/0.35 µm

3.9%

3.4%

4.8%

Note:

(1) Including Hong Kong, but excluding Taiwan

(2) Excluding China and Hong Kong

Capacity*

Fab / (Wafer Size)

2Q15

1Q15

Shanghai Mega Fab (8")

99,000

97,000

Shanghai 12-inch Fab (12")

31,500

31,500

Beijing Mega Fab (12")

83,250

81,000

Tianjin Fab (8")

42,000

42,000

Total monthly wafer fabrication capacity**

255,750

251,500

Note:

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

**Our new 8-inch fab in Shenzhen and 12-inch fab in Beijing have reached 
  an installed capacity of 10,000 and 600 wafers per month but not entered
  into mass production at the end of 2Q15.

  • Monthly capacity increased to 255,750 8-inch equivalent wafers in 2Q15 from 251,500 8-inch equivalent wafers in 1Q15, primarily due to an increase of fab efficiency in our Shanghai 8-inch fab and Beijing 12-inch fab.

Shipment and Utilization

8" equivalent wafers

2Q15

1Q15

QoQ

2Q14

YoY

Wafer shipments

731,730

692,131

5.7%

648,764

12.8%

Utilization rate(1)

102.1%

99.7%

-

94.6%

-

Note:

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

Detailed Financial Analysis

Gross Profit Analysis

Amounts in US$ thousands

2Q15

1Q15

QoQ

2Q14

YoY

Cost of sales

370,210

359,871

2.9%

368,291

0.5%

Depreciation

95,942

100,929

-4.9%

106,236

-9.7%

Other manufacturing costs

272,552

257,708

5.8%

260,365

4.7%

Share-based compensation

1,716

1,234

39.1%

1,690

1.5%

Gross profit

176,405

149,927

17.7%

143,053

23.3%

Gross margin

32.3%

29.4%

-

28.0%

-
  • Cost of sales was $370.2 million in 2Q15, up 2.9% QoQ from $359.9 million in 1Q15.
  • Depreciation within the cost of sales decreased 4.9% to $95.9 million in 2Q15, compared to $100.9 million in 1Q15. The decrease was mainly due to an increase of utilization in our 12-inch fab in 2Q15.
  • Other manufacturing costs within the cost of sales increased 5.8% to $272.6 million in 2Q15, compared to $257.7 million in 1Q15.
  • Gross profit was $176.4 million in 2Q15, an increase of 17.7% QoQ from $149.9 million in 1Q15.
  • Gross margin was 32.3% in 2Q15, up from 29.4% in 1Q15, primarily due to an increase in fab utilization in 2Q15.

Operating Expenses (Income) Analysis

Amounts in US$ thousands

2Q15

1Q15

QoQ

2Q14

YoY

Operating expenses

115,728

104,423

10.8%

84,861

36.4%

Research and development, net

55,202

53,453

3.3%

45,080

22.5%

General and administrative

52,051

42,486

22.5%

35,528

46.5%

Selling and marketing

9,159

9,205

-0.5%

9,018

1.6%

Other operating income

(684)

(721)

-5.1%

(4,765)

-85.6%
  • R&D expenses increased to $55.2 million in 2Q15, compared to $53.5 million in 1Q15. Excluding the funding of R&D contracts from the government, R&D expenses increased by $6.8 million QoQ to $65.6 million in 2Q15. Funding of R&D contracts from the government was $10.4 million in 2Q15, compared to $5.3 million in 1Q15.
  • General and administrative expenses increased to $52.1 million in 2Q15, up 22.5% QoQ from $42.5 million in 1Q15, mainly because of 1) the expansion expenses relating to the two new fab projects – the 8-inch fab in Shenzhen and the 12-inch fab in Beijing and 2) accrued employee bonus increased in 2Q15.

Other Income (expense), Net

Amounts in US$ thousands

2Q15

1Q15

QoQ

2Q14

YoY

Other income (expense), net

11,943

6,125

95.0%

(1,105)

-

Interest income

956

1,369

-30.2%

3,021

-68.4%

Finance costs

(2,416)

(5,010)

-51.8%

(8,231)

-70.6%

Foreign exchange gains or losses

4,960

120

4033.3%

(1,860)

-

Other gains or losses, net

8,592

9,621

-10.7%

5,399

59.1%

Share of profits of associates

(149)

25

-

566

-

  • The change in finance costs was due to 1) the Group's repayment of some bank borrowings in 1Q15 and 2) more interest expense was capitalized as part of the costs of assets under construction in 2Q15.
  • The change in foreign exchange gains or losses was mainly due to an appreciation of RMB against USD in 2Q15. Foreign monetary assets mainly consist of cash and cash equivalent and accounts receivables in RMB. And foreign monetary liabilities mainly consist of loans, accounts payables and other payables in RMB. The Group is in net foreign monetary asset position.

