Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORP |
Entity Central Index Key | 1,267,482 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 4,916,106,889 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENT OF PROFI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||
Revenue | $ 3,101,175 | $ 2,914,180 | $ 2,236,415 |
Cost of sales | (2,360,431) | (2,064,499) | (1,553,795) |
Gross profit | 740,744 | 849,681 | 682,620 |
Research and development expenses, net | (427,111) | (318,247) | (237,157) |
Sales and marketing expenses | (35,796) | (35,034) | (41,876) |
General and administration expenses | (197,899) | (157,371) | (213,177) |
Other operating income (expense), net | 44,957 | 177 | 31,594 |
Profit from operations | 124,895 | 339,206 | 222,004 |
Interest income | 27,090 | 11,243 | 5,199 |
Finance costs | (18,021) | (23,037) | (12,218) |
Foreign exchange gains or losses | (12,694) | (1,640) | (26,349) |
Other gains or losses, net | 16,499 | (2,113) | 55,611 |
Share of (loss) profit of investment using equity method | (9,500) | (13,777) | (13,383) |
Profit before tax | 128,269 | 309,882 | 230,864 |
Income tax benefit (expense) | (1,846) | 6,552 | (8,541) |
Profit for the year | 126,423 | 316,434 | 222,323 |
Items that may be reclassified subsequently to profit or loss | |||
Exchange differences on translating foreign operations | 23,213 | (19,031) | (8,185) |
Change in value of available-for-sale financial assets | (2,381) | 807 | 452 |
Cash flow hedges | 35,143 | (34,627) | |
Share of other comprehensive income of joint ventures accounted for using equity method | 17,646 | ||
Others | (131) | 1 | 130 |
Items that will not be reclassified to profit or loss | |||
Actuarial gains or losses on defined benefit plans | (436) | 1,520 | |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Profit (loss) for the year attributable to: | |||
Owners of the Company | 179,679 | 376,630 | 253,411 |
Non-controlling interests | (53,256) | (60,196) | (31,088) |
Profit for the year | 126,423 | 316,434 | 222,323 |
Total comprehensive income (loss) for the year attributable to: | |||
Owners of the Company | 251,135 | 326,191 | 245,803 |
Non-controlling interests | (51,658) | (61,087) | (31,083) |
Total comprehensive income (loss) for the year | $ 199,477 | $ 265,104 | $ 214,720 |
Earnings per share | |||
Basic (in dollars per share) | $ 0.04 | $ 0.09 | $ 0.07 |
Diluted (in dollars per share) | $ 0.04 | $ 0.08 | $ 0.06 |
CONSOLIDATED STATEMENT OF PROF3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Parenthetical) | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Dec. 07, 2016$ / shares | Dec. 06, 2016$ / shares | Dec. 31, 2015$ / shares |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||||
Share consolidation ratio | 10 | ||||
Par value per share | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 | $ 0.004 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION $ in Thousands, € in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Non-current assets | |||
Property, plant and equipment | $ 6,523,403 | $ 5,687,357 | $ 3,903,818 |
Land use right | 97,477 | 99,267 | 91,030 |
Intangible assets | 219,944 | 248,581 | 224,279 |
Investments in associates | 758,241 | 240,136 | 181,331 |
Investments in joint ventures | 31,681 | 14,359 | 17,646 |
Deferred tax assets | 44,875 | 45,981 | 44,942 |
Derivative financial instrument | 32,894 | 30,173 | |
Other financial assets | 17,598 | ||
Restricted cash | 13,438 | 20,080 | |
Other assets | 42,810 | 42,870 | 32,078 |
Total non-current assets | 7,749,467 | 6,431,525 | 4,525,297 |
Current assets | |||
Inventories | 622,679 | 464,216 | 387,326 |
Prepayment and prepaid operating expenses | 34,371 | 27,649 | 40,184 |
Trade and other receivables | 616,308 | 645,822 | 499,846 |
Other financial assets | 683,812 | 31,543 | 282,880 |
Restricted cash | 336,043 | 337,699 | 302,416 |
Cash and cash equivalent | 1,838,300 | 2,126,011 | 1,005,201 |
Total current assets other than non-current assets or assets classified as held-for-sale | 4,131,513 | 3,632,940 | 2,517,853 |
Assets classified as held-for-sale | 37,471 | 50,813 | 72,197 |
Total current assets | 4,168,984 | 3,683,753 | 2,590,050 |
Total assets | 11,918,451 | 10,115,278 | 7,115,347 |
Capital and reserves | |||
Ordinary shares, $0.004 par value, 10,000,000,000 shares authorized, 4,916,106,889, 4,252,922,259 and 4,207,374,896 shares issued and outstanding at December 31, 2017, 2016 and 2015, respectively | 19,664 | 17,012 | 16,830 |
Share premium | 4,827,619 | 4,950,948 | 4,903,861 |
Reserves | 134,669 | 93,563 | 96,644 |
Retained earnings (accumulated deficit) | 187,008 | (910,849) | (1,287,479) |
Equity attributable to owners of the Company | 5,168,960 | 4,150,674 | 3,729,856 |
Perpetual subordinated convertible securities | 64,073 | ||
Non-controlling interests | 1,488,302 | 1,252,553 | 460,399 |
Total equity | 6,721,335 | 5,403,227 | 4,190,255 |
Non-current liabilities | |||
Borrowings | 1,743,939 | 1,233,594 | 416,036 |
Convertible bonds | 403,329 | 395,210 | |
Bonds payable | 496,689 | 494,909 | 493,207 |
Medium-term notes | 228,483 | 214,502 | |
Deferred tax liabilities | 16,412 | 15,382 | 7,293 |
Deferred government funding | 299,749 | 265,887 | 175,604 |
Other financial liabilities | 1,919 | 74,170 | |
Other liabilities | 99,817 | 37,497 | 65,761 |
Total non-current liabilities | 3,290,337 | 2,731,151 | 1,157,901 |
Current liabilities | |||
Trade and other payables | 1,050,460 | 940,553 | 1,047,766 |
Borrowings | 440,608 | 209,174 | 113,068 |
Short-term notes | 86,493 | ||
Convertible bonds | 391,401 | 392,632 | |
Deferred government funding | 193,158 | 116,021 | 79,459 |
Accrued liabilities | 180,912 | 230,450 | 132,452 |
Other financial liabilities | 744 | 6,348 | 1,459 |
Current tax liabilities | 270 | 460 | 355 |
Other liabilities | 40,627 | ||
Total current liabilities | 1,906,779 | 1,980,900 | 1,767,191 |
Total liabilities | 5,197,116 | 4,712,051 | 2,925,092 |
Total equity and liabilities | $ 11,918,451 | $ 10,115,278 | $ 7,115,347 |
CONSOLIDATED STATEMENT OF FINA5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 07, 2016 | Dec. 06, 2016 | Dec. 31, 2015 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||||
Ordinary shares, par value (in dollars per share) | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 | $ 0.004 |
Ordinary shares, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||
Ordinary shares, shares issued (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 | ||
Ordinary shares, shares outstanding (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Ordinary shares | Share premium | Equity-settled employee benefits reserve | Foreign currency translation reserve | Change in value of available-for-sale financial assets | Convertible bonds equity reserve | Defined benefit plan reserve | Cash flow hedges | Share of other comprehensive income of joint ventures accounted for using equity method | Others | Accumulated deficit | Attributable to owner of the Company | Perpetual subordinated convertible securities | Non-controlling interest | Total |
Balance at beginning of year at Dec. 31, 2014 | $ 14,342 | $ 4,376,630 | $ 64,540 | $ 4,229 | $ 29,564 | $ (1,540,890) | $ 2,948,415 | $ 359,307 | $ 3,307,722 | ||||||
Profit for the year | 253,411 | 253,411 | (31,088) | 222,323 | |||||||||||
Other comprehensive income (losses) for the year | (8,185) | $ 447 | $ 130 | (7,608) | 5 | (7,603) | |||||||||
Total comprehensive income (loss) for the year | (8,185) | 447 | 130 | 253,411 | 245,803 | (31,083) | 214,720 | ||||||||
Issuance of ordinary shares | 2,395 | 506,412 | 508,807 | 508,807 | |||||||||||
Exercise of stock options | 93 | 20,819 | (12,169) | 8,743 | 8,743 | ||||||||||
Share-based compensation | 18,088 | 18,088 | 241 | 18,329 | |||||||||||
Capital contribution from non-controlling interests | 132,082 | 132,082 | |||||||||||||
Deconsolidation of subsidiaries due to loss of control | (148) | (148) | |||||||||||||
Subtotal | 2,488 | 527,231 | 5,919 | 535,638 | 132,175 | 667,813 | |||||||||
Balance at end of year at Dec. 31, 2015 | 16,830 | 4,903,861 | 70,459 | (3,956) | 447 | 29,564 | 130 | (1,287,479) | 3,729,856 | 460,399 | 4,190,255 | ||||
Profit for the year | 376,630 | 376,630 | (60,196) | 316,434 | |||||||||||
Other comprehensive income (losses) for the year | (18,131) | 798 | $ 1,520 | $ (34,627) | 1 | (50,439) | (891) | (51,330) | |||||||
Total comprehensive income (loss) for the year | (18,131) | 798 | 1,520 | (34,627) | 1 | 376,630 | 326,191 | (61,087) | 265,104 | ||||||
Exercise of stock options | 140 | 36,064 | (18,594) | 17,610 | 17,610 | ||||||||||
Share-based compensation | 13,838 | 13,838 | 372 | 14,210 | |||||||||||
Capital contribution from non-controlling interests | 831,254 | 831,254 | |||||||||||||
Conversion options of convertible bonds exercised during the year | 42 | 11,023 | (821) | 10,244 | 10,244 | ||||||||||
Recognition of equity component of convertible bonds | 52,935 | 52,935 | 52,935 | ||||||||||||
Business combination | 21,615 | 21,615 | |||||||||||||
Subtotal | 182 | 47,087 | (4,756) | 52,114 | 94,627 | 853,241 | 947,868 | ||||||||
Balance at end of year at Dec. 31, 2016 | 17,012 | 4,950,948 | 65,703 | (22,087) | 1,245 | 81,678 | 1,520 | (34,627) | 131 | (910,849) | 4,150,674 | 1,252,553 | 5,403,227 | ||
Profit for the year | 179,679 | 179,679 | (53,256) | 126,423 | |||||||||||
Other comprehensive income (losses) for the year | 21,590 | (2,356) | (436) | 35,143 | $ 17,646 | (131) | 71,456 | 1,598 | 73,054 | ||||||
Total comprehensive income (loss) for the year | 21,590 | (2,356) | (436) | 35,143 | 17,646 | $ (131) | 179,679 | 251,135 | (51,658) | 199,477 | |||||
Issuance of ordinary shares | 966 | 325,174 | 326,140 | 326,140 | |||||||||||
Exercise of stock options | 130 | 35,178 | (18,220) | 17,088 | 17 | 17,105 | |||||||||
Share-based compensation | 17,495 | 17,495 | 719 | 18,214 | |||||||||||
Capital contribution from non-controlling interests | 294,000 | 294,000 | |||||||||||||
Conversion options of convertible bonds exercised during the year | 1,556 | 427,168 | (29,625) | 399,099 | 399,099 | ||||||||||
Perpetual subordinated convertible securities | $ 64,073 | 64,073 | |||||||||||||
Share premium reduction | (910,849) | 910,849 | |||||||||||||
Effect of transfer of business operation | 7,329 | 7,329 | (7,329) | ||||||||||||
Subtotal | 2,652 | (123,329) | (725) | (29,625) | 918,178 | 767,151 | 64,073 | 287,407 | 1,118,631 | ||||||
Balance at end of year at Dec. 31, 2017 | $ 19,664 | $ 4,827,619 | $ 64,978 | $ (497) | $ (1,111) | $ 52,053 | $ 1,084 | $ 516 | $ 17,646 | $ 187,008 | $ 5,168,960 | $ 64,073 | $ 1,488,302 | $ 6,721,335 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Profit for the year | $ 126,423 | $ 316,434 | $ 222,323 |
Adjustments for: | |||
Income tax (benefit) expense | 1,846 | (6,552) | 8,541 |
Amortization of intangible assets and land use right | 65,348 | 56,705 | 50,541 |
Depreciation of property, plant and equipment | 906,034 | 673,161 | 473,008 |
Expense recognized in respect of equity-settled share-based payments | 18,214 | 14,210 | 18,329 |
Interest income recognized in profit or loss | (27,090) | (11,243) | (5,199) |
Finance costs | 18,021 | 23,037 | 12,218 |
Gain on disposal of associates | (18,884) | ||
Gain on disposal of available for sale investment | (387) | ||
Loss (gain) on disposal of property, plant and equipment and assets classified as held-for-sale | (17,513) | 1,846 | (28,949) |
Loss on deconsolidation of subsidiaries | 57 | ||
Bad debt allowance on trade receivables | 301 | 201 | 528 |
Impairment loss recognized (reversed) on inventory | 46,857 | 3,706 | (13,338) |
Impairment loss recognized on property, plant and equipment | 7,529 | ||
Net (gain) loss arising on financial instruments at fair value through profit or loss | (6,890) | 7,617 | (51,375) |
Net (gain) loss on foreign exchange | 26,101 | (26,236) | 15,608 |
Reversal of bad debt allowance on trade and other receivables | (438) | (10,412) | (541) |
Share of loss (profit) of investment using equity method | 9,500 | 13,777 | 13,383 |
Other non-cash loss (gain) | 175 | ||
Operating cash flows before movements in working capital: | 1,147,830 | 1,063,955 | 714,747 |
Increase in trade and other receivables | 59,084 | (100,980) | (39,902) |
Increase in inventories | (205,320) | (51,344) | (57,947) |
Increase in restricted cash relating to operating activities | (81,795) | (147,834) | (16,675) |
Decrease (increase) in prepaid operating expenses | (6,722) | 17,615 | (856) |
Decrease (increase) in other assets | 2,938 | 1,576 | (6,476) |
Increase in trade and other payables | 109,374 | 59,046 | 39,096 |
Increase in deferred government funding | 110,999 | 126,845 | 8,280 |
(Decrease) increase in accrued liabilities and other liabilities | (40,604) | 25,031 | 49,928 |
Cash generated from operations | 1,095,784 | 993,910 | 690,195 |
Interest paid | (34,086) | (27,497) | (26,174) |
Interest received | 19,425 | 12,464 | 4,894 |
Income taxes (paid) received | (437) | (1,675) | 282 |
Net cash generated from operating activities | 1,080,686 | 977,202 | 669,197 |
Investing activities | |||
Payments to acquire financial assets | (829,371) | (917,272) | (2,412,259) |
Proceeds on sale of financial assets | 186,509 | 1,175,768 | 2,782,181 |
Payments for property, plant and equipment | (2,287,205) | (2,757,202) | (1,230,812) |
Proceeds from disposal of property, plant and equipment | 688,192 | 259,799 | 87,890 |
Proceeds from disposal of joint ventures and available-for-sale investment | 1,028 | 5,523 | 1,204 |
Payments for intangible assets | (43,755) | (85,729) | (29,384) |
Payments for land use rights | (9,265) | ||
Payments to acquire long-term investment | (467,885) | (87,645) | (160,777) |
Change in restricted cash relating to investing activities | 90,093 | 34,614 | 181,963 |
Net cash outflow from deconsolidation of subsidiaries | (297) | ||
Payment for business combination | (73,216) | ||
Distributions received from joint ventures | 255 | 2,027 | |
Net cash used in investing activities | (2,662,139) | (2,443,333) | (789,556) |
Financing activities | |||
Proceeds from borrowings | 1,194,659 | 1,239,265 | 341,176 |
Repayment of borrowings | (537,016) | (228,928) | (453,730) |
Proceeds from issuance of new shares | 326,351 | 508,807 | |
Proceeds from issuance of convertible bonds | 441,155 | ||
Proceeds from issuance of short-term and medium-term notes | 314,422 | ||
Repayment of short-term notes | (87,858) | ||
Proceeds from issuance of perpetual subordinated convertible securities | 64,350 | ||
Proceeds from exercise of employee stock options | 17,105 | 17,610 | 8,743 |
Proceeds from non-controlling interests-capital contribution | 294,000 | 831,254 | 132,082 |
Net cash from financing activities | 1,271,591 | 2,614,778 | 537,078 |
Net increase in cash and cash equivalent | (309,862) | 1,148,647 | 416,719 |
Cash and cash equivalent at the beginning of the year | 2,126,011 | 1,005,201 | 603,036 |
Effects of exchange rate changes on the balance of cash held in foreign currencies | 22,151 | (27,837) | (14,554) |
Cash and cash equivalent at the end of the year | $ 1,838,300 | $ 2,126,011 | $ 1,005,201 |
General information
General information | 12 Months Ended |
Dec. 31, 2017 | |
General information | |
General information | 1. General information Semiconductor Manufacturing International Corporation (the “Company” or “SMIC”) was established as an exempt company incorporated under the laws of the Cayman Islands on April 3, 2000. The address of the principal place of business is 18 Zhangjiang Road, Pudong New Area, Shanghai, China, 201203. The registered address is at PO Box 309, Ugland House, Grand Cayman, KY1‑1104 Cayman Islands. Semiconductor Manufacturing International Corporation is an investment holding company. Semiconductor Manufacturing International Corporation and its subsidiaries (hereinafter collectively referred to as the “Group”) are mainly engaged in the computer-aided design, manufacturing, testing, packaging, and trading of integrated circuits and other semiconductor services, as well as designing and manufacturing semiconductor masks. The principal subsidiaries and their activities are set out in Note 18. These financial statements are presented in US dollars, unless otherwise stated. |
Application of new and revised
Application of new and revised International Financial Reporting Standards ("IFRSs") | 12 Months Ended |
Dec. 31, 2017 | |
Application of new and revised International Financial Reporting Standards ("IFRSs") | |
Application of new and revised International Financial Reporting Standards ("IFRSs") | 2. Application of new and revised International Financial Reporting Standards (“IFRSs”) (a) New and revised IFRSs that are mandatorily effective for the year ended December 31, 2017 In the current year, the Group has adopted the following amendments to IFRSs that are mandatorily effective for an accounting period that begins on or after January 1, 2016. Such adoption did not have a material effect on the Group’s consolidated financial statements. Amendment to IAS 7 “Statement of cash flows” The amendment introduces an additional disclosure that will enable users of financial statements to evaluate changes in liabilities arising from financing activities. This amendment is effective for an entity’s annual IFRS financial statements for a period beginning on or after 1 January 2017, with earlier application permitted. Amendments to IAS 12 “Income taxes” The amendments clarify how to account for deferred tax assets related to debt instruments measured at fair value. This amendment is effective for an entity’s annual IFRS financial statements for a period beginning on or after January 1, 2017, with earlier application permitted. None of the above amendments to IFRSs has had a significant financial effect on these financial statements. Disclosure has been made in note 41 to the consolidated financial statements upon the adoption of amendments to IAS 7, which require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. (b) The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective: New or revised IFRS Effective date IFRS 9 — Financial Instruments On or after January 1, 2018 IFRS 15 — Revenue from contracts with customers On or after January 1, 2018 Amendments to IFRS 2 – Classification and measurement of share-based payment transactions On or after January 1, 2018 Amendments to IAS 28 – Investments in associates and joint ventures On or after January 1, 2018 IFRS 16 — Lease On or after January 1, 2019 IFRS 17 - Insurance Contracts On or after January 1, 2021 Amendments to IFRS 10 and IAS 28 — Sale or contribution of assets between an investor and its association or joint venture Not yet determined IFRIC 22 — Foreign Currency Transactions and Advance Consideration On or after January 1, 2018 IFRIC 23 — Uncertainty over Income Tax Treatments On or after January 1, 2019 The new IFRS 9 standard addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. Classification and measurement (i) Financial assets The Group has assessed that its financial assets currently measured at amortized cost and fair value through profit or loss (“FVTPL”) will continue with their respective classification and measurements upon the adoption of IFRS 9. With respect to the Group’s financial assets currently classified as available-for-sale, these are investments in equity securities which the Group may classify as either FVTPL or irrevocably elect to designate as fair value through comprehensive income (“FVOCI”) on transition to IFRS 9. If the equity security is not held for trading and the entity irrevocably elects to designate that security as FVTOCI, gains or losses realised on the sale of financial assets at FVOCI will no longer be transferred to profit or loss on sale, but instead reclassified below the line from the FVOCI reserve to retained earnings. At December 31, 2017, the Group held available-for-sale equity investments at cost and at FVTOCI amounted to US$24.8 million (Note 23). The Group plans to recognise any fair value changes in respect of all the available-for-sale equity investments in profit or loss (i.e. FVTPL) as they arise. This will give rise to a change in accounting policies as before adopting IFRS 9, the Group only recognises the fair value changes of available-for-sale equity investments measured at FVTOCI in other comprehensive income until disposal or impairment, when gains or losses are recycled to profit or loss in accordance with the Group’s policies. This change in policy will have no impact on the Group’s net assets and total comprehensive income, but will increase volatility in profit or loss in 2018. The Group does not expect that the adoption of IFRS 9 will have a significant impact on the classification and measurement of its financial assets. (ii) Financial Liabilities The classification and measurement requirements for financial liabilities under IFRS 9 are largely unchanged from IAS 39, except that IFRS 9 requires the fair value change of an financial liability designated at FVTPL that is attributable to changes of that financial liability’s credit risk to be recognized in other comprehensive income (without reclassification to profit or loss). The Group does not expect that the adoption of IFRS 9 will have a significant impact on the classification and measurement of its financial liabilities. Hedge accounting The new hedge accounting rules will align the accounting for hedging instruments more closely with the group’s risk management practices. As a general rule, more hedge relationships might be eligible for hedge accounting, as the standard introduces a more principles-based approach. The group has confirmed that its current hedge relationships will qualify as continuing hedges upon the adoption of IFRS 9. The Group does not expect that the adoption of IFRS 9 will have a significant impact on the accounting for hedging relationships. Impairment The new impairment model requires the recognition of impairment provisions based on expected credit losses (“ECL”) rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at amortized cost, debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. This new impairment model may result in an earlier recognition of credit losses on the Group’s trade receivables and other financial assets. The Group has assessed how its impairment provisions would be affected by the new model. So far it has concluded that there would be no material impact for the application of the new impairment requirements. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the group’s disclosures about its financial instruments particularly in the year of the adoption of the new standard. IFRS 9 is effective for annual periods beginning on or after January 1, 2018 on a retrospective basis. Comparatives for 2017 will not be restated, except in relation to changes in the fair value of foreign exchange forward contracts attributable to forward points, which will be recognized in the costs of hedging reserve. The new IFRS 15 standard establishes a single revenue recognition framework. The core principle of the framework is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. IFRS 15 supersedes existing revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. IFRS 15 requires the application of a 5 steps approach to revenue recognition: - Step 1: Identify the contract(s) with a customer - Step 2: Identify the performance obligations in the contract - Step 3: Determine the transaction price - Step 4: Allocate the transaction price to each performance obligation - Step 5: Recognize revenue when each performance obligation is satisfied IFRS 15 includes specific guidance on particular revenue related topics that may change the current approach taken under IFRS. The standard also significantly enhances the qualitative and quantitative disclosures related to revenue. The standard permits either a full retrospective method to each prior reporting period presented or a modified retrospective approach with the cumulative effect of initially applying the guidance recognized at the date of initial application. In 2017, the Group has performed a detailed assessment on the impact of the adoption of IFRS 15 and decided to adopt a modified retrospective approach. The expected changes in accounting policies will not have any significant impact on the Group’s financial statements. IFRS 16 will result in almost all leases being recognized on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. The accounting for lessors will not significantly change. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Early application is permitted, but not before an entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provision permit certain reliefs. In 2018, the Group will continue to assess the potential effect of IFRS 16 on its consolidated financial statements. The Group is in the process of evaluating the impact of the new standards or amendments on its consolidated financial statements. There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies Statement of compliance The consolidated financial statements have been prepared in accordance with all applicable IFRS issued by the IASB. In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as explained in the accounting policies set out below. The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand, except when otherwise indicated. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. The principal accounting policies are set out below. Basis of consolidation The consolidated financial statements incorporate the financial statements of the Group and entities (including structured entities) controlled by the Group. Control is achieved when the Group: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including: · the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Group, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non- controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. Separate Principal Statement Investments in subsidiaries are accounted for at the equity method in accordance with IAS 27 and IAS 28. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the group’s share of movements in other comprehensive income of the investee in other comprehensive income. When the group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Investments in associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, investments in associates are initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associates. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of that associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. The difference between the recoverable amount and the carrying amount is recognized as impairment loss in the profit or loss. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held-for-sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. In accordance with IAS 39, when the financial statements of an associate used in applying the equity method are prepared as of a different reporting date from that of the Group, adjustments are made by the Group for the effects of significant transactions or events. In no circumstances can the difference between the reporting date of the associate and that of the Group be more than three months and the length of the reporting periods and any difference in the reporting dates are the same from period to period. Investments in joint ventures The Group has applied IFRS 11 to all joint arrangements. Under IFRS 11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income. The Group’s investments in joint ventures include goodwill identified on acquisition. Upon the acquisition of the ownership interest in a joint venture, any difference between the cost of the joint venture and the Group’s share of the net fair value of the joint venture’s identifiable assets and liabilities is accounted for as goodwill. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-current assets held-for-sale Non-current assets and disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets (and disposal groups) classified as held-for-sale are measured at the lower of their previous carrying amount and fair value less costs of disposal. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Sale of goods The Group manufactures semiconductor wafers for its customers based on the customers’ designs and specifications pursuant to manufacturing agreements and/or purchase orders. The Group also sells certain semiconductor standard products to customers. Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied: · the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; · the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; · the amount of revenue can be measured reliably; · it is probable that the economic benefits associated with the transaction will flow to the Group; and · the costs incurred or to be incurred in respect of the transaction can be measured reliably. Customers have the right of return within one year pursuant to warranty provisions. The Group typically performs tests of its products prior to shipment to identify yield rate per wafer. Occasionally, product tests performed after shipment identify yields below the level agreed with the customer. In those circumstances, the customer arrangement may provide for a reduction to the price paid by the customer or for the costs to return products and to ship replacement products to the customer. The Group estimates the amount of sales returns and the cost of replacement products based on the historical trend of returns and warranty replacements relative to sales as well as a consideration of any current information regarding specific known product defects at customers that may exceed historical trends. Gain on sale of real estate property Gain from sales of real estate property is recognized when all the following conditions are satisfied: 1) sales contract executed, 2) full payment collected, or down payment collected and non-cancellable mortgage contract is executed with borrowing institution, 3) and the respective properties have been delivered to the buyers. Interest income Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Foreign currencies Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Untied States dollar (“US dollar”), which is the Company’s functional and the Group’s presentation currency. In preparing the financial statements of each individual group entity transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into United States dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. Government funding Government funding is not recognized in profit or loss until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the funding will be received. Government funding relating to costs are deferred and recognized in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government funding relating to property, plant and equipment, whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets, are recognized as deferred income in the consolidated statements of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Government funding that is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related cost are recognized in profit or loss in the period in which they become receivable. Retirement benefits The Group’s local Chinese employees are entitled to a retirement benefit based on their salary and their length of service in accordance with a state- managed pension plan. The PRC government is responsible for the pension liability to these retired staff. The Group is required to make contributions to the state- managed retirement plan at a rate equal to 19.0% to 20.0% (the standard in Shenzhen site ranges from 13% to 14% according to Shenzhen government regulation) of the monthly basic salary of current employees. The Group has no further payment obligations once the contributions have been paid. The costs are recognized in profit or loss when incurred. Besides, LFoundry S.r.l. (“LFoundry”, the Company’s majority-owned subsidiary in Avezzano, Italy) employees are entitled to a retirement plan and a defined benefit plan. The liability recognized in the consolidated statement of financial position in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. Share-based payment arrangements Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 39. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve. When share options are exercised, the amount previously recognized in the reserve will be transferred to share premium. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated statements of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Property, plant and equipment Property, plant and equipment held for use in the production or supply of goods or services, or for administrative purposes, are stated in the consolidated statement of financial position at their costs, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. The Group constructs certain of its plant and equipment. In addition to costs under the construction contracts, external costs that are directly related to the construction and acquisition of such plant and equipment are capitalized. Depreciation is recorded at the time assets are ready for their intended use. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred. An item at property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Depreciation is recognized so as to write off the cost of items of property, plant and equipment other than properties under construction over their estimated useful lives, using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives are used in the calculation of depreciation. Buildings 25 years Plant and equipment 5–10 years Office equipment 3–5 years Leasehold equipment under finance leases Over the lease terms Land use right Land use rights, which are all located in the PRC, are recorded at cost and are charged to profit or loss ratably over the term of the land use agreements which range from 50 to 70 years. Intangible assets Acquired intangible assets which consists primarily of technology, licenses and patents, are carried at cost less accumulated amortization and any accumulated impairment loss. Amortization is computed using the straight-line method over the expected useful lives of the assets of three to ten years. The estimated useful life and amortization method are reviewed at the end of each reporting period, with effect of any changes in estimate being accounted for on a prospective basis. Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred is measured at the acquisition date fair value which is the sum of the acquisition date fair values of assets transferred by the Group, liabilities assumed by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of net assets in the event of liquidation at fair value or at the proportionate share of the acquiree’s identifiable net assets. All other components of non-controlling interests are measured at fair value. Acquisition-related costs are expensed as incurred. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts of the acquiree. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interests and any fair value of the Group’s previously held equity interests in the acquiree over the identifiable net assets |
Critical accounting judgments a
Critical accounting judgments and key sources of estimation uncertainty | 12 Months Ended |
Dec. 31, 2017 | |
Critical accounting judgments and key sources of estimation uncertainty | |
Critical accounting judgments and key sources of estimation uncertainty | 4. Critical accounting judgments and key sources of estimation uncertainty Critical accounting judgments In the application of the Group’s accounting policies, which are described in Note 3, the Group is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Inventories Inventories are stated at the lower of cost (weighted average) or net realizable value (NRV), with NRV being the “estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale”. The Group estimates the recoverability for such finished goods and work-in-progress based primarily upon the latest invoice prices and current market conditions. If the NRV of an inventory item is determined to be below its carrying value, the Group records a write-down to cost of sales for the difference between the carrying cost and NRV. Long-lived assets The Group assesses the impairment of long-lived assets when events or changes in circumstances indicate that the carrying value of asset or cash- generating unit (“CGU”) may not be recoverable. Factors that the Group considers in deciding when to perform an impairment review include, but are not limited to significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. An impairment analysis is performed at the lowest level of identifiable independent cash flows for an asset or CGU. An impairment exists when the carrying value of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The Group makes subjective judgments in determining the independent cash flows that can be related to a specific CGU based on its asset usage model and manufacturing capabilities. The Group measures the recoverability of assets that will continue to be used in the Group’s operations by comparing the carrying value of CGU to the Group’s estimate of the related total future discounted cash flows. If a CGU’s carrying value is not recoverable through the related discounted cash flows, the impairment loss is measured by comparing the difference between the CGU’s carrying value and its recoverable amount, based on the best information available, including market prices or discounted cash flow analysis. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate and sales margin used for extrapolation purposes. In order to remain technologically competitive in the semiconductor industry, the Group has entered into technology transfer and technology license arrangements with third parties in an attempt to advance the Group’s process technologies. The payments made for such technology licenses are recorded as an intangible asset or as a deferred cost and amortized on a straight-line basis over the estimated useful life of the asset. The Group routinely reviews the remaining estimated useful lives of these intangible assets and deferred costs. The Group also evaluates these intangible assets and deferred costs for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. When the carrying amounts of such assets are determined to exceed their recoverable amounts, the Group will impair such assets and write down their carrying amounts to recoverable amount in the year when such determination was made. Share-based Compensation Expense The fair value of options and shares issued pursuant to the Group’s option plans at the grant date was estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the expected term of the options, the estimated forfeiture rates and the expected stock price volatility. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Group estimated forfeiture rates using historical data to estimate option exercise and employee termination within the pricing formula. The Group uses projected volatility rates based upon the Group’s historical volatility rates. These assumptions are inherently uncertain. Different assumptions and judgments would affect the Group’s calculation of the fair value of the underlying ordinary shares for the options granted, and the valuation results and the amount of share-based compensation would also vary accordingly. Further details on share-based compensation are disclosed in Note 39. Taxes Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the Group companies. Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with tax planning strategies. The realizability of the deferred tax asset mainly depends on whether sufficient profits or taxable temporary differences will be available in the future. In cases where the actual future profits generated are less than expected, a material reversal of deferred tax assets may arise, which would be recognized in profit or loss for the period in which such a reversal takes place. Fair value of financial instruments Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. The Group uses valuation techniques that include inputs that are not based on observable market data to estimate the fair value of certain types of financial instruments. Notes 40 provide detailed information about the valuation techniques, inputs and key assumptions used in the determination of the fair value of various assets and liabilities. Impairment of trade and other receivable The Group assesses at the end of each reporting period whether there is any objective evidence that trade and other receivable is impaired. To determine whether there is objective evidence of impairment, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. When there is objective evidence of impairment loss, the Group takes into consideration the estimation of future cash flows. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (that is, the effective interest rate computed at initial recognition). Where the actual future cash flows are less than expected, a material impairment loss may arise. The carrying amount of the Group’s trade and other receivable at the end of the reporting period is disclosed in Note 25. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment information | |
