On the investor relations interactive platform P5W, SMIC was quizzed by investors regarding its delayed mass production, especially pertaining to the delivery of its bottleneck machines.
"Was mass production delayed due to the time needed for trial production, following the delivery of the bottleneck machines," an investor asked, "Or was the mass production delay caused by the delivery delay in bottleneck machines?" In response, SMIC confirmed that the mass production delay was due to a delivery delay in the bottleneck machines.
China-based media Ijiwei reported that SMIC previously revealed on the platform that SMIC's Beijing site is entering trial production. Due to a delivery delay in the bottleneck equipment, the mass production schedule is expected to be pushed back a quarter or two.
In addition, SMIC stated that at the end of 2022, SMIC's Shenzhen site is entering the production phase. Its Shanghai site has completed the roof-sealing of the main structure. Groundwork has begun in its Xiqing site.
Looking ahead to 2023, the sector cycle is still at the bottom. The external policy environment has continued to tighten, and it's estimated that the company's quarterly revenue will drop by 10-12% quarter-on-quarter. The gross profit margin, affected by the decreasing production capacity utilization rate and increasing depreciation, will drop to 19-21%.
Under the premise that the external environment remains relatively stable, the company estimated that its 2023 annual revenue will drop to the low 10s with a profit margin of around 20%. Depreciation will also increase by over 20%. Capital expenditure will largely remain the same as last year. At the end of the year, the monthly production capacity increases will also be similar to the previous year.