Depreciation and Amortization

Amounts in US$ thousands

2Q15

1Q15

QoQ

2Q14

YoY

Depreciation and amortization

124,911

125,461

-0.4%

138,463

-9.8%


Liquidity

Amounts in US$ thousands

2Q15

1Q15

Cash and cash equivalent

766,165

402,378

Restricted cash

105,791

229,500

Other financial assets(1)

568,886

586,047

Trade and other receivables

489,675

454,383

Prepayment and prepaid
   operating expenses

37,507

38,969

Inventories

365,332

340,889

Total current assets

2,333,356

2,052,166



Current tax liabilities

412

33

Accrued liabilities

132,714

124,711

Deferred government funding

62,368

65,200

Short-term Borrowings

119,727

192,775

Trade and other payables

863,210

699,467

Total current liabilities

1,178,431

1,082,186



Cash Ratio(2)

0.7x

0.4x

Quick Ratio(3)

1.7x

1.6x

Current Ratio(4)

2.0x

1.9x




Note:

(1) Other financial assets contain financial products sold by
     bank and bank deposit over 3 months.

(2) Cash and cash equivalent divided by total current liabilities.

(3) Current assets excluding inventories divided by total current liabilities

(4) Total current assets divided by total current liabilities.

Capital Structure

Amounts in US$ thousands

 2Q15   

 1Q15   

Cash and cash equivalent

766,165

402,378

Restricted cash

105,791

229,500

Other financial assets(1)

568,886

586,047



Short-term borrowings

119,727

192,775

Long-term borrowings

85,484

39,087

Convertible bonds

385,947

382,668

Corporate bonds

492,383

491,976

Total debt

1,083,541

1,106,506



Net debt(2)

(251,510)

118,081

Equity

3,846,024

3,364,264

Total debt to equity ratio(3)

28.2%

32.9%

Net debt to equity ratio(4)

N/A(5)

3.5%

Note:

(1) Other financial assets contain financial products sold by bank and bank deposit over 3 months.

(2) Net debt is total debt minus cash and cash equivalent, and other financial assets.

(3) Total debt divided by equity.

(4) Net debt divided by equity.

(5) The ratio was not applicable due to the negative net debt in 2Q15.

Cash and cash equivalent increased to $766.2 million in 2Q15 from $402.4 million in 1Q15 primarily because of the closing of the private placement of 4,700,000,000 ordinary shares to China Integrated Circuit Industry Investment Fund Co., Ltd. in 2Q15.

Cash Flow

Amounts in US$ thousands

2Q15

1Q15

Net cash from operating activities

154,577

134,273

Net cash used in investing activities

(170,372)

(148,888)

Net cash from (used in) financing activities

379,423

(185,819)

Effect of exchange rate changes

159

(224)

Net change in cash and cash equivalent

363,787

(200,658)

Capex Summary


--  Capital expenditures for 2Q15 were $367.6 million.

--  The planned 2015 capital expenditures for foundry operations are approximately $1.5 billion.

--  The planned 2015 capital expenditures for non-foundry operations, mainly for the construction of
     living quarters, are approximately $150 million. The Group plans to rent out or sell these living
     quarter units to employees in the future.

Recent Highlights and Announcements

Ÿ -- List of Directors and their Roles and Functions (2015-06-26)

Ÿ -- Poll Results of the Annual General Meeting held on 26 June 2015 (2015-06-26)

Ÿ -- SMIC Receives "2014 Foundry Supplier of the Year" Award from Qualcomm (2015-06-25)

Ÿ -- SMIC, Huawei, imec, and Qualcomm in Joint Investment on SMIC's New Research and
     Development Company (2015-06-23)

Ÿ -- Retirement of Independent Non-Executive Director and Withdrawal of Resolution 2(d) In Notice
     of Annual General Meeting dated 30 April 2015 (2015-06-23)

Ÿ -- Non-Exempt Connected Transactions Pre-emptive Subscriptions by Datang and Country Hill 
     and Grant of Restricted Share Units to a Director (2015-06-12)