Segment information | 5. Segment information The Group is engaged principally in the computer-aided design, manufacturing and trading of integrated circuits. The Group’s chief operating decision makers have been identified as the Co-Chief Executive Officers, who review consolidated results when making decisions about resources allocation and assessing performance of the Group. The Group operates in one segment. The measurement of segment profits is based on profit from operation as presented in the statements of profit or loss and other comprehensive income. The Group operates in three principal geographical areas — United States, Europe, and Asia Pacific. The Group’s operating revenue from customers, based on the location of their headquarters, is detailed below. Revenue from external customers Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 United States(2) 1,240,906 858,858 776,223 Mainland China and Hong Kong 1,465,553 1,447,427 1,066,558 Eurasia(1) 394,716 607,895 393,634 3,101,175 2,914,180 2,236,415 (1) Not including Mainland China and Hong Kong (2) Presenting the revenue to those companies whose headquarters are in the United States, but ultimately selling products to their global customers. The Group’s operating revenue by product and service type is detailed below: Revenue from external customers Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Sales of wafers 3,038,947 2,803,819 2,134,943 Mask making, testing and others 62,228 110,361 101,472 3,101,175 2,914,180 2,236,415 The Group’s business is characterized by high fixed costs relating to advanced technology equipment purchases, which result in correspondingly high levels of depreciation expenses. The Group will continue to incur capital expenditures and depreciation expenses as it equips and ramps-up additional fabs and expand its capacity at the existing fabs. The following table summarizes property, plant and equipment of the Group by geographical location. Property, plant and equipment Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 United States 45 69 95 Europe(2) 137,778 125,339 5 Asia(1) 117 97 122 Hong Kong 2,618 2,839 3,040 Mainland China(2) 6,382,845 5,559,013 3,900,556 6,523,403 5,687,357 3,903,818 (1) Not including Mainland China and Hong Kong (2) Fabrication facilities are owned and operated only in Mainland China and Italy. |
Significant customers
Significant customers | 12 Months Ended |
Dec. 31, 2017 | |
Significant customers | |
Significant customers | 6. Significant customers The following table summarizes net revenue or gross accounts receivable for customers which accounted for 5% or more of net revenue and gross accounts receivable: Net revenue Gross accounts receivable Year ended December 31, December 31, Customer A 636,662 382,853 366,696 133,281 78,639 75,643 Customer B 538,102 609,802 324,267 95,575 129,619 50,068 Customer C 206,635 * * 28,521 * * Customer A 21 % 13 % 16 % 33 % 16 % 19 % Customer B 17 % 21 % 15 % 23 % 26 % 13 % Customer C 7 % * * 7 % * * * |
Other operating income (expense
Other operating income (expense), net | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income (expense), net | |
Other operating income (expense), net | 7. Other operating income (expense), net Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Gain (loss) on disposal of property, plant and equipment and assets classified as held-for-sale 17,513 (1,846) 28,949 Impairment loss recognized on property, plant and equipment — (7,529) — Government funding(Note 11.5) 27,444 9,542 2,697 Loss on deconsolidation of subsidiaries — — (57) Others — 10 5 44,957 177 31,594 The gain on disposal of property, plant and equipment and assets classified as held-for-sale for the year ended December 31, 2017 was primarily due to the gain arising from the disposal of equipment of which US$6.9 million was related to sale and lease back transactions as disclosed in Note 43. The loss on disposal of property, plant and equipment and assets classified as held-for-sale for the year ended December 31, 2016 was primarily due to the loss arising the disposal of equipment and the gain arising from the sales of the staff living quarters in Beijing to employees. The gain on disposal of property, plant and equipment and assets classified as held-for-sale for the year ended December 31, 2015 was primarily from the sales of the staff living quarters in Shanghai and Beijing to employees. |
Finance costs
Finance costs | 12 Months Ended |
Dec. 31, 2017 | |
Finance costs | |
Finance costs | 8. Finance costs Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Interest on: Bank and other borrowings 25,543 17,793 Interest on finance leases 232 62 — Interest on convertible bonds 15,818 16,352 13,238 Interest on corporate bonds 22,405 22,327 22,253 Interest on medium-term notes 8,185 4,625 — Interest on short-term notes 1,164 1,509 — Less: government funding (Note 11.5) (24,182) (11,639) (4,895) Total interest expense for financial liabilities not classified as at FVTPL 49,165 51,029 42,475 Less: amounts capitalized (31,144) (27,992) (30,257) 18,021 23,037 12,218 The weighted average effective interest rate on funds borrowed generally is 1.65% per annum (2016: 2.12% per annum and 2015: 3.75% per annum). |
Other gains or losses, net
Other gains or losses, net | 12 Months Ended |
Dec. 31, 2017 | |
Other gains or losses, net | |
Other gains or losses, net | 9. Other gains or losses, net Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Gain (loss) at fair value Cross currency swap contracts(Note 40) 2,150 (14,989) Derivative financial instrument(1) 1,544 2,721 30,173 Foreign currency forward contracts 2,109 — 172 Financial products sold by banks 1,087 4,651 22,489 Net gain (loss) arising on financial instruments at FVTPL 6,890 (7,617) 51,375 Others(2) 9,609 5,504 4,236 16,499 (2,113) 55,611 (1) The derivative financial instrument was a put option with the right of Siltech Semiconductor (Shanghai) Corporation Limited (“SilTech Shanghai”, an indirectly wholly-owned subsidiary of the Company) to sell Suzhou Changjiang Electric Xinke Investment Co., Ltd. (“Changjiang Xinke”) to Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”), pursuant to an investment exit agreement entered in December 2014 and exercised in June 2017. (2) Others included a gain of US$18.5 million arising from the disposal agreement and the subscription agreement (Note 19) entered by SilTech Shanghai and JCET on April 27, 2016, and a loss of potential cash compensation accrued at US $12.5 million that may be incurred depending on the profit of Changjiang Xinke during the three years of 2017, 2018 and 2019. The potential cash compensation was deemed as the terms of the supplemental agreement entered by SilTech Shanghai and JCET on December 9, 2016. Such gain and loss was recognized in 2017. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | |
Income taxes | 10. Income taxes Income tax expense (benefit) Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current tax — Enterprise Income Tax (469) 1,306 (47) Deferred tax 2,136 (8,589) 6,665 Current tax — Land Appreciation Tax 179 731 1,923 1,846 (6,552) 8,541 The income tax expense (benefit) for the year can be reconciled to the accounting profit as follows: Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Profit before tax 128,269 309,882 230,864 Income tax expense calculated at 15% (2016: 15% and 2015: 15%) 19,240 46,482 34,630 Effect of tax holiday (50,258) (41,484) (49,864) Additional deduction for research and development expenditures (25,260) (13,107) (4,619) Tax losses for which no deferred tax assets were recognized 70,341 39,777 25,732 Reversal (utilization) of previously unrecognized tax losses of temporary differences(1) 5,687 (43,440) (3,687) Effect of different tax rates of subsidiaries operating in other jurisdictions (18,082) 4,517 4,226 Others 26 82 488 Land Appreciation Tax (after tax) 152 621 1,635 1,846 (6,552) 8,541 The tax rate used for the 2017, 2016 and 2015 reconciliation above is the corporate tax rate of 15% payable by most of the Group’s entities in Mainland China under tax law in that jurisdiction. (1) In 2017, the Group reversed US$6.0 million previously recognized temporary differences, which will not be utilized and in 2016, the group utilized US$43.4 million previously unrecognized tax losses . Current tax liabilities 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Income tax payable 270 460 355 Deferred tax balances The following is the analysis of deferred tax assets (liabilities) presented in the consolidated statement of financial position: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Deferred tax assets Property, plant and equipment 41,271 45,981 44,523 Intangible Assets 1,844 — — Others 1,760 — 419 44,875 45,981 44,942 Deferred tax liabilities Capitalized interest — — (3) Property, plant and equipment (16,412) (15,382) (7,290) (16,412) (15,382) (7,293) 28,463 30,599 37,649 2017.12.31 Recognize Opening in profit Closing balance or loss balance USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 30,599 (5,740) 24,859 Capitalized interest — 1,844 1,844 Others — 1,760 1,760 30,599 (2,136) 28,463 2016.12.31 Recognize Opening Business in profit Closing balance Combination or loss balance USD’000 USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 37,233 (15,639) 9,005 30,599 Capitalized interest (3) — 3 — Others 419 — (419) — 37,649 (15,639) 8,589 30,599 2015.12.31 Recognize Opening in profit Closing balance or loss balance USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 43,859 (6,626) 37,233 Capitalized interest (69) 66 (3) Others 524 (105) 419 44,314 (6,665) 37,649 Under the Law of the People’s Republic of China (the “PRC”) on Enterprise Income Tax, or the EIT Law, the profits of a foreign invested enterprise arising in 2008 and beyond that distributed to its immediate holding company who is a non-PRC tax resident will be subject to a withholding tax rate of 10%. A lower withholding tax rate may be applied if there is a favorable tax treaty between mainland China and the jurisdiction of the foreign holding company. For example, holding companies in Hong Kong that are also tax residents in Hong Kong (which should have commercial substance and proceed the formal treaty benefit application with in-charge tax bureau) are eligible for a 5% withholding tax on dividends under the Tax Memorandum between China and the Hong Kong Special Administrative Region. The Company is incorporated in the Cayman Islands, where it is not currently subject to taxation. The EIT law (became effective on January 1, 2008) applies a uniform 25% enterprise income tax rate to both tax resident enterprise and non-tax resident enterprise, except where a special preferential rate applies. In addition, according to the law of Italy on enterprise income tax, LFoundry income tax (“IRES”) rate is 24%. Pursuant to Caishui Circular [2008] No. 1 (“Circular No. 1”) promulgated on February 22, 2008, integrated circuit production enterprises whose total investment exceeds RMB8,000 million (approximately US$1,095 million) or whose integrated circuits have a line width of less than 0.25 micron are entitled to a preferential tax rate of 15%. Enterprises with an operation period of more than 15 years are entitled to a full exemption from income tax for five years starting from the first profitable year after utilizing all prior years’ tax losses and 50% reduction of the tax for the following five years. Pursuant to Caishui Circular [2009] No. 69 (“Circular No. 69”), the 50% reduction should be based on the statutory tax rate of 25%. On January 28, 2011, the State Council of China issued Guofa [2011] No. 4 (“Circular No. 4”), the Notice on Certain Policies to Further Encourage the Development of the Software and Integrated Circuit Industries which reinstates the EIT incentives stipulated by Circular No. 1 for the software and integrated circuit enterprises. On April 20, 2012, State Tax Bureau issued CaiShui [2012] No. 27 (“Circular No. 27”), stipulating the income tax policies for the development of integrated circuit industry. Circular No. 1 was partially abolished by Circular No. 27 and the preferential taxation policy in Circular No. 1 was replaced by Circular No. 27. On July 25, 2013, State Tax Bureau issued [2013] No. 43 (“Circular No. 43”), clarifying that the accreditation and preferential tax policy of integrated circuit enterprise established before December 31, 2010, is applied pursuant to Circular No. 1. On May 4, 2016, State Tax Bureau, Ministry of Finance and other joint ministries issued Caishui [2016] No. 49 (“Circular No. 49”), which highlights the implementation of the record-filing system, clarification on certain criteria for tax incentive entitlement and establishment of a post-record filing examination mechanism and enhancement of post-administration. The detailed tax status of SMIC’s principal PRC entities with tax holidays is elaborated as follows: 1) Pursuant to the relevant tax regulations, SMIS is qualified as an integrated circuit enterprise and enjoyed a 10-year tax holiday (five year full exemption followed by five year half reduction) beginning from 2004 after utilizing all prior years’ tax losses. The income tax rate for SMIS for was 15% in 2017. (2016: 15% and 2015: 15%). 2) In accordance with Circular No. 43 and Circular No. 1, SMIT is qualified as an integrated circuit enterprise and enjoying a 10-year tax holiday (five year full exemption followed by five year half reduction) beginning from 2013 after utilizing all prior years’ tax losses. The income tax rate for SMIT was 0% from 2013 to 2017 and 12.5% from 2018 to 2022. 3) In accordance with Circular No. 43 and Circular No. 1, SMIB is qualified as an integrated circuit enterprise and enjoying a 10-year tax holiday (five year full exemption followed by five year half reduction) beginning from 2015 after utilizing all prior years’ tax losses. The income tax rate for SMIB was 0% from 2015 to 2019 and 12.5% from 2020 to 2024. 4) Semiconductor Manufacturing International (Shenzhen) Corporation (“SMIC Shenzhen”), Semiconductor Manufacturing North China (Beijing) Corporation (“SMNC”) and SJ Semiconductor (Jiangyin) Corporation (“SJ Jiangyin”) In accordance with Circular No. 43, Circular No. 1 and Circular No. 27, SMIC Shenzhen, SMNC and SJ Jiangyin are entitled to the preferential tax rate of 15% and 10-yeartax holiday (five year full exemption followed by five year half reduction) subsequent to its first profit-making year after utilizing all prior tax losses on or before December 31, 2017. SMIC Shenzhen, SMNC and SJ Jiangyin were in accumulative loss positions as of December 31, 2017 and the tax holiday has not begun to take effect. 5) Other PRC entities All the other PRC entities of SMIC are subject to income tax rate of 25%. Unused tax losses At the end of the reporting period, no deferred tax asset was recognized in respect of tax losses of US$235.1 million (December 31, 2016: US$444.0 million and December 31, 2015: US$577.3 million) due to the unpredictability of future profit streams, of which US$13.3 million, US$26.8 million, US$55.8 million, US$44.4 million and US$94.8 million will expire in 2018, 2019, 2020, 2021 and 2022, respectively. |
Profit for the year
Profit for the year | 12 Months Ended |
Dec. 31, 2017 | |
Profit for the year | |
Profit for the year | 11. Profit for the year Profit for the year has been arrived at after charging (crediting) 11.1 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Allowance on doubtful trade receivables (Note 25) 301 201 528 Reversal of allowance on doubtful trade receivables (Note 25) (438) (1,603) (541) Reversal of allowance on doubtful other receivables — (8,809) — (137) (10,211) (13) In 2017, the Group reversed a portion of the allowance on doubtful accounts due to collection of part of the trade and other receivables from customers. 11.2 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Depreciation of property, plant and equipment 906,034 673,161 473,008 Amortization of intangible assets and land use right 65,348 56,705 50,541 971,382 729,866 523,549 11.3 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Wages, salaries and social security contributions 499,238 378,709 299,267 Bonus 57,289 123,313 107,859 Paid annual leave — — 66 Non-monetary benefits 47,204 31,686 21,414 Equity-settled share-based payments (Note 39) 18,214 14,210 18,329 621,945 547,918 446,935 11.4 Year Ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Royalties expense 37,466 37,023 36,262 11.5 Government funding under specific R&D projects The Group received government funding (including those with primary condition that the Group should purchase, construct or otherwise acquire non-current assets) of US$178.3 million, US$181.1 million and US$40.2 million and recognized US$82.2 million US$52.5 million and US$34.3 million as reductions of certain R&D expenses in 2017, 2016 and 2015 for several specific R&D projects respectively. The government funding is recorded as a liability upon receipt and recognized as reduction of R&D expenses until the milestones specified in the terms of the funding have been reached. Government funding for specific intended use The Group received government funding of US$51.6 million, US$21.1 million and US$7.6 million in 2017, 2016 and 2015, respectively. The Group recognized US$24.2 million, US$11.6 million and US$4.9 million as reduction of interest expense (Note 8) and recognized US$27.4 million, US$9.5 million and US$2.7 million as other operating income (Note 7) in 2017, 2016 and 2015, respectively. The government funding is recorded as a liability upon receipt and recognized as reduction of interest expense or as other operating income until the requirements (if any) specified in the terms of the funding have been reached. 11.6 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Audit services 1,413 1,529 1,322 Non-audit services 85 587 65 . 1,498 2,116 1,387 |
Directors' remuneration
Directors' remuneration | 12 Months Ended |
Dec. 31, 2017 | |
Directors' remuneration | |
Directors' remuneration | 12. Directors’ remuneration Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Salaries 4,490 2,367 2,384 Equity-settled share-based payments 8,158 2,214 1,550 12,648 4,581 3,934 The equity-settled share-based payments granted to directors include both stock options and restricted share units (“RSUs”). During the year ended December 31, 2017, 5,726,477 options to purchase ordinary shares of the Company were granted to the directors, 1,949,229 stock options were exercised and no stock options were expired. During the year ended December 31, 2016, 1,068,955* stock options were granted to the directors, 1,800,000* stock options were exercised and 732,820* stock options were expired. During the year ended December 31, 2015, 3,091,724* stock options were granted to the directors, 1,835,343* stock options were exercised and 111,781* stock options were expired. During the year ended December 31, 2017, 5,726,477 RSUs to purchase ordinary shares of the Company were granted to the directors to the directors, 3,774,432 RSUs automatically vested and no RSUs were forfeited. During the year ended December 31, 2016, 1,068,955* RSUs were granted to the directors, 1,411,851* RSUs automatically vested and no RSUs were forfeited. During the year ended December 31, 2015, 1,080,499* RSUs were granted to the directors 1,237,783* RSUs automatically vested and no RSUs were forfeited. In 2017, 2016 and 2015, no emoluments were paid by the Group to any of the directors as an inducement to join or upon joining the Group or as compensation for loss of office. Except for the waiver of all options previously granted to Ren Kai subject to his request on February 18, 2016, no directors waived any emoluments in 2017, 2016 and 2015. * The number of share option and RSUs for the prior years have been adjusted to reflect the impact of the share consolidation, on the basis that every ten ordinary shares and preferred shares of US$0.0004 each consolidated into one ordinary share and preferred share of US$0.004 each, which was accounted for as a reverse stock split effective on December 7, 2016. (a) In de pendent non-executive directors The fees paid or payable to independent non-executive directors of the Company during the year were as follows: Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2017 Lip-Bu Tan 91 128 219 William Tudor Brown 89 8 97 Carmen I-Hua Chang 70 40 110 Shang-Yi Chiang 47 250 297 Jason Jingsheng Cong 35 217 252 332 643 975 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2016 Lip-Bu Tan 100 156 256 William Tudor Brown 85 24 109 Sean Maloney 72 23 95 Carmen I-Hua Chang 68 78 146 Shang-Yi Chiang — — — 325 281 606 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2015 Lip-Bu Tan 70 — 70 Frank Meng 28 6 34 William Tudor Brown 47 47 94 Sean Maloney 50 46 96 Carmen I-Hua Chang 42 149 191 237 248 485 There were no other emoluments payable to the independent non-executive directors during the year (2016: Nil and 2015: Nil.) (b) Executive directors and non-executive director Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2017 Executive directors: Zhou Zixue 765 311 1,076 Zhao Haijun* 726 1,514 2,240 Liang Mong Song* 65 — 65 Gao Yonggang 634 24 658 2,190 1,849 4,039 Non-executive director: Tzu-Yin Chiu** 1,783 5,321 7,104 Chen Shanzhi 75 128 203 Zhou Jie — — — Ren Kai 70 — 70 Lu Jun — — — Tong Guohua 40 217 257 Li Yonghua (Alternate to Chen Shanzhi)*** — — — 1,968 5,666 7,634 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2016 Executive directors: Zhou Zixue 527 655 1,182 Tzu-Yin Chiu** 920 1,038 1,958 Gao Yonggang 413 82 495 1,860 1,775 3,635 Non-executive director: Chen Shanzhi 80 136 216 Zhou Jie — — — Ren Kai 63 22 85 Lu Jun 39 — 39 Li Yonghua (Alternate to Chen Shanzhi)*** — — — 182 158 340 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2015 Executive directors: Zhou Zixue 225 873 1,098 Zhang Wenyi 578 32 610 Tzu-Yin Chiu** 918 130 1,048 Gao Yonggang 376 201 577 2,097 1,236 3,333 Non-executive director: Chen Shanzhi 50 — 50 Zhou Jie — — — Li Yonghua (Alternate to Chen Shanzhi)*** — — — Ren Kai — 66 66 50 66 116 * Zhao HaiJun and Liang Mong Song are also the Co-Chief Executive Officers of the Company. ** Tzu-Yin Chiu resigned as Chief Executive Officer on May 10, 2017 and remains as non-executive director. *** Li Yonghua resigned as alternate director of Chen Shanzhi with effect from February 24, 2017. In 2017, Lu Jun waived all salaries and wages since he was appointed as non-executive director of SMIC. There was no other arrangement under which a director waived any remuneration in 2017. |
Five highest paid employees
Five highest paid employees | 12 Months Ended |
Dec. 31, 2017 | |
Five highest paid employees | |
Five highest paid employees | 13. Five highest paid employees The five highest paid individuals during the year included three (2016: two and 2015: two) directors, details of whose remuneration are set out in Note 12 above. Details of the remuneration of the remaining two (2016: three and 2015: three) non-directors, highest paid individuals for the year are as follows: Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Salaries and other benefits 630 692 962 Bonus 746 611 636 Stock option benefits 338 412 552 1,714 1,715 2,150 The bonus is determined on the basis of the basic salary and the performance of the Group and the individual. In 2017, 2016 and 2015, no emoluments were paid by the Group to any of the five highest paid individuals as an inducement to join or upon joining the Group or as compensation for loss of office. The number of non-director, highest paid individuals whose remuneration fell within the following bands is as follows: Number of employees HK$4,000,001 (US$511,801) to HK$4,500,000 (US$575,775) — 2 — HK$4,500,001 (US$575,776) to HK$5,000,000 (US$639,750) — — 1 HK$5,000,001 (US$639,751) to HK$5,500,000 (US$703,725) — 1 — HK$5,500,001 (US$703,726) to HK$6,000,000 (US$767,700) — — 1 HK$6,000,001 (US$767,701) to HK$6,500,000 (US$831,675) — — 1 HK$6,500,001 (US$831,676) to HK$7,000,000 (US$895,650) 2 — — 2 3 3 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Earnings per share | 14. Earnings per share Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 USD USD USD Basic earnings per share $0.04 $0.09 $0.07 Diluted earnings per share $0.04 $0.08 $0.06 Basic earnings per share The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Profit for the year attributable to owners of the Company 179,679 376,630 253,411 Earnings used in the calculation of basic earnings per share 179,679 376,630 253,411 Weighted average number of ordinary shares for the purposes of basic earnings per share 4,628,850,686 4,221,765,945 3,896,041,667 * Diluted earnings per share The earnings used in the calculation of diluted earnings per share are as follows: Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Earnings used in the calculation of basic earnings per share 179,679 376,630 253,411 Interest expense from convertible bonds 905 16,352 13,238 Earnings used in the calculation of diluted earnings per share 180,584 392,982 266,649 The weighted average number of ordinary shares used in the calculation of basic earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of diluted earnings per share as follows: Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 Weighted average number of ordinary shares used in the calculation of basic earnings per share 4,628,850,686 4,221,765,945 3,896,041,667 Employee option and restricted share units 44,496,788 36,240,710 36,944,830 Convertible bonds 38,241,356 575,099,614 393,257,100 Perpetual subordinated convertible securities 1,848,513 — — Weighted average number of ordinary shares used in the calculation of diluted earnings per share 4,713,437,343 4,833,106,269 4,326,243,597 During the year ended December 31, 2017, the Group had 5,214,138 weighted average outstanding employee stock options which were excluded from the computation of diluted earnings per share due to the exercise price higher than the average market price of the ordinary shares and 377,137,509 potential shares upon the conversion of convertible bonds excluded from the computation of diluted earnings per share due to anti-dilutive effect. During the year ended December 31, 2016, the Group had 19,757,421* weighted average outstanding employee stock options which were excluded from the computation of diluted earnings per share because the exercise price was greater than the average market price of the common shares. During the year ended December 31, 2015, the Group had 40,367,017* weighted average outstanding employee stock options which were excluded from the computation of diluted earnings per share because the exercise price was greater than the average market price of the common shares. * |
Dividend
Dividend | 12 Months Ended |
Dec. 31, 2017 | |
Dividend | |
Dividend | 15. Dividend The Board did not recommend the payment of any dividend for the year ended December 31, 2017 (December 31, 2016: Nil and December 31, 2015: Nil). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Property, plant and equipment | 16. Property, plant and equipment Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Cost Balance at December 31, 2014 — 8,472,186 120,072 1,088,080 10,005,682 Transfer from (out) CIP — 985,820 14,966 (1,264,262) — Addition — — — — 1,498,201 1,498,201 Disposals — — (53,550) (180) (654) (54,384) Reclassified as held-for-sale — — — — (114,534) (114,534) Balance at December 31, 2015 — 588,820 9,404,456 134,858 1,206,831 11,334,965 Business combination 2,485 42,612 63,519 290 4,213 113,119 Transfer from (out) CIP — 93,535 2,338,662 34,546 (2,466,743) — Addition — — — — 2,597,970 2,597,970 Disposals — — (283,420) (2,136) (9,257) (294,813) Balance at December 31, 2016 2,485 724,967 11,523,217 167,558 1,333,014 13,751,241 Transfer from (out) CIP — 174,143 1,696,092 31,355 (1,901,590) — Addition — — — — 2,425,697 2,425,697 Disposals — (28,543) (767,210) (3,588) (5,518) (804,859) Balance at December 31, 2017 2,485 870,567 12,452,099 195,325 1,851,603 15,372,079 Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Accumulated depreciation and impairment Balance at December 31, 2014 — 121,680 6,758,071 103,514 27,331 7,010,596 Disposal — — (51,840) (180) (437) (52,457) Depreciation expense — 13,858 451,027 8,123 — 473,008 Balance at December 31, 2015 — 135,538 7,157,258 111,457 26,894 7,431,147 Disposal — (289) (33,917) (2,136) (11,611) (47,953) Depreciation expense — 18,133 639,986 15,042 — 673,161 Impairment loss — — — — 7,529 7,529 Balance at December 31, 2016 — 153,382 7,763,327 124,363 22,812 8,063,884 Disposal — (5,819) (108,370) (1,822) (5,231) (121,242) Depreciation expense — 41,243 839,351 25,440 — 906,034 Balance at December 31, 2017 — 188,806 8,494,308 147,981 17,581 8,848,676 Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Balance at December 31, 2015 — 453,282 2,247,198 23,401 1,179,937 3,903,818 Balance at December 31, 2016 2,485 571,585 3,759,890 43,195 1,310,202 5,687,357 Balance at December 31, 2017 2,485 681,761 3,957,791 47,344 1,834,022 6,523,403 Construction in progress The construction in progress balance of approximately US$1,834.0 million as of December 31, 2017, primarily consisted of US$753.0 million of the manufacturing equipment acquired to further expand the production capacity at two 300mm fabs in Beijing, US$186.1 million of the manufacturing equipment acquired to further expand the production capacity at the 300mm fab and the investment of a new Shanghai project, US$601.4 million was for our new 300mm fab in Shenzhen, US$125.1 million was for expand the production capacity at the 200mm fab in Tianjin and the investment of a new Tianjin project, US$101.8 million of machinery and equipment acquired to more research and development activities at the subsidiary for the new technology research and development in Shanghai. In addition, US$66.6 million was related to various ongoing capital expenditures projects of other SMIC subsidiaries, which are expected to be completed by the end of 2018. Impairment losses recognized in the year In 2017, the Group didn’t recorded (2016: US$7.5 million and 2015: nil) impairment loss of equipment. The whole amount of impairment loss in 2016 was recognized as other operating expense in profit or loss. Assets pledged as security Property, plant and equipment with carrying amount of approximately US$362.3 million (2016: approximately US$631.4 million and 2015: approximately US$323.9 million) have been pledged to secure borrowings of the Group under a mortgage (Note 31). The Group is not allowed to pledge these assets as security for other borrowings or to sell them to other entities. Finance lease The net carrying amount of the Group’s fixed assets held under finance leases included in the total amounts of facility machinery and equipment at December 31, 2017 was US$5.5 million (December 31, 2016: US$7.0 million and December 31, 2015: nil. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | |
Intangible assets | 17. Intangible assets Other intangible Goodwill assets Total USD’000 USD’000 USD’000 Cost Balance at December 31, 2014 — 370,721 370,721 Additions — 65,269 65,269 Expired and disposal — (44,813) (44,813) Balance at December 31, 2015 — 391,177 391,177 Business combination 3,933 8,088 12,021 Additions — 67,936 67,936 Expired and disposal — (21,164) (21,164) Balance at December 31, 2016 3,933 446,037 449,970 Additions — 34,461 34,461 Balance at December 31, 2017 3,933 480,498 484,431 Accumulated amortization and impairment Balance at December 31, 2014 — 162,899 162,899 Amortization expense for the year — 48,812 48,812 Expired and disposal — (44,813) (44,813) Balance at December 31, 2015 — 166,898 166,898 Amortization expense for the year — 55,080 55,080 Expired and disposal — (20,589) (20,589) Balance at December 31, 2016 — 201,389 201,389 Amortization expense for the year — 63,098 63,098 Balance at December 31, 2017 — 264,487 264,487 Balance at December 31, 2015 — 224,279 224,279 Balance at December 31, 2016 3,933 244,648 248,581 Balance at December 31, 2017 3,933 216,011 219,944 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Subsidiaries | |
