SMIC: Revenue in the third quarter was US$1.91 billion

SMIC issued an announcement on the Hong Kong Stock Exchange, disclosing unaudited results for the three months that ended September 30, 2022. SMIC's third-quarter revenue was 1.907 billion US dollars, a year-on-year increase of 34.7%, a month-on-month increase of 0.2%, and an estimated 1.93 billion US dollars; net profit was 470.8 million US dollars, estimated at $489.7 million.

SMIC's gross profit in the third quarter of 2022 was US$742 million, a year-on-year increase of 58.6%. The gross margin in the third quarter of 2022 was 38.9%.

Looking ahead to the fourth quarter, SMIC expects quarterly revenue to decline by 13% to 15% sequentially, with gross margins in the range of 30% to 32%.

SMIC said that sales revenue in the third quarter was US$1.907 billion, and shipments fell slightly, but the average unit selling price rose slightly due to product mix optimization, and revenue was the same as the previous quarter. Due to the decline in external demand, some internal factories have undergone annual repairs. At the same time, the monthly production capacity equivalent to 8 inches increased by 32,000 pieces from the previous quarter, and the capacity utilization rate was 92.1%, a decrease of five percentage points from the previous quarter. Combining the above factors, the gross profit margin in the third quarter was 38.9%, down 0.5 percentage points from the previous quarter.

According to SMIC, in the fourth quarter, due to the weak demand in the mobile phone and consumer fields, and the need for some customers to buffer time to interpret the new US export control regulations, sales revenue is expected to drop by 13% to 15% month-on-month, and the gross profit margin will be 30%. % to 32%. Based on the results for the first three quarters and the median guidance for the fourth quarter, the company's full-year revenue is expected to be around US$7.3 billion, a year-on-year increase of around 34%, and the gross profit margin is expected to be around 38%. Full-year capital expenditure plans are raised to $6.6 billion from $5.0 billion.