SMIC(HK:00981)2022-05-12 11:38Financial Performance - For Q1 2022, the sales revenue was $1,841.9 million, an increase of 16.6% from Q4 2021's $1,580.1 million and a 66.9% increase from Q1 2021's $1,103.6 million[2] - The gross profit for Q1 2022 was $750.3 million, up 35.7% from Q4 2021's $552.8 million and a significant increase of 200.0% from Q1 2021's $250.1 million[2] - The gross margin for Q1 2022 was 40.7%, compared to 35.0% in Q4 2021 and 22.7% in Q1 2021[2] - In Q1 2022, the company's revenue was $1,841.9 million, a 16.6% increase from Q4 2021's $1,580.1 million, driven by product mix changes, price adjustments, and increased shipments[11] - Gross profit for Q1 2022 was $750.3 million, up 35.7% from Q4 2021's $552.8 million, with a gross margin of 40.7% compared to 35.0% in Q4 2021[10][11] - The company reported a net profit of $569.2 million in Q1 2022, a slight decrease of 1.6% from Q4 2021's $578.4 million[10][11] - The total comprehensive income for Q1 2022 was $591.4 million, down 1.8% from Q4 2021's $602.2 million[10] - Operating profit for the three months ended March 31, 2022, was $535,971 thousand, up from $420,114 thousand in the previous year, indicating a year-over-year increase of 27.5%[23] - The net profit for the period was $569,161 thousand, slightly down from $578,353 thousand in the same quarter of 2021, showing a decrease of about 1.3%[23] Expenses and Costs - Operating expenses in Q1 2022 were $214.3 million, a 61.5% increase from Q4 2021's $132.7 million[10][11] - The company’s total operating expenses for the three months ended March 31, 2022, were $214,284 thousand, compared to $132,669 thousand in the same period of 2021, representing an increase of approximately 61.4%[26] - Research and development expenses decreased by 4.0% quarter-over-quarter to $165,269,000, but increased by 5.8% year-over-year from Q1 2021[15] - The tax expense for the period was $4,989 thousand, significantly lower than $53,037 thousand in the same quarter of the previous year, indicating a decrease of about 90.6%[23] Cash Flow and Debt - Cash and cash equivalents decreased to $6,099,908,000 in Q1 2022 from $8,581,746,000 in Q4 2021[19] - Total interest-bearing debt was reported at $6,691,087,000, with a debt-to-equity ratio of 25.4% in Q1 2022, down from 26.6% in Q4 2021[19] - The company reported a net cash outflow from investing activities of $4,266,260 for the three months ended March 31, 2022, compared to $1,735,336 in the previous period[31] - The operating cash flow for the period was $1,592,970, compared to $949,558 in the previous year, reflecting improved operational efficiency[31] Capacity and Production - The company shipped 1,840,189 equivalent 8-inch wafers in Q1 2022, a 6.8% increase from Q4 2021's 1,723,360 wafers[14] - Capacity utilization rate for Q1 2022 was 100.4%, up from 99.4% in Q4 2021[14] - The company operates multiple 8-inch and 12-inch wafer fabs in Shanghai, Beijing, Tianjin, and Shenzhen, with additional fabs under construction[6] Market Outlook and Strategy - For Q2 2022, the company expects revenue to grow by 1% to 3% quarter-over-quarter and gross margin to be in the range of 37% to 39%[4] - The company anticipates that the full-year revenue growth will outperform the average growth rate of the foundry industry, assuming no significant adverse external changes[4] - The company has strengthened cooperation with global customers and suppliers to optimize capacity allocation in response to market demands[4] - The company has experienced a structural shortage in semiconductor manufacturing capacity due to increased demand in sectors like new energy vehicles and display panels[4] - The company has delayed some factory maintenance to mitigate the impact of the pandemic, which has positively influenced gross margin performance[4] Risks and Challenges - The company acknowledges various risks and uncertainties that could significantly affect its future performance, including market conditions and supply chain challenges[7] Shareholder Value - The total equity attributable to shareholders increased to $17,658,564 from $17,149,664, showing a growth in shareholder value[30]