Subsidiaries | 18. Subsidiaries Details of the Company’s subsidiaries at the end of the reporting period are as follows: Proportion of Place of Proportion of voting power establishment Class of Paid up ownership interest held by the Name of company and operation shares held registered capital held by the Company Company Principal activities Better Way Enterprises Limited (“Better Way”)# Samoa Ordinary USD 1,000,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Shanghai) Corporation (“SMIS” or “SMIC Shanghai”)# People’s Republic of China -the “PRC” Ordinary USD 1,740,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SMIC, Americas United States of America Ordinary USD 500,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Beijing) Corporation (“SMIB” or “SMIC Beijing”)# PRC Ordinary USD 1,000,000,000 Directly 100 % 100 % Manufacturing and trading of semiconductor products SMIC Japan Japan Ordinary JPY 10,000,000 Directly 100 % 100 % Provision of marketing related activities SMIC Europe S.R.L Italy Ordinary EUR 100,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Solar Cell) Corporation Cayman Islands Ordinary USD 11,000 Directly 100 % 100 % Investment holding SMIC Commercial Shanghai Limited Company PRC Ordinary USD 373,000,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Tianjin) Corporation (“SMIT” or “SMIC Tianjin”)# PRC Ordinary USD 770,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SMIC Development (Chengdu) Corporation (“SMICD”)# PRC Ordinary USD 5,000,000 Directly 100 % 100 % Construction, operation, and management of SMICD’s living quarters, schools, and supermarket Semiconductor Manufacturing International (BVI) Corporation (“SMIC (BVI)”)# British Virgin Islands Ordinary USD 10 Directly 100 % 100 % Provision of marketing related activities Admiral Investment Holdings Limited British Virgin Islands Ordinary USD 10 Directly 100 % 100 % Investment holding SMIC Shanghai (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC Beijing (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC Tianjin (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SilTech Semiconductor Corporation Cayman Islands Ordinary USD 10,000 Directly 100 % 100 % Investment holding SMIC Shenzhen (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC New Technology Research & Development (Shanghai) Corporation (formerly “SMIC Advanced Technology Research & Development (Shanghai) Corporation”) PRC Ordinary USD 199,000,000 Indirectly 94.874 % 94.874 % Research and development activities SMIC Holdings Corporation PRC Ordinary USD 50,000,000 Directly 100 % 100 % investment holding SJ Semiconductor Corporation Cayman Islands Ordinary and preferred USD 5,668 Directly 56.045 % 56.045 % Investment holding SMIC Energy Technology (Shanghai) Corporation (“Energy Science”)# PRC Ordinary USD 10,400,000 Indirectly 100 % 100 % Manufacturing and trading of solar cell related semiconductor products Magnificent Tower Limited British Virgin Islands Ordinary USD 50,000 Indirectly 100 % 100 % investment holding SMIC Hong Kong International Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % investment holding SMIC Beijing (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Tianjin (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Solar Cell (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Shenzhen (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SilTech Semiconductor (Hong Kong) Corporation Limited Hong Kong Ordinary HKD 1,000 Indirectly 100 % 100 % Investment holding Semiconductor Manufacturing International (Shenzhen) Corporation(“SMIZ” or “SMIC Shenzhen”)# PRC Ordinary USD 127,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SilTech Semiconductor (Shanghai) Corporation Limited (“SilTech Shanghai”)# PRC Ordinary USD 12,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products Semiconductor Manufacturing North China (Beijing) Corporation (“SMNC”)# PRC Ordinary USD 3,000,000,000 Directly and indirectly 51 % 51 % Manufacturing and trading of semiconductor products China IC Capital Co., Ltd PRC Ordinary RMB 987,000,000 Indirectly 100 % 100 % Investment holding Shanghai Hexin Investment Management Limited Partnership PRC Ordinary RMB 50,000,000 Indirectly 99 % 99 % Investment holding SJ Semiconductor (HK) Limited Hong Kong Ordinary HKD 1,000 Indirectly 56.045 % 56.045 % Investment holding SJ Semiconductor (Jiangyin) Corporation (“SJ Jiangyin”)# PRC Ordinary USD 259,500,000 Indirectly 56.045 % 56.045 % Bumping and circuit probe testing activities LFoundry S.r.l. (“LFoundry”)# Italy Ordinary EUR 2,000,000 Indirectly 70 % 70 % Manufacturing and trading of semiconductor products Ningbo Semiconductor International Corporation PRC Ordinary RMB 255,000,000 Indirectly 53.725 % 53.725 % Manufacturing and trading of semiconductor products Semiconductor Manufacturing South China Corporation PRC Ordinary USD 200,475,706 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SJ Semiconductor USA Co. United States of America Ordinary USD 500,000 Indirectly 56.045 % 56.045 % Provision of marketing related activities SMIC (Sofia) EOOD Bulgaria Ordinary BGN 1,800,000 Indirectly 100 % 100 % Designing activities SMIC Innovation Design Center (Ningbo) Co., Ltd. PRC Ordinary — Indirectly 100 % 100 % Designing activities # On August 10, 2017, the Company, SMIC Beijing, SMIC Holdings Corporation, China Integrated Circuit Industry Investment Fund Co., Ltd., Beijing Semiconductor Manufacturing and Equipment Equity Investment Centre (Limited Partnership), Beijing Industrial Development Investment Management Co., Ltd., Zhongguancun Development Group and Beijing E-Town International Investment & Development Co., Ltd. agreed to amend the previous joint venture agreement through the amended joint venture agreement, pursuant to which: (i) the Company, SMIC Beijing and SMIC Holdings Corporation have agreed to make further cash contribution of US$1,224 million into the registered capital of SMNC. The Company’s aggregate shareholding in SMNC will remain at 51%; (ii) China Integrated Circuit Industry Investment Fund Co., Ltd., (the “China IC Fund”) has agreed to make further cash contribution of US$900.0 million into the registered capital of the Joint Venture Company. Its shareholding in the Joint Venture Company will increase from 26.5% to 32%; and (iii) E-Town Capital has agreed to make cash contribution of US$276 million into the registered capital of the Joint Venture Company representing 5.75% of the enlarged registered capital of the Joint Venture Company. The capital contribution is not completed as of the date of this annual report. On June 24, 2016, the Company, LFoundry Europe GmbH (“LFoundry Europe”) and Marsica Innovation S.p.A (“Marsica”) entered into a sale and purchase agreement pursuant to which LFoundry Europe and Marsica agreed to sell and the Company agreed to purchase 70% of the corporate capital of LFoundry for an aggregate cash consideration of EUR49.0 million (approximately US$54.4 million), including a goodwill amounted to US$3.9 million. The goodwill attributable to the workforce and the high profitability of the acquired business will not be deductible for tax purposes. The acquisition was completed on July 29, 2016. Details of non-wholly owned subsidiaries that have material non-controlling interests (“NCI”) The table below shows details of a non-wholly owned subsidiary of the Company that have material non-controlling interests: Place of Proportion of ownership interests establishment and voting rights held by Profit (loss) allocated to non- Accumulated non-controlling Name of company and operation non-controlling interests controlling interests interests 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Semiconductor Manufacturing North China (Beijing) Corporation (“SMNC”) Beijing, PRC 49.0 % 49.0 % 45 % (39,113) (55,868) (25,596) 1,324,590 1,069,703 371,446 SJ Semiconductor Corporation Cayman Islands 44.0 % 44.0 % 44.7 % (4,896) (3,545) (5,077) 124,659 136,458 79,621 (44,009) (59,413) (30,673) 1,449,249 1,206,161 451,067 SMNC shared part of the Group’s advanced technology R&D expenses in 2017 and 2016, and had start-up cost in 2015, which also caused the change in loss of year attributable to non-controlling interests. According to the joint venture agreements entered into by the Group and the NCI of SMNC, additional capital injection into SMNC was completed in 2017, 2016 and 2015. The additional capital injection from NCI amounted to US$294.0 million in 2017, US$754.1 million in 2016 and US$61.2 million in 2015 respectively. According to the joint venture agreements entered into by the Company and the NCI of SJ Semiconductor Corporation, additional capital injection into SJ Semiconductor Corporation was completed in 2016, 2015 and 2014. The additional capital injection from NCI amounted to US$60.0 million in 2016 and US$60.0 million in 2015 respectively. Summarized financial information in respect of the Company’s subsidiaries that have material non- controlling interests are set out below. The summarized financial information below represents amounts before intragroup eliminations. SMNC 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,559,016 1,103,214 381,640 Non-current assets 2,046,290 1,807,207 917,719 Current liabilities (596,500) (409,898) (350,298) Non-current liabilities (315,718) (327,995) (123,626) Net assets 2,693,088 2,172,528 825,435 Equity attributable to owners of the Company 1,368,498 1,102,825 453,989 Non-controlling interests 1,324,590 1,069,703 371,446 Net assets 2,693,088 2,172,528 825,435 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue 471,174 243,715 4,721 Expense (574,386) (339,910) (64,032) Other income (expense) 23,389 (19,480) 2,430 Loss for the year (79,823) (115,675) (56,881) Loss attributable to owners of the Company (40,710) (59,807) (31,285) Loss attributable to the non-controlling interests (39,113) (55,868) (25,596) Loss for the year (79,823) (115,675) (56,881) Other comprehensive income attributable to owners of the Company — — — Other comprehensive income attributable to the non-controlling interests — — — Other comprehensive income for the year — — — Total comprehensive loss attributable to owners of the Company (40,710) (59,807) (31,285) Total comprehensive loss attributable to the non-controlling interests (39,113) (55,868) (25,596) Total comprehensive loss for the year (79,823) (115,675) (56,881) Dividends paid to non-controlling interests — — — Net cash inflow (outflow) from operating activities 188,115 (13,082) (71,817) Net cash outflow from investing activities (820,606) (1,627,788) (173,535) Net cash inflow from financing activities 590,091 1,655,011 137,500 Net cash (outflow) inflow (42,400) 14,141 (107,852) SJ Semiconductor Corporation and its subsidiaries 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 205,957 224,737 164,495 Non-current assets 131,041 102,790 66,772 Current liabilities (46,608) (11,656) (18,904) Non-current liabilities (7,002) (5,421) (34,331) Net assets 283,388 310,450 178,032 Equity attributable to owners of the Company 158,729 173,992 98,411 Non-controlling interests 124,659 136,458 79,621 Net assets 283,388 310,450 178,032 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue 21,862 12,782 1,543 Expense (39,504) (27,300) (9,621) Other income (expense) 6,505 6,564 (3,274) Loss for the year (11,137) (7,954) (11,352) Loss attributable to owners of the Company (6,241) (4,409) (6,275) Loss attributable to the non-controlling interests (4,896) (3,545) (5,077) Loss for the year (11,137) (7,954) (11,352) Other comprehensive income attributable to owners of the Company — — — Other comprehensive incom attributable to the non-controlling interests — — — Other comprehensive income for the year — — — Total comprehensive loss attributable to owners of the Company (6,241) (4,409) (6,275) Total comprehensive loss attributable to the non- controlling interests (4,896) (3,545) (5,077) Total comprehensive loss for the year (11,137) (7,954) (11,352) Dividends paid to non-controlling interests — — — Net cash inflow (outflow) from operating activities 6,115 (1,194) (9,841) Net cash outflow from investing activities (65,993) (147,752) (60,336) Net cash (outflow) inflow from financing activities (1,983) 109,291 175,211 Net cash (outflow) inflow (61,861) (39,655) 105,034 |
Investments in associates
Investments in associates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in associates | |
Investments in associates | 19. Investments in associates The details of the Company’s associates, which are all unlisted companies except for JCET listed on the Shanghai Stock Exchange, at the end of the reporting period are as follows: Class of Proportion of ownership interest Place of establishment share and voting power held Name of company and operation held by the Group 12/31/17 12/31/16 12/31/15 Toppan SMIC Electronic (Shanghai) Co., Ltd (“Toppan”) Shanghai, PRC Ordinary 30.0 % 30.0 % 30.0 % Zhongxin Xiecheng Investment (Beijing) Co., Ltd (“Zhongxin Xiecheng”) Beijing, PRC Ordinary 49.0 % 49.0 % 49.0 % Brite Semiconductor (Shanghai) Corporation (“Brite Shanghai”) (4) Shanghai, PRC Ordinary 46.6 % 47.3 % 47.8 % Suzhou Changjiang Electric Xinke Investment Co., Ltd. (“Changjiang Xinke”) (3) Jiangsu, PRC Ordinary — 19.6 % 19.6 % Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) (3) Jiangsu, PRC Ordinary 14.3 % NA NA Sino IC Leasing Co., Ltd. (“Sino IC Leasing”) Shanghai, PRC Ordinary 8.1 % (1) 11.4 % (1) 8.8 % (1) China Fortune-Tech Capital Co., Ltd (“China Fortune-Tech”) Shanghai, PRC Ordinary 30.0 % 30.0 % 45.0 % Beijing Wu Jin Venture Investment Center (Limited Partnership) (“WuJin”) (2) Beijing, PRC Ordinary 32.6 % 32.6 % 32.6 % Shanghai Fortune-Tech Qitai Invest Center (Limited Partnership) (“Fortune-Tech Qitai”) (2) Shanghai, PRC Ordinary 33.0 % 33.0 % 33.0 % Shanghai Fortune-Tech Zaixing Invest Center (Limited Partnership) (“Fortune-Tech Zaixing”) (2) Shanghai, PRC Ordinary 66.2 % (1) 66.2 % (1) 66.2 % (1) Suzhou Fortune-Tech Oriental Invest Fund Center (Limited Partnership) (“Fortune-Tech Oriental”) (2) Jiangsu, PRC Ordinary 44.8 % 44.8 % 44.8 % Juyuan Juxin Integrated Circuit Fund (“Juyuan Juxin”) (2) Shanghai, PRC Ordinary 31.6 % 40.9 % NA (1) In accordance with investment agreements, the Group has significant influence over Fortune-Tech Zaixing and Sino IC Leasing. (2) On April 27, 2016, SilTech Shanghai and JCET entered into a disposal agreement (the “Disposal Agreement”), pursuant to which SilTech Shanghai agreed to sell its 19.61% ownership interest in Changjiang Xinke to JCET in consideration of RMB664.0 million, which will be satisfied by JCET’s issue of 43,229,166 shares of JCET to SilTech Shanghai at RMB RMB15.36 per share. On the same day, SilTech Shanghai and JCET entered into a subscription agreement (the “Subscription Agreement”), pursuant to which SilTech Shanghai agreed to subscribe for and JCET agreed to issue 150,681,044 shares of JCET in consideration of an aggregate subscription price of RMB2,655.0 million in cash. On May 10, 2017, the Company was notified by JCET that the China Securities Regulatory Commission has granted approval for this transaction, and the Disposal Agreement and the Subscription Agreement became effective accordingly. On June 19, 2017, the transactions were completed and SMIC became the single largest shareholder of JCET. The Group recorded its ownership interest of JCET as investment in associate due to its right to nominate directors of JCET’s board. (3) The Group invested in these associates indirectly though China IC Capital Co., Ltd (the “Fund”), a wholly-owned investment fund company of SMIC, as set out in Note 19. The Fund is intended to invest primarily in integrated circuits related fund products and investment projects. The Group’s joint ventures and available-for-sale investments invested indirectly through the Fund are disclosed in Note 21 and Note 23, respectively. (4) Since September 30, 2017, the Group invested Brite Shanghai directly with no more investment in Brite Semiconductor Corporation, the holding company of Brite Shanghai. All of these associates are accounted for using the equity method in these consolidated financial statements. Toppan 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 55,966 53,716 51,661 Non-current assets 19,978 17,205 22,554 Current liabilities (1,727) (2,246) (2,062) Non-current liabilities — — — Net assets 74,217 68,675 72,153 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue 18,391 20,711 20,782 Profit for the year 1,235 1,178 3,267 Other comprehensive income for the year — — — Total comprehensive income for the year 1,235 1,178 3,267 Dividends received from the associate during the year — — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the associate 74,217 68,675 72,153 Proportion of the Group’s ownership interest in Toppan 30 % 30 % 30 % Carrying amount of the Group’s interest in Toppan 22,265 20,603 21,646 JCET and its subsidiaries In accordance with IAS 39, the group applies the equity method accounted for its investments in JCET on one quarter lag basis since the annual financial report of JCET were not available as of December 31, 2017. 09/30/17 USD’000 Current assets 1,401,575 Non-current assets 3,305,615 Current liabilities (1,639,114) Non-current liabilities (1,661,532) Net assets 1,406,544 Equity attributable to owners of the associate 1,385,372 Non-controlling interests 21,172 Net assets 1,406,544 Three months ended 09/30/17 USD’000 Total revenue 958,087 Profit attributable to owners of the associate 11,480 Profit attributable to the non-controlling interests 628 Profit for the period 12,108 Other comprehensive loss for the period (19,986) Total comprehensive loss for the period (7,878) Total comprehensive loss attributable to owners of the associate (8,496) Total comprehensive income attributable to the non-controlling interests 618 Total comprehensive loss for the period (7,878) Dividends received from the associate during the period — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 USD’000 Equity attributable to owners of the associate 1,385,372 Proportion of the Group’s ownership interest in JCET 14.3 % 197,832 Valuation premium 340,561 Carrying amount of the Group’s interest in JCET 538,393 Fortune-Tech Zaixing 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 2,264 12,720 15,513 Non-current assets 19,965 8,520 7,581 Current liabilities (2) (1) (3) Non-current liabilities — — — Net assets 22,227 21,239 23,091 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue — — — Loss for the year (366) (329) (178) Other comprehensive income for the year — — — Total comprehensive loss for the year (366) (329) (178) Dividends received from the associate during the year — — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the associate 22,227 21,239 23,091 Proportion of the Group’s ownership interest in Fortune-Tech Zaixing 66.2 % 66.2 % 66.2 % Carrying amount of the Group’s interest in Fortune-Tech Zaixing 14,714 14,087 15,292 Sino IC Leasing and its subsidiaries 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,038,538 702,570 502,454 Non-current assets 3,464,412 1,859,267 21,374 Current liabilities (523,228) (117,287) (8,679) Non-current liabilities (2,509,732) (1,653,206) (190,021) Net assets 1,469,990 791,344 325,128 Equity attributable to owners of the associate 1,366,367 776,959 325,128 Non-controlling interests 103,623 14,385 — Net assets 1,469,990 791,344 325,128 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue 215,538 36,085 2,437 Profit attributable to owners of the associate 39,003 12,938 3,761 Profit attributable to the non-controlling interests 460 48 — Profit for the year 39,463 12,986 3,761 Other comprehensive (loss) income for the year (10,206) 3,594 — Total comprehensive income for the year 29,257 16,580 3,761 Total comprehensive income attributable to owners of the associate 28,797 16,532 3,761 Total comprehensive income attributable to the non-controlling interests 460 48 — Total comprehensive income for the year 29,257 16,580 3,761 Dividends received from the associate during the year 255 — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Equity attributable to owners of the associate 1,366,367 776,959 325,128 Proportion of the Group’s ownership interest in Sino IC Leasing 8.1 % 11.4 % 8.8 % Carrying amount of the Group’s interest in Sino IC Leasing 110,162 88,651 28,736 Juyuan Juxin 12/31/17 12/31/16 USD’000 USD’000 Current assets 108,639 47,494 Non-current assets 55,761 — Current liabilities (33) (7) Non-current liabilities — — Net assets 164,367 47,487 Year ended Year ended 12/31/17 12/31/16 USD’000 USD’000 Total revenue — — Loss for the year (3,120) (1,893) Other comprehensive income for the year — — Total comprehensive loss for the year (3,120) (1,893) Dividends received from the associate during the year — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 USD’000 USD’000 Net assets of the associate 164,367 47,487 Proportion of the Group’s ownership interest in Juyuan Juxin 31.6 % 40.9 % Carrying amount of the Group’s interest in Juyuan Juxin 51,940 19,408 |
Investments in joint ventures
Investments in joint ventures | 12 Months Ended |
Dec. 31, 2017 | |
Investments in joint ventures | |
Investments in joint ventures | 20. Investments in joint ventures Details of the Group’s joint ventures, which are all unlisted companies invested indirectly through China IC Capital Co., Ltd, at the end of the reporting period are as follows: Class Proportion of ownership interest Place of establishment of share and voting power held Name of company and operation held by the Group 12/31/17 12/31/16 12/31/15 Shanghai Xinxin Investment Centre (Limited Partnership) (“Shanghai Xinxin”) Shanghai, PRC Ordinary 49.0 % 49.0 % 49.0 % Shanghai Chengxin Investment Center (Limited Partnership) (“Shanghai Chengxin”) Shanghai, PRC Ordinary 31.5 % 42.0 % 42.0 % Summarized financial information in respect of the Group’s material joint venture is set out below. Shanghai Xinxin 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,453 10,679 4,917 Non-current assets 53,782 13,283 28,631 Current liabilities (6) (7) (3,287) Non-current liabilities — — — Net assets 55,229 23,955 30,261 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue — — (Loss) profit for the year (390) 4,540 (609) Other comprehensive income for the year 30,441 — — Total comprehensive income (loss) for the year 30,051 4,540 (609) Dividends received from the joint venture during the year — 2,027 — Reconciliation of the above summarized financial information to the carrying amount of the interest in the joint venture recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the joint venture 55,229 23,955 30,261 Proportion of the Group’s ownership interest in Shanghai Xinxin 49.0 % 49.0 % 49.0 % Carrying amount of the Group’s interest in Shanghai Xinxin 27,062 11,740 14,829 |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2017 | |
Other financial assets | |
Other financial assets | 21. Other financial assets 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At fair value Non-current Derivatives Cross currency swap contracts – cash flow hedges 17,598 — — Current Derivatives Foreign currency forward contracts 2,111 — 172 Cross currency swap contracts – cash flow hedges 4,739 Short-term investments Financial products sold by banks 117,928 24,931 257,583 Bank deposits will mature over 3 months 559,034 6,612 25,125 683,812 31,543 282,880 701,410 31,543 282,880 |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2017 | |
Restricted cash | |
Restricted cash | 22. Restricted cash 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Restricted cash Non-current (1) 13,438 20,080 — Current (2) 336,043 337,699 302,416 349,481 357,779 302,416 (1) As of December 31, 2017, the non-current restricted cash consisted of US$13.4 million (EUR11.2 million, December 31, 2016: US$20.1 million and December 31, 2015: nil ) of bank time deposits pledged against long-term borrowing from MPS Capital Services S.p.A. of US$1.3 million (EUR1.1 million) and from Cassa Depositie Prestiti of US$12.1 million (EUR10.1 million). (2) As of December 31, 2017, the current restricted cash consisted of US$14.9 million (December 31, 2016: US$2.9 million and December 31, 2015: US$1.1 million) of bank time deposits, within which US$9.3 million was pledged against letters of credit and short-term borrowings, and US$5.6 million (EUR4.7 million) was pledged against long-term borrowing current portions from MPS Capital Services S.p.A. of US$0.5 million (EUR0.5 million) and from Cassa Depositie Prestiti of US$5.1 million (EUR4.2 million). As of December 31, 2017, 2016 and 2015, the current restricted cash consisted of US$235.3 million, US$191.9 million and US$74.0 million, respectively of government funding received mainly for the reimbursement of research and development expenses to be incurred. As of December 31, 2017, 2016 and 2015 the current restricted cash of US$85.8 million and US$142.9 and US$227.3 million were from low interest cost entrusted loans granted by CDB Development Fund through China Development Bank, which is designated to be used for future capacity expansion. The Group expects to spend the restricted cash within the next 12 months. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
Other assets | |
Other assets | 23. Other assets 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Available-for-sale investments 24,844 21,966 19,750 MPS Bonds — 4,634 — Others 17,966 16,270 12,328 Non-current 42,810 42,870 32,078 Available-for-sale investments are primarily fund companies and investment projects invested indirectly through China IC Capital Co., Ltd in the integrated circuits industry. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Inventories | 24. Inventories 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Raw materials 149,574 126,526 88,134 Work in progress 321,695 280,216 225,475 Finished goods 151,410 57,474 73,717 622,679 464,216 387,326 The cost of inventories recognized as an expense (income) during the year in respect of inventory provision (reversal) was US$46.9 million (2016: US$3.7 million and 2015: US$(13.3) million). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Trade and other receivables | 25. Trade and other receivables 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Trade receivables 407,975 491,018 399,200 Allowance on doubtful trade receivables (1,335) (1,491) (41,976) 406,640 489,527 357,224 Other receivables and refundable deposits 209,668 156,295 142,622 616,308 645,822 499,846 The Group determines credit terms mostly ranging from 30 to 60 days for each customer on a case- by-case basis, based on its assessment of such customer’s financial standing and business potential with the Group. The Group determines its allowance on doubtful trade receivables based on the Group’s historical experience and the relative aging of receivables as well as individual assessment of certain debtors. The Group provides allowance on doubtful trade receivables based on recoverable amount by making reference to the age category of the remaining receivables and subsequent settlement. The Group’s allowance on doubtful trade receivables excludes receivables from a limited number of customers due to their high credit worthiness. The Group recognized US$0.3 million, US$0.2 million and US$0.5 million of allowance on doubtful trade receivables respectively during the year ended December 31, 2017, 2016 and 2015 respectively. The Group reviews, analyzes and adjusts allowance on doubtful trade receivables on a monthly basis. In evaluating the customers’ credit quality, the Group used an internal system based on each customer’s operation size, financial performance, listing status, payment history and other qualitative criteria. These criteria are reviewed and updated annually. Based on such evaluation, the Group believes the recoverability of those receivables that are not impaired is reasonably assured. Trade receivables Of the trade receivables balance at the end of the year of 2017, 2016 and 2015, US$228.9 million, US$208.3 million and US$125.7 million respectively are due from the Group’s two largest customers. The following is an aged analysis of trade receivables presented based on the invoice date at the end of the reporting period. Age of receivables 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Within 30 days 148,131 274,087 177,542 31–60 days 187,623 179,453 151,377 Over 60 days 72,221 37,478 70,281 Total trade receivables 407,975 491,018 399,200 Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting for which the Group has not recognized an allowance on doubtful trade receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable. 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Neither past due nor impaired 331,469 444,145 312,479 Past due but not impaired Within 30 days 62,267 34,872 39,737 31–60 days 9,583 8,875 3,534 Over 60 days 3,321 1,635 1,474 Total carrying amount 406,640 489,527 357,224 Average overdue days 26 27 23 Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. Movement in allowance on doubtful trade receivables 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of the year 1,491 41,976 42,014 Addition in allowance on doubtful trade receivables 301 201 528 Amounts written off during the year as uncollectible (19) (39,083) (25) Reversal of allowance on doubtful trade receivables (438) (1,603) (541) Balance at end of the year 1,335 1,491 41,976 In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. |
Assets classified as held for s
Assets classified as held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Assets classified as held for sale | |
Assets classified as held for sale | 26. Assets classified as held-for-sale 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Assets related to employee’s living quarters 37,471 50,813 72,197 Non-current assets are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. |
Shares and issued capital
Shares and issued capital | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital | |
Shares and issued capital | 27. Shares and issued capital Fully paid ordinary shares Number of Share Share shares capital Premium USD’000 USD’000 Balance at December 31, 2014 35,856,096,167 14,342 4,376,630 Issuance of shares under the Company’s employee share option plan 232,284,137 93 20,819 Ordinary shares issued at June 8, 2015 4,700,000,000 1,880 397,580 Ordinary shares issued at September 25, 2015 323,518,848 130 27,392 Ordinary shares issued at October 9, 2015 961,849,809 385 81,440 Balance at December 31, 2015 42,073,748,961 16,830 4,903,861 Issuance of shares under the Company’s employee share option plan 329,531,926 132 35,367 Conversion of convertible bonds during the year 105,128,132 42 11,023 Adjustment arising from the Share Consolidation (38,257,568,118) — — Issuance of shares under the Company’s employee share option plan after the Share Consolidation 2,081,358 8 697 Balance at December 31, 2016 4,252,922,259 17,012 4,950,948 Issuance of shares under the Company’s employee share option plan (Note 39) 32,723,622 130 35,178 Conversion of convertible bonds during the year 389,042,383 1,556 427,168 Share premium reduction — — (910,849) Ordinary shares issued at December 6, 2017 241,418,625 966 325,174 Balance at December 31, 2017 4,916,106,889 19,664 4,827,619 On December 6, 2017, pursuant to the terms and conditions of the placing agreement entered by the Company and joint placing agents, the Company allotted and issued 241,418,625 placing shares, representing approximately 4.92% of the issued share capital of the Company as enlarged by the issue of the placing shares, to not less than six independent placees at the price of HK$10.65 per placing share. The net proceeds are recorded as share capital of approximately US$1.0 million and share premium of approximately US$325.2 million in the statements of financial position. Net proceeds of issue are measured after deducting directly attributable transaction costs of the share issue. On June 23, 2017, the Board has been approved by the shareholders at the Annual General Meeting to reduce the amount standing to the credit of the share premium account of the Company by an amount of US$910.8 million and to apply such amount to eliminate the accumulated losses of the Company as of December 31, 2016. On June 23, 2017, the Board has been approved by the shareholders at the Annual General Meeting to increase the authorized share capital of the Company to US$42,000,000 divided into 10,000,000,000 ordinary shares and 500,000,000 preferred shares by the creation of an additional 5,000,000,000 ordinary shares in the share capital of the Company, which will rank pari passu with all existing ordinary shares. In 2016, the Company proposed to implement the Share Consolidation on the basis that every ten issued and unissued shares of US$0.0004 each of the Company will be consolidated into one ordinary share of US$0.004 each. The proposed share consolidation was approved by the Company’s shareholders at the Extraordinary General Meeting held on December 6, 2016 and the share consolidation became effective on December 7, 2016. On February 12, 2015, the Company entered into a share purchase agreement with China IC Fund. Pursuant to the share purchase agreement, the Company proposed to issue 4,700,000,000 ordinary shares before the effect of Share Consolidation (the “Placing of New Shares”) to the China IC Fund at a consideration of approximately HK$3,098.71 million. On June 8, 2015, the Placing of New Shares was completed and the Company issued 4,700,000,000 ordinary shares before the effect of Share Consolidation to Xinxin (Hongkong) Capital Co., Limited, a wholly-owned subsidiary of the China IC Fund, at the issue price of HK$0.6593 per ordinary share. The net proceeds were recorded as share capital of approximately US$1.9 million and share premium of approximately US$397.6 million in the statements of financial position. Net proceeds of issue were measured after deducting directly attributable transaction costs of the share issue. On November 6, 2008 and April 18, 2011, respectively, the Company entered into share purchase agreements with Datang Telecom Technology & Industry Holdings Co., Ltd. (“Datang Holdings”) and Country Hill Limited (“Country Hill”) which granted each of Datang Holdings (Hongkong) Investment Company Limited (“Datang”) and Country Hill a pre-emptive right to subscribe for additional shares if the Company issues new shares to other investors. On March 2, 2015, the Company received irrevocable notices from both Datang and Country Hill about exercising their pre-emptive right as a result of the Placing of New Shares. On June 11, 2015, Datang and Country Hill entered into agreements with the Company (“2015 Datang Pre-emptive Share Purchase Agreement” and “2015 Country Hill Pre-emptive Share Purchase Agreement”, respectively) to subscribe for 961,849,809 ordinary shares before the effect of Share Consolidation and 323,518,848 ordinary shares before the effect of Share Consolidation, respectively, at a price of HK$0.6593 per share. On September 25, 2015, Country Hill subscribed 323,518,848 ordinary shares before the effect of Share Consolidation of the Company. On October 9, 2015, Datang subscribed 961,849,809 ordinary shares before the effect of Share Consolidation of the Company. As of the date of this report, the Company has been informed by each of Datang and China IC Fund in a non-legally binding letter of intent that it intends to exercise its pre-emptive right in relation to the issue of the placing shares on December 6, 2017, up to the amount it is entitled to under the Datang Purchase Agreement (in the case of Datang) and the China IC Fund Purchase Agreement (in the case of China IC Fund), respectively. Fully paid ordinary shares, which have a par value of US$0.004 (after the share consolidation), carry one vote per share and carry a right to dividends. Stock incentive plans The Company has adopted the stock incentive plans under which options to subscribe for the Company’s shares have been granted to certain employees, officers and other service providers (Note 39). |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Reserves | |
Reserves | 28. Reserves Equity-settled employee benefits reserve 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 65,703 70,459 64,540 Arising on share-based payments 17,495 13,838 18,088 Transfer to share premium (18,220) (18,594) (12,169) Balance at end of year 64,978 65,703 70,459 The above equity-settled employee benefits reserve related to share options and RSUs granted by the Company to the Group’s employees and service providers under stock incentive plans. Items included in equity-settled employee benefits reserve will not be reclassified subsequently to profit or loss. Further information about share-based payments to employees and service providers is set out in Note 39. Foreign currency translation reserve 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year (22,087) (3,956) 4,229 Exchange differences arising on translating the foreign operations 21,590 (18,131) (8,185) Balance at end of year (497) (22,087) (3,956) Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies to the Group’s presentation currency (i.e. United States dollars) are recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve. Exchange differences previously accumulated in the foreign currency translation reserve (in respect of translating both the net assets of foreign operations and hedges of foreign operations) are reclassified to profit or loss on the disposal/deconsolidation of the foreign operation. Change in value of available-for-sale financial assets 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 1,245 447 — Change in value of available-for-sale financial assets during this year (2,356) 798 447 Balance at end of year (1,111) 1,245 447 The changes in the carrying amount of available-for-sale financial assets, which were initially recognized at fair value plus transaction costs and subsequently carried at fair value, recognized in other comprehensive income and accumulated under the heading of investments revaluation reserve. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. Convertible bonds equity reserve 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 81,678 29,564 29,564 Recognition of the equity component of convertible bonds — 52,935 — Conversion options exercised during the year (29,625) (821) — Balance at end of year 52,053 81,678 29,564 The conversion option from the issuance of convertible bonds classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument (i.e. convertible bond) as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share premium. Where the conversion option remains unexercised at the maturity date of the convertible bond, the balance recognized in equity will be transferred to retained earnings. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option. Defined benefit plan reserve 12/31/17 12/31/16 USD’000 USD’000 Balance at beginning of year 1,520 — Actuarial gains or losses on defined benefit plan (436) 1,520 Balance at end of year 1,084 1,520 The benefit obligation was due LFoundry. LFoundry’s employees are entitled to a defined benefit plan. Actuarial gains and losses can result from increases or decreases in the present value of a defined benefit obligation due to experience adjustments or changes in actuarial assumptions. Please refer to Note 36 for details. Cash flow hedges 12/31/17 12/31/16 USD’000 USD’000 Balance at beginning of year (34,627) — Gain (loss) recognized during this year 35,143 (34,627) Balance at end of year 516 (34,627) The hedging reserve is used to record gains or losses on derivatives that are designated and qualify as cash flow hedges and that are recognized in other comprehensive income, as described in note 40. Amounts will be reclassified to profit or loss when the associated hedged transaction affects profit or loss. Share of other comprehensive income of joint ventures accounted for using the equity method 12/31/17 USD’000 Balance at beginning of year — Change in share of other comprehensive income of joint ventures accounted for using the equity method 17,646 Balance at end of year 17,646 The reserve of share of other comprehensive income of joint ventures accounted for using the equity method was recognized as the Group’s share of the change in value of available-for-sale financial assets of the joint ventures in 2017. |
Retained earnings (accumulated
Retained earnings (accumulated deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Retained earnings (accumulated deficit) | |
Retained earnings (accumulated deficit) | 29. Retained earnings (accumulated deficit) As stipulated by the relevant laws and regulations applicable to China’s foreign investment enterprise, the Company’s PRC subsidiaries are required or allowed to make appropriations to non-distributable reserves. The general reserve fund requires annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end), after offsetting accumulated losses from prior years, until the accumulative amount of such reserve fund reaches 50% of registered capital of the relevant subsidiaries. The general reserve fund can only be used to increase the registered capital and eliminate future losses of the relevant subsidiaries under PRC regulations. The staff welfare and bonus reserve is determined by the board of directors of the respective PRC subsidiaries and used for the collective welfare of the employee of the subsidiaries. The enterprise expansion reserve is for the expansion of the subsidiaries’ operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law. In 2017 the Company did not make any appropriation to non-distributable reserves. As of December 31, 2017, 2016 and 2015, the accumulated non-distributable reserve was US$30 million, US$30 million and US$30 million respectively. In addition, due to restrictions on the distribution of paid-in capital from the Company’s PRC subsidiaries, the PRC subsidiaries’ paid-in capital of US$10,782 million at December 31, 2017 is considered restricted. As a result of these PRC laws and regulations, as of December 31, 2017, reserve and capital of approximately US$10,812 million was not available for distribution to the Company by its PRC subsidiaries in the form of dividends, loans or advances. In 2017, 2016 and 2015 the Company did not declare or pay any cash dividends on the ordinary shares. On June 23, 2017, the accumulated losses of the Company as of December 31, 2016 were eliminated by an amount of US$910.8 million. Please refer to Note 27 for more details. On December 29, 2017, SMIC Shanghai and SJ Jiangyin had entered into an asset transfer agreement in relation to the disposal and sale of unvalued assets. The purpose of the disposal was to transfer the business operation of the Shanghai Testing Centre from SMIC Shanghai to SJ Jiangyin and merge the business operation of Shanghai Testing Centre to SJ Jiangyin. The transfer of business operation raised a retained earnings of US$7.3 million for the Company and a corresponding loss for non-controlling interests. |
