SMIC(HK:00981)2023-05-11 12:19Financial Performance - Q1 2023 revenue was $1,462.3 million, down from $1,621.3 million in Q4 2022 and $1,841.9 million in Q1 2022[1] - Q1 2023 gross profit was $304.7 million, compared to $518.7 million in Q4 2022 and $750.3 million in Q1 2022[1] - Q1 2023 gross margin was 20.8%, down from 32.0% in Q4 2022 and 40.7% in Q1 2022[1] - Revenue for Q1 2023 was $1,462,288, down from $1,621,270 in Q4 2022, a decline of 9.8%[24] - Gross profit decreased to $304,669 from $518,689, a drop of 41.2% quarter-over-quarter[24] - The company reported a net profit of $267,120 for Q1 2023, down from $425,474 in Q4 2022, a decrease of 37.2%[24] - The share of profit attributable to the company's owners was $231.1 million in Q1 2023, a decrease of 40.1% compared to Q4 2022[10] - The company reported a quarterly profit of $267,120 for the three months ended March 31, 2023, down from $425,474 in the previous quarter, reflecting a decrease of about 37.3%[32] Future Projections - For Q2 2023, the company expects revenue to grow by 5% to 7% quarter-over-quarter[2] - Gross margin for Q2 2023 is projected to be between 19% and 21%[2] - The company anticipates higher capacity utilization and shipment volumes in Q2 compared to Q1[3] - Full-year guidance remains unchanged, with expected revenue decline in the low double digits and gross margin around 20%[3] Operational Metrics - The company shipped 1,251,715 equivalent 8-inch wafers in Q1 2023, a decline of 20.5% from Q4 2022's 1,574,068 wafers[13] - Capacity utilization rate for Q1 2023 was 68.1%, down from 79.5% in Q4 2022[13] - Operating expenses decreased to $221.4 million in Q1 2023 from $236.3 million in Q4 2022, a reduction of 6.3%[15] - R&D expenses decreased to $167.7 million in Q1 2023 from $197.5 million in Q4 2022, a decline of 15.1%[16] Cash Flow and Assets - Cash and cash equivalents increased to $8,703,465 from $6,932,587, representing a 25.5% increase quarter-over-quarter[19] - Total current assets rose to $17,108,628 from $16,594,202, reflecting a 3.1% increase[18] - Net cash provided by operating activities was $801,520, compared to $563,308 in the previous quarter, indicating a 42.3% increase[20] - Non-current assets totaled $27,907,102 thousand as of March 31, 2023, compared to $27,213,582 thousand as of December 31, 2022[30] - Current assets increased to $17,108,628 thousand as of March 31, 2023, from $16,594,202 thousand as of December 31, 2022[30] - Cash and cash equivalents amounted to $8,703,465 thousand as of March 31, 2023, up from $6,932,587 thousand as of December 31, 2022[30] Capital Expenditures - Capital expenditures for Q1 2023 were $1,258.6 million, down from $1,987.1 million in Q4 2022, a decrease of 36.7%[21] - The company’s capital expenditures for the three months ended March 31, 2023, were $1,327,401, compared to $2,004,517 in the previous quarter, indicating a decrease of about 33.6%[32] Debt and Equity - The debt-to-equity ratio increased to 31.6% from 30.0%, indicating a rise in leverage[19] - The current ratio decreased to 2.3 from 2.4, reflecting a slight decline in liquidity[18] - As of March 31, 2023, total equity reached $29,584,682, an increase from $28,961,421 as of December 31, 2022, representing a growth of approximately 2.16%[31] - Total liabilities as of March 31, 2023, amounted to $15,431,048, up from $14,846,363 as of December 31, 2022, marking an increase of approximately 3.93%[31] - The company’s borrowings increased to $1,787,053 as of March 31, 2023, from $1,268,218 at the end of the previous quarter, representing a rise of approximately 40.9%[31] Other Income and Expenses - Other income, net for Q1 2023 was $192.6 million, an increase of 40.8% from Q4 2022's $136.8 million[17] - The company’s interest income increased by 48.7% to $179.3 million in Q1 2023 from $120.6 million in Q4 2022[17] - The company recognized a financial expense of $44,003 thousand for the three months ended March 31, 2023, compared to $39,336 thousand for the three months ended December 31, 2022[28] - The company’s tax expense for the period was $8,790 thousand, compared to a tax benefit of $(6,351) thousand for the three months ended December 31, 2022[28]