Ÿ -- Closure of Register of Members (2015-06-08)

Ÿ -- Completion of Issue of 4,700,000,000 New Shares to a Wholly-Owned Subsidiary of China
     Integrated Circuit Industry Investment Fund Co., Ltd., Under General Mandate (2015-06-08)

Ÿ -- Brite Semiconductor, CEVA and SMIC collaborate on IoT ASIC platform (2015-06-02)

Ÿ -- SMIC and Semiconductor Companies Donate over 2.76 million yuan to its Liver Transplant
     Program for Children (2015-06-01)

Ÿ -- Grant of Options (2015-05-21)

Ÿ -- SMIC Beijing's New 12-inch Fab Awarded LEED Gold Certification (2015-05-15)

Ÿ -- SMIC Reports Unaudited Results for the Three Months Ended March 31, 2015 (2015-05-07)

Ÿ -- Circulars - Letter and Reply Form to New Registered Shareholders - Election of Means of
     Receipt and Language of Corporate Communication (2015-04-29)

Ÿ -- Circulars - Notification Letter and Request Form for Non-registered Shareholders (2015-04-29)

Ÿ -- Circulars - Notification Letter and Change Request Form for Registered Shareholders (2015-04-
     29)

Ÿ -- Circulars - Notification Letter for Registered Shareholders (2015-04-29)

Ÿ -- Notice of Annual General Meeting (2015-04-29)

Ÿ -- Proxy Forms - Form of Proxy for Use at the Annual General Meeting to be held on 26 June 2015
     (2015-04-29)

Ÿ -- Proposals for Re-election of Directors, General Mandates to Issue and Repurchase Shares and
     Notice of Annual General Meeting (2015-04-29)

Ÿ -- 2014 Annual Report (2015-04-29)

Ÿ -- Overseas Regulatory Announcement (2015-04-29)

Ÿ -- Notification of Board Meeting (2015-04-20)

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 OTHER COMPREHENSIVE INCOME

(In US$ thousands except share data)



For the three months ended


June 30, 2015

March 31, 2015


(Unaudited)

(Unaudited)





Revenue

546,615

509,798

Cost of sales

(370,210)

(359,871)

Gross profit

176,405

149,927

Research and development expenses, net

(55,202)

(53,453)

General and administration expenses

(52,051)

(42,486)

Sales and marketing expenses

(9,159)

(9,205)

Other operating income

684

721

Operating expenses

(115,728)

(104,423)

Profit from operation

60,677

45,504

Other income, net

11,943

6,125

Profit before tax

72,620

51,629

Income tax expense

(924)

(54)

Profit for the period

71,696

51,575

Other comprehensive income



Item that may be reclassified subsequently to profit or loss



Exchange differences on translating foreign operations

397

(400)

Change in value of available-for-sale financial assets

(1,006)

1,451

Total comprehensive income for the period

71,087

52,626

Profit for the period attributable to:



Owners of the Company

76,704

55,477

Non-controlling interests

(5,008)

(3,902)


71,696

51,575

Total comprehensive income for the period attributable to:



Owners of the Company

76,090

56,528

Non-controlling interests

(5,003)

(3,902)


71,087

52,626





Earnings per share attributable to Semiconductor Manufacturing
International Corporation ordinary shareholders



Basic

0.00

0.00

Diluted

0.00

0.00

Earnings per ADS attributable to Semiconductor Manufacturing
International Corporation ordinary ADS holders



Basic

0.10

0.08

Diluted

0.10

0.07





Shares used in calculating basic earnings per share

37,191,800,114

35,876,740,022

Shares used in calculating diluted earnings per share

41,571,630,732

40,180,857,955





Reconciliations of Non-GAAP Financial Measures to
Comparable GAAP Measures(1)



Non-GAAP operating expenses

(110,901)

(99,669)





Note:



(1) Non-GAAP operating expenses are defined as operating expenses adjusted to exclude the effect of employee bonus accrual, government funding and gain from the disposal of living quarters. SMIC reviews non-GAAP operating expenses together with operating expenses to understand, manage and evaluate its business and make financial and operational decisions. The Group also believes it is useful supplemental information for investors and analysts to assess its operating performance. 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 do 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 similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider the non-GAAP operating expenses in isolation from or as an alternative to operating expenses prepared in accordance with IFRS.

 

The following table sets forth the reconciliation of the non-GAAP operating expenses to its most directly comparable financial measure presented in accordance with IFRS, for the periods indicated.