Perpetual subordinated converti
Perpetual subordinated convertible securities | 12 Months Ended |
Dec. 31, 2017 | |
Perpetual Subordinated Convertible Securities [Abstract] | |
Perpetual subordinated convertible securities | 30. Perpetual subordinated convertible securities The Company issued the perpetual subordinated convertible securities at a par value of US$250,000 each in the principal amount of US$65,000,000 on December 14, 2017 (the “PSCS”). The principal terms of the PSCS are as follows: (1) Denomination of the PSCS — The PSCS are denominated in USD. (2) Maturity date — Perpetual with no fixed redemption date. (3) Subordination of the PSCS — In the event of the Winding-Up of the Company, the rights and claims of the Securityholders shall rank ahead of those persons whose claims are in respect of any Junior Securities of the Company, but shall be subordinated in right of payment to the claims of all other present and future senior and subordinated creditors of the Company, other than the claims of holders of Parity Securities. (4) Distribution — a) Distribution Rate — 2.00% per annum, payable semi-annually in arrears. b) Distribution Payment Dates — June 14, and December 14, in each year, commencing on June 14, 2018. c) Deferral of Distributions — The Company may elect to defer Distribution which is otherwise scheduled to be paid on a Distribution Payment Date to the next Distribution Payment Date by giving notice to the Securityholders not more than 10 nor less than 5 Business Days prior to a scheduled Distribution Payment Date if, during the 12 months ending on the day before that scheduled Distribution Payment Date no discretionary dividend, distribution or other discretionary payment has been paid or declared by the Company on or in respect of its Junior Securities or its Parity Securities. d) Distribution Stopper — If (i) on any Distribution Payment Date, payment of all Distribution payments scheduled to be made on such date is not made in full, or (ii) a Credit Event has occurred and is continuing, the Company shall not: (i) declare or pay any dividends, distributions or make any other payment on, and will procure that no dividend or other payment is made on any Junior Securities or Parity Securities; or (ii) redeem, reduce, cancel, buy-back or acquire for any consideration any Junior Securities or Parity Securities unless and until (1) the Company satisfies in full all outstanding Arrears of Distribution and any Additional Distribution Amounts; or (2) it is permitted to do so by an Extraordinary Resolution of the Securityholders. (5) Conversion — a) Conversion Rights — Securityholders may convert their PSCS into Shares during the Conversion Period at the Conversion Price in effect on the relevant Conversion Date. b) Conversion period — Any time on or after 40 days from the Issue Date. If the PSCS have been called for redemption, then up to the close of business on a date no later than 7 days prior to the date fixed for redemption or if notice requiring redemption has been given by the Securityholder, then up to the close of business on the day prior to the giving of such notice. c) Initial Conversion Price — HK$12.78 per Share. d) Initial Conversion Ratio — 152,648.6697 Shares per US$250,000 principal amount of the Security at the Initial Conversion Price. e) Fixed Exchange Rate — HK$7.8034 = US$1.00. f) Step up events — Upon occurrence of a Change of Control Event or Suspension (if not cured or the Securities not called in each case within 30 days), the Distribution Rate will increase by 3.00% per annum. g) Adjustment to Conversion Price — The Conversion Price will be adjusted in certain circumstances, including subdivisions, consolidation or redenomination, rights issue, bonus issue, reorganization, capital distributions and certain other dilutive event. (6) Redemption — a) At the option of the Company: (i) Company Call — On or at any time after December 14, 2020 (the “Third Anniversary Date”), the Company may, having given not less than 30 nor more than 60 days’ notice, redeem the PSCS in whole, but not in part, at their principal amount together with Distribution accrued to the date fixed for redemption, provided that the Closing Price of the Shares for any 20 Trading Days out of 30 consecutive Trading Days immediately prior to the date upon which notice of such redemption is given, was at least 130% of the applicable Conversion Price then in effect. (ii) Clean Up Call — On giving not less than 45 nor more than 60 days’ notice, the Company shall redeem all and not some only of the PSCS at (1) the Early Redemption Amount, at any time before the Third Anniversary Date or (2) their principal amount together with Distribution accrued to the date fixed for redemption, at any time on or after the Third Anniversary Date if, prior to the date the relevant Optional Redemption Notice is given, Conversion Rights shall have been exercised and/or purchases (and corresponding cancellations) and/or redemptions effected in respect of 90% or more in principal amount of the PSCS originally issued. (iii) Tax Call — The Company may at its option, at any time, on giving not less than 30 nor more than 60 days’ notice to the Securityholders and the Trustee, redeem in whole but not in part at their principal amount together with Distribution accrued to the date fixed for redemption if there is any change to Cayman Islands, Hong Kong or any political subdivision or any authority thereof or therein having power to tax, or any change in the general application or official interpretation of such laws or regulations would result in the Company becoming liable to pay additional tax amount. (iv) Accounting Call — Upon occurrence of an Equity Disqualification Event, the Company may at its option, at any time, on giving not less than 30 nor more than 60 days’ notice to the Securityholders redeem, in whole but not in part, the PSCS at (i) the Early Redemption Amount if such redemption occurs prior to the Third Anniversary Date or (ii) their principal amount together with any Distribution accrued to the date fixed for redemption if such redemption occurs on or after the Third Anniversary Date. (v) Rating Call — Upon occurrence of a Rating Disqualification Event, the Company may at its option, at any time, on giving not less than 30 nor more than 60 days’ notice to the Securityholders redeem, in whole but not in part, the PSCS at (i) the Early Redemption Amount if such redemption occurs prior to the Third Anniversary Date or (ii) their principal amount together with any Distribution accrued to the date fixed for redemption if such redemption occurs on or after the Third Anniversary Date. b) At the option of the Securityholder: (i) Following occurrence of any delisting or suspension arising from or as a result of an application to HKSE having been initiated or made by the Group or such delisting or suspension having been effected or imposed through any other means controlled by the Group or otherwise resulting from any action of the Group or any default or non-compliance by the Group of any of its obligations that are within its control (whether or not imposed by law or the listing rules of HKSE), the holder of each Security will have the right to require the Company to redeem all or some only of PSCS at their principal amount, together with any Distribution accrued to the date fixed for redemption. (ii) Tax Call — Securityholders have the right to elect for their PSCS not to be redeemed but with no entitlement to any additional amounts. The PSCS are included in equity in the Group’s consolidated financial statements as the Group does not have a contractual obligation to deliver cash or other financial assets arising from the issue of the PSCS. The PSCS will remain as equity reserve until the PSCS are converted, in which case, the balance recognized in equity will be transferred to ordinary shares and share premium. As at the issue date and the year ended December 31, 2017, the net book value of PSCS amounted to US$64.1 million after the deduction of issue expenses of US$0.9 million. Up to the date of the authorization of the Group’s consolidated financial statements for the year ended December 31, 2017, no PSCS have been converted into ordinary shares of the Company, either no distribution was paid. As of the date of this report, the Company has been informed by each of Datang and China IC Fund in a non-legally binding letter of intent that it intends to exercise its pre-emptive right in relation to the issue of the placed PSCS on December 6, 2017 with an additional allocation of approximately US$200,000,000 (including the amount it is entitled to in relation to the exercise of pre-emptive right) in aggregate principal amount of the placed PSCS (in the case of Datang) and with an additional allocation of up to US$300,000,000 (including the amount it is entitled to in relation to the exercise of pre-emptive right) in principal amount of the placed PSCS (in the case of China IC Fund). |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings | |
Borrowings | 31. Borrowings 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At amortized cost Short-term commercial bank loans (i) 308,311 176,957 62,872 Short-term borrowings 308,311 176,957 62,872 2013 USD loan (SMIC Shanghai) (ii) 10,760 10,760 10,760 2015 USD loan (SMIC Shanghai) — 39,641 52,854 2015 CDB USD loan (SJ Jiangyin) — 2,000 20,000 2015 CDB RMB loan I (SMIC Shanghai) (iii) 153,041 144,155 154,095 2015 CDB RMB loan II (SMIC Shanghai) (iv) 72,694 68,473 73,195 2015 CDB RMB loan (SMIC Beijing) (v) 29,231 28,110 30,048 2016 CDB RMB loan (SMIC Beijing) (vi) 223,440 210,466 — 2017 CDB RMB loan (SMIC Shenzhen) (vii) 185,792 — — 2015 EXIM RMB loan (SMIC Shanghai) (viii) 76,520 72,077 73,966 2017 EXIM RMB loan (SMIC Shanghai) (ix) 153,041 — — 2014 EXIM RMB loan (SMIC Beijing) — — 36,983 2016 EXIM RMB loan I (SMIC Beijing) (x) 36,730 34,597 — 2016 EXIM RMB loan II (SMIC Beijing) (xi) 61,216 57,662 — 2017 EXIM RMB loan (SMIC Beijing) (xii) 76,520 — — 2016 EXIM RMB loan (SMIC) (xiii) 76,520 72,077 — 2017 EXIM RMB loan (SMIC Tianjin) (xiv) 76,520 — — 2017 EXIM USD loan (SMIC Tianjin) (xv) 25,000 — — 2017 EXIM RMB loan (SMIC Shenzhen) (xvi) 76,520 — — 2015 RMB entrust loan (SJ Jiangyin) — — 14,331 2014 Cassa Depositie Prestiti loan (LFoundry) (xvii) 25,871 26,026 — 2014 MPS capital service loan (LFoundry) (xviii) 5,132 4,578 — 2014 Citizen Finetech Miyota loan (LFoundry) (xix) 3,502 3,926 — 2017 Banca del Mezzogiorno loan (LFoundry) (xx) 1,529 — — Finance lease payables (xxi) 6,252 7,057 — Loans from non-controlling interests shareholders (xxii) 12,750 1,627 — Others (xxiii) 487,655 482,579 — Long-term borrowings 1,876,236 1,265,811 466,232 2,184,547 1,442,768 529,104 Current Short-term borrowings 308,311 176,957 62,872 Current maturities of long-term borrowings 132,297 32,217 50,196 440,608 209,174 113,068 Non-current Non-current maturities of long-term debt 1,743,939 1,233,594 416,036 2,184,547 1,442,768 529,104 Borrowing by repayment schedule: Within 1 year 440,608 209,174 113,068 Within 1–2 years 399,301 171,900 15,830 Within 2–5 years 877,315 698,070 172,916 Over 5 years 467,323 363,624 227,290 2,184,547 1,442,768 529,104 Summary of borrowing arrangements (i) As of December 31, 201 7 , the Group had 34 short-term credit agreements that provided total credit facilities up to US$2, 118.5 million on a revolving credit basis. As of December 31, 201 7 , the Group had drawn down US$ 308.3 million under these credit agreements. The outstanding borrowings under these credit agreements are unsecured. The interest rate on this loan facility ranged from 0.98% to 3.48% in 201 7 . (ii) In August 2013, SMIS entered into a loan facility in the aggregate principal amount of US$47 0. 0 million with a syndicate of financial institutions based in the PRC. This seven-year bank facility was used to finance the planned expansion for SMIS’ 300mm fab. The facility is secured by the manufacturing equipment located in the SMIS’ 300mm fab. As of December 31, 2017, SMIS had drawn down US$26 0.0 million and repaid US$249.2 million on this loan facility. The outstanding balance of US$10.8 million is repayable in advance from February 2018 to August 2018. The interest rate on this loan facility ranged from 5.03% to 5.71%from in 2017. SMIS was in compliance with the related financial covenants as of December 31, 2017. (iii) In December 2015, SMIS entered into a loan facility in the aggregate principal amount of RMB1,00 0. 0 million with China Development Bank, which is guaranteed by SMIC. This fifteen-year bank facility was used for new SMIS’ 300mm fab. As of December 31, 201 7 , SMIS had drawn down RMB1,000 million (approximately US$1 53.0 million) on this loan facility. The outstanding balance is repayable from November 2021 to November 2030. The interest rate on this loan facility was 1.20% in 201 7 . (iv) In December 2015, SMIS entered into a loan facility in the aggregate principal amount of RMB47 5.0 million with China Development Bank, which is guaranteed by SMIC. This ten-year bank facility was used to expand the capacity of SMIS’ 300mm fab. As of December 31, 201 7 , SMIS had drawn down RMB47 5.0 million (approximately US$ 72.7 million) on this loan facility. The outstanding balance is repayable from December 2018 to December 2025. The interest rate on this loan facility was 1.20% in 201 7 . (v) In December 2015, SMIB entered into an RMB loan, a fifteen-year working capital loan facility in the principal amount of RMB19 5.0 million with China Development Bank, which is unsecured. As of December 31, 201 7 , SMIB had drawn down RMB19 5.0 million on this loan facility. The outstanding balance of RMB191.0 million (approximately US$2 9.2 million) is repayable from June 201 8 to December 2030. The interest rate on this loan facility was 1.20% in 201 7 . (vi) In May 2016, SMIB entered into the RMB loan, a fifteen-year working capital loan facility in the principal amount of RMB1,46 0. 0 million with China Development Bank, which is guaranteed by SMIC. As of December 31, 201 7 , SMIB had drawn down RMB1,46 0. 0 million (approximately US$2 23.4 million) on this loan facility. The principal amount is repayable from May 2018 to May 2031. The interest rate on this loan facility was 1.20% in 201 7 . (vii) In December 201 7 , SMI Z entered into a loan facility in the aggregate principal amount of RMB 5,400.0 million with China Development Bank, which is unsecured. This seven -year bank facility was used to finance the planned expansion for SMIZ’s 300mm fab. As of December 31, 201 7 , SMI Z had drawn down RMB 1,214.0 million (approximately US$ 185.8 million) on this loan facility. The outstanding balance is repayable from December 20 24 . The interest rate on this loan facility was 4 . 46 % per annum in 201 7 . (viii) In December 201 5 , SMI S entered into a loan facility in the aggregate principal amount of RMB 500.0 million with The Export-Import Bank of China , which is unsecured. This three -year bank facility was used for working capital purposes . As of December 31, 201 7 , SMI S had drawn down RMB 500.0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable in December 20 18 . The interest rate on this loan facility was 2 . 65 % in 201 7 . (ix) In March 2017, SMIS entered into a loan facility in the aggregate principal amount of RMB1,000.0 million with The Export-Import Bank of China, which is unsecured. This two-year bank facility as used for working capital purposes. As of December 31, 2017, SMIS had drawn down RMB1,000.0 million (approximately US$153.0 million) on this loan facility. The outstanding balance is repayable in March and April 2019. The interest rate on this loan facility is 2.65% per annum in 2017. (x) In December 2016, SMIB entered into the RMB loan, a two-year working capital loan facility in the principal amount of RMB24 0. 0 million with The Export-Import Bank of China, which is unsecured. This two-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIB had drawn down RMB24 0. 0 million (approximately US$3 6.7 million) on this loan facility. The principal amount is repayable in December 2018. The interest rate on this loan facility was 2.65% in 201 7 . (xi) In January 2016, SMIB entered into the RMB loan, a three-year working capital loan facility in the principal amount of RMB40 0. 0 million with The Export-Import Bank of China, which is unsecured. This three-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIB had drawn down RMB40 0. 0 million (approximately US$ 61.2 million) on this loan facility. The principal amount is repayable in January 2019. The interest rate on this loan facility was 2.65% in 201 7 . (xii) In September 201 7 , SMIB entered into the new RMB loan in the aggregate principal amount of RMB 5 0 0. 0 million with The Export-Import Bank of China, which is unsecured . This five -year bank facility was used for SMIB’s 300mm fab . As of December 31, 201 7 , SMIB had drawn down RMB 5 0 0. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable from September 2018 to September 2022 . The interest rate on this loan facility was 2. 92 % per annum in 201 7 . (xiii) In May 2016, SMIC entered into a loan facility in the aggregate principal amount of RMB50 0. 0 million with The Export-Import Bank of China, which is unsecured. This three-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIC had drawn down RMB50 0. 0 million (approximately US$7 6.5 million) on this loan facility. The outstanding balance is repayable in May 2019. The interest rate on this loan facility was 2.75% to 3 . 05 % in 201 7 . (xiv) In February 2017, SMI T entered into the new RMB loan , a three-year working capital loan facility in the principal amount of RMB 5 0 0. 0 million with The Export-Import Bank of China, which is unsecured . This three -year bank facility was use d for working capital purposes. As of December 31, 201 7 , SMI T had drawn down RMB 5 0 0. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayabl e in February 2020 . The interest rate on this loan facility was 4 . 04 % per annum in 201 7 . (xv) In August 2017, SMI T entered into the new RMB loan in the aggregate principal amount of US$25. 0 million with The Export-Import Bank of China, which is unsecured . This five -year bank facility was used for SMIT’s 200mm fab. As of December 31, 201 7 , SMI T had drawn down US$25. 0 million on this loan facility. The outstanding balance is repayable in August 2022 . The interest rate on this loan facility was 2 . 65 % per annum in 201 7 . (xvi) In December 2017, SMIZ entered into a USD loan facility in the aggregate principal amount of RMB500.0 million with T he Export-Import Bank of China, which is unsecured . This five -year bank facility was used to finance the planned expansion for SMIZ’s 300mm fab. As of December 31, 201 7 , S MIZ had drawn down RMB500. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable from March 201 8 to September 2022. The interest rate on this loan facility ranged from 3 . 4 0% in 201 7 . (xvii) In January 2014, LFoundry entered into a loan facility in the aggregate principal amount of EUR35.8 million with Cassa Depositie Prestiti.This ten-year bank facility was in relation to the admission of LFoundry to the benefits of the technology innovation fund. The facility is secured by bank deposits of EUR 14.3 million and the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down EUR35.8 million and repaid EUR 11.8 million on this loan facility. The outstanding balance of EUR2 4 .4 million (its present value is EUR2 1.5 million, approximately US$2 5.9 million) including principal amount of EUR2 4.0 million and interest cash flow of EUR0. 4 million is repayable from December 2017 to December 2023. The interest rate on this loan facility was 0.5% per annum in 201 7 . (xviii) In January 2014, LFoundry entered into a loan facility in the aggregate principal amount of EUR4.0 million with MPS Capital Service. This ten-year bank facility was in relation to the admission of LFoundry to the benefits of the technology innovation fund. The facility is secured by bank deposits of EUR1. 6 million and the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down EUR4.0 million on this loan facility. The outstanding balance of EUR 4 . 8 million (its present value is EUR4. 2 million, approximately US$ 5.1 million) including principal amount of EUR4.0 million and interest cash flow of EUR 0.8 million is repayable from June 2020 to December 2023. The interest rate on this loan facility was approximately 6% per annum in 201 7 . (xix) In June 2014, LFoundry entered into a loan facility in the aggregate principal amount of JPY48 0. 0 million with Citizen Finetech Miyota Co.Ltd. This five-year facility was used to finance the planned expansion of LFoundry’s 200mm fab. The facility is secured by the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down JPY48 0. 0 million and repaid JPY58.0 million on this loan facility. The outstanding balance of JPY4 3 9. 0 million (its present value is JPY 4 06 . 0 million, approximately US$3. 5 million) including principal amount of JPY4 22. 0 million and interest cash flow of JPY1 7.0 million is repayable from December 2017 to December 2019. The interest rate on this loan facility was 4.04% in 201 7 . (xx) In June 201 7 , LFoundry entered into a loan facility in the aggregate principal amount of EUR1 . 2 million with Banca del Mezzogiorno, which is unsecured. This nin e- year bank facility was in relation to the admission of LFoundry to the benefits of the European Project called Horizon. As of December 31, 201 7 , LFoundry had drawn down EUR1 . 2 million (approximately US$ 1.5 million) on this loan facility. The principal amount is repayable from December 201 8 to June 20 26 . The interest rate on this loan facility ranged from 0 . 8 % per annum in 201 7 . (xxi) In 2016, a leasing contract entered into by the Group with one of its suppliers for the construction and installation of gas generation equipment. This transaction was accounted for a finance leasing with remaining lease term of 5 years. As at December 31, 201 7 , the total net future finance lease pay ables w ere US$ 6.3 million. As of December 31, 2017, the total future minimum lease payments under finance leases and their present values (effective interest rate was 3.68%) were as follows: Minimum lease Present payments value USD’000 USD’000 Amounts payable: Within one year 1,742 1,564 In the second year 1,742 1,601 In the third to fifth years 3,193 3,087 Total minimum finance lease payments 6,677 6,252 Less: future finance cost charges (425) Total net finance lease payables 6,252 Less: current portion of finance lease payables (1,564) Non-current portion of finance lease payables 4,688 (xxii) In 2016, LFoundry entered into a loan facility in the aggregate principal amount of EUR15.0 million from non-controlling interests shareholders of LFoundry. This seven-year facility was in relation to the construction of the new co-generation. LFoundry had drawn down EUR1 0 . 6 million on this loan facility. The outstanding balance of EUR1 0 . 6 million (approximately US$1 2 . 7 million) is repayable from September 2018 to December 2023. The interest rate on this loan facility was 3.5% in 201 7 . (xxiii) Other borrowings represented US$48 7.7 million (December 31, 2016 : US$482.6 million and December 31, 2015: nil) of borrowings under three arrangements entered into by the Group with third-party companies in the form of a sale and leaseback transaction with a repurchase option. A batch of production equipment of the Group was sold and leased back under the financing arrangements. As the repurchase prices are set at below US$1.0 which are minimal compared to the expected fair value and the Group is certain that it will exercise the repurchase options, the above arrangements have been accounted for as collateralized borrowings of the Group. As of December 31, 2017, property, plant and equipment and land use right with carrying amount of approximately US$362.3 million (December 31, 2016: US$631.4 million and December 31, 2015: US$323.9 million) have been pledged to secure borrowings of the Group. |
Convertible bonds
Convertible bonds | 12 Months Ended |
Dec. 31, 2017 | |
Convertible bonds | |
Convertible bonds | 32. Convertible bonds (i) Redemption of zero coupon convertible bonds The Company exercised its right to redeem the US$200.0 million zero coupon convertible bonds due 2018, the US$86.8 million zero coupon convertible bonds due 2018, the US$95.0 million zero coupon convertible bonds due 2018 and the US$22.2 million zero coupon convertible bonds due 2018 (the “Bonds”) on March 10, 2017 being the option redemption date when all of the Bonds would be redeemed in cash at 100% of the Bonds’ principal amount. The conversion price is HK$7.965, approximately US$1.027. On March 3, 2017, the Company received notices from all holders of the Bonds for the full conversion of the outstanding Bonds. As all outstanding Bonds have been fully converted and no Bonds remain outstanding, no redemption of the Bonds will be carried out. The Company delisted the Bonds from the Singapore Exchange Securities Trading Limited. (ii) The Company issued convertible bonds at a par value of US$250,000 each with an aggregate principal amount of US$450,000,000 on July 7, 2016 (the “2016 Convertible Bonds”). The principal terms of the 2016 Convertible Bonds are as follows: (1) Denomination of the 2016 Convertible Bonds — The 2016 Convertible Bonds are denominated in USD. (2) Maturity date — Six years from the date of issuance, which is July 7, 2022 (“Maturity Date”). (3) Interest — The 2016 Convertible Bonds do not bear interest unless, upon due presentation thereof, payment of principal or premium (if any) is improperly withheld or refused. In such event, such unpaid amount shall bear interest at the rate of 2.0 per cent. per annum. (4) Conversion — a) Conversion price — The price is HK$0.9250 per each new share to be issued upon conversion of the 2016 Convertible Bonds (“Conversion Share”), subject to anti-dilutive adjustment in accordance with the terms of the bonds, including subdivision, reclassification or consolidation of shares of the Company, capitalization of profits or reserves, capital distribution, issuance of options or rights, and certain other events. With the Share Consolidation effective on December 7, 2016, the conversion price was adjusted to HK$9.250 per share. b) Conversion period — The Bondholder has the right to convert the 2016 Convertible Bonds into shares at any time on or after August 17, 2016 up to the close of business on the date falling seven days prior to the Maturity Date or if such bonds shall have been called for redemption before the Maturity Date, the conversion period will end at the close of business on the seventh day before the date fixed for redemption, which is discussed below. c) Number of Conversion Shares issuable - 3,778,881,081 Conversion Shares will be issued upon full conversion of the 2016 Convertible Bonds based on the initial conversion price of HK$0.9250 (translated at the fixed exchange rate of HK$7.7677 = US$1.0 as pre- determined). With the Share Consolidation effective on December 7, 2016, the number of Conversion Shares were adjusted to 377,888,108 Conversion Shares. (5) Redemption — a) At the option of the Company: (I) (II) (III) b) At the option of the Bondholder: (I) (II) (6) Purchase — The Issuer or any of their respective Subsidiaries may, subject to applicable laws and regulations, at any time and from time to time purchase the 2016 Convertible Bonds at any price in the open market or otherwise. (7) Cancellation — All the 2016 Convertible Bonds which are redeemed, converted or purchased by the Issuer or any of its Subsidiaries, will forthwith be cancelled. Certificates in respect of all the 2016 Convertible Bonds cancelled will be forwarded to or to the order of the Registrar and such 2016 Convertible Bonds may not be reissued or resold. The 2016 Convertible Bonds issued at July 7, 2016 is a compound instrument included a liability component and an equity component. There are embedded derivatives in respect of the early redemption features of the 2016 Convertible Bonds, which are deemed to be clearly and closely related to the host contract and therefore, do not need to be separately accounted for. As at the date of issue, the fair value of the liability component of the 2016 Convertible Bonds was approximately US$387.9 million and the equity component was approximately US$52.9 million, determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. USD’000 Principal amount 450,000 Transaction cost (9,194) Liability component as at the date of issue (387,871) Equity component as at the date of issue 52,935 Subsequent to the initial recognition, the liability component of the 2016 Convertible Bonds was carried at amortized cost using the effective interest method. The effective interest rate of the liability component of the 2016 Convertible Bonds was 3.78% per annum. The movement of the liability component and the equity component of the 2016 Bonds for the year ended December 31, 2017 is set out below: Liability Equity Component Component Total USD’000 USD’000 USD’000 As at the date of issue 387,871 52,935 440,806 Interest charged 7,339 — 7,339 Balance at December 31, 2016 395,210 52,935 448,145 Interest charged 14,913 — 14,913 Conversion options exercised (6,794) (882) (7,676) As at December 31, 2017 403,329 52,053 455,382 The equity component will remain in convertible bond equity reserve until the embedded conversion option is exercised or the 2016 Convertible Bonds mature. |
Bonds payable
Bonds payable | 12 Months Ended |
Dec. 31, 2017 | |
Bonds payable | |
Bonds payable | 33. Bonds payable On October 7, 2014, the Company issued 5-year unsecured corporate bonds for a total amount of US$500.0 million. The corporate bonds carry a coupon interest rate of 4.125% with bond interest payable semi-annually on March 31 and September 30. As at the date of issue, the net book value of the liabilities amounted to US$491.2 million after the deduction of (1) a discount of US$5.2 million and (2) issue expenses of US$3.6 million. USD’000 Principal amount 500,000 Discount of bonds payable (5,185) Transaction cost (3,634) Bonds payable as at the date of issue 491,181 The movement of the corporate bonds for the year ended December 31, 2017 is set out below: USD’000 Balance at December 31, 2014 491,579 Interest charged 22,253 Interest payable recognized (20,625) Balance at December 31, 2015 493,207 Interest charged 22,327 Interest payable recognized (20,625) Balance at December 31, 2016 494,909 Interest charged 22,405 Interest payable recognized (20,625) Balance at December 31, 2017 496,689 |
Medium-term notes
Medium-term notes | 12 Months Ended |
Dec. 31, 2017 | |
Medium-term notes | |
Medium-term notes | 34. Medium-term notes On June 7 and June 8, 2016, the Company issued the three- year medium-term notes of RMB1,500.0 million (approximately US$226.2 million) through National Association of Financial Market Institutional Investors (“NAFMII”). The medium-term notes carry a coupon interest rate of 3.35% per annum with interest due annually on June 8, 2017, June 8, 2018 and June 10, 2019. As at the date of issue, the net book value of the liabilities of medium-term notes amounted to RMB1,485.2 million (approximately US$223.9 million). USD’000 Principal amount 226,162 Transaction cost (2,226) Notes payable as at the date of issue 223,936 The movement of the medium-term notes for the period ended December 31, 2017 is set out below: USD’000 As at the date of issue 223,936 Interest charged during 4,625 Interest payable recognized (4,225) Foreign exchange gain (9,834) Balance at December 31, 2016 214,502 Interest charged during 8,185 Interest payable recognized (7,450) Foreign exchange gain 13,246 Balance at December 31, 2017 228,483 |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other financial liabilities [Abstract] | |
Other financial liabilities | 35. Other financial liabilities 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At fair value Non-current Derivatives Cross currency swap contracts — cash flow hedges 1,919 74,170 — Current Derivatives Cross currency swap contracts — cash flow hedges 742 6,348 — Cross currency swap contracts — — 1,459 Foreign currency forward contracts 2 — — 744 6,348 1,459 2,663 80,518 1,459 Please refer to Note 40 for more details. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other liabilities | |
Other liabilities | 36. Other liabilities 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Non-current Bonus accrued — — 48,000 Defined benefit obligation(1) 28,162 24,213 — Contingent Consideration(3) 12,549 Others – non-current(2) 59,106 13,284 17,761 99,817 37,497 65,761 Current Others – current(2) 40,627 — — 140,444 37,497 65,761 (1) Defined Benefit Plan Trattamento di Fine Rapport (“TFR”) relates to the amounts that employees in Italy are entitled to receive when they leave the Group and is calculated based on the period of employment and the taxable earnings of each employee. Under certain conditions, the entitlement may be partially advanced to an employee during the employee’s working life. Under the amendments of the Italian legislation in the first half of 2007, companies with at least 50 employees are obliged to transfer the TFR to the “Treasury Fund” managed by the Italian state-owned social security body (“INPS”) or to supplementary pension funds. Prior to the amendments, accruing TFR for employees of all Italian companies could be managed by the Group itself. Consequently, the Italian companies’ obligation to INPS and the contributions to supplementary pension funds take the form, under IAS 19 revised, of “Defined contribution plans” whereas the amounts recorded in the TFR liability retain the nature of “Defined benefit plans”. Accordingly, TFR liability consists of the residual obligation for TFR until December 31, 2006. This is an unfunded defined benefit plan as the benefits have already been almost entirely earned, with the sole exception of future revaluations. Since 2007 the scheme has been classified as a defined contribution plan, and the companies under IFRS recognize the associated cost, being the required contributions to the pension funds, over the period in which the employee renders service. The Group operates defined benefit plans in Italy under broadly similar regulatory frameworks, which is an unfunded plan where the Group meets the benefit payment obligation as it falls due. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. The TFR in payment is generally updated in line with the retail price index. The amounts recognized in the statement of financial position and the movements in the net defined benefit obligation over the year are as follows: USD’000 As at August 1, 2016 27,569 Interest expense recognized in profit or loss 87 Actuarial gains recognized in other comprehensive income (1,520) Exchange differences (1,875) Contribution to employees (48) Balance at December 31, 2016 24,213 Interest expense recognized in profit or loss 376 Actuarial losses recognized in other comprehensive income 436 Exchange differences 3,455 Contribution to employees (318) Balance at December 31, 2017 28,162 The significant actuarial assumptions were as follows: 12/31/17 12/31/16 Discount rate (%) 1.18 % 1.37 % Inflation rate (%) 1.50 % 1.50 % Salary growth rate (%) 1.50 % 1.50 % Labor turnover rate (%) 2.65 % 2.65 % Probability of request of advances of TFR (%) 1.50 % 1.50 % Percentage required in case of advance (%) 70.00 % 70.00 % 12/31/17 12/31/16 Number of employees with TFR 1,485 1,421 Average age (years) 47 46 Average seniority (years) 20 20 The sensitivity analysis of the defined benefit obligation was as follows: 12/31/17 12/31/16 Discount rate (+0.5%) –5.85 % –6.05 % Discount rate (-0.5%) 6.38 % 6.61 % Rate of payments increases (+20%) –0.65 % –0.57 % Rate of payments decreases (-20%) 0.71 % 0.63 % Rate of price inflation increases (+0.5%) 3.80 % 3.94 % Rate of price inflation decreases (-0.5%) –3.72 % –3.86 % Rate of salary increases (+0.5%) 0.00 % 0.00 % Rate of salary decreases (-0.5%) 0.00 % 0.00 % Increase the retirement age (+1 year) 0.49 % 0.38 % Decrease the retirement age (-1 year) –0.52 % –0.40 % Increase longevity (+1 year) 0.00 % 0.00 % Decrease longevity (-1 year) 0.00 % 0.00 % The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the statement of financial position. (2) Others Others including the non-current and current portion of long-term payables for the new purchased tangible and intangible assets were classified into the non-current and current liabilities respectively amounted at to US$57.5 million and US$40.6 million as of December 31, 2017. (3) Contingent consideration The group had contingent consideration in respect of a potential cash compensation accrued at about US$12.5 million in 2017 that may be incurred depending on the profit of Changjiang Xinke during the three years of 2017, 2018 and 2019. The potential cash compensation was deemed as the terms of the supplemental agreement entered by Siltech Shanghai and JCET on December 9, 2016 and the transaction under this agreement was completed in 2017. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other payables | |
Trade and other payables | 37. Trade and other payables 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Trade payables 837,843 781,161 885,438 Advance receipts from customers 65,044 60,157 72,865 Deposit received 54,895 41,324 47,468 Other payable 92,678 57,911 41,995 1,050,460 940,553 1,047,766 Trade payables are non-interest bearing and are normally settled on 30-dayto 60-day terms. As of December 31, 2017, 2016 and 2015, trade payables were US$837.8 million, US$781.2 million and US$885.4 million, within which the payables for property, plant and equipment were US$506.7 million, US$483.0 million and US$660.7 million, respectively. The following is an aged analysis of accounts payable presented based on the invoice date at the end of the reporting period. 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Within 30 days 658,804 630,896 788,936 Between 31 to 60 days 68,358 43,984 36,596 Over 60 days 110,681 106,281 59,906 837,843 781,161 885,438 An aged analysis of the accounts payable presented based on the due date at the end of the reporting period is as follows: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current 705,835 659,094 814,553 Overdue: Within 30 days 46,318 55,394 24,554 Between 31 to 60 days 22,052 7,658 10,458 Over 60 days 63,638 59,015 35,873 837,843 781,161 885,438 |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accrued liabilities | |
