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SMIC posts nominal profit in 2Q |
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Written by Administrator
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Tuesday, 01 August 2006 |
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BEIJING, July 31 (InfoChina)--Semiconductor Manufacturing International Corporation (SMIC, NYSE: SMI, HK: 0981) reported a net profit of 2.242 million U.S. dollars in 2Q, compared to a net loss of 8.743 million dollars in the previous quarter.
The profit was realized over preferential income tax under American accounting principle and rises in gross margin, from 12.4% in 1Q to 13.6% in 2Q, and sales revenue, from 351.1 million dollars in 1Q to 361.4 million dollars in 2Q, according to the company’s 2Q financial report issued on July 28.
Analysts deem that SMIC’s actual profit, preferential income tax excluded, is in consistency with the earlier predicted loss of 10-15 million U.S. dollars.
Citibank forecasts SMIC’s losses for 2006 and 2007 will reach 51 and 46 million dollars respectively, and the company will really turn loss into profit after 2007.
Chen Huirui, a HK representative of SMIC, estimated a 2% quarter-on-quarter increase in sales revenue for 3Q, and a rise of 8%-12% for gross margin.
SMIC’s expenditure in 3Q will be 325 to 360 million dollars, and depreciation and amortization will be total 250-260 million dollars, as against the corresponding 317.3 and 231 million dollars in 2Q, noted Chen.
Chen disclosed that SMIC would not issue A shares this year.
SMIC raised 1.8 billion dollars through IPO in Hong Kong Exchange in March, 2004.
With more and more overseas-listed Chinese companies returning to domestic stock market, SMIC is doing researches on launching A shares. |
China Stock News