SMIC's net profit spikes 18.7% to $198.5m in 1H16

On the back or robust water shipment segment.

Singapore-listed Semiconductor Manufacturing International Corporation (SIMC) has posted strong numbers for their half-year results.

For 1H16, SIMC recorded an 18.7% net profit increase from $167.3 million during the same period last year to $198.5 million.

Its revenue climbed up 25.4% from $1.43bn in the same period last year to $1.8bn.

The strong half-year results were mainly due to an increase in water shipments during the period, with shipments skyrocketing 26.6% to from 1,423,861 8-inch wafer equivalents to 1,803,170.

And while its cost of sales increased by 30.5% its gross profit remained strong, posting a 13.9% improvement to $504.2 million.

However, its gross margin dipped 28.1%, mainly due to the high manufacturing costs from the majority-owned fab in Beijing which entered into mass production late last year.

The group's profit from operations also registered an increase to $246.4 million.

"This due to the combined effect of an increase in wafer shipment, a decrease in accrued employee bonus, and higher gain realized from the partial disposal of the living quarters in Beijing in the first half of 2016 partially offset by an increase in R&D activities," the group said.