Accrued liabilities | 38. Accrued liabilities The amounts of accrued liabilities as of December 31, 2017, 2016 and 2015 were US$180.9 million, US$230.5 million and US$132.5 million, within which the amounts of accrued payroll expenses were US$116.7 million, US$163.6 million and US$71.5 million, respectively. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payments | |
Share-based payments | 39. Share-based payments Stock incentive plans The Company’s stock incentive plans allow the Company to offer a variety of incentive awards to employees, consultants or external service advisors of the Group. Stock option plan The options are granted at the fair market value of the Company’s ordinary shares and expire 10 years from the date of grant and vest over a requisite service period of four years. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted. Restricted share units (“RSUs”) The Company adopted the Equity Incentive Plan (“EIP”) whereby the Company provided additional incentives to the Group’s employees, directors and external consultants through the issuance of restricted shares, RSUs and stock appreciation rights to the participants at the discretion of the Board of Directors. The RSUs vest over a requisite service period of 4 years and expire 10 years from the date of grant. The fair value of each RSU granted is estimated on the date of grant using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the instruments were granted. Share option plan for subsidiaries (“Subsidiary Plan”) The options granted under the Subsidiary Plan shall entitle a participant of the Subsidiary Plan to purchase a specified number of subsidiary shares during a specified period at the price fixed by the relevant subsidiary committee at the time of grant or by a method specified by the relevant subsidiary committee at the time of grant and expire 10 years from the date of grant. The options vest over a requisite service period of four years. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted. The expense recognized for employee services received during the year is shown in the following table: Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Expense arising from equity-settled share-based payment transactions 18,214 14,210 18,329 Movements during the year (i) The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, share options during the year (excluding Restricted Share Units (“RSUs”) and share option plan for subsidiaries (“Subsidiary Plan”): 2017 2017 2016 2016 2015 2015 Number WAEP Number* WAEP* Number* WAEP* Outstanding at January 1 72,482,764 US$ 0.82 100,295,578 US$ 0.82 116,362,727 US$ 0.84 Granted during the period 6,071,477 US$ 1.14 2,076,652 US$ 0.92 5,656,526 US$ 1.02 Forfeited and expired during the period (3,842,461) US$ 1.33 (6,430,431) US$ 1.16 (8,792,890) US$ 1.37 Exercised during the period (21,830,502) US$ 0.78 (23,459,035) US$ 0.75 (12,930,785) US$ 0.67 Outstanding at December 31 52,881,278 US$ 0.83 72,482,764 US$ 0.82 100,295,578 US$ 0.82 Exercisable at December 31 39,511,002 US$ 0.78 50,708,535 US$ 0.77 51,319,799 US$ 0.80 As at December 31, 2017, the 39,511,002 outstanding share options were exercisable (December 31, 2016: 50,708,535* and December 31 2015: 51,319,799*). The weighted average remaining contractual life for the share options outstanding as at December 31, 2017 was 5.21 years (2016: 5.29 years and 2015: 6.04 years). The range of exercise prices for options outstanding at the end of the year was from US$0.23 to US$1.38 (2016: from US$0.23* to US$1.48* and 2015: from US$0.23* to US$1.52*). The weighted average closing price of the Company’s shares immediately before the dates while the share options were exercised was US$1.44 (2016: US$1.24* and 2015: US$1.07*). During the year ended December 31, 2017, share options were granted on April 5, 2017, May 22, 2017 and September 7, 2017. The fair values of the options determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.56, US$0.42and US$0.40, respectively. During the year ended December 31, 2016, share options were granted on May 25, 2016, September 12, 2016 and November 18, 2016. The fair values of the options determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.36*, US$0.42* and US$0.52*, respectively. During the year ended December 31, 2015, share options were granted on February 24, 2015, May 20, 2015 and September 11, 2015. The fair values of the options determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.36*, US$0.44* and US$0.54*, respectively. The following table list the inputs to the Black Scholes Pricing models used for the option granted during the years ended December 31, 2017, 2016 and 2015 respectively: Dividend yield (%) — — — Expected volatility 42.80 % 44.80 % 46.13 % Risk-free interest rate 1.84 % 1.39 % 1.61 % Expected life of share options 6 years 6 years 6 years The risk-free rate for periods within the contractual life of the option is based on the yield of the US Treasury Bond. The expected term of options granted represents the period of time that options granted are expected to be outstanding. Expected volatilities are based on the average volatility of the Company’s stock prices with the time period commensurate with the expected term of the options. The dividend yield is based on the Company’s intended future dividend plan. The valuation of the options are based on the best estimates from Company by taking into account a number of assumptions and is subject to limitation of the valuation model. Changes in variables and assumptions may affect the fair value of these options. * The number, price and fair value of share options for the prior years have been adjusted to reflect the impact of the share consolidation, on the basis that every ten ordinary shares and preferred shares of US$0.0004 each consolidated into one ordinary share and preferred share of US$0.004 each, which was accounted for as a reverse stock split effective on December 7, 2016. (ii) The following table illustrates the number and weighted average fair value (“WAFV”) of, and movements in, RSUs during the year (excluding stock option plan and Subsidiary Plan): 2017 2017 2016 2016 2015 2015 Number WAFV Number* WAFV* Number* WAFV* Outstanding at January 1 26,489,152 US$ 0.98 30,451,268 US$ 0.99 27,405,767 US$ 0.87 Granted during the period 14,055,477 US$ 1.11 8,738,247 US$ 0.86 14,685,298 US$ 1.06 Forfeited during the period (950,412) US$ 1.04 (1,124,847) US$ 0.98 (1,342,168) US$ 0.96 Exercised during the period (10,893,120) US$ 0.97 (11,575,516) US$ 0.91 (10,297,629) US$ 0.79 Outstanding at December 31, 28,701,097 US$ 1.05 26,489,152 US$ 0.98 30,451,268 US$ 0.99 As at December 31, 2017, the number of outstanding RSUs granted 28,701,097 (December 31, 2016: 26,489,152* and December 31, 2015: 30,451,268*). The weighted average remaining contractual life for the RSUs outstanding as at December 31, 2017 was 8.51 years (2016: 8.37 years and 2015: 8.69 years). The weighted average closing price of the Company’s shares immediately before the dates on which the RSUs were exercised was US$1.29 (2016: US$0.83* and 2015: US$0.94*). During the year ended December 31, 2017, RSUs were granted on April 5, 2017, May 22, 2017, September 7, 2017 and December 7, 2017. The fair values of the RSUs determined at the dates of grant using the Black-Scholes Option Pricing model were US$1.24, US$1.09 US$1.01,and US$1.31 respectively. During the year ended December 31, 2016, RSUs were granted on May 25, 2016, September 12, 2016 and November 18, 2016. The fair values of the RSUs determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.82*, US$1.11* and US$1.39* respectively. During the year ended December 31, 2015, RSUs were granted on May 20, 2015, September 11, 2015 and November 23, 2015. The fair values of the RSUs determined at the dates of grant using the Black-Scholes Option Pricing model were US$1.07*, US$0.89* and US$1.11* respectively. The following table list the inputs to the models used for the plans for the years ended December 31, 2017, 2016 and 2015, respectively: Dividend yield (%) — — — Expected volatility 39.45 % 39.66 % 37.07 % Risk-free interest rate 1.24 % 0.9 % 0.60 % Expected life of share options 2 years 2 years 2 years The risk-free rate for periods within the contractual life of the RSUs is based on the yield of the US Treasury Bond. The expected term of RSUs granted represents the period of time that RSUs granted are expected to be outstanding. Expected volatilities are based on the average volatility of the Company’s stock prices with the time period commensurate with the expected term of the RSUs. The dividend yield is based on the Company’s intended future dividend plan. The valuation of the RSUs is based on the best estimates from Company by taking into account a number of assumptions and is subject to limitation of the valuation model. Changes in variables and assumptions may affect the fair value of these RSUs. * The number and fair value of RSUs for the prior years have been adjusted to reflect the impact of the share consolidation, on the basis that every ten ordinary shares and preferred shares of US$0.0004 each consolidated into one ordinary share and preferred share of US$0.004 each, which was accounted for as a reverse stock split effective on December 7, 2016. (iii) The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, s hare options of the Subsidiary Plan during the year (excluding stock option plan and RSUs): 2017 2017 2016 2016 2015 2015 Number WAEP Number WAEP Number WAEP Outstanding at January 1 14,598,750 US$ 0.19 7,000,000 US$ 0.06 — — Granted during the year 1,598,750 US$ 0.31 7,698,750 US$ 0.31 8,330,000 US$ 0.06 Forfeited and expired during the year (934,948) US$ 0.05 (100,000) US$ 0.05 (1,192,500) US$ 0.06 Exercised during the year (343,750) US$ 0.25 — — (137,500) US$ 0.05 Outstanding at December 31, 14,918,802 US$ 0.20 14,598,750 US$ 0.19 7,000,000 US$ 0.06 Exercisable at December 31, 7,079,401 US$ 0.15 3,297,135 US$ 0.07 689,479 US$ 0.05 The weighted average remaining contractual life for the share options outstanding as at December 31, 2017 was 8.3 years (2016: 9.2 years and 2015: 9.1 years). The range of exercise prices for options outstanding at the end of the year was from US$0.05 to US$0.31 (2016: from US$0.05 to US$0.31 and 2015: from US$0.05 to US$0.08). During the year ended December 31, 2017, share options of the Subsidiary Plan were granted on August 9, 2017. The fair values of the options of the Subsidiary Plan determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.11. During the year ended December 31, 2016, share options of the Subsidiary Plan were granted on December 27, 2016. The fair values of the options of the Subsidiary Plan determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.14. During the year ended December 31, 2015, share options of the Subsidiary Plan were granted on January 1, 2015, May 4, 2015 and September 15, 2015. The fair values of the options of the Subsidiary Plan determined at the dates of grant using the Black-Scholes Option Pricing model were US$0.069, US$0.069 and US$0.099, respectively. The following table list the inputs to the Black Scholes Pricing models used for the option of the Subsidiary Plan granted during the years ended December 31, 2017: Dividend yield (%) — — — Expected volatility 32.0 % 41.5 % 36.0 % Risk-free interest rate 1.90 % 2.10 % 1.01 % Expected life of share options 6 years 6 years 3 years The risk-free rate for periods within the contractual life of the option of the Subsidiary Plan is based on the yield of the US Treasury Bond. The expected term of options of the Subsidiary Plan granted represents the period of time that options of the Subsidiary Plan granted are expected to be outstanding. Expected volatilities are based on the average volatility of the relevant subsidiary’s set of public comparables with the time period commensurate with the expected term of the options. The dividend yield is based on the relevant subsidiary’s intended future dividend plan. The valuation of the options of the Subsidiary Plan are based on the best estimates from the relevant subsidiary by taking into account a number of assumptions and is subject to limitation of the valuation model. Changes in variables and assumptions may affect the fair value of these options. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments | |
Financial instruments | 40. Financial instruments Capital management The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the capital structure. The capital structure of the Group consists of net debt (debt as detailed in Note 31, Note 32, Note 33 and Note 34 offset by cash and cash equivalent) and equity of the Group. Where the entity manages its capital through issuing/repurchasing shares and raising/repayment of debts. The Group reviews the capital structure on a semi-annual basis. As part of this review, the Group considers the cost of capital and the risks associates with each class of capital. The Group will balance its overall capital structure through the payment of dividends, new share issues and share buy-backs as well as the issue of new debt or the redemption of existing debt. Gearing ratio The gearing ratio at end of the reporting period was as follows. 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Debt* 3,313,048 3,025,283 1,414,943 Cash and cash equivalent (1,838,300) (2,126,011) (1,005,201) Other financial assets - current (683,812) (31,543) (282,880) Net debt 790,936 867,729 126,862 Equity 6,721,335 5,403,227 4,190,255 Net debt to equity ratio 11.8 % 16.1 % 1.3 % * Debt is defined as long-term and short-term borrowings (excluding derivatives), convertible bonds, short-term and medium-term note s , and bonds payables as described in Note 31, Note 32, Note 33 and Note 34. Financial risk management objectives The Group’s corporate treasury function co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk including currency risk, interest rate risk and other price risk, credit risk and liquidity risk. The Group seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed on continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Market risk The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including: · forward foreign exchange contracts to hedge the exchange rate risk arising on the import from suppliers; · interest rate swaps to mitigate the risk of rising interest rates; and · cross-currency interest rate swap contracts to protect against volatility of future cash flows caused by the changes in both interest rates and exchange rates associated with outstanding long-term debt denominated in a currency other than the US dollar. Market risk exposures are measured using the sensitivity analysis and the analysis in the following sections relate to the position as at December 31, 2017, 2016 and 2015. There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured. Foreign currency risk management The Group undertakes transactions denominated in foreign currencies, consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilizing forward foreign exchange contracts. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Liabilities Assets 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 EUR 125,171 112,827 76,462 72,181 39,619 33,968 JPY 30,422 41,976 5,553 29,245 35,237 2,986 RMB 2,410,284 2,714,492 586,931 1,765,846 1,633,433 909,497 Others 43,824 27,083 14,127 8,688 3,860 2,529 Foreign currency sensitivity analysis The Group is mainly exposed to the currency of RMB, Japanese Yen (“JPY”) and Euros (“EUR”). The following table details the Group’s sensitivity to a 5% increase in the foreign currencies against USD. 5% represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. For a 5% decrease of the foreign currency against USD, there would be an equal and opposite impact on the profit or equity below predicted. EUR JPY RMB Others USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Profit or loss (2,650) (3,660) (2,125) (62) (355) (128) (33,918) (6,611) 16,128 (1,848) (1,222) (580) Equity (2,650) (3,660) (2,125) (62) (355) (128) (33,918) (6,611) 16,128 (1,848) (1,222) (580) Forward foreign exchange contracts It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts within the exposure generated. The Group also enters into forward foreign exchange contracts to manage the foreign currency exposure from purchases/sales and financing activities. The following table details the forward foreign currency (“FC”) contracts outstanding at the end of the reporting period: Outstanding contracts Average exchange rate Foreign currency Notional value Net Fair value assets (liabilities) 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 FC’000 FC’000 FC’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Buy EUR Less than 3 months 1.2019 — 1.0895 2,080 — 39,192 2,500 — 42,872 (2) — 172 Buy RMB Less than 3 months 6.7622 — — 648,364 — — 95,881 — — 2,111 — — 98,381 — 42,872 2,109 — 172 The Group does not enter into foreign currency exchange contracts for speculative purposes. Cross currency swap contracts It is the policy of the Group to enter into cross currency swap contracts to protect against volatility of future cash flows caused by the changes in exchange rates associated with outstanding debt denominated in a currency other than the US dollar. In 2017, 2016 and 2015, the Group entered into or issued several RMB denominated loan facility agreements, short-term notes and medium-term notes (the “RMB Debts”) in the aggregate principal amount of RMB3,714.0 million (approximately US$568.4 million), RMB5,447.0 million (approximately US$785.2 million) and RMB480.0 million (approximately US$74.0 million), respectively. The Group was primarily exposed to changes in the exchange rate for the RMB. To minimize the currency risk, the Group entered into cross currency swap contracts with a contract term fully matching the repayment schedule of the whole part of these RMB Debts to protect against the adverse effect of exchange rate fluctuations arising from the RMB Debts. As of December 31, 2017, the Group had outstanding cross currency swap contracts with notional amounts of RMB6,398.0 million (approximately US$979.2 million) (as of December 31, 2016: US$854.4 million and 2015: US$74.0 million). The cross currency swap contracts were designated as hedging instrument of cash flow hedges since October 2016. Any gains or losses arising from changes in fair value of cross currency swap contracts are taken directly to the statement of profit or loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedged item affects profit or loss. During the year, US$2.2 million gain of fair value change of cross currency swap was recognized in other gains or losses, net (Note 9, 2016: US$15.0 million loss and 2015: US$1.5 million loss). The following foreign-exchange related amounts of cash flow hedges were recognized in profit or loss and other comprehensive income or loss: Year ended Year ended 12/31/17 12/31/16 USD’000 USD’000 Total fair value gain (loss) included in other comprehensive income (loss) 95,185 (66,861) Reclassified from other comprehensive income (loss) to offset foreign exchange gains or losses (60,042) 32,234 Other comprehensive income (losses) on cash flow hedges recognized during the year 35,143 (34,627) The following table details the cross currency swap contracts outstanding at the end of the reporting period: Outstanding contracts Average exchange rate Foreign currency Notional value Net Fair value assets (liabilities) 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 FC’000 FC’000 FC’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Buy RMB 3 months to 1 year 6.6369 6.6592 — 1,040,000 787,000 — 159,163 113,450 — 3,997 (6,348) — 1 year to 5 years 6.6356 6.5830 6.4360 5,358,000 5,140,000 480,000 819,993 740,954 73,966 15,679 (74,170) (1,459) 979,156 854,404 73,966 19,676 (80,518) (1,459) The Group does not enter into cross currency swap contracts for speculative purposes. Interest rate risk management The Group is exposed to interest rate risk relates primarily to the Group’s long-term debt obligations, which the Group generally assumes to fund capital expenditures and working capital requirements. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts and cross currency swap contracts. The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. Interest rate sensitivity analysis The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 10 basis point increase or decrease represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 10 basis points higher and all other variables were held constant, the Group’s profit for the year ended December 31, 2017 would increase by US$0.4 million (2016: profit decrease by US$0.5 million and 2015: profit decrease by US$0.4 million). This is mainly attributable to the Group’s exposure to interest rates on its variable rate borrowings. Credit risk management Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group is mainly exposed to credit risk from trade and other receivables and deposits with banks and financial institutions. Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures and is offered credit terms only with the approval from Finance and Sales Division. Credit quality of a customer is assessed using publicly available financial information and its own trading records to rate its major customers. The Group’s exposure and credit ratings of its counterparties are continuously monitored. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Apart from Customers A, B, C and D, four largest customers of the Group, the Group does not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Group defines counterparties as having similar characteristics if they are related entities. Concentration of credit risk related to Customers A, B, C and D did not exceed 5%, 4%, 1% and 1% respectively of gross monetary assets at the end of current year. Concentration of credit risk to any other counterparty did not exceed 1% of gross monetary assets at the end of current year. Net revenue and accounts receivable for customers which accounted for 5% or more of the Group’s net sales and gross accounts receivable is disclosed in Note 6. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings. Liquidity risk management The Group manages liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Liquidity and interest risk tables The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Group may be required to pay. Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 Interest-bearing bank and Fixed 3.20 % 140,338 24,757 313,497 338,632 817,224 other borrowings Floating 2.36 % 16,712 87,753 958,367 307,003 1,369,835 Convertible bonds 3.79 % — — 442,500 — 442,500 Bonds payable 4.52 % — — 500,000 — 500,000 Medium-term notes 3.70 % — — 226,162 — 226,162 Finance lease payables 3.68 % 434 1,308 4,935 — 6,677 Trade and other payables 880,795 5,492 161,169 3,004 1,050,460 Contingent consideration — — 12,549 — 12,549 1,038,279 119,310 2,619,179 648,639 4,425,407 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Interest-bearing bank and Fixed 2.50 % 130,728 6,729 131,474 384,382 653,313 other borrowings Floating 2.62 % 6,039 67,347 785,059 4,781 863,226 Convertible bonds 2.78%–3.79 % 393,200 — 450,000 — 843,200 Bonds payable 4.52 % — — 500,000 — 500,000 Medium-term notes 3.70 % — — 226,162 — 226,162 Short-term notes 2.99 % — 90,465 — — 90,465 Finance lease payables 3.68 % 382 1,147 6,118 — 7,647 Trade and other payables 915,840 1,353 21,706 1,654 940,553 1,446,189 167,041 2,120,519 390,817 4,124,566 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Interest-bearing bank and Fixed 1.69 % 42,963 — 149,253 238,831 431,047 other borrowings Floating 4.98 % — 71,944 158,744 — 230,688 Convertible bonds 2.78%–3.79 % — 404,000 — — 404,000 Bonds payable 4.52 % — — 500,000 — 500,000 Trade and other payables 920,426 28,508 5,350 93,482 1,047,766 963,389 504,452 813,347 332,313 2,613,501 The following table details the Group’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non- derivative financial assets is necessary in order to understand the Group’s liquidity risk management as the liquidity is managed on a net asset and liability basis. Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 Trade and other receivables 616,308 — — — 616,308 Cash and cash equivalent, restricted cash & short-term investments* 1.25 % 2,231,089 276,723 116,282 — 2,624,094 Available for sale financial assets — — — 24,844 24,844 2,847,397 276,723 116,282 24,844 3,265,246 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Trade and other receivables 645,822 — — — 645,822 Cash and cash equivalent, restricted cash & short-term investments* 1.19 % 2,000,717 480,379 21,125 — 2,502,221 Available for sale financial assets — — — 21,966 21,966 2,646,539 480,379 21,125 21,966 3,170,009 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Trade and other receivables 499,846 — — — 499,846 Cash and cash equivalent, restricted cash & short-term investments* 2.12 % 1,549,692 45,038 — — 1,594,730 Available for sale financial assets — — — 19,750 19,750 2,049,538 45,038 — 19,750 2,114,326 The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period. * The above restricted cash exclude the cash received from government funds. The Group has access to short-term financing facilities as described in below section, of which US$1,810.2 million were unused at the end of the reporting period (2016: US$1,873.8 million and 2015: US$1,351.7 million). The Group expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets. The following table details the Group’s liquidity analysis for its derivative financial instruments. The table has been drawn up based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period. Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 ` Gross settled: Cross currency swap contracts— cash flow hedges — inflows — 37,703 512,067 — 549,770 — (outflows) — (34,254) (480,984) — (515,238) Net settled: Cross currency swap contracts— cash flow hedges — net inflows — 2,854 20,730 — 23,584 — 6,303 51,813 — 58,116 Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Gross settled: Cross currency swap contracts— cash flow hedges — inflows — 71,120 403,265 — 474,385 — (outflows) — (72,872) (396,332) — (469,204) Net settled: Cross currency swap contracts— cash flow hedges — net outflows (1,355) (1,475) (2,830) — (3,107) 5,458 — 2,351 Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Net settled: Cross currency swap contracts — net inflows — — 4,381 — 4,381 — — 4,381 — 4,381 Fair value of financial instruments Fair value of financial instruments carried at amortized cost The Group considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values. Valuation techniques and assumptions applied for the purposes of measuring fair value The fair values of financial assets and financial liabilities are determined as follows: · the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information that the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Fair value measurements recognized in the consolidated statement of financial position The following tables provide an analysis of financial instruments that are measured at fair value on a recurring basis subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. There is no transfer within different levels of the fair value hierarchy in the year ended December 31, 2017, 2016 and 2015: · Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active market for identical assets or liabilities; · Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices), and · Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). 12/31/17 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 117,928 — 117,928 Available-for-sale investment Quoted prices in active markets 2,531 — — 2,531 Available-for-sale investment Recent transaction price — — 20,134 20,134 Cross currency swap contracts classified as other financial assets in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 22,337 — 22,337 Foreign currency forward contracts classified as other financial assets in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2,111 — 2,111 2,531 142,376 20,134 165,041 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2,661 — 2,661 Foreign currency forward contracts classified as other financial liabilities in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2 — 2 Contingent consideration Discounted cash flow. Future cash flows.Future cash flows are basis on management’s best estimation and discounted. — — 12,549 12,549 — 2,663 12,549 15,212 12/31/16 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 24,931 — 24,931 Available-for-sale investment Quoted prices in active markets 4,713 — — 4,713 Available-for-sale investment Recent transaction price — — 16,067 16,067 Derivative financial instrument Measured by Binomial Model with key assumptions including exercise multiple (75%), risk free rate of interest (1.2%), expected volatility (46.8%) and rate of return (10%). — — 32,894 32,894 4,713 24,931 48,961 78,605 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 80,518 — 80,518 — 80,518 — 80,518 12/31/15 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 257,583 — 257,583 Foreign currency forward contracts classified as other financial assets in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 172 — 172 Available-for-sale investment Quoted prices in active markets 3,300 — — 3,300 Available-for-sale investment Recent transaction price — — 15,173 15,173 Derivative financial instrument Measured by Binomial Model with key assumptions including exercise multiple (75%), risk free rate of interest (1.2%), expected volatility (46.8%) and rate of return (10%). — — 30,173 30,173 3,300 257,755 45,346 306,401 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 1,459 — 1,459 — 1,459 — 1,459 |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2017 | |
Cash flow information | |
Cash flow information | 41. Cash flow information Reconciliation of liabilities arising from financing activities Net cash flows Conversion Foreign Other in financing options exchange non-cash 12/31/2016 activities exercised loss movement(1) 12/31/2017 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Short-term borrowings 176,957 127,715 — 3,639 — 308,311 Long-term borrowings 1,265,811 529,928 — 80,497 — 1,876,236 Disposals 786,611 — (399,099) — 15,817 403,329 Convertible bonds 494,909 — — — 1,780 496,689 Bonds payable 214,502 — — 13,246 735 228,483 Medium-term notes 86,493 (87,858) — 1,365 — — Currency swap contracts classified as other financial assets — — — — (22,337) (22,337) Currency swap contracts classified as other financial liabilities 80,518 — — — (77,857) 2,661 Balance at December 31, 2017 3,105,801 569,785 (399,099) 98,747 (81,862) 3,293,372 (1) Other non-cash movements were accrued interest expenses for bonds and notes and fair value change of currency swap contracts. Non-cash investing activities In 2017, the acquisition of tangible and intangible assets by means of long-term payables amounted to US$97.6 million. Please refer to Note 36 (2) for more details. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2017 | |
Business combination | |
Business combination | 42. Business combination On June 24, 2016, the Company, LFoundry Europe GmbH (“LFoundry Europe”) and Marsica Innovation S.p.A (“Marsica”) entered into a sale and purchase agreement pursuant to which LFoundry Europe and Marsica agreed to sell and the Company agreed to purchase 70% of the corporate capital of LFoundry for an aggregate cash consideration of EUR49 million subject to adjustment. The acquisition was completed on July 29, 2016. The assets and liabilities recognized as of July 29, 2016 as a result of the acquisition were as follows: Fair value USD’000 Property, plant and equipment 113,119 Intangible assets 8,088 Restrict cash 26,042 Other assets 5,590 Total non-current assets 152,839 Inventories 29,252 Prepayment and prepaid operating expenses 2,864 Trade and other receivables 34,186 Other financial assets 111 Cash and cash equivalent 18,987 Total current assets 85,400 Total Assets 238,239 Borrowings 71,654 Deferred tax liability 15,639 Other long-term liabilities 35,354 Total non-current liabilities 122,647 Trade and other payables 37,005 Borrowings 4,904 Accrued liabilities 1,635 Total current liabilities 43,544 Total Liabilities 166,191 Total identifiable net assets at fair value 72,048 Less: non-controlling interests (21,615) Goodwill on acquisition 3,933 Satisfied by cash 54,366 The goodwill is attributable to the workforce and the high profitability of the acquired business. It will not be deductible for tax purposes. An analysis of the cash flows in respect of the acquisition of a subsidiary is as follows: USD’000 Cash paid for acquisition (54,366) Other cash consideration (37,837) Cash and cash equivalent acquired 18,987 Net cash outflow (73,216) For the purpose of business combination, the Company offered LFoundry a long–term loans, amounted to US$37.8 million, for the repayment of LFoundry’s debts. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Related party transactions | 43. Related party transactions The names of the related parties which had transactions with the Group for the year ended December 31, 2017 and the relationships with the Group are disclosed below: Related party name Relationship with the Group Datang Telecom Technology & Industry Holdings Co., Ltd. (“Datang Holdings”) A substantial shareholder of the Company Datang Microelectronics Technology Co., Ltd A member of Datang Group Datang Semiconductor Co., Ltd. A member of Datang Group Leadcore Technology Co., Ltd and Leadcore Technology (Hong Kong) Co., Ltd (“Leadcore”) A member of Datang Group Datang Telecom Group Finance Co., Ltd (“Datang Finance”) A member of Datang Group China IC Fund A substantial shareholder of the Company Country Hill A shareholder of the Company Toppan An associate of the Group Brite Semiconductor (Shanghai) Corporation and its subsidiaries (“Brite”) An associate of the Group China Fortune-Tech An associate of the Group Zhongxin Xiecheng An associate of the Group Jiangsu Changjiang Electronics Technology Co., Ltd (“JCET”) and its subsidiaries An associate of the Group Sino IC Leasing Co., Ltd (“Sino IC Leasing”) An associate of the Group Trading transactions During the year, group entities entered into the following trading transactions with related parties that are not members of the Group: Sale of goods Sale of services Year ended Year ended 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Datang Microelectronics Technology Co., Ltd 15,667 14,146 12,885 — — — Datang Semiconductor Co., Ltd 535 464 865 — — — Leadcore 3,960 3,267 8,881 — — — Toppan — — — 3,896 3,481 3,699 Brite 44,212 31,506 31,379 — — — JCET and its subsidiaries 17 — 17 48 — 9 China Fortune-Tech — — — — 65 60 Purchase of goods Purchase of services Year ended Year ended 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Toppan 11,275 8,869 7,996 59 856 3,516 Zhongxin Xiecheng — — — — 4 1,199 Brite — 25 — 2,016 2,887 2,582 China Fortune-Tech — — — 959 313 938 Datang Finance — — — — 15 — JCET and its subsidiaries 1,778 1,097 — 620 1,189 869 Sino IC Leasing — — — 51,739 — — The following balances were outstanding at the end of the reporting period: Amounts due from related Amounts due to related parties parties 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Datang Microelectronics Technology Co., Ltd 4,279 6,354 5,338 — — — Datang Semiconductor Co., Ltd 302 — 61 — — — Leadcore — — 1,948 — — 3,667 Toppan 670 615 317 888 2,414 1,148 Brite 12,951 6,507 5,661 — 279 141 JCET and its subsidiaries 21 — 27 3 736 2 China Fortune-Tech — 38 40 — — — In December 2016 and February 2017, there were two and three arrangements in consideration of US$249.2 million and US$250.6 million respectively, entered into by the Group with Sino IC Leasing (Tianjin) Co., Ltd. (a wholly-owned subsidiary of Sino IC Leasing) in the form of a sale and leaseback transaction with a repurchase option. A batch of production equipment of the Group was sold and leased back under the arrangements. As the repurchase prices are set at the expected fair value and the Group is not reasonably certain that it will exercise the repurchase options, the above transaction have been accounted for disposal of property, plant and equipment followed with an operating lease. In July 2017, there were seven arrangements in total consideration of US$410.8 million entered into by the Group with Xincheng Leasing (Tianjin) Co., Ltd, Xindian Leasing (Tianjin) Co., Ltd and Xinlu Leasing (Tianjin) Co., Ltd. (the three leasing companies are wholly-owned subsidiaries of Sino IC Leasing) respectively, in the form of a sale and leaseback transaction with a repurchase option. A batch of production equipment of the Group was sold and leased back under these arrangements. As the repurchase prices are set at the expected fair value and the Group is not reasonably certain that it will exercise the repurchase options, the above transactions have been accounted for a disposal of property, plant and equipment followed with an operating lease. The total future minimum lease payments under the lease arrangements please refer to Note 44. On June 8, 2015, the Company issued 4,700,000,000 new ordinary shares to Xinxin (Hongkong) Capital Co., Limited, a wholly-owned subsidiary of the China IC Fund. Please refer to Note 28 for details. On September 25, 2015, Country Hill subscribed 323,518,848 ordinary shares of the Company. Please refer to Note 28 for details. On October 9, 2015, Datang subscribed 961,849,809 ordinary shares of the Company. Please refer to Note 28 for details. On December 18, 2015, the Company and Datang Finance entered into a financial services agreement with a three year term commencing on January 1, 2016 and ending on December 31, 2018, pursuant to which Datang Finance has agreed to provide the Company and its subsidiaries, including its associated companies and companies under its management with a range of financial services (including deposit services, loan services, foreign exchange services and other financial services). On December 28, 2015, the Company entered into a new framework agreement (the “Renewed Framework Agreement”) with Datang Holdings, pursuant to which the Group and Datang Holdings (including its associates) would engage in business collaboration including but not limited to foundry service. The term of the Renewed Framework Agreement is three years commencing from January 1, 2016. The pricing for the transactions contemplated under the Renewed Framework Agreement is determined based on the same as the Framework Agreement. Capital contribution Subject to the amended joint venture agreement, revised on July 20, 2017, the Company agreed to increase its capital contribution obligation towards Sino IC Leasing from RMB600.0 million to RMB800.0 million (from approximately US$88.3 million to US$117.8 million), while its shareholding in Sino IC Leasing decreased to approximately 7.44% as of the date of this annual report. On August 10, 2017, China IC Fund has agreed to make further cash contribution of US$900.0 million into the registered capital of SMNC. Its shareholding in SMNC will increase from 26.5% to 32%. Please refer to Note 18 for details. In June 2016, China IC Fund made a capital contribution of US$636.0 million into the registered capital of SMNC. Please refer to Note 18 for details. In September 2016, China IC Fund made another capital contribution of US$50.0 million into the registered capital of SJ Jiangyin. Loans from non-controlling interests shareholders In 2016, LFoundry entered into a seven-year loan facility in relation to the construction of the new co-generation from non-controlling interests shareholders of LFoundry. The outstanding balance of EUR10.6 million (approximately US$12.7 million) is repayable from September 2018 to December 2023. Please refer to Note 31 for more details. Compensation of key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including directors of the Company. The remuneration of key management personnel during the year are as follows: year ended year ended year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Short-term benefit 4,853 4,921 4,731 Share-based payments 8,264 2,762 2,618 13,117 7,683 7,349 The remuneration of key management personnel is determined by the Compensation Committee having regard to the Group’s profitability, business achievement, individual performance and market trends. Arrangements/contracts for sale of self-developed living quarter unit In 2016, the Group entered into arrangement/contracts with one of directors of the Company for sale of self-developed living quarter unit and the amount of the consideration is approximately US$1.0 million. The transaction was completed in March 2017. In 2015, the Group entered into arrangement/contracts with 4 of the Company’s directors and key management for sale of self-developed living quarter units and the amount of the considerations was approximately US$3.6 million, within which three transactions amounted to US$2.4 million were completed as of December 31, 2017. |
