“As SMIC was placed on the US Entity List, the Company is restricted from procuring related US items or technologies; so, there are risks and uncertainties to our annual forecasts…”
Semiconductor Manufacturing International Corporation (SMIC) has announced its consolidated results of operations for the three months ended 31 December 2020. The company noted that its revenue was $981.1 million in 4Q20, compared to $1,082.5 million in 3Q20 and $839.4 million in 4Q19.
“The Company’s revenue in the fourth quarter of 2020 was US$981 million, and gross margin was 18 per cent. Multiple full-year financial metrics for the Company (unaudited) hit record highs. Annual revenue was US$3,907 million, a growth of 25.4 per cent; gross profit was US$921 million, a growth of 43.3 per cent; profit attributable to the company was US$716 million, an increase of 204.9 per cent; and EBITDA was US$2,123 million, a growth of 54.6 per cent,” noted Dr Gao Yonggang, Chief Financial Officer of SMIC.
He added, “Looking to 2021, as SMIC was placed on the US Entity List, the Company is restricted from procuring related US items or technologies; so, there are risks and uncertainties to our annual forecasts. The forecast we give today assumes that operational continuity is not significantly adversely affected. Export license application processes must be followed, they take time and will face uncertainty. Based on the above, our targets and plan for 2021 are as follows: our annual revenue target is mid-to-high single digit percentage growth; revenue target for 1st half is around $2.1 billion; and annual gross margin target is in the mid-teens range.”
SMIC recently noted that its board is aware that Mong-song Liang intends to resign from his co-chief executive role. It added that the SMIC said in a filing to the Shanghai stock exchange that the company is working actively to verify Liang’s plans to leave.