SMIC(HK:00981)2023-11-09 10:54Financial Performance - For Q3 2023, the company's sales revenue was $1,620.6 million, a 3.9% increase from Q2 2023, but a 15.0% decrease compared to Q3 2022[3]. - The net profit for Q3 2023 was $156.4 million, a decrease of 66.3% compared to Q2 2023 and a 72.8% decrease from Q3 2022[7]. - Operating profit for Q3 2023 was $87.4 million, down 81.7% year-over-year[7]. - The company reported a basic and diluted earnings per share of $0.01 for Q3 2023, compared to $0.05 in Q2 2023 and $0.06 in Q3 2022[7]. - Q3 2023 sales revenue reached $1,620.6 million, up 3.9% from Q2 2023's $1,560.4 million, primarily due to increased wafer sales volume[8]. - Q3 2023 gross profit was $321.6 million, compared to $316.5 million in Q2 2023, with a gross margin of 19.8%, down from 20.3%[8]. - Other income for Q3 2023 was $80.4 million, a significant decrease of 80.7% from $415.9 million in Q2 2023[16]. - The company reported a profit of $156,376 thousand for the three months ended September 30, 2023, down from $464,171 thousand in the previous quarter, indicating a decline of approximately 66%[25]. Operational Metrics - The total shipment volume increased by 9.5% quarter-over-quarter, with a production capacity utilization rate of 77.1%, down 1.2 percentage points from the previous quarter[3][7]. - The total production capacity increased to 796,000 wafers, contributing to the overall increase in shipment volume[3]. - Q3 2023 wafer sales volume was 1,536,845 units, a 9.5% increase from Q2 2023's 1,403,121 units, with a capacity utilization rate of 77.1%[11]. - Q3 2023 operating expenses were $234.2 million, slightly down from $236.7 million in Q2 2023, mainly due to new factory startup costs[15]. Future Outlook - The company expects Q4 2023 sales revenue to grow by 1% to 3%, with a gross margin projected between 16% and 18% due to depreciation pressure from new capacity[2][3]. - Full-year capital expenditure is expected to be adjusted to approximately $7.5 billion[3]. Cash and Liquidity - The cash and cash equivalents decreased to $6,953.6 million in Q3 2023 from $7,559.3 million in Q2 2023[17]. - The company’s current ratio was 1.8 in Q3 2023, down from 2.0 in Q2 2023, indicating a decrease in liquidity[17]. - Cash and cash equivalents decreased to $6,953,613 from $7,559,268, a decline of approximately 8%[18]. - Cash flow from operating activities was $800,701 in Q2 2023, with a net cash decrease of $(605,655) in Q3 2023[19]. Balance Sheet Highlights - The total assets increased to $46,754,462 from $45,844,378, showing a growth of approximately 2%[23]. - Total liabilities increased to $16,170,494 thousand as of September 30, 2023, compared to $15,858,759 thousand as of June 30, 2023, marking an increase of about 2%[24]. - The company’s borrowings as of September 30, 2023, stood at $6,715,297 thousand, a slight increase from $6,653,113 thousand as of June 30, 2023[24]. - The company’s retained earnings increased to $5,505,649 thousand as of September 30, 2023, from $5,411,665 thousand as of June 30, 2023, reflecting a growth of approximately 1.7%[24]. - The equity increased to $30,583,968 from $29,985,619, reflecting an increase of approximately 2%[18]. - The interest-bearing debt to equity ratio was 31.5%, down from 32.2%, indicating improved financial leverage[18]. Challenges and Risks - The company continues to face significant risks and uncertainties related to the semiconductor industry, including competition and supply chain challenges[6].