Commitments for expenditure
Commitments for expenditure | 12 Months Ended |
Dec. 31, 2017 | |
Commitments for expenditure | |
Commitments for expenditure | 44. Commitments for expenditure (i) Purchase commitments As of December 31, 2017, 2016 and 2015, the Group had the following commitments to purchase machinery, equipment and construction obligations. The machinery and equipment is scheduled to be delivered to the Group’s facility by December 31, 2018. 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Commitments for the facility construction 484,468 239,759 165,274 Commitments for the acquisition of property, plant and equipment 476,132 800,597 1,146,275 Commitments for the acquisition of intangible assets 5,596 5,491 29,392 966,196 1,045,847 1,340,941 (ii) Non-cancellable operating leases The Group leases certain of its production equipment under operating lease arrangements since 2016. Leases are negotiated for terms ranging from three to five years. Please refer to Note 43 for details. At December 31, 2017, the Group had total future minimum lease payments under non-cancellable operating leases falling due as follows: 12/31/17 12/31/16 USD’000 USD’000 Within one year 91,181 23,483 Later than one year but not later than five years 203,684 45,989 294,865 69,472 |
Financial information of parent
Financial information of parent company | 12 Months Ended |
Dec. 31, 2017 | |
Financial information of parent company | |
Financial information of parent company | 45. Financial information of parent company (i) Statement of profit or loss Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue — — — General and administration expenses (47,354) (50,739) (51,682) Loss from operations (47,354) (50,739) (51,682) Interest income 2,670 1,154 474 Finance costs (14,956) (24,194) (12,477) Foreign exchange gains or losses 63,087 (15,269) (2,848) Share of profits of subsidiaries 169,880 477,510 321,199 Share of profits of associates 2,868 1,455 322 Other gains or losses, net 3,484 (13,287) (1,577) Profit before tax 179,679 376,630 253,411 Income tax expense — — — Profit for the year 179,679 376,630 253,411 Other comprehensive income (loss) Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations 21,590 (18,131) (8,185) Change in value of available-for-sale financial assets (2,356) 798 447 Cash flow hedges 35,143 (34,627) — Share of other comprehensive income of joint ventures accounted for using the equity method 17,646 — — Other (131) 1 130 Items that will not be reclassified to profit or loss Actuarial gains and losses on defined benefit plans (436) 1,520 — Total comprehensive income for the year 251,135 326,191 245,803 (ii) 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Assets Non-current assets Property, plant and equipment 47,090 89,404 30,123 Intangible assets 59,138 91,225 108,897 Investment in subsidiaries 4,779,485 4,333,604 3,312,113 Investments in associates 132,427 114,966 56,080 Other financial assets 11,732 — — Other assets 372,275 530,566 575,489 Total non-current assets 5,402,147 5,159,765 4,082,702 Current assets Prepayment and prepaid operating expenses 428 671 633 Trade and other receivables 29,061 24,749 22,945 Due from subsidiaries 1,609,556 908,716 427,279 Other financial assets 95,440 3,000 15,000 Cash and cash equivalent 140,411 317,873 115,726 Total current assets 1,874,896 1,255,009 581,583 Total assets 7,277,043 6,414,774 4,664,285 Equity and liabilities Capital and reserves Ordinary shares, $0.004 par value, 10,000,000,000 shares authorized, 4,916,106,889, 4,252,922,259 and 4,207,374,896 shares issued and outstanding at December 31, 2017, 2016 and 2015 19,664 17,012 16,830 Share premium 4,827,619 4,950,948 4,903,861 Reserves 134,669 93,563 96,644 Retained earnings (accumulated deficit) 187,008 (910,849) (1,287,479) 5,168,960 4,150,674 3,729,856 Perpetual subordinated convertible securities 64,073 — — Total equity 5,233,033 4,150,674 3,729,856 Non-current liabilities Borrowings 76,520 72,077 — Convertible bonds 403,329 395,210 — Bonds payable 496,689 494,909 493,207 Medium-term notes 228,483 214,502 — Other financial liabilities 1,885 60,610 — Other liabilities 520 2,560 2,080 Total non-current liabilities 1,207,426 1,239,868 495,287 Current liabilities Trade and other payables 17,489 1,683 — Due to subsidiaries 804,476 522,166 33,445 Convertible bonds — 391,401 392,632 Short-term notes — 86,493 — Accrued liabilities 13,877 19,570 11,606 Other financial liabilities 742 2,919 1,459 Total current liabilities 836,584 1,024,232 439,142 Total liabilities 2,044,010 2,264,100 934,429 Total equity and liabilities 7,277,043 6,414,774 4,664,285 (iii) Share of other Change in comprehensive value of income of Equity-settle Foreign available- Convertible Defined joint ventures Perpetual employee currency for-sale bonds benefit accounted for subordinated Ordinary Share benefits translation financial equity plan Cash flow using Accumulated convertible Total shares premium reserve reserve assets reserve reserve hedges equity method Others deficit securities equity USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Balance at December 31, 2014 14,342 4,376,630 64,540 4,229 — 29,564 — — — — (1,540,890) — 2,948,415 Profit for the year — — — — — — — — — — 253,411 — 253,411 Other comprehensive loss for the year — — — (8,185) 447 — — — — 130 — — (7,608) Total comprehensive loss for the year — — — (8,185) 447 — — — — 130 253,411 — 245,803 Issuance of ordinary shares 2,395 506,412 — — — — — — — — — — 508,807 Exercise of stock options 93 20,819 (12,169) — — — — — — — — — 8,743 Share-based compensation — — 18,088 — — — — — — — — — 18,088 Subtotal 2,488 527,231 5,919 — — — — — — — — — 535,638 Balance at December 31, 2015 16,830 4,903,861 70,459 (3,956) 447 29,564 — — — 130 (1,287,479) — 3,729,856 Profit for the year — — — — — — — — — — 376,630 — 376,630 Other comprehensive income (losses) for the year — — — (18,131) 798 — 1,520 (34,627) — 1 — — (50,439) Total comprehensive income (losses) for the year — — — (18,131) 798 — 1,520 (34,627) — 1 376,630 — 326,191 Exercise of stock options 140 36,064 (18,594) — — — — — — — — — 17,610 Share-based compensation — — 13,838 — — — — — — — — — 13,838 Conversion options of convertible bonds exercised during the year 42 11,023 — — — (821) — — — — — — 10,244 Recognition of equity component of convertible bonds — — — — — 52,935 — — — — — — 52,935 Subtotal 182 47,087 (4,756) — — 52,114 — — — — — — 94,627 Balance at December 31, 2016 17,012 4,950,948 65,703 (22,087) 1,245 81,678 1,520 (34,627) — 131 (910,849) — 4,150,674 Profit for the year — — — — — — — — — — 179,679 — 179,679 Other comprehensive income (losses) for the year — — — 21,590 (2,356) — (436) 35,143 17,646 (131) — — 71,456 Total comprehensive income (losses) for the year — — — 21,590 (2,356) — (436) 35,143 17,646 (131) 179,679 — 251,135 Exercise of stock options 130 35,178 (18,220) — — — — — — — — — 17,088 Share-based compensation — — 17,495 — — — — — — — — — 17,495 Conversion options of convertible bonds exercised during the year 1,556 427,168 — — — (29,625) — — — — — — 399,099 Issuance of ordinary shares 966 325,174 — — — — — — — — — — 326,140 Perpetual subordinated convertible securities — — — — — — — — — — — 64,073 64,073 Share premium reduction — (910,849) — — — — — — — — 910,849 — — Gain on transfer of business operation — — — — — — — — — — 7,329 — 7,329 Subtotal 2,652 (123,329) (725) — — (29,625) — — — — 918,178 64,073 831,224 Balance at December 31, 2017 19,664 4,827,619 64,978 (497) (1,111) 52,053 1,084 516 17,646 — 187,008 64,073 5,233,033 (i) Statement of cash flow Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Operating activities Profit for the year 179,679 376,630 253,411 Adjustments for: Amortization of intangible assets and land use right 32,131 30,678 30,780 Depreciation of property, plant and equipment 10,706 8,062 4,046 Expense recognized in respect of equity-settled share-based payments 1,297 1,940 5,169 Finance costs 14,956 24,194 12,477 Interest income (2,670) (1,154) (474) Net (gain) loss arising on financial liabilities at fair value through profit or loss (3,554) 13,182 1,459 Net (gain) loss on foreign exchange (63,087) 5,982 184 Share of profit of investment accounted for using equity method (172,748) (478,965) (321,521) (3,290) (19,451) (14,469) Operating cash flows before movements in working capital: (Increase) decrease in trade and other receivables (2,374) (1,727) 465 Decrease (increase) in prepaid operating expenses 243 (57) 8 (Increase) decrease in other assets (7,710) 777 — Increase in trade and other payables 5,168 1,354 7,550 (Decrease) increase in accrued liabilities and other liabilities (5,534) 2,818 2,541 Cash used in operations (13,497) (16,286) (3,905) Interest paid (21,262) (16,149) (21,536) Interest received 1,347 1,135 474 Net cash used in operating activities (33,412) (31,300) (24,967) Investing activities Payments to acquire financial assets (92,000) (6,000) (12,000) Proceeds on sale of financial assets 3,000 18,000 9,000 Investment in subsidiaries (207,000) (550,426) (280,658) Investment in associates (15,095) (63,796) — Payments for property, plant and equipment — (52,445) — Payments for intangible assets (1,000) (11,526) (4,480) Proceeds from disposal of available-for-sale investment — 146 — Cash paid for subsidiaries (728,621) (437,437) (137,929) Distributions received from associates 255 — — Net cash used in investing activities (1,040,461) (1,103,484) (426,067) Financing activities Proceeds from borrowings — 76,006 21,912 Repayment of borrowings — — (83,133) Proceeds from issuance of new shares 326,351 — 508,807 Proceeds from issuance of convertible bonds — 441,155 — Proceeds from issuance of short-term and medium-term notes — 314,422 — Repayment of short-term notes (87,858) — — Proceeds from issuance of perpetual subordinated convertible securities 64,350 — — Proceeds from exercise of employee stock options 17,088 17,610 8,743 Cash received from subsidiaries 572,320 487,050 55,015 Net cash from financing activities 892,251 1,336,243 511,344 Net (decrease) increase in cash and cash equivalent (181,622) 201,459 60,310 Cash and cash equivalent at the beginning of the year 317,873 115,726 55,600 Effects of exchange rate changes on the balance of cash held in foreign currencies 4,160 688 (184) Cash and cash equivalent at the end of the year 140,411 317,873 115,726 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events | |
Subsequent events | 46. Subsequent events (i) Capital contribution in Semiconductor Manufacturing South China Corporation (“SMSC”) On January 30, 2018, SMIC Holdings, SMIC Shanghai, China IC Fund and Shanghai IC Fund entered into the joint venture agreement and the capital contribution agreement pursuant to which SMIC Holdings, China IC Fund and Shanghai IC Fund agreed to make cash contribution to the registered capital of SMSC in the amount of US$1.5435 billion, US946.5 million and US$800 million, respectively. As a result of the capital contribution: (i) the registered capital of SMSC will increase from US$210 million to US$3.5 billion; (ii) the Company’s equity interest in SMSC, through SMIC Holdings and SMIC Shanghai, will decrease from 100% to 50.1%; and (iii) SMSC will be owned as to 27.04% and 22.86% by China IC Fund and Shanghai IC Fund, respectively. (ii) Equity transfer and capital contribution in Ningbo Semiconductor International Corporation (“NSI”) On March 22, 2018, NSI, SMIC Holdings and China IC Fund entered into the equity transfer agreement, pursuant to which SMIC Holdings has agreed to sell the equity Interest to China IC Fund. Upon the completion of the equity transfer, the shareholding of SMIC Holdings in NSI will decrease from approximately 66.76% to 38.59%, and NSI will cease to be a subsidiary of the Company and its financial results will cease to be consolidated with the Group’s results. There is no gain or loss expected to accrue to the Company as a result of the equity transfer. The equity transfer has been completed in April, 2018 and the Group recorded its ownership interest of NCI as investment in associate. On March 23, 2018, NSI, SMIC Holdings, China IC Fund, Ningbo Senson Electronics Technology Co., Ltd, Beijing Integrated Circuit Design and Testing Fund, Ningbo Integrated Circuit Industry Fund and Infotech National Emerging Fund entered into the capital increase agreement, pursuant to which (i) SMIC Holdings has agreed to make further cash contribution of RMB565 million (approximately US$89.4 million) into the registered capital of NSI. Its shareholding in the Joint Venture Company will decrease from approximately 38.59% to approximately 38.57%; (ii) China IC Fund has agreed to make further cash contribution of RMB500 million(approximately US$79.2 million) into the registered capital of NSI. Its shareholding in NSI will increase from approximately 28.17% to approximately 32.97%. The all above parties’ performance of the Capital Contribution obligations will lead to an increase in the registered capital from RMB355 million to RMB1.82 billion (approximately US$56.2 million to US$288.1 million). |
Approval of Financial Statement
Approval of Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Approval of financial statements | |
Approval of financial statements | 47. Approval of financial statements The financial statements were approved and authorized for issue by the board of directors of the Company on March 29, 2018. |
Significant accounting polici55
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as explained in the accounting policies set out below. The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand, except when otherwise indicated. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. The principal accounting policies are set out below. |
Basis of consolidation | Basis of consolidation The consolidated financial statements incorporate the financial statements of the Group and entities (including structured entities) controlled by the Group. Control is achieved when the Group: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including: · the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Group, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non- controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. |
Changes in the Group's ownership interests in existing subsidiaries | Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. |
Separate Principal Statement | Separate Principal Statement Investments in subsidiaries are accounted for at the equity method in accordance with IAS 27 and IAS 28. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the group’s share of movements in other comprehensive income of the investee in other comprehensive income. When the group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. |
Investments in associates | Investments in associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, investments in associates are initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associates. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of that associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. The difference between the recoverable amount and the carrying amount is recognized as impairment loss in the profit or loss. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held-for-sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. In accordance with IAS 39, when the financial statements of an associate used in applying the equity method are prepared as of a different reporting date from that of the Group, adjustments are made by the Group for the effects of significant transactions or events. In no circumstances can the difference between the reporting date of the associate and that of the Group be more than three months and the length of the reporting periods and any difference in the reporting dates are the same from period to period. |
Investments in joint ventures | Investments in joint ventures The Group has applied IFRS 11 to all joint arrangements. Under IFRS 11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income. The Group’s investments in joint ventures include goodwill identified on acquisition. Upon the acquisition of the ownership interest in a joint venture, any difference between the cost of the joint venture and the Group’s share of the net fair value of the joint venture’s identifiable assets and liabilities is accounted for as goodwill. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Non-current assets held-for-sale | Non-current assets held-for-sale Non-current assets and disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets (and disposal groups) classified as held-for-sale are measured at the lower of their previous carrying amount and fair value less costs of disposal. |
Revenue recognition | Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Sale of goods The Group manufactures semiconductor wafers for its customers based on the customers’ designs and specifications pursuant to manufacturing agreements and/or purchase orders. The Group also sells certain semiconductor standard products to customers. Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied: · the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; · the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; · the amount of revenue can be measured reliably; · it is probable that the economic benefits associated with the transaction will flow to the Group; and · the costs incurred or to be incurred in respect of the transaction can be measured reliably. Customers have the right of return within one year pursuant to warranty provisions. The Group typically performs tests of its products prior to shipment to identify yield rate per wafer. Occasionally, product tests performed after shipment identify yields below the level agreed with the customer. In those circumstances, the customer arrangement may provide for a reduction to the price paid by the customer or for the costs to return products and to ship replacement products to the customer. The Group estimates the amount of sales returns and the cost of replacement products based on the historical trend of returns and warranty replacements relative to sales as well as a consideration of any current information regarding specific known product defects at customers that may exceed historical trends. |
Gain on sale of real estate property | Gain on sale of real estate property Gain from sales of real estate property is recognized when all the following conditions are satisfied: 1) sales contract executed, 2) full payment collected, or down payment collected and non-cancellable mortgage contract is executed with borrowing institution, 3) and the respective properties have been delivered to the buyers. |
Interest income | Interest income Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. |
Foreign currencies | Foreign currencies Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Untied States dollar (“US dollar”), which is the Company’s functional and the Group’s presentation currency. In preparing the financial statements of each individual group entity transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise. For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into United States dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. |
Borrowing costs | Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. |
Government funding | Government funding Government funding is not recognized in profit or loss until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the funding will be received. Government funding relating to costs are deferred and recognized in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government funding relating to property, plant and equipment, whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets, are recognized as deferred income in the consolidated statements of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Government funding that is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related cost are recognized in profit or loss in the period in which they become receivable. |
Retirement benefits | Retirement benefits The Group’s local Chinese employees are entitled to a retirement benefit based on their salary and their length of service in accordance with a state- managed pension plan. The PRC government is responsible for the pension liability to these retired staff. The Group is required to make contributions to the state- managed retirement plan at a rate equal to 19.0% to 20.0% (the standard in Shenzhen site ranges from 13% to 14% according to Shenzhen government regulation) of the monthly basic salary of current employees. The Group has no further payment obligations once the contributions have been paid. The costs are recognized in profit or loss when incurred. Besides, LFoundry S.r.l. (“LFoundry”, the Company’s majority-owned subsidiary in Avezzano, Italy) employees are entitled to a retirement plan and a defined benefit plan. The liability recognized in the consolidated statement of financial position in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. |
Share-based payment arrangements | Share-based payment arrangements Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 39. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve. When share options are exercised, the amount previously recognized in the reserve will be transferred to share premium. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. |
Taxation | Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated statements of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment held for use in the production or supply of goods or services, or for administrative purposes, are stated in the consolidated statement of financial position at their costs, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. The Group constructs certain of its plant and equipment. In addition to costs under the construction contracts, external costs that are directly related to the construction and acquisition of such plant and equipment are capitalized. Depreciation is recorded at the time assets are ready for their intended use. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred. An item at property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Depreciation is recognized so as to write off the cost of items of property, plant and equipment other than properties under construction over their estimated useful lives, using the straight-line method. The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives are used in the calculation of depreciation. Buildings 25 years Plant and equipment 5–10 years Office equipment 3–5 years Leasehold equipment under finance leases Over the lease terms |
Land use right | Land use right Land use rights, which are all located in the PRC, are recorded at cost and are charged to profit or loss ratably over the term of the land use agreements which range from 50 to 70 years. |
Intangible assets | Intangible assets Acquired intangible assets which consists primarily of technology, licenses and patents, are carried at cost less accumulated amortization and any accumulated impairment loss. Amortization is computed using the straight-line method over the expected useful lives of the assets of three to ten years. The estimated useful life and amortization method are reviewed at the end of each reporting period, with effect of any changes in estimate being accounted for on a prospective basis. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred is measured at the acquisition date fair value which is the sum of the acquisition date fair values of assets transferred by the Group, liabilities assumed by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of net assets in the event of liquidation at fair value or at the proportionate share of the acquiree’s identifiable net assets. All other components of non-controlling interests are measured at fair value. Acquisition-related costs are expensed as incurred. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts of the acquiree. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. |
Goodwill | Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interests and any fair value of the Group’s previously held equity interests in the acquiree over the identifiable net assets acquired and liabilities assumed. If the sum of this consideration and other items is lower than the fair value of the net assets acquired, the difference is, after reassessment, recognized in profit or loss as a gain on bargain purchase. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as at December 31. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units, or groups of cash- generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash-generating unit (“CGU”) to which the goodwill relates. Where the recoverable amount of the CGU is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on the disposal. Goodwill disposed of in these circumstances is measured based on the relative value of the operation disposed of and the portion of the CGU retained. |
Impairment of tangible and intangible assets other than goodwill | Impairment of tangible and intangible assets other than goodwill At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash- generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash- generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized as income. |
Leases | Leases Leases that transfer substantially all the rewards and risks of ownership of assets to the Group, other than legal title, are accounted for as finance leases. At the inception of a finance lease, the cost of the leased asset is capitalized at the present value of the minimum lease payments and recorded together with the obligation, excluding the interest element, to reflect the purchase and financing. Assets held under capitalized finance leases are included in property, plant and equipment, and depreciated over the shorter of the lease terms and the estimated useful lives of the assets. The finance costs of such leases are charged to the statement of profit or loss so as to provide a constant periodic rate of charge over the lease terms. Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Where the Group is the lessee, rentals payable under operating leases net of any incentives received from the lessor are charged to the statement of profit or loss on the straight-line basis over the lease terms. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subjected to an insignificant risk of changes in value, with original maturities of three months or less. |
Restricted cash | Restricted cash Restricted cash consists of bank deposits pledged against letters of credit, short-term and long-term credit facilities, and unused government funding for certain research and development projects. Changes of restricted cash pledged against letter of credit, short-term and long-term credit facilities and changes of restricted cash paid for property, plant and equipment are presented as investing activity in consolidated statements of cash flows. Changes of restricted cash of unused government funding for expensed research and development activities are presented as operating activity in consolidated statements of cash flows. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determined on a weighted average basis. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. |
Provisions | Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. |
Financial instruments | Financial instruments Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities other than financial assets and financial liabilities at fair value through profit or loss are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. |
Financial assets | Financial assets Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (“FVTPL”) and ‘available- for-sale’ (“AFS”) financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. Effective interest method The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Financial assets at FVTPL Financial assets are classified as at FVTPL when the financial asset is held for trading. A financial asset is classified as held for trading if: · it has been acquired principally for the purpose of selling in the near term; or · it is a part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or · it is a derivative that is not designated and effective as a hedging instrument. Financial assets at FVTPL (including foreign currency forward contracts and financial products sold by banks) are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and losses’ line item. Available-for-sale financial assets (AFS financial assets) AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss. AFS financial assets are initially recognized at fair value plus transaction costs and subsequently carried at fair value, with changes in fair value recognized in other comprehensive income. When securities classified as available for sale are sold or impaired, the accumulated fair value adjustments recognized in equity are include in the income statement as “other gains and losses”. Interest on available-for-sale securities calculated using the effective interest method is recognized in the income statement as part of “other income”. Dividends on AFS equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables including trade and other receivables, and cash and bank balances and restricted cash are measured at amortized cost using the effective interest method, less any impairment loss. Interest income is recognized by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For all other financial assets, objective evidence of impairment could include: · significant financial difficulty of the issuer or counterparty; or · breach of contract, such as a default or delinquency in interest or principal payments; or · it becoming probable that the borrower will enter bankruptcy or financial re-organization. For certain categories of financial assets, such as trade receivables, assets are assessed for impairment on a collective basis even if they were assessed not to be impaired individually. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, as well as observable changes in national or local economic conditions that correlate with default on receivables. For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. For assets classified as available for sale, it is assessed at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. For debt securities, if any such evidence exists the cumulative loss — measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss — is removed from equity and recognized in profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through the consolidated statement of profit or loss. For equity investments, a significant or prolonged decline in the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence exists the cumulative loss — measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss — is removed from equity and recognized in profit or loss. Impairment losses recognized in the consolidated statement of profit or loss on equity instruments are not reversed through the consolidated statement of profit or loss. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited to profit or loss. Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. |
Financial liabilities and equity instruments | Financial liabilities and equity instruments Classification as debt or equity Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Convertible Bonds The component parts of the convertible bonds issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Group’s own equity instruments is an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share premium. Where the conversion option remains unexercised at the maturity date of the convertible note, the balance recognized in equity will be transferred to retained earnings. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option. The Group assesses if the embedded derivatives in respect of the early redemption features are deemed to be clearly and closely related to the host debt contract. Embedded derivatives need not be separated if they are regarded as closely related to its host contract. If they are not, they would be separately accounted for. Transaction costs that relate to the issue of the convertible bonds are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are charged directly to equity. Transaction costs relating to the liability component are included in the carrying amount of the liability portion and amortized over the period of the convertible bonds using the effective interest method. Financial liabilities Financial liabilities are classified as either financial liabilities ‘at FVTPL’ or ‘other financial liabilities’. Financial liabilities at FVTPL Financial liabilities are classified as at FVTPL (including foreign currency forward contracts and cross currency swap contracts) when the financial liability is held for trading. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability and is included in the ‘other gains and losses’ line item. Other financial liabilities Other financial liabilities (including borrowings, trade and other payables, long-term financial liabilities, short-term and medium-term notes and bonds payable) are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability or (where appropriate) shorter period, to the net carrying amount on initial recognition. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. Derivative financial instruments and hedging accounting The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts and cross currency swap contracts. Further details of derivative financial instruments are disclosed in Note 40. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. Any gains or losses arising from changes in fair value of derivatives are taken directly to the statement of profit or loss, except for the effective portion of cash flow hedges of the gain or loss on cash flow hedges. The effective portion of the gain or loss on the cash flow hedges is recognized directly in other comprehensive income in the hedging reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized in other comprehensive income are transferred to the statement of profit or loss when the hedged transaction affects profit or loss, such as when hedged financial income or financial expense is recognized or when a forecast sale occurs. Where the hedged item is the cost of a non- financial asset or nonfinancial liability, the amounts recognized in other comprehensive income are transferred to the initial carrying amount of the non-financial asset or non-financial liability. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, the amounts previously recognized in other comprehensive income remain in other comprehensive income until the forecast transaction occurs or the foreign currency firm commitment is met. |
Application of new and revise56
Application of new and revised International Financial Reporting Standards ("IFRSs") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Application of new and revised International Financial Reporting Standards ("IFRSs") | |
Schedule of new and revised IFRSs that have been issued but are not yet effective | New or revised IFRS Effective date IFRS 9 — Financial Instruments On or after January 1, 2018 IFRS 15 — Revenue from contracts with customers On or after January 1, 2018 Amendments to IFRS 2 – Classification and measurement of share-based payment transactions On or after January 1, 2018 Amendments to IAS 28 – Investments in associates and joint ventures On or after January 1, 2018 IFRS 16 — Lease On or after January 1, 2019 IFRS 17 - Insurance Contracts On or after January 1, 2021 Amendments to IFRS 10 and IAS 28 — Sale or contribution of assets between an investor and its association or joint venture Not yet determined IFRIC 22 — Foreign Currency Transactions and Advance Consideration On or after January 1, 2018 IFRIC 23 — Uncertainty over Income Tax Treatments On or after January 1, 2019 |
