Smic's second-quarter results show that the fiscal second quarter was $690.2 million, rose 8.8%, up 26.3% from a year earlier. Belongs to smic's profit of $97.6 million, while a quarter was $61.4 million, $76.7 million a year earlier.

The second quarter:

Revenue of $690.2 million, compared with $634.3 million in the first quarter of growth of 8.8%, 26.3% growth compared with the $546.6 million a year earlier.

Gross margin was 31.6%, while a quarter of 24.2%, from 32.3% a year earlier.

Operating profit of $115.4 million, while a quarter of $66.1 million, $60.7 million a year earlier.

Belongs to smic's profit of $97.6 million, while a quarter was $61.4 million, $76.7 million a year earlier.

The third quarter outlook:

Smic is expected,

Third fiscal revenue will rise from 8% to 11%;

The gross profit margin will reach 28% to 30%;

Based on the general accounting principles, operating costs will be $140 million to $145 million;

Non-controlling interests from the subsidiary will be $4 million to $6 million.

Chief executive officer and executive director Dr Chiu, commented: "in the second quarter of the core is still outstanding, high income, gross margin and operating profits are innovation, 17th consecutive quarterly profit. Income reached a record $690.2 million, up 26.3% year on year, rose 8.8%. Gross margin and operating profit record, increased by 23.5% and 90.2% respectively compared to the same period, from increased by 41.7% and 41.7% respectively. In the context of quarterly, in the second quarter of the net assets yield reached 10%, capacity utilization rate of 98%. In 2015, our tax rates, depreciation and amortisation margins of about 35%; we now expects 2016 year-round tax rates, depreciation and amortisation margins increased than in 2015.

40 nm wafers revenue increased 92%, year-on-year growth of 27%. Revenue increased 28.7%, from China rose by 20.1%. China's surge in income mainly from three aspects: 1) the system of Chinese companies win the terminal market, 2) design companies in China to gain market share, 3) in the core of the market share growth. With ready technology, as one of the most popular Chinese contract partners, and has a strong market position in China, the core is actually hold a lot of opportunities.

We expected the third quarter will continue strong growth, in contrast to the seasonal weakness, we in the fourth quarter is expected to continue to grow, 2016 revenue will hit a new high. Customer demand will remain very strong. Given the strong demand, and the recent acquisition of LFoundry, we will now revenue forecast to between 25% and 29% this year.

In general, through the profit growth, cash generation and financing options carefully, we try our best to widen value. All our products are very strong demand, growth is strong, we have ample cash reserves, a strong market position, huge demand and great opportunities. We strive to balance the profit and growth for all of our stakeholders to build shareholder value, service to our customers.