SMIC profit soars to US$256m

Semiconductor Manufacturing International (0981) said third-quarter net profit rose 211 percent year-on-year to US$256.4 million (HK$2.06 billion).

Basic earnings per share were 4 US cents.

Revenue rose 32.6 percent to US$1.08 billion as of the end of September. The gross profit margin fell 2.3 percentage points to 24.2 percent from a quarter ago.

The group expects revenue in the fourth quarter to decrease by 10 to 12 percent quarter-on-quarter. Meanwhile, the gross margin to 16 to 18 percent.

The company said it continues to evaluate the overall impact of US export restrictions on its production and operations. The company is operating as usual, and though the export restrictions will have an impact, in the near-term, they are believed to be manageable.

Meanwhile, FLH Mobile (2038) turned a profit to loss to US$13.77 million in the third quarter.

Third-quarter revenue and other operating revenue fell 38.5 percent year-on-year to US$2.55 billion.

For the first nine months, revenue slumped 40.9 percent and recorded a net loss of US$115 million. In the same period of 2019, the company lost US$63.8 million.

The company expects an overall decline in mobile phone demand.