New CEO Qiu Ci Yun greeting: SMIC's two-quarter loss

Morning Post reporter Zhou Ling intern Wang Yu International chief executive Chiu the mainland's largest chip on behalf of industrial and commercial core international integrated Circuit Manufacturing Co., Ltd. (00981.HK,NYSE:SMI, SMIC) in the second quarter to reproduce losses.　　According to a report released yesterday on the second quarter of June 30, SMIC, when revenue received $352.4 million, fell 4.9% from the 370.6 million dollar in the first quarter, down 5.9% from a year earlier.　　In the quarter, SMIC lost $3.8 million trillion and its net profit for the first quarter of this year was $10.2 million.　　SMIC yesterday dropped a 3.8% per cent drop in Hong Kong equities at HK $0.38, while the Hang Seng index fell 0.95% yesterday. SMIC has been on the market since 2004 and has made a profit only in the past 2010.　　In the first quarter of 2011, SMIC maintained a profit trend.　　SMIC has just had a human unrest ahead of its two quarterly earnings return. After the death of former board chairman Jiang in late June, the company appointed former vice minister of electronic industry Zhang as the new chairman.　　Last week, SMIC appointed chief executive of Shanghai Huahong NEC Electronics Co., Chiu, as the new CEO, to take over the resignation of Wang in July. In the face of losses, Chiu, who has just served as SMIC's chief executive, said management was concerned that the overall economic situation might not be as good as it had been a few months ago, "the company has not changed its strategy significantly, but will be more focused on profitability, and I will need some time to form a business plan Tseng, chief financial officer of SMIC, said: "The decline in the second quarter was due in part to the transition of our clients to 65 nm and 45 nm, with a greater reason for unexpected customer-planned changes, including the fact that some customers skipped 65 nm technology directly to develop 45 nm technology, and a customer gave up their low-end baseband business. However, we will continue to launch the new 65-NM film. "SMIC before the personnel turmoil has affected the confidence of customers, coupled with customer sudden change in product demand, weak market demand, various adverse factors fear the impact of the second half of the core international performance."　　Tseng said business was expected to be weaker in the third quarter. SMIC expects third-quarter revenues to fall 14% to 17% from the second quarter, according to Xinhua's overseas financial report. The company also expects gross margin in the third quarter to be 0% to 3%.　　SMIC's profit margin for the second quarter was 14.3%, down from 18.6% in the first quarter.　　Chiu said that the current capacity to start the rate is low, if you want to achieve break-even, the need to start the rate of 85% to 90%.　　Chiu also said that SMIC has recognized the severity of the current macroeconomic situation, will start to reduce costs and accelerate technology and new product development. Tseng said the company had cut its capital spending plan this year from $1 billion trillion to $800 million as a result of the recent market slump.