Significant accounting polici57
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Schedule of useful lives of property, plant and equipment used in the calculation of depreciation | Buildings 25 years Plant and equipment 5–10 years Office equipment 3–5 years Leasehold equipment under finance leases Over the lease terms |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment information | |
Schedule of revenue geographical areas | Revenue from external customers Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 United States(2) 1,240,906 858,858 776,223 Mainland China and Hong Kong 1,465,553 1,447,427 1,066,558 Eurasia(1) 394,716 607,895 393,634 3,101,175 2,914,180 2,236,415 (1) Not including Mainland China and Hong Kong (2) Presenting the revenue to those companies whose headquarters are in the United States, but ultimately selling products to their global customers. |
Schedule of revenue by product and service type | Revenue from external customers Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Sales of wafers 3,038,947 2,803,819 2,134,943 Mask making, testing and others 62,228 110,361 101,472 3,101,175 2,914,180 2,236,415 |
Schedule of property, plant and equipment by geographical area | Property, plant and equipment Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 United States 45 69 95 Europe(2) 137,778 125,339 5 Asia(1) 117 97 122 Hong Kong 2,618 2,839 3,040 Mainland China(2) 6,382,845 5,559,013 3,900,556 6,523,403 5,687,357 3,903,818 (1) Not including Mainland China and Hong Kong (2) Fabrication facilities are owned and operated only in Mainland China and Italy. |
Significant customers (Tables)
Significant customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant customers | |
Summary of net revenue or gross accounts receivable for significant customers | Net revenue Gross accounts receivable Year ended December 31, December 31, Customer A 636,662 382,853 366,696 133,281 78,639 75,643 Customer B 538,102 609,802 324,267 95,575 129,619 50,068 Customer C 206,635 * * 28,521 * * Customer A 21 % 13 % 16 % 33 % 16 % 19 % Customer B 17 % 21 % 15 % 23 % 26 % 13 % Customer C 7 % * * 7 % * * * |
Other operating income (expen60
Other operating income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income (expense), net | |
Schedule of other operating income (expense), net | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Gain (loss) on disposal of property, plant and equipment and assets classified as held-for-sale 17,513 (1,846) 28,949 Impairment loss recognized on property, plant and equipment — (7,529) — Government funding(Note 11.5) 27,444 9,542 2,697 Loss on deconsolidation of subsidiaries — — (57) Others — 10 5 44,957 177 31,594 |
Finance costs (Tables)
Finance costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finance costs | |
Schedule of finance costs | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Interest on: Bank and other borrowings 25,543 17,793 Interest on finance leases 232 62 — Interest on convertible bonds 15,818 16,352 13,238 Interest on corporate bonds 22,405 22,327 22,253 Interest on medium-term notes 8,185 4,625 — Interest on short-term notes 1,164 1,509 — Less: government funding (Note 11.5) (24,182) (11,639) (4,895) Total interest expense for financial liabilities not classified as at FVTPL 49,165 51,029 42,475 Less: amounts capitalized (31,144) (27,992) (30,257) 18,021 23,037 12,218 |
Other gains or losses, net (Tab
Other gains or losses, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other gains or losses, net | |
Schedule of Other gains or losses, net | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Gain (loss) at fair value Cross currency swap contracts(Note 40) 2,150 (14,989) Derivative financial instrument(1) 1,544 2,721 30,173 Foreign currency forward contracts 2,109 — 172 Financial products sold by banks 1,087 4,651 22,489 Net gain (loss) arising on financial instruments at FVTPL 6,890 (7,617) 51,375 Others(2) 9,609 5,504 4,236 16,499 (2,113) 55,611 (1) The derivative financial instrument was a put option with the right of Siltech Semiconductor (Shanghai) Corporation Limited (“SilTech Shanghai”, an indirectly wholly-owned subsidiary of the Company) to sell Suzhou Changjiang Electric Xinke Investment Co., Ltd. (“Changjiang Xinke”) to Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”), pursuant to an investment exit agreement entered in December 2014 and exercised in June 2017. Others included a gain of US$18.5 million arising from the disposal agreement and the subscription agreement (Note 19) entered by SilTech Shanghai and JCET on April 27, 2016, and a loss of potential cash compensation accrued at US $12.5 million that may be incurred depending on the profit of Changjiang Xinke during the three years of 2017, 2018 and 2019. The potential cash compensation was deemed as the terms of the supplemental agreement entered by SilTech Shanghai and JCET on December 9, 2016. Such gain and loss was recognized in 2017. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | |
Schedule of income tax recognized in profit or loss | Income tax expense (benefit) Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current tax — Enterprise Income Tax (469) 1,306 (47) Deferred tax 2,136 (8,589) 6,665 Current tax — Land Appreciation Tax 179 731 1,923 1,846 (6,552) 8,541 |
Schedule of reconciliation of income tax expense (benefit) to the accounting profit | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Profit before tax 128,269 309,882 230,864 Income tax expense calculated at 15% (2016: 15% and 2015: 15%) 19,240 46,482 34,630 Effect of tax holiday (50,258) (41,484) (49,864) Additional deduction for research and development expenditures (25,260) (13,107) (4,619) Tax losses for which no deferred tax assets were recognized 70,341 39,777 25,732 Reversal (utilization) of previously unrecognized tax losses of temporary differences(1) 5,687 (43,440) (3,687) Effect of different tax rates of subsidiaries operating in other jurisdictions (18,082) 4,517 4,226 Others 26 82 488 Land Appreciation Tax (after tax) 152 621 1,635 1,846 (6,552) 8,541 The tax rate used for the 2017, 2016 and 2015 reconciliation above is the corporate tax rate of 15% payable by most of the Group’s entities in Mainland China under tax law in that jurisdiction. In 2017, the Group reversed US$6.0 million previously recognized temporary differences, which will not be utilized and in 2016, the group utilized US$43.4 million previously unrecognized tax losses. |
Schedule of current tax liabilities | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Income tax payable 270 460 355 |
Schedule of deferred tax assets (liabilities) | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Deferred tax assets Property, plant and equipment 41,271 45,981 44,523 Intangible Assets 1,844 — — Others 1,760 — 419 44,875 45,981 44,942 Deferred tax liabilities Capitalized interest — — (3) Property, plant and equipment (16,412) (15,382) (7,290) (16,412) (15,382) (7,293) 28,463 30,599 37,649 |
Schedule of changes in deferred tax assets and liabilities | 2017.12.31 Recognize Opening in profit Closing balance or loss balance USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 30,599 (5,740) 24,859 Capitalized interest — 1,844 1,844 Others — 1,760 1,760 30,599 (2,136) 28,463 2016.12.31 Recognize Opening Business in profit Closing balance Combination or loss balance USD’000 USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 37,233 (15,639) 9,005 30,599 Capitalized interest (3) — 3 — Others 419 — (419) — 37,649 (15,639) 8,589 30,599 2015.12.31 Recognize Opening in profit Closing balance or loss balance USD’000 USD’000 USD’000 Deferred tax assets/(liabilities) in relation to: Property, plant and equipment 43,859 (6,626) 37,233 Capitalized interest (69) 66 (3) Others 524 (105) 419 44,314 (6,665) 37,649 |
Profit for the year (Tables)
Profit for the year (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Profit for the year | |
Schedule of impairment losses (reversal of impairment losses) on trade receivables | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Allowance on doubtful trade receivables (Note 25) 301 201 528 Reversal of allowance on doubtful trade receivables (Note 25) (438) (1,603) (541) Reversal of allowance on doubtful other receivables — (8,809) — (137) (10,211) (13) |
Schedule of depreciation and amortization expense | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Depreciation of property, plant and equipment 906,034 673,161 473,008 Amortization of intangible assets and land use right 65,348 56,705 50,541 971,382 729,866 523,549 |
Schedule of employee benefits expense | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Wages, salaries and social security contributions 499,238 378,709 299,267 Bonus 57,289 123,313 107,859 Paid annual leave — — 66 Non-monetary benefits 47,204 31,686 21,414 Equity-settled share-based payments (Note 39) 18,214 14,210 18,329 621,945 547,918 446,935 |
Schedule of royalties expense | Year Ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Royalties expense 37,466 37,023 36,262 |
Schedule of auditors' remuneration | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Audit services 1,413 1,529 1,322 Non-audit services 85 587 65 . 1,498 2,116 1,387 |
Directors' remuneration (Tables
Directors' remuneration (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Directors' remuneration | |
Summary of directors' remuneration | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Salaries 4,490 2,367 2,384 Equity-settled share-based payments 8,158 2,214 1,550 12,648 4,581 3,934 |
Detail of directors' remuneration | (a) In de pendent non-executive directors The fees paid or payable to independent non-executive directors of the Company during the year were as follows: Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2017 Lip-Bu Tan 91 128 219 William Tudor Brown 89 8 97 Carmen I-Hua Chang 70 40 110 Shang-Yi Chiang 47 250 297 Jason Jingsheng Cong 35 217 252 332 643 975 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2016 Lip-Bu Tan 100 156 256 William Tudor Brown 85 24 109 Sean Maloney 72 23 95 Carmen I-Hua Chang 68 78 146 Shang-Yi Chiang — — — 325 281 606 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2015 Lip-Bu Tan 70 — 70 Frank Meng 28 6 34 William Tudor Brown 47 47 94 Sean Maloney 50 46 96 Carmen I-Hua Chang 42 149 191 237 248 485 There were no other emoluments payable to the independent non-executive directors during the year (2016: Nil and 2015: Nil.) (b) Executive directors and non-executive director Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2017 Executive directors: Zhou Zixue 765 311 1,076 Zhao Haijun* 726 1,514 2,240 Liang Mong Song* 65 — 65 Gao Yonggang 634 24 658 2,190 1,849 4,039 Non-executive director: Tzu-Yin Chiu** 1,783 5,321 7,104 Chen Shanzhi 75 128 203 Zhou Jie — — — Ren Kai 70 — 70 Lu Jun — — — Tong Guohua 40 217 257 Li Yonghua (Alternate to Chen Shanzhi)*** — — — 1,968 5,666 7,634 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2016 Executive directors: Zhou Zixue 527 655 1,182 Tzu-Yin Chiu** 920 1,038 1,958 Gao Yonggang 413 82 495 1,860 1,775 3,635 Non-executive director: Chen Shanzhi 80 136 216 Zhou Jie — — — Ren Kai 63 22 85 Lu Jun 39 — 39 Li Yonghua (Alternate to Chen Shanzhi)*** — — — 182 158 340 Employee Salaries and settle share- Total wages based payment remuneration USD’000 USD’000 USD’000 2015 Executive directors: Zhou Zixue 225 873 1,098 Zhang Wenyi 578 32 610 Tzu-Yin Chiu** 918 130 1,048 Gao Yonggang 376 201 577 2,097 1,236 3,333 Non-executive director: Chen Shanzhi 50 — 50 Zhou Jie — — — Li Yonghua (Alternate to Chen Shanzhi)*** — — — Ren Kai — 66 66 50 66 116 * Zhao HaiJun and Liang Mong Song are also the Co-Chief Executive Officers of the Company. ** Tzu-Yin Chiu resigned as Chief Executive Officer on May 10, 2017 and remains as non-executive director. *** Li Yonghua resigned as alternate director of Chen Shanzhi with effect from February 24, 2017. |
Five highest paid employees (Ta
Five highest paid employees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Five highest paid employees | |
Table showing details of the remuneration of the non-directors, highest paid individuals | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Salaries and other benefits 630 692 962 Bonus 746 611 636 Stock option benefits 338 412 552 1,714 1,715 2,150 |
Table showing details of number of non-directors, highest paid individuals | Number of employees HK$4,000,001 (US$511,801) to HK$4,500,000 (US$575,775) — 2 — HK$4,500,001 (US$575,776) to HK$5,000,000 (US$639,750) — — 1 HK$5,000,001 (US$639,751) to HK$5,500,000 (US$703,725) — 1 — HK$5,500,001 (US$703,726) to HK$6,000,000 (US$767,700) — — 1 HK$6,000,001 (US$767,701) to HK$6,500,000 (US$831,675) — — 1 HK$6,500,001 (US$831,676) to HK$7,000,000 (US$895,650) 2 — — 2 3 3 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Schedule of basic and diluted earnings per share | Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 USD USD USD Basic earnings per share $0.04 $0.09 $0.07 Diluted earnings per share $0.04 $0.08 $0.06 Basic earnings per share The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Profit for the year attributable to owners of the Company 179,679 376,630 253,411 Earnings used in the calculation of basic earnings per share 179,679 376,630 253,411 Weighted average number of ordinary shares for the purposes of basic earnings per share 4,628,850,686 4,221,765,945 3,896,041,667 * Diluted earnings per share The earnings used in the calculation of diluted earnings per share are as follows: Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Earnings used in the calculation of basic earnings per share 179,679 376,630 253,411 Interest expense from convertible bonds 905 16,352 13,238 Earnings used in the calculation of diluted earnings per share 180,584 392,982 266,649 The weighted average number of ordinary shares used in the calculation of basic earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of diluted earnings per share as follows: Year ended Year ended * Year ended * 12/31/17 12/31/16 12/31/15 Weighted average number of ordinary shares used in the calculation of basic earnings per share 4,628,850,686 4,221,765,945 3,896,041,667 Employee option and restricted share units 44,496,788 36,240,710 36,944,830 Convertible bonds 38,241,356 575,099,614 393,257,100 Perpetual subordinated convertible securities 1,848,513 — — Weighted average number of ordinary shares used in the calculation of diluted earnings per share 4,713,437,343 4,833,106,269 4,326,243,597 * |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Schedule of property, plant and equipment activity | Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Cost Balance at December 31, 2014 — 8,472,186 120,072 1,088,080 10,005,682 Transfer from (out) CIP — 985,820 14,966 (1,264,262) — Addition — — — — 1,498,201 1,498,201 Disposals — — (53,550) (180) (654) (54,384) Reclassified as held-for-sale — — — — (114,534) (114,534) Balance at December 31, 2015 — 588,820 9,404,456 134,858 1,206,831 11,334,965 Business combination 2,485 42,612 63,519 290 4,213 113,119 Transfer from (out) CIP — 93,535 2,338,662 34,546 (2,466,743) — Addition — — — — 2,597,970 2,597,970 Disposals — — (283,420) (2,136) (9,257) (294,813) Balance at December 31, 2016 2,485 724,967 11,523,217 167,558 1,333,014 13,751,241 Transfer from (out) CIP — 174,143 1,696,092 31,355 (1,901,590) — Addition — — — — 2,425,697 2,425,697 Disposals — (28,543) (767,210) (3,588) (5,518) (804,859) Balance at December 31, 2017 2,485 870,567 12,452,099 195,325 1,851,603 15,372,079 Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Accumulated depreciation and impairment Balance at December 31, 2014 — 121,680 6,758,071 103,514 27,331 7,010,596 Disposal — — (51,840) (180) (437) (52,457) Depreciation expense — 13,858 451,027 8,123 — 473,008 Balance at December 31, 2015 — 135,538 7,157,258 111,457 26,894 7,431,147 Disposal — (289) (33,917) (2,136) (11,611) (47,953) Depreciation expense — 18,133 639,986 15,042 — 673,161 Impairment loss — — — — 7,529 7,529 Balance at December 31, 2016 — 153,382 7,763,327 124,363 22,812 8,063,884 Disposal — (5,819) (108,370) (1,822) (5,231) (121,242) Depreciation expense — 41,243 839,351 25,440 — 906,034 Balance at December 31, 2017 — 188,806 8,494,308 147,981 17,581 8,848,676 Construction Plant and Office in progress Land Buildings equipment equipment (CIP) Total USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Balance at December 31, 2015 — 453,282 2,247,198 23,401 1,179,937 3,903,818 Balance at December 31, 2016 2,485 571,585 3,759,890 43,195 1,310,202 5,687,357 Balance at December 31, 2017 2,485 681,761 3,957,791 47,344 1,834,022 6,523,403 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | |
Schedule of changes in goodwill and other intangible assets | Other intangible Goodwill assets Total USD’000 USD’000 USD’000 Cost Balance at December 31, 2014 — 370,721 370,721 Additions — 65,269 65,269 Expired and disposal — (44,813) (44,813) Balance at December 31, 2015 — 391,177 391,177 Business combination 3,933 8,088 12,021 Additions — 67,936 67,936 Expired and disposal — (21,164) (21,164) Balance at December 31, 2016 3,933 446,037 449,970 Additions — 34,461 34,461 Balance at December 31, 2017 3,933 480,498 484,431 Accumulated amortization and impairment Balance at December 31, 2014 — 162,899 162,899 Amortization expense for the year — 48,812 48,812 Expired and disposal — (44,813) (44,813) Balance at December 31, 2015 — 166,898 166,898 Amortization expense for the year — 55,080 55,080 Expired and disposal — (20,589) (20,589) Balance at December 31, 2016 — 201,389 201,389 Amortization expense for the year — 63,098 63,098 Balance at December 31, 2017 — 264,487 264,487 Balance at December 31, 2015 — 224,279 224,279 Balance at December 31, 2016 3,933 244,648 248,581 Balance at December 31, 2017 3,933 216,011 219,944 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subsidiaries | |
Details of the Company's subsidiaries | Proportion of Place of Proportion of voting power establishment Class of Paid up ownership interest held by the Name of company and operation shares held registered capital held by the Company Company Principal activities Better Way Enterprises Limited (“Better Way”)# Samoa Ordinary USD 1,000,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Shanghai) Corporation (“SMIS” or “SMIC Shanghai”)# People’s Republic of China -the “PRC” Ordinary USD 1,740,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SMIC, Americas United States of America Ordinary USD 500,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Beijing) Corporation (“SMIB” or “SMIC Beijing”)# PRC Ordinary USD 1,000,000,000 Directly 100 % 100 % Manufacturing and trading of semiconductor products SMIC Japan Japan Ordinary JPY 10,000,000 Directly 100 % 100 % Provision of marketing related activities SMIC Europe S.R.L Italy Ordinary EUR 100,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Solar Cell) Corporation Cayman Islands Ordinary USD 11,000 Directly 100 % 100 % Investment holding SMIC Commercial Shanghai Limited Company PRC Ordinary USD 373,000,000 Directly 100 % 100 % Provision of marketing related activities Semiconductor Manufacturing International (Tianjin) Corporation (“SMIT” or “SMIC Tianjin”)# PRC Ordinary USD 770,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SMIC Development (Chengdu) Corporation (“SMICD”)# PRC Ordinary USD 5,000,000 Directly 100 % 100 % Construction, operation, and management of SMICD’s living quarters, schools, and supermarket Semiconductor Manufacturing International (BVI) Corporation (“SMIC (BVI)”)# British Virgin Islands Ordinary USD 10 Directly 100 % 100 % Provision of marketing related activities Admiral Investment Holdings Limited British Virgin Islands Ordinary USD 10 Directly 100 % 100 % Investment holding SMIC Shanghai (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC Beijing (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC Tianjin (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SilTech Semiconductor Corporation Cayman Islands Ordinary USD 10,000 Directly 100 % 100 % Investment holding SMIC Shenzhen (Cayman) Corporation Cayman Islands Ordinary USD 50,000 Directly 100 % 100 % Investment holding SMIC New Technology Research & Development (Shanghai) Corporation (formerly “SMIC Advanced Technology Research & Development (Shanghai) Corporation”) PRC Ordinary USD 199,000,000 Indirectly 94.874 % 94.874 % Research and development activities SMIC Holdings Corporation PRC Ordinary USD 50,000,000 Directly 100 % 100 % investment holding SJ Semiconductor Corporation Cayman Islands Ordinary and preferred USD 5,668 Directly 56.045 % 56.045 % Investment holding SMIC Energy Technology (Shanghai) Corporation (“Energy Science”)# PRC Ordinary USD 10,400,000 Indirectly 100 % 100 % Manufacturing and trading of solar cell related semiconductor products Magnificent Tower Limited British Virgin Islands Ordinary USD 50,000 Indirectly 100 % 100 % investment holding SMIC Hong Kong International Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % investment holding SMIC Beijing (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Tianjin (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Solar Cell (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SMIC Shenzhen (HK) Company Limited Hong Kong Ordinary HKD 1 Indirectly 100 % 100 % Investment holding SilTech Semiconductor (Hong Kong) Corporation Limited Hong Kong Ordinary HKD 1,000 Indirectly 100 % 100 % Investment holding Semiconductor Manufacturing International (Shenzhen) Corporation(“SMIZ” or “SMIC Shenzhen”)# PRC Ordinary USD 127,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SilTech Semiconductor (Shanghai) Corporation Limited (“SilTech Shanghai”)# PRC Ordinary USD 12,000,000 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products Semiconductor Manufacturing North China (Beijing) Corporation (“SMNC”)# PRC Ordinary USD 3,000,000,000 Directly and indirectly 51 % 51 % Manufacturing and trading of semiconductor products China IC Capital Co., Ltd PRC Ordinary RMB 987,000,000 Indirectly 100 % 100 % Investment holding Shanghai Hexin Investment Management Limited Partnership PRC Ordinary RMB 50,000,000 Indirectly 99 % 99 % Investment holding SJ Semiconductor (HK) Limited Hong Kong Ordinary HKD 1,000 Indirectly 56.045 % 56.045 % Investment holding SJ Semiconductor (Jiangyin) Corporation (“SJ Jiangyin”)# PRC Ordinary USD 259,500,000 Indirectly 56.045 % 56.045 % Bumping and circuit probe testing activities LFoundry S.r.l. (“LFoundry”)# Italy Ordinary EUR 2,000,000 Indirectly 70 % 70 % Manufacturing and trading of semiconductor products Ningbo Semiconductor International Corporation PRC Ordinary RMB 255,000,000 Indirectly 53.725 % 53.725 % Manufacturing and trading of semiconductor products Semiconductor Manufacturing South China Corporation PRC Ordinary USD 200,475,706 Indirectly 100 % 100 % Manufacturing and trading of semiconductor products SJ Semiconductor USA Co. United States of America Ordinary USD 500,000 Indirectly 56.045 % 56.045 % Provision of marketing related activities SMIC (Sofia) EOOD Bulgaria Ordinary BGN 1,800,000 Indirectly 100 % 100 % Designing activities SMIC Innovation Design Center (Ningbo) Co., Ltd. PRC Ordinary — Indirectly 100 % 100 % Designing activities # |
Subsidiaries with material non-controlling interests | |
Subsidiaries | |
Details of the Company's subsidiaries | Place of Proportion of ownership interests establishment and voting rights held by Profit (loss) allocated to non- Accumulated non-controlling Name of company and operation non-controlling interests controlling interests interests 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Semiconductor Manufacturing North China (Beijing) Corporation (“SMNC”) Beijing, PRC 49.0 % 49.0 % 45 % (39,113) (55,868) (25,596) 1,324,590 1,069,703 371,446 SJ Semiconductor Corporation Cayman Islands 44.0 % 44.0 % 44.7 % (4,896) (3,545) (5,077) 124,659 136,458 79,621 (44,009) (59,413) (30,673) 1,449,249 1,206,161 451,067 |
Semiconductor Manufacturing North China (Beijing) Corporation ("SMNC") | |
Subsidiaries | |
Summarized financial information | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,559,016 1,103,214 381,640 Non-current assets 2,046,290 1,807,207 917,719 Current liabilities (596,500) (409,898) (350,298) Non-current liabilities (315,718) (327,995) (123,626) Net assets 2,693,088 2,172,528 825,435 Equity attributable to owners of the Company 1,368,498 1,102,825 453,989 Non-controlling interests 1,324,590 1,069,703 371,446 Net assets 2,693,088 2,172,528 825,435 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue 471,174 243,715 4,721 Expense (574,386) (339,910) (64,032) Other income (expense) 23,389 (19,480) 2,430 Loss for the year (79,823) (115,675) (56,881) Loss attributable to owners of the Company (40,710) (59,807) (31,285) Loss attributable to the non-controlling interests (39,113) (55,868) (25,596) Loss for the year (79,823) (115,675) (56,881) Other comprehensive income attributable to owners of the Company — — — Other comprehensive income attributable to the non-controlling interests — — — Other comprehensive income for the year — — — Total comprehensive loss attributable to owners of the Company (40,710) (59,807) (31,285) Total comprehensive loss attributable to the non-controlling interests (39,113) (55,868) (25,596) Total comprehensive loss for the year (79,823) (115,675) (56,881) Dividends paid to non-controlling interests — — — Net cash inflow (outflow) from operating activities 188,115 (13,082) (71,817) Net cash outflow from investing activities (820,606) (1,627,788) (173,535) Net cash inflow from financing activities 590,091 1,655,011 137,500 Net cash (outflow) inflow (42,400) 14,141 (107,852) |
SJ Semiconductor Corporation | |
Subsidiaries | |
Summarized financial information | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 205,957 224,737 164,495 Non-current assets 131,041 102,790 66,772 Current liabilities (46,608) (11,656) (18,904) Non-current liabilities (7,002) (5,421) (34,331) Net assets 283,388 310,450 178,032 Equity attributable to owners of the Company 158,729 173,992 98,411 Non-controlling interests 124,659 136,458 79,621 Net assets 283,388 310,450 178,032 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue 21,862 12,782 1,543 Expense (39,504) (27,300) (9,621) Other income (expense) 6,505 6,564 (3,274) Loss for the year (11,137) (7,954) (11,352) Loss attributable to owners of the Company (6,241) (4,409) (6,275) Loss attributable to the non-controlling interests (4,896) (3,545) (5,077) Loss for the year (11,137) (7,954) (11,352) Other comprehensive income attributable to owners of the Company — — — Other comprehensive incom attributable to the non-controlling interests — — — Other comprehensive income for the year — — — Total comprehensive loss attributable to owners of the Company (6,241) (4,409) (6,275) Total comprehensive loss attributable to the non- controlling interests (4,896) (3,545) (5,077) Total comprehensive loss for the year (11,137) (7,954) (11,352) Dividends paid to non-controlling interests — — — Net cash inflow (outflow) from operating activities 6,115 (1,194) (9,841) Net cash outflow from investing activities (65,993) (147,752) (60,336) Net cash (outflow) inflow from financing activities (1,983) 109,291 175,211 Net cash (outflow) inflow (61,861) (39,655) 105,034 |
Investments in associates (Tabl
Investments in associates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments in associates | |
Schedule of investments in associates | Class of Proportion of ownership interest Place of establishment share and voting power held Name of company and operation held by the Group 12/31/17 12/31/16 12/31/15 Toppan SMIC Electronic (Shanghai) Co., Ltd (“Toppan”) Shanghai, PRC Ordinary 30.0 % 30.0 % 30.0 % Zhongxin Xiecheng Investment (Beijing) Co., Ltd (“Zhongxin Xiecheng”) Beijing, PRC Ordinary 49.0 % 49.0 % 49.0 % Brite Semiconductor (Shanghai) Corporation (“Brite Shanghai”) (4) Shanghai, PRC Ordinary 46.6 % 47.3 % 47.8 % Suzhou Changjiang Electric Xinke Investment Co., Ltd. (“Changjiang Xinke”) (3) Jiangsu, PRC Ordinary — 19.6 % 19.6 % Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) (3) Jiangsu, PRC Ordinary 14.3 % NA NA Sino IC Leasing Co., Ltd. (“Sino IC Leasing”) Shanghai, PRC Ordinary 8.1 % (1) 11.4 % (1) 8.8 % (1) China Fortune-Tech Capital Co., Ltd (“China Fortune-Tech”) Shanghai, PRC Ordinary 30.0 % 30.0 % 45.0 % Beijing Wu Jin Venture Investment Center (Limited Partnership) (“WuJin”) (2) Beijing, PRC Ordinary 32.6 % 32.6 % 32.6 % Shanghai Fortune-Tech Qitai Invest Center (Limited Partnership) (“Fortune-Tech Qitai”) (2) Shanghai, PRC Ordinary 33.0 % 33.0 % 33.0 % Shanghai Fortune-Tech Zaixing Invest Center (Limited Partnership) (“Fortune-Tech Zaixing”) (2) Shanghai, PRC Ordinary 66.2 % (1) 66.2 % (1) 66.2 % (1) Suzhou Fortune-Tech Oriental Invest Fund Center (Limited Partnership) (“Fortune-Tech Oriental”) (2) Jiangsu, PRC Ordinary 44.8 % 44.8 % 44.8 % Juyuan Juxin Integrated Circuit Fund (“Juyuan Juxin”) (2) Shanghai, PRC Ordinary 31.6 % 40.9 % NA (1) In accordance with investment agreements, the Group has significant influence over Fortune-Tech Zaixing and Sino IC Leasing. (2) On April 27, 2016, SilTech Shanghai and JCET entered into a disposal agreement (the “Disposal Agreement”), pursuant to which SilTech Shanghai agreed to sell its 19.61% ownership interest in Changjiang Xinke to JCET in consideration of RMB664.0 million, which will be satisfied by JCET’s issue of 43,229,166 shares of JCET to SilTech Shanghai at RMB RMB15.36 per share. On the same day, SilTech Shanghai and JCET entered into a subscription agreement (the “Subscription Agreement”), pursuant to which SilTech Shanghai agreed to subscribe for and JCET agreed to issue 150,681,044 shares of JCET in consideration of an aggregate subscription price of RMB2,655.0 million in cash. On May 10, 2017, the Company was notified by JCET that the China Securities Regulatory Commission has granted approval for this transaction, and the Disposal Agreement and the Subscription Agreement became effective accordingly. On June 19, 2017, the transactions were completed and SMIC became the single largest shareholder of JCET. The Group recorded its ownership interest of JCET as investment in associate due to its right to nominate directors of JCET’s board. (3) The Group invested in these associates indirectly though China IC Capital Co., Ltd (the “Fund”), a wholly-owned investment fund company of SMIC, as set out in Note 19. The Fund is intended to invest primarily in integrated circuits related fund products and investment projects. The Group’s joint ventures and available-for-sale investments invested indirectly through the Fund are disclosed in Note 21 and Note 23, respectively. (4) Since September 30, 2017, the Group invested Brite Shanghai directly with no more investment in Brite Semiconductor Corporation, the holding company of Brite Shanghai. |
Toppan SMIC Electronic (Shanghai) Co., Ltd ("Toppan") | |
Investments in associates | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the associate | Toppan 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 55,966 53,716 51,661 Non-current assets 19,978 17,205 22,554 Current liabilities (1,727) (2,246) (2,062) Non-current liabilities — — — Net assets 74,217 68,675 72,153 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue 18,391 20,711 20,782 Profit for the year 1,235 1,178 3,267 Other comprehensive income for the year — — — Total comprehensive income for the year 1,235 1,178 3,267 Dividends received from the associate during the year — — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the associate 74,217 68,675 72,153 Proportion of the Group’s ownership interest in Toppan 30 % 30 % 30 % Carrying amount of the Group’s interest in Toppan 22,265 20,603 21,646 |
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |
Investments in associates | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the associate | JCET and its subsidiaries In accordance with IAS 39, the group applies the equity method accounted for its investments in JCET on one quarter lag basis since the annual financial report of JCET were not available as of December 31, 2017. 09/30/17 USD’000 Current assets 1,401,575 Non-current assets 3,305,615 Current liabilities (1,639,114) Non-current liabilities (1,661,532) Net assets 1,406,544 Equity attributable to owners of the associate 1,385,372 Non-controlling interests 21,172 Net assets 1,406,544 Three months ended 09/30/17 USD’000 Total revenue 958,087 Profit attributable to owners of the associate 11,480 Profit attributable to the non-controlling interests 628 Profit for the period 12,108 Other comprehensive loss for the period (19,986) Total comprehensive loss for the period (7,878) Total comprehensive loss attributable to owners of the associate (8,496) Total comprehensive income attributable to the non-controlling interests 618 Total comprehensive loss for the period (7,878) Dividends received from the associate during the period — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 USD’000 Equity attributable to owners of the associate 1,385,372 Proportion of the Group’s ownership interest in JCET 14.3 % 197,832 Valuation premium 340,561 Carrying amount of the Group’s interest in JCET 538,393 |
Shanghai Fortune-Tech Zaixing Invest Center (Limited Partnership) ("Fortune-Tech Zaixing") | |
Investments in associates | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the associate | Fortune-Tech Zaixing 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 2,264 12,720 15,513 Non-current assets 19,965 8,520 7,581 Current liabilities (2) (1) (3) Non-current liabilities — — — Net assets 22,227 21,239 23,091 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue — — — Loss for the year (366) (329) (178) Other comprehensive income for the year — — — Total comprehensive loss for the year (366) (329) (178) Dividends received from the associate during the year — — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the associate 22,227 21,239 23,091 Proportion of the Group’s ownership interest in Fortune-Tech Zaixing 66.2 % 66.2 % 66.2 % Carrying amount of the Group’s interest in Fortune-Tech Zaixing 14,714 14,087 15,292 |
Sino IC Leasing Co., Ltd. ("Sino IC Leasing") | |
Investments in associates | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the associate | Sino IC Leasing and its subsidiaries 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,038,538 702,570 502,454 Non-current assets 3,464,412 1,859,267 21,374 Current liabilities (523,228) (117,287) (8,679) Non-current liabilities (2,509,732) (1,653,206) (190,021) Net assets 1,469,990 791,344 325,128 Equity attributable to owners of the associate 1,366,367 776,959 325,128 Non-controlling interests 103,623 14,385 — Net assets 1,469,990 791,344 325,128 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue 215,538 36,085 2,437 Profit attributable to owners of the associate 39,003 12,938 3,761 Profit attributable to the non-controlling interests 460 48 — Profit for the year 39,463 12,986 3,761 Other comprehensive (loss) income for the year (10,206) 3,594 — Total comprehensive income for the year 29,257 16,580 3,761 Total comprehensive income attributable to owners of the associate 28,797 16,532 3,761 Total comprehensive income attributable to the non-controlling interests 460 48 — Total comprehensive income for the year 29,257 16,580 3,761 Dividends received from the associate during the year 255 — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Equity attributable to owners of the associate 1,366,367 776,959 325,128 Proportion of the Group’s ownership interest in Sino IC Leasing 8.1 % 11.4 % 8.8 % Carrying amount of the Group’s interest in Sino IC Leasing 110,162 88,651 28,736 |
Juyuan Juxin Integrated Circuit Fund ("Juyuan Juxin") | |
Investments in associates | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the associate | Juyuan Juxin 12/31/17 12/31/16 USD’000 USD’000 Current assets 108,639 47,494 Non-current assets 55,761 — Current liabilities (33) (7) Non-current liabilities — — Net assets 164,367 47,487 Year ended Year ended 12/31/17 12/31/16 USD’000 USD’000 Total revenue — — Loss for the year (3,120) (1,893) Other comprehensive income for the year — — Total comprehensive loss for the year (3,120) (1,893) Dividends received from the associate during the year — — Reconciliation of the above summarized financial information to the carrying amount of the interest in the associate recognized in the consolidated financial statements: 12/31/17 12/31/16 USD’000 USD’000 Net assets of the associate 164,367 47,487 Proportion of the Group’s ownership interest in Juyuan Juxin 31.6 % 40.9 % Carrying amount of the Group’s interest in Juyuan Juxin 51,940 19,408 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of joint operations [line items] | |
Schedule of investments in joint ventures | Class Proportion of ownership interest Place of establishment of share and voting power held Name of company and operation held by the Group 12/31/17 12/31/16 12/31/15 Shanghai Xinxin Investment Centre (Limited Partnership) (“Shanghai Xinxin”) Shanghai, PRC Ordinary 49.0 % 49.0 % 49.0 % Shanghai Chengxin Investment Center (Limited Partnership) (“Shanghai Chengxin”) Shanghai, PRC Ordinary 31.5 % 42.0 % 42.0 % |
Shanghai Xinxin Investment Centre (Limited Partnership) ("Shanghai Xinxin") | |
Disclosure of joint operations [line items] | |
Schedule of summarized financial information and reconciliation to the carrying amount of the interest in the joint ventures | Shanghai Xinxin 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current assets 1,453 10,679 4,917 Non-current assets 53,782 13,283 28,631 Current liabilities (6) (7) (3,287) Non-current liabilities — — — Net assets 55,229 23,955 30,261 Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Total revenue — — (Loss) profit for the year (390) 4,540 (609) Other comprehensive income for the year 30,441 — — Total comprehensive income (loss) for the year 30,051 4,540 (609) Dividends received from the joint venture during the year — 2,027 — Reconciliation of the above summarized financial information to the carrying amount of the interest in the joint venture recognized in the consolidated financial statements: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Net assets of the joint venture 55,229 23,955 30,261 Proportion of the Group’s ownership interest in Shanghai Xinxin 49.0 % 49.0 % 49.0 % Carrying amount of the Group’s interest in Shanghai Xinxin 27,062 11,740 14,829 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other financial assets | |