 



For the three months ended


June 30, 2015

March 31, 2015

June 30, 2014


(Unaudited)

(Unaudited)

(Unaudited)

Operating expenses

(115,728)

(104,423)

(84,861)

Employee bonus accrual

16,035

10,492

10,849

Government funding

(11,208)

(5,514)

(8,494)

Gain from the disposal of living quarters

-

(224)

(4,094)

Non-GAAP operating expenses

(110,901)

(99,669)

(86,600)


Semiconductor Manufacturing International Corporation

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In US$ thousands)



As of


June 30, 2015

March 31, 2015


(Unaudited)

(Unaudited)

ASSETS



Non-current assets



Property, plant and equipment

3,252,963

3,017,149

Prepaid land use right

143,220

134,655

Intangible assets

202,488

206,562

Investments in associates

160,744

57,520

Investments in joint ventures

14,594

-

Deferred tax assets

44,701

44,529

Other assets

12,957

28,582

Total non-current assets

3,831,667

3,488,997

Current assets



Inventories

365,332

340,889

Prepayment and prepaid operating expenses

37,507

38,969

Trade and other receivables

489,675

454,383

Other financial assets

568,886

586,047

Restricted cash

105,791

229,500

Cash and cash equivalent

766,165

402,378

Total current assets

2,333,356

2,052,166

TOTAL ASSETS

6,165,023

5,541,163





EQUITY AND LIABILITIES



Capital and reserves



Ordinary shares, $0.0004 par value, 50,000,000,000 shares
   authorized,  40,750,102,963 and 35,929,902,252 shares issued and
   outstanding at June 30, 2015 and March 31, 2015 , respectively

16,300

14,372

Share premium

4,792,011

4,383,103

Reserves

96,168

96,783

Accumulated deficit

(1,408,709)

(1,485,413)

Equity attributable to owners of the Company

3,495,770

3,008,845

Non-controlling interests

350,254

355,419

Total equity

3,846,024

3,364,264

Non-current liabilities



Borrowings

85,484

39,087

Convertible bonds

385,947

382,668

Bonds payable

492,383

491,976

Deferred tax liabilities

1,383

69

Deferred government funding

173,291

178,833

Other liabilities

2,080

2,080

Total non-current liabilities

1,140,568

1,094,713

Current liabilities



Trade and other payables

863,210

699,467

Borrowings

119,727

192,775

Deferred government funding

62,368

65,200

Accrued liabilities

132,714

124,711

Current tax liabilities

412

33

Total current liabilities

1,178,431

1,082,186

Total liabilities

2,318,999

2,176,899

TOTAL EQUITY AND LIABILITIES

6,165,023

5,541,163

 


Semiconductor Manufacturing International Corporation

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In $US thousands)


For the three months ended


June 30, 2015

March 31, 2015


(Unaudited)

(Unaudited)

Cash flow from operating activities



Profit for the period

71,696

51,575

Depreciation and amortization

124,911

125,461

Share of profits of associates

149

(25)

Changes in working capital and others

(42,179)

(42,738)

Net cash from operating activities

154,577

134,273





Cash flow from investing activities:



Payments for property, plant and equipment

(235,515)

(224,436)

Payments for intangible assets

(6,633)

(9,935)

Payments for land use rights

(9,265)

-

Proceeds from disposal of property, plant and equipment

41,656

11,486

Changes in restricted cash relating to investing activities

122,557

7,770

Payments to acquire financial assets

(551,419)

(657,899)

Proceeds on sale of financial assets

575,380

723,215

Proceeds from disposal of available-for-sale investment

-

1,204

Net cash outflow from deconsolidation of subsidiaries

(248)

-

Payment to acquire long-term investment

(106,885)

(293)

Net cash used in investing activities

(170,372)

(148,888)





Cash flow from financing activities:



Proceeds from borrowings

79,256

57,626

Repayment of borrowings

(105,907)

(244,020)

Proceeds from issuance of ordinary shares

399,460

-

Proceeds from exercise of employee stock options

6,614

575

Net cash from (used in) financing activities

379,423

(185,819)





Effects of exchange rate changes on the balance of cash held in foreign
currencies

159

(224)





Net increase (decrease) in cash and cash equivalent

363,787

(200,658)

Cash and cash equivalent, beginning of period

402,378

603,036





Cash and cash equivalent, end of period

766,165

402,378
Source: Semiconductor Manufacturing International Corporation
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