SMIC's shares even low Zhang Rujing said prospects

The world's third largest foundry SMIC (SMIC) expected 2005 revenue growth will exceed 10%, and the future business development expressed optimism. Although recent SMIC's shares by the delay of the equipment and product selling prices continued to decline to reduce the impact of installation, but SMIC CEO Zhang Rujing said, in core international business performance gradually improved, the results for the third quarter over second quarter results, third quarter earnings higher than expected fourth quarter results and future orders outstanding.

It is understood that the new equipment will be formally launched in the fourth quarter, to meet the current supply gap of about 7000 production capacity. SMIC is expected to produce 8 inch factory in Tianjin and logic chips, is expected in 2005, the introduction of the plant will be 12 inches in the process of nano.

It is generally believed that Zhang Rujing's speech is aimed at the recent emergence of SMIC's share price hit a new low, enhance investor confidence. Since the third quarter of the average increase of products did not meet expectations, SMIC will estimate the gross profit is reduced from 12~15% to 7~9%, while shipments growth rate is also transferred to 6~7%, in September 27th the stock price fell to the lowest point in history, only HK $1.21 to HK $1.3, a slight rebound in September 29th.