SMIC(HK:00981)2022-11-10 11:30Financial Performance - For Q3 2022, the revenue was $1,907.0 million, a slight increase of 0.2% from Q2 2022's $1,903.2 million, and a significant increase of 34.7% from Q3 2021's $1,415.3 million[1]. - The gross profit for Q3 2022 was $742.2 million, down from $750.5 million in Q2 2022, but up 58.6% from $467.9 million in Q3 2021[1]. - The gross margin for Q3 2022 was 38.9%, a decrease of 0.5 percentage points from Q2 2022's 39.4% and an increase from 33.1% in Q3 2021[1]. - Operating profit for Q3 2022 was $477.9 million, a decrease of 11.4% from Q2 2022's $539.4 million, but up 54.1% from Q3 2021[9]. - Net profit for Q3 2022 was $574.4 million, down 8.7% from Q2 2022's $629.1 million, and up 54.1% from Q3 2021's $372.8 million[9]. - The company reported a basic earnings per share of $0.06, compared to $0.07 in the previous quarter[23]. - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the period was $1,191,849 thousand, with an EBITDA margin of 62.5%[28]. Revenue Expectations - For Q4 2022, the company expects revenue to decline by 13% to 15% quarter-over-quarter, with a gross margin projected between 30% and 32%[3]. - The full-year revenue for 2022 is expected to be around $7.3 billion, representing a year-over-year growth of approximately 34%[3]. Operating Expenses - Operating expenses increased by 25.2% in Q3 2022 to $264.3 million from $211.0 million in Q2 2022, and up 67.5% from $157.8 million in Q3 2021[10]. - The company’s operating expenses for the period were $264,297 thousand, up from $211,045 thousand in the previous quarter[25]. Production and Capacity - The production capacity utilization rate was 92.1%, a decrease of five percentage points from the previous quarter[3]. - The company shipped 1,797,671 equivalent 8-inch wafers in Q3 2022, a decrease of 4.7% from Q2 2022's 1,886,530 wafers, but an increase of 4.5% from Q3 2021's 1,719,743 wafers[13]. - Capacity utilization rate for Q3 2022 was 92.1%, down from 97.1% in Q2 2022 and 100.3% in Q3 2021[13]. - The company's monthly capacity increased from approximately 673,750 equivalent 8-inch wafers in Q2 2022 to 706,000 in Q3 2022[12]. Cash Flow and Investments - The company reported a net cash outflow from investing activities of $(3,024,132) in Q3 2022, compared to $(681,138) in Q2 2022[19]. - Cash and cash equivalents decreased to $7,544,774 in Q3 2022 from $8,634,495 in Q2 2022[18]. - The company’s investments in property, plant, and equipment for the quarter amounted to $2.14 billion, compared to $1.01 billion in the previous quarter, showing a significant increase of approximately 112.3%[31]. Challenges and Outlook - The company is facing challenges due to updated U.S. export control regulations, which may negatively impact production operations[4]. - There are no signs of recovery in the industry, and the adjustment period may be prolonged due to multiple external factors[4]. - The company maintains confidence in its medium to long-term development despite current industry difficulties[4]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[24]. Balance Sheet Highlights - As of September 30, 2022, total assets amounted to $41.77 billion, an increase from $40.48 billion as of June 30, 2022, representing a growth of approximately 3.2%[29]. - The company's total equity reached $27.92 billion, up from $27.33 billion, indicating a growth of about 2.1%[30]. - The total non-current liabilities stood at $7.45 billion, an increase from $6.81 billion, representing a growth of about 9.3%[30]. - The total current liabilities were $6.41 billion, slightly up from $6.34 billion, indicating a growth of approximately 1.1%[30]. - The company’s retained earnings increased to $4.39 billion from $3.92 billion, reflecting a growth of about 12%[30].