Chinese chipmaker SMIC faces challenges amidst declining profits
- Semiconductor Manufacturing International Corp. (SMIC) posted a 55% decline in fourth-quarter profit
- Net profit fell to $174.7 million from $385.5 million in the same period a year ago
- Revenue for the quarter rose 3.5% to $1.68 billion
- Full-year net profit fell 50% to $902.5 million
- Full-year revenue fell 13% to $6.32 billion
- SMIC expects revenue growth in the mid-single-digit percentage for 2024
Semiconductor Manufacturing International Corp. (SMIC) reported a significant decline in fourth-quarter profit, with net profit falling to $174.7 million from $385.5 million in the same period a year ago. The company attributed the decline to higher costs of materials and parts. However, SMIC’s revenue for the quarter rose 3.5% to $1.68 billion, exceeding expectations. For the full year, net profit fell 50% to $902.5 million, while full-year revenue fell 13% to $6.32 billion. SMIC expects revenue growth in the mid-single-digit percentage for 2024, despite facing fierce competition and a challenging investment period.
Public Companies: Semiconductor Manufacturing International Corp. (0981.HK)
Private Companies:
Key People: Jiahui Huang (Author)
Factuality Level: 8
Justification: The article provides specific financial figures and statements from Semiconductor Manufacturing International Corp. It also includes comparisons to previous periods and analyst expectations, which adds credibility to the information. However, it does not provide any external sources or perspectives to verify the accuracy of the company’s claims.
Noise Level: 7
Justification: The article provides relevant information about Semiconductor Manufacturing International Corp.’s financial performance, including a decline in profit and rise in revenue. It also mentions the reasons behind these numbers, such as higher costs of materials and weak global demand. However, the article lacks in-depth analysis or insights into the long-term trends or consequences of these financial results. It also does not provide any actionable insights or solutions for the reader.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the semiconductor industry and the Chinese chipmaker, Semiconductor Manufacturing International Corp. (SMIC).
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article does not describe any extreme event. It primarily focuses on the financial performance and outlook of SMIC, a Chinese chipmaker.
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