SMIC Reports 2015 Second Quarter Results

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)


( Un audited)






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 ,   201 5


March 3 1 ,   201 5


June 3 0 ,   201 4



(Unaudited)


(Unaudited)


( Un audited)

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 ,   201 5


March 3 1 ,   201 5



(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 i nvesting 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 f inancing 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)






N et increase ( decrease ) in   cash and cash equivalent


363,787


(200,658)

C ash and cash equivalent, beginning of period


402,378


603,036






C ash and cash equivalent, end of period


766,165


402,378

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/smic-reports-2015-second-quarter-results-300126600.html

SOURCE Semiconductor Manufacturing International Corporation

Contact:
Semiconductor Manufacturing International Corporation
Web: http://www.smics.com/eng/investors/ir_presentations.php



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