Other financial assets | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At fair value Non-current Derivatives Cross currency swap contracts – cash flow hedges 17,598 — — Current Derivatives Foreign currency forward contracts 2,111 — 172 Cross currency swap contracts – cash flow hedges 4,739 Short-term investments Financial products sold by banks 117,928 24,931 257,583 Bank deposits will mature over 3 months 559,034 6,612 25,125 683,812 31,543 282,880 701,410 31,543 282,880 |
Restricted cash (Tables)
Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restricted cash | |
Schedule of restricted cash | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Restricted cash Non-current (1) 13,438 20,080 — Current (2) 336,043 337,699 302,416 349,481 357,779 302,416 (1) As of December 31, 2017, the non-current restricted cash consisted of US$13.4 million (EUR11.2 million, December 31, 2016: US$20.1 million and December 31, 2015: nil ) of bank time deposits pledged against long-term borrowing from MPS Capital Services S.p.A. of US$1.3 million (EUR1.1 million) and from Cassa Depositie Prestiti of US$12.1 million (EUR10.1 million). (2) As of December 31, 2017, the current restricted cash consisted of US$14.9 million (December 31, 2016: US$2.9 million and December 31, 2015: US$1.1 million) of bank time deposits, within which US$9.3 million was pledged against letters of credit and short-term borrowings, and US$5.6 million (EUR4.7 million) was pledged against long-term borrowing current portions from MPS Capital Services S.p.A. of US$0.5 million (EUR0.5 million) and from Cassa Depositie Prestiti of US$5.1 million (EUR4.2 million). As of December 31, 2017, 2016 and 2015, the current restricted cash consisted of US$235.3 million, US$191.9 million and US$74.0 million, respectively of government funding received mainly for the reimbursement of research and development expenses to be incurred. As of December 31, 2017, 2016 and 2015 the current restricted cash of US$85.8 million and US$142.9 and US$227.3 million were from low interest cost entrusted loans granted by CDB Development Fund through China Development Bank, which is designated to be used for future capacity expansion. The Group expects to spend the restricted cash within the next 12 months. |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other assets | |
Schedule of other assets | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Available-for-sale investments 24,844 21,966 19,750 MPS Bonds — 4,634 — Others 17,966 16,270 12,328 Non-current 42,810 42,870 32,078 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Schedule of inventories | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Raw materials 149,574 126,526 88,134 Work in progress 321,695 280,216 225,475 Finished goods 151,410 57,474 73,717 622,679 464,216 387,326 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Schedule of trade and other receivables | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Trade receivables 407,975 491,018 399,200 Allowance on doubtful trade receivables (1,335) (1,491) (41,976) 406,640 489,527 357,224 Other receivables and refundable deposits 209,668 156,295 142,622 616,308 645,822 499,846 |
Schedule of aged analysis of trade receivables | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Within 30 days 148,131 274,087 177,542 31–60 days 187,623 179,453 151,377 Over 60 days 72,221 37,478 70,281 Total trade receivables 407,975 491,018 399,200 |
Schedule of movement in the allowance for doubtful debts | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of the year 1,491 41,976 42,014 Addition in allowance on doubtful trade receivables 301 201 528 Amounts written off during the year as uncollectible (19) (39,083) (25) Reversal of allowance on doubtful trade receivables (438) (1,603) (541) Balance at end of the year 1,335 1,491 41,976 |
Past due but not impaired | |
Trade and other receivables | |
Schedule of aged analysis of trade receivables | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Neither past due nor impaired 331,469 444,145 312,479 Past due but not impaired Within 30 days 62,267 34,872 39,737 31–60 days 9,583 8,875 3,534 Over 60 days 3,321 1,635 1,474 Total carrying amount 406,640 489,527 357,224 Average overdue days 26 27 23 |
Assets classified as held for78
Assets classified as held for sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assets classified as held for sale | |
Schedule of non-current assets classified as held for sale | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Assets related to employee’s living quarters 37,471 50,813 72,197 |
Shares and issued capital (Tabl
Shares and issued capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital | |
Fully paid ordinary shares | Number of Share Share shares capital Premium USD’000 USD’000 Balance at December 31, 2014 35,856,096,167 14,342 4,376,630 Issuance of shares under the Company’s employee share option plan 232,284,137 93 20,819 Ordinary shares issued at June 8, 2015 4,700,000,000 1,880 397,580 Ordinary shares issued at September 25, 2015 323,518,848 130 27,392 Ordinary shares issued at October 9, 2015 961,849,809 385 81,440 Balance at December 31, 2015 42,073,748,961 16,830 4,903,861 Issuance of shares under the Company’s employee share option plan 329,531,926 132 35,367 Conversion of convertible bonds during the year 105,128,132 42 11,023 Adjustment arising from the Share Consolidation (38,257,568,118) — — Issuance of shares under the Company’s employee share option plan after the Share Consolidation 2,081,358 8 697 Balance at December 31, 2016 4,252,922,259 17,012 4,950,948 Issuance of shares under the Company’s employee share option plan (Note 39) 32,723,622 130 35,178 Conversion of convertible bonds during the year 389,042,383 1,556 427,168 Share premium reduction — — (910,849) Ordinary shares issued at December 6, 2017 241,418,625 966 325,174 Balance at December 31, 2017 4,916,106,889 19,664 4,827,619 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity-settled employee benefits reserve | |
Schedule of reserves | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 65,703 70,459 64,540 Arising on share-based payments 17,495 13,838 18,088 Transfer to share premium (18,220) (18,594) (12,169) Balance at end of year 64,978 65,703 70,459 |
Foreign currency translation reserve | |
Schedule of reserves | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year (22,087) (3,956) 4,229 Exchange differences arising on translating the foreign operations 21,590 (18,131) (8,185) Balance at end of year (497) (22,087) (3,956) |
Change in value of available-for-sale financial assets | |
Schedule of reserves | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 1,245 447 — Change in value of available-for-sale financial assets during this year (2,356) 798 447 Balance at end of year (1,111) 1,245 447 |
Convertible bonds equity reserve | |
Schedule of reserves | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Balance at beginning of year 81,678 29,564 29,564 Recognition of the equity component of convertible bonds — 52,935 — Conversion options exercised during the year (29,625) (821) — Balance at end of year 52,053 81,678 29,564 |
Defined benefit plan reserve | |
Schedule of reserves | 12/31/17 12/31/16 USD’000 USD’000 Balance at beginning of year 1,520 — Actuarial gains or losses on defined benefit plan (436) 1,520 Balance at end of year 1,084 1,520 |
Cash flow hedges | |
Schedule of reserves | 12/31/17 12/31/16 USD’000 USD’000 Balance at beginning of year (34,627) — Gain (loss) recognized during this year 35,143 (34,627) Balance at end of year 516 (34,627) |
Share of other comprehensive income of joint ventures accounted for using equity method | |
Schedule of reserves | 12/31/17 USD’000 Balance at beginning of year — Change in share of other comprehensive income of joint ventures accounted for using the equity method 17,646 Balance at end of year 17,646 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings | |
Schedule of borrowings | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At amortized cost Short-term commercial bank loans (i) 308,311 176,957 62,872 Short-term borrowings 308,311 176,957 62,872 2013 USD loan (SMIC Shanghai) (ii) 10,760 10,760 10,760 2015 USD loan (SMIC Shanghai) — 39,641 52,854 2015 CDB USD loan (SJ Jiangyin) — 2,000 20,000 2015 CDB RMB loan I (SMIC Shanghai) (iii) 153,041 144,155 154,095 2015 CDB RMB loan II (SMIC Shanghai) (iv) 72,694 68,473 73,195 2015 CDB RMB loan (SMIC Beijing) (v) 29,231 28,110 30,048 2016 CDB RMB loan (SMIC Beijing) (vi) 223,440 210,466 — 2017 CDB RMB loan (SMIC Shenzhen) (vii) 185,792 — — 2015 EXIM RMB loan (SMIC Shanghai) (viii) 76,520 72,077 73,966 2017 EXIM RMB loan (SMIC Shanghai) (ix) 153,041 — — 2014 EXIM RMB loan (SMIC Beijing) — — 36,983 2016 EXIM RMB loan I (SMIC Beijing) (x) 36,730 34,597 — 2016 EXIM RMB loan II (SMIC Beijing) (xi) 61,216 57,662 — 2017 EXIM RMB loan (SMIC Beijing) (xii) 76,520 — — 2016 EXIM RMB loan (SMIC) (xiii) 76,520 72,077 — 2017 EXIM RMB loan (SMIC Tianjin) (xiv) 76,520 — — 2017 EXIM USD loan (SMIC Tianjin) (xv) 25,000 — — 2017 EXIM RMB loan (SMIC Shenzhen) (xvi) 76,520 — — 2015 RMB entrust loan (SJ Jiangyin) — — 14,331 2014 Cassa Depositie Prestiti loan (LFoundry) (xvii) 25,871 26,026 — 2014 MPS capital service loan (LFoundry) (xviii) 5,132 4,578 — 2014 Citizen Finetech Miyota loan (LFoundry) (xix) 3,502 3,926 — 2017 Banca del Mezzogiorno loan (LFoundry) (xx) 1,529 — — Finance lease payables (xxi) 6,252 7,057 — Loans from non-controlling interests shareholders (xxii) 12,750 1,627 — Others (xxiii) 487,655 482,579 — Long-term borrowings 1,876,236 1,265,811 466,232 2,184,547 1,442,768 529,104 Current Short-term borrowings 308,311 176,957 62,872 Current maturities of long-term borrowings 132,297 32,217 50,196 440,608 209,174 113,068 Non-current Non-current maturities of long-term debt 1,743,939 1,233,594 416,036 2,184,547 1,442,768 529,104 Borrowing by repayment schedule: Within 1 year 440,608 209,174 113,068 Within 1–2 years 399,301 171,900 15,830 Within 2–5 years 877,315 698,070 172,916 Over 5 years 467,323 363,624 227,290 2,184,547 1,442,768 529,104 Summary of borrowing arrangements (i) As of December 31, 201 7 , the Group had 34 short-term credit agreements that provided total credit facilities up to US$2, 118.5 million on a revolving credit basis. As of December 31, 201 7 , the Group had drawn down US$ 308.3 million under these credit agreements. The outstanding borrowings under these credit agreements are unsecured. The interest rate on this loan facility ranged from 0.98% to 3.48% in 201 7 . (ii) In August 2013, SMIS entered into a loan facility in the aggregate principal amount of US$47 0. 0 million with a syndicate of financial institutions based in the PRC. This seven-year bank facility was used to finance the planned expansion for SMIS’ 300mm fab. The facility is secured by the manufacturing equipment located in the SMIS’ 300mm fab. As of December 31, 2017, SMIS had drawn down US$26 0.0 million and repaid US$249.2 million on this loan facility. The outstanding balance of US$10.8 million is repayable in advance from February 2018 to August 2018. The interest rate on this loan facility ranged from 5.03% to 5.71%from in 2017. SMIS was in compliance with the related financial covenants as of December 31, 2017. (iii) In December 2015, SMIS entered into a loan facility in the aggregate principal amount of RMB1,00 0. 0 million with China Development Bank, which is guaranteed by SMIC. This fifteen-year bank facility was used for new SMIS’ 300mm fab. As of December 31, 201 7 , SMIS had drawn down RMB1,000 million (approximately US$1 53.0 million) on this loan facility. The outstanding balance is repayable from November 2021 to November 2030. The interest rate on this loan facility was 1.20% in 201 7 . (iv) In December 2015, SMIS entered into a loan facility in the aggregate principal amount of RMB47 5.0 million with China Development Bank, which is guaranteed by SMIC. This ten-year bank facility was used to expand the capacity of SMIS’ 300mm fab. As of December 31, 201 7 , SMIS had drawn down RMB47 5.0 million (approximately US$ 72.7 million) on this loan facility. The outstanding balance is repayable from December 2018 to December 2025. The interest rate on this loan facility was 1.20% in 201 7 . (v) In December 2015, SMIB entered into an RMB loan, a fifteen-year working capital loan facility in the principal amount of RMB19 5.0 million with China Development Bank, which is unsecured. As of December 31, 201 7 , SMIB had drawn down RMB19 5.0 million on this loan facility. The outstanding balance of RMB191.0 million (approximately US$2 9.2 million) is repayable from June 201 8 to December 2030. The interest rate on this loan facility was 1.20% in 201 7 . (vi) In May 2016, SMIB entered into the RMB loan, a fifteen-year working capital loan facility in the principal amount of RMB1,46 0. 0 million with China Development Bank, which is guaranteed by SMIC. As of December 31, 201 7 , SMIB had drawn down RMB1,46 0. 0 million (approximately US$2 23.4 million) on this loan facility. The principal amount is repayable from May 2018 to May 2031. The interest rate on this loan facility was 1.20% in 201 7 . (vii) In December 201 7 , SMI Z entered into a loan facility in the aggregate principal amount of RMB 5,400.0 million with China Development Bank, which is unsecured. This seven -year bank facility was used to finance the planned expansion for SMIZ’s 300mm fab. As of December 31, 201 7 , SMI Z had drawn down RMB 1,214.0 million (approximately US$ 185.8 million) on this loan facility. The outstanding balance is repayable from December 20 24 . The interest rate on this loan facility was 4 . 46 % per annum in 201 7 . (viii) In December 201 5 , SMI S entered into a loan facility in the aggregate principal amount of RMB 500.0 million with The Export-Import Bank of China , which is unsecured. This three -year bank facility was used for working capital purposes . As of December 31, 201 7 , SMI S had drawn down RMB 500.0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable in December 20 18 . The interest rate on this loan facility was 2 . 65 % in 201 7 . (ix) In March 2017, SMIS entered into a loan facility in the aggregate principal amount of RMB1,000.0 million with The Export-Import Bank of China, which is unsecured. This two-year bank facility as used for working capital purposes. As of December 31, 2017, SMIS had drawn down RMB1,000.0 million (approximately US$153.0 million) on this loan facility. The outstanding balance is repayable in March and April 2019. The interest rate on this loan facility is 2.65% per annum in 2017. (x) In December 2016, SMIB entered into the RMB loan, a two-year working capital loan facility in the principal amount of RMB24 0. 0 million with The Export-Import Bank of China, which is unsecured. This two-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIB had drawn down RMB24 0. 0 million (approximately US$3 6.7 million) on this loan facility. The principal amount is repayable in December 2018. The interest rate on this loan facility was 2.65% in 201 7 . (xi) In January 2016, SMIB entered into the RMB loan, a three-year working capital loan facility in the principal amount of RMB40 0. 0 million with The Export-Import Bank of China, which is unsecured. This three-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIB had drawn down RMB40 0. 0 million (approximately US$ 61.2 million) on this loan facility. The principal amount is repayable in January 2019. The interest rate on this loan facility was 2.65% in 201 7 . (xii) In September 201 7 , SMIB entered into the new RMB loan in the aggregate principal amount of RMB 5 0 0. 0 million with The Export-Import Bank of China, which is unsecured . This five -year bank facility was used for SMIB’s 300mm fab . As of December 31, 201 7 , SMIB had drawn down RMB 5 0 0. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable from September 2018 to September 2022 . The interest rate on this loan facility was 2. 92 % per annum in 201 7 . (xiii) In May 2016, SMIC entered into a loan facility in the aggregate principal amount of RMB50 0. 0 million with The Export-Import Bank of China, which is unsecured. This three-year bank facility was used for working capital purposes. As of December 31, 201 7 , SMIC had drawn down RMB50 0. 0 million (approximately US$7 6.5 million) on this loan facility. The outstanding balance is repayable in May 2019. The interest rate on this loan facility was 2.75% to 3 . 05 % in 201 7 . (xiv) In February 2017, SMI T entered into the new RMB loan , a three-year working capital loan facility in the principal amount of RMB 5 0 0. 0 million with The Export-Import Bank of China, which is unsecured . This three -year bank facility was use d for working capital purposes. As of December 31, 201 7 , SMI T had drawn down RMB 5 0 0. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayabl e in February 2020 . The interest rate on this loan facility was 4 . 04 % per annum in 201 7 . (xv) In August 2017, SMI T entered into the new RMB loan in the aggregate principal amount of US$25. 0 million with The Export-Import Bank of China, which is unsecured . This five -year bank facility was used for SMIT’s 200mm fab. As of December 31, 201 7 , SMI T had drawn down US$25. 0 million on this loan facility. The outstanding balance is repayable in August 2022 . The interest rate on this loan facility was 2 . 65 % per annum in 201 7 . (xvi) In December 2017, SMIZ entered into a USD loan facility in the aggregate principal amount of RMB500.0 million with T he Export-Import Bank of China, which is unsecured . This five -year bank facility was used to finance the planned expansion for SMIZ’s 300mm fab. As of December 31, 201 7 , S MIZ had drawn down RMB500. 0 million (approximately US$ 76.5 million) on this loan facility. The outstanding balance is repayable from March 201 8 to September 2022. The interest rate on this loan facility ranged from 3 . 4 0% in 201 7 . (xvii) In January 2014, LFoundry entered into a loan facility in the aggregate principal amount of EUR35.8 million with Cassa Depositie Prestiti.This ten-year bank facility was in relation to the admission of LFoundry to the benefits of the technology innovation fund. The facility is secured by bank deposits of EUR 14.3 million and the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down EUR35.8 million and repaid EUR 11.8 million on this loan facility. The outstanding balance of EUR2 4 .4 million (its present value is EUR2 1.5 million, approximately US$2 5.9 million) including principal amount of EUR2 4.0 million and interest cash flow of EUR0. 4 million is repayable from December 2017 to December 2023. The interest rate on this loan facility was 0.5% per annum in 201 7 . (xviii) In January 2014, LFoundry entered into a loan facility in the aggregate principal amount of EUR4.0 million with MPS Capital Service. This ten-year bank facility was in relation to the admission of LFoundry to the benefits of the technology innovation fund. The facility is secured by bank deposits of EUR1. 6 million and the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down EUR4.0 million on this loan facility. The outstanding balance of EUR 4 . 8 million (its present value is EUR4. 2 million, approximately US$ 5.1 million) including principal amount of EUR4.0 million and interest cash flow of EUR 0.8 million is repayable from June 2020 to December 2023. The interest rate on this loan facility was approximately 6% per annum in 201 7 . (xix) In June 2014, LFoundry entered into a loan facility in the aggregate principal amount of JPY48 0. 0 million with Citizen Finetech Miyota Co.Ltd. This five-year facility was used to finance the planned expansion of LFoundry’s 200mm fab. The facility is secured by the manufacturing equipment located in LFoundry’s 200mm fab. As of December 31, 201 7 , LFoundry had drawn down JPY48 0. 0 million and repaid JPY58.0 million on this loan facility. The outstanding balance of JPY4 3 9. 0 million (its present value is JPY 4 06 . 0 million, approximately US$3. 5 million) including principal amount of JPY4 22. 0 million and interest cash flow of JPY1 7.0 million is repayable from December 2017 to December 2019. The interest rate on this loan facility was 4.04% in 201 7 . (xx) In June 201 7 , LFoundry entered into a loan facility in the aggregate principal amount of EUR1 . 2 million with Banca del Mezzogiorno, which is unsecured. This nin e- year bank facility was in relation to the admission of LFoundry to the benefits of the European Project called Horizon. As of December 31, 201 7 , LFoundry had drawn down EUR1 . 2 million (approximately US$ 1.5 million) on this loan facility. The principal amount is repayable from December 201 8 to June 20 26 . The interest rate on this loan facility ranged from 0 . 8 % per annum in 201 7 . (xxi) In 2016, a leasing contract entered into by the Group with one of its suppliers for the construction and installation of gas generation equipment. This transaction was accounted for a finance leasing with remaining lease term of 5 years. As at December 31, 201 7 , the total net future finance lease pay ables w ere US$ 6.3 million. As of December 31, 2017, the total future minimum lease payments under finance leases and their present values (effective interest rate was 3.68%) were as follows: Minimum lease Present payments value USD’000 USD’000 Amounts payable: Within one year 1,742 1,564 In the second year 1,742 1,601 In the third to fifth years 3,193 3,087 Total minimum finance lease payments 6,677 6,252 Less: future finance cost charges (425) Total net finance lease payables 6,252 Less: current portion of finance lease payables (1,564) Non-current portion of finance lease payables 4,688 (xxii) In 2016, LFoundry entered into a loan facility in the aggregate principal amount of EUR15.0 million from non-controlling interests shareholders of LFoundry. This seven-year facility was in relation to the construction of the new co-generation. LFoundry had drawn down EUR1 0 . 6 million on this loan facility. The outstanding balance of EUR1 0 . 6 million (approximately US$1 2 . 7 million) is repayable from September 2018 to December 2023. The interest rate on this loan facility was 3.5% in 201 7 . (xxiii) Other borrowings represented US$48 7.7 million (December 31, 2016 : US$482.6 million and December 31, 2015: nil) of borrowings under three arrangements entered into by the Group with third-party companies in the form of a sale and leaseback transaction with a repurchase option. A batch of production equipment of the Group was sold and leased back under the financing arrangements. As the repurchase prices are set at below US$1.0 which are minimal compared to the expected fair value and the Group is certain that it will exercise the repurchase options, the above arrangements have been accounted for as collateralized borrowings of the Group. |
Summary of the total future minimum lease payments under finance leases and their present values | Minimum lease Present payments value USD’000 USD’000 Amounts payable: Within one year 1,742 1,564 In the second year 1,742 1,601 In the third to fifth years 3,193 3,087 Total minimum finance lease payments 6,677 6,252 Less: future finance cost charges (425) Total net finance lease payables 6,252 Less: current portion of finance lease payables (1,564) Non-current portion of finance lease payables 4,688 |
Convertible bonds (Tables)
Convertible bonds (Tables) - US$450 million zero coupon convertible bonds due 2022 (the “2016 Convertible Bonds”) | 12 Months Ended |
Dec. 31, 2017 | |
ifrs Statement [Line Items] | |
Schedule of equity component of the bond | USD’000 Principal amount 450,000 Transaction cost (9,194) Liability component as at the date of issue (387,871) Equity component as at the date of issue 52,935 |
Schedule of movement of liability component and equity component of the bonds | Liability Equity Component Component Total USD’000 USD’000 USD’000 As at the date of issue 387,871 52,935 440,806 Interest charged 7,339 — 7,339 Balance at December 31, 2016 395,210 52,935 448,145 Interest charged 14,913 — 14,913 Conversion options exercised (6,794) (882) (7,676) As at December 31, 2017 403,329 52,053 455,382 |
Bonds payable (Tables)
Bonds payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Bonds payable | |
Schedule of bonds payable | USD’000 Principal amount 500,000 Discount of bonds payable (5,185) Transaction cost (3,634) Bonds payable as at the date of issue 491,181 |
Schedule of movement of the corporate bonds | USD’000 Balance at December 31, 2014 491,579 Interest charged 22,253 Interest payable recognized (20,625) Balance at December 31, 2015 493,207 Interest charged 22,327 Interest payable recognized (20,625) Balance at December 31, 2016 494,909 Interest charged 22,405 Interest payable recognized (20,625) Balance at December 31, 2017 496,689 |
Medium-term notes (Tables)
Medium-term notes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Medium-term notes | |
Schedule of notes issued | USD’000 Principal amount 226,162 Transaction cost (2,226) Notes payable as at the date of issue 223,936 |
Summary of movement of the short-term and medium-term notes | USD’000 As at the date of issue 223,936 Interest charged during 4,625 Interest payable recognized (4,225) Foreign exchange gain (9,834) Balance at December 31, 2016 214,502 Interest charged during 8,185 Interest payable recognized (7,450) Foreign exchange gain 13,246 Balance at December 31, 2017 228,483 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other financial liabilities [Abstract] | |
Other financial liabilities | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 At fair value Non-current Derivatives Cross currency swap contracts — cash flow hedges 1,919 74,170 — Current Derivatives Cross currency swap contracts — cash flow hedges 742 6,348 — Cross currency swap contracts — — 1,459 Foreign currency forward contracts 2 — — 744 6,348 1,459 2,663 80,518 1,459 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other liabilities | |
Schedule of other liabilities | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Non-current Bonus accrued — — 48,000 Defined benefit obligation(1) 28,162 24,213 — Contingent Consideration(3) 12,549 Others – non-current(2) 59,106 13,284 17,761 99,817 37,497 65,761 Current Others – current(2) 40,627 — — 140,444 37,497 65,761 (1) Defined Benefit Plan Trattamento di Fine Rapport (“TFR”) relates to the amounts that employees in Italy are entitled to receive when they leave the Group and is calculated based on the period of employment and the taxable earnings of each employee. Under certain conditions, the entitlement may be partially advanced to an employee during the employee’s working life. Under the amendments of the Italian legislation in the first half of 2007, companies with at least 50 employees are obliged to transfer the TFR to the “Treasury Fund” managed by the Italian state-owned social security body (“INPS”) or to supplementary pension funds. Prior to the amendments, accruing TFR for employees of all Italian companies could be managed by the Group itself. Consequently, the Italian companies’ obligation to INPS and the contributions to supplementary pension funds take the form, under IAS 19 revised, of “Defined contribution plans” whereas the amounts recorded in the TFR liability retain the nature of “Defined benefit plans”. Accordingly, TFR liability consists of the residual obligation for TFR until December 31, 2006. This is an unfunded defined benefit plan as the benefits have already been almost entirely earned, with the sole exception of future revaluations. Since 2007 the scheme has been classified as a defined contribution plan, and the companies under IFRS recognize the associated cost, being the required contributions to the pension funds, over the period in which the employee renders service. The Group operates defined benefit plans in Italy under broadly similar regulatory frameworks, which is an unfunded plan where the Group meets the benefit payment obligation as it falls due. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. The TFR in payment is generally updated in line with the retail price index. The amounts recognized in the statement of financial position and the movements in the net defined benefit obligation over the year are as follows: USD’000 As at August 1, 2016 27,569 Interest expense recognized in profit or loss 87 Actuarial gains recognized in other comprehensive income (1,520) Exchange differences (1,875) Contribution to employees (48) Balance at December 31, 2016 24,213 Interest expense recognized in profit or loss 376 Actuarial losses recognized in other comprehensive income 436 Exchange differences 3,455 Contribution to employees (318) Balance at December 31, 2017 28,162 The significant actuarial assumptions were as follows: 12/31/17 12/31/16 Discount rate (%) 1.18 % 1.37 % Inflation rate (%) 1.50 % 1.50 % Salary growth rate (%) 1.50 % 1.50 % Labor turnover rate (%) 2.65 % 2.65 % Probability of request of advances of TFR (%) 1.50 % 1.50 % Percentage required in case of advance (%) 70.00 % 70.00 % 12/31/17 12/31/16 Number of employees with TFR 1,485 1,421 Average age (years) 47 46 Average seniority (years) 20 20 The sensitivity analysis of the defined benefit obligation was as follows: 12/31/17 12/31/16 Discount rate (+0.5%) –5.85 % –6.05 % Discount rate (-0.5%) 6.38 % 6.61 % Rate of payments increases (+20%) –0.65 % –0.57 % Rate of payments decreases (-20%) 0.71 % 0.63 % Rate of price inflation increases (+0.5%) 3.80 % 3.94 % Rate of price inflation decreases (-0.5%) –3.72 % –3.86 % Rate of salary increases (+0.5%) 0.00 % 0.00 % Rate of salary decreases (-0.5%) 0.00 % 0.00 % Increase the retirement age (+1 year) 0.49 % 0.38 % Decrease the retirement age (-1 year) –0.52 % –0.40 % Increase longevity (+1 year) 0.00 % 0.00 % Decrease longevity (-1 year) 0.00 % 0.00 % The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the statement of financial position. (2) Others Others including the non-current and current portion of long-term payables for the new purchased tangible and intangible assets were classified into the non-current and current liabilities respectively amounted at to US$57.5 million and US$40.6 million as of December 31, 2017. (3) Contingent consideration The group had contingent consideration in respect of a potential cash compensation accrued at about US$12.5 million in 2017 that may be incurred depending on the profit of Changjiang Xinke during the three years of 2017, 2018 and 2019. The potential cash compensation was deemed as the terms of the supplemental agreement entered by Siltech Shanghai and JCET on December 9, 2016 and the transaction under this agreement was completed in 2017 |
Schedule of amounts recognized in statement of financial position and movements in net defined benefit obligation | USD’000 As at August 1, 2016 27,569 Interest expense recognized in profit or loss 87 Actuarial gains recognized in other comprehensive income (1,520) Exchange differences (1,875) Contribution to employees (48) Balance at December 31, 2016 24,213 Interest expense recognized in profit or loss 376 Actuarial losses recognized in other comprehensive income 436 Exchange differences 3,455 Contribution to employees (318) Balance at December 31, 2017 28,162 |
Schedule of significant actuarial assumptions | 12/31/17 12/31/16 Discount rate (%) 1.18 % 1.37 % Inflation rate (%) 1.50 % 1.50 % Salary growth rate (%) 1.50 % 1.50 % Labor turnover rate (%) 2.65 % 2.65 % Probability of request of advances of TFR (%) 1.50 % 1.50 % Percentage required in case of advance (%) 70.00 % 70.00 % 12/31/17 12/31/16 Number of employees with TFR 1,485 1,421 Average age (years) 47 46 Average seniority (years) 20 20 |
Schedule of sensitivity analysis of defined benefit obligation | 12/31/17 12/31/16 Discount rate (+0.5%) –5.85 % –6.05 % Discount rate (-0.5%) 6.38 % 6.61 % Rate of payments increases (+20%) –0.65 % –0.57 % Rate of payments decreases (-20%) 0.71 % 0.63 % Rate of price inflation increases (+0.5%) 3.80 % 3.94 % Rate of price inflation decreases (-0.5%) –3.72 % –3.86 % Rate of salary increases (+0.5%) 0.00 % 0.00 % Rate of salary decreases (-0.5%) 0.00 % 0.00 % Increase the retirement age (+1 year) 0.49 % 0.38 % Decrease the retirement age (-1 year) –0.52 % –0.40 % Increase longevity (+1 year) 0.00 % 0.00 % Decrease longevity (-1 year) 0.00 % 0.00 % |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other payables | |
Schedule of trade and other payables | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Trade payables 837,843 781,161 885,438 Advance receipts from customers 65,044 60,157 72,865 Deposit received 54,895 41,324 47,468 Other payable 92,678 57,911 41,995 1,050,460 940,553 1,047,766 |
Schedule of accounts payable aging analysis based on invoice dates | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Within 30 days 658,804 630,896 788,936 Between 31 to 60 days 68,358 43,984 36,596 Over 60 days 110,681 106,281 59,906 837,843 781,161 885,438 |
Schedule of accounts payable aging analysis | An aged analysis of the accounts payable presented based on the due date at the end of the reporting period is as follows: 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Current 705,835 659,094 814,553 Overdue: Within 30 days 46,318 55,394 24,554 Between 31 to 60 days 22,052 7,658 10,458 Over 60 days 63,638 59,015 35,873 837,843 781,161 885,438 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payments | |
Schedule of expense recognized for employee services received | Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Expense arising from equity-settled share-based payment transactions 18,214 14,210 18,329 |
Stock Option Plan | |
Share-based payments | |
Schedule of the number and weighted average exercise prices ("WAEP") of, and movements in, share options during the year | 2017 2017 2016 2016 2015 2015 Number WAEP Number* WAEP* Number* WAEP* Outstanding at January 1 72,482,764 US$ 0.82 100,295,578 US$ 0.82 116,362,727 US$ 0.84 Granted during the period 6,071,477 US$ 1.14 2,076,652 US$ 0.92 5,656,526 US$ 1.02 Forfeited and expired during the period (3,842,461) US$ 1.33 (6,430,431) US$ 1.16 (8,792,890) US$ 1.37 Exercised during the period (21,830,502) US$ 0.78 (23,459,035) US$ 0.75 (12,930,785) US$ 0.67 Outstanding at December 31 52,881,278 US$ 0.83 72,482,764 US$ 0.82 100,295,578 US$ 0.82 Exercisable at December 31 39,511,002 US$ 0.78 50,708,535 US$ 0.77 51,319,799 US$ 0.80 |
Schedule of the inputs to the Black Scholes Pricing models used for share options granted | Dividend yield (%) — — — Expected volatility 42.80 % 44.80 % 46.13 % Risk-free interest rate 1.84 % 1.39 % 1.61 % Expected life of share options 6 years 6 years 6 years |
RSUs | |
Share-based payments | |
Schedule of the number and weighted average fair value ("WAFV") of, and movements in, RSUs during the year | 2017 2017 2016 2016 2015 2015 Number WAFV Number* WAFV* Number* WAFV* Outstanding at January 1 26,489,152 US$ 0.98 30,451,268 US$ 0.99 27,405,767 US$ 0.87 Granted during the period 14,055,477 US$ 1.11 8,738,247 US$ 0.86 14,685,298 US$ 1.06 Forfeited during the period (950,412) US$ 1.04 (1,124,847) US$ 0.98 (1,342,168) US$ 0.96 Exercised during the period (10,893,120) US$ 0.97 (11,575,516) US$ 0.91 (10,297,629) US$ 0.79 Outstanding at December 31, 28,701,097 US$ 1.05 26,489,152 US$ 0.98 30,451,268 US$ 0.99 |
Schedule of the inputs to the models used for the plans | Dividend yield (%) — — — Expected volatility 39.45 % 39.66 % 37.07 % Risk-free interest rate 1.24 % 0.9 % 0.60 % Expected life of share options 2 years 2 years 2 years |
Subsidiary Plan | |
Share-based payments | |
Schedule of the inputs to the Black Scholes Pricing models used for share options granted | Dividend yield (%) — — — Expected volatility 32.0 % 41.5 % 36.0 % Risk-free interest rate 1.90 % 2.10 % 1.01 % Expected life of share options 6 years 6 years 3 years |
Schedule of the number and weighted average fair value ("WAFV") of, and movements in, RSUs during the year | 2017 2017 2016 2016 2015 2015 Number WAEP Number WAEP Number WAEP Outstanding at January 1 14,598,750 US$ 0.19 7,000,000 US$ 0.06 — — Granted during the year 1,598,750 US$ 0.31 7,698,750 US$ 0.31 8,330,000 US$ 0.06 Forfeited and expired during the year (934,948) US$ 0.05 (100,000) US$ 0.05 (1,192,500) US$ 0.06 Exercised during the year (343,750) US$ 0.25 — — (137,500) US$ 0.05 Outstanding at December 31, 14,918,802 US$ 0.20 14,598,750 US$ 0.19 7,000,000 US$ 0.06 Exercisable at December 31, 7,079,401 US$ 0.15 3,297,135 US$ 0.07 689,479 US$ 0.05 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments | |
Gearing ratio | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Debt* 3,313,048 3,025,283 1,414,943 Cash and cash equivalent (1,838,300) (2,126,011) (1,005,201) Other financial assets - current (683,812) (31,543) (282,880) Net debt 790,936 867,729 126,862 Equity 6,721,335 5,403,227 4,190,255 Net debt to equity ratio 11.8 % 16.1 % 1.3 % * Debt is defined as long-term and short-term borrowings (excluding derivatives), convertible bonds, short-term and medium-term note s , and bonds payables as described in Note 31, Note 32, Note 33 and Note 34. |
Foreign currency risk management | Liabilities Assets 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 EUR 125,171 112,827 76,462 72,181 39,619 33,968 JPY 30,422 41,976 5,553 29,245 35,237 2,986 RMB 2,410,284 2,714,492 586,931 1,765,846 1,633,433 909,497 Others 43,824 27,083 14,127 8,688 3,860 2,529 |
Foreign currency sensitivity analysis | EUR JPY RMB Others USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Profit or loss (2,650) (3,660) (2,125) (62) (355) (128) (33,918) (6,611) 16,128 (1,848) (1,222) (580) Equity (2,650) (3,660) (2,125) (62) (355) (128) (33,918) (6,611) 16,128 (1,848) (1,222) (580) |
Outstanding forward foreign exchange contracts | Average exchange rate Foreign currency Notional value Net Fair value assets (liabilities) 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 FC’000 FC’000 FC’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Buy EUR Less than 3 months 1.2019 — 1.0895 2,080 — 39,192 2,500 — 42,872 (2) — 172 Buy RMB Less than 3 months 6.7622 — — 648,364 — — 95,881 — — 2,111 — — 98,381 — 42,872 2,109 — 172 |
Foreign-exchange related amounts of cash flow hedges recognized in profit or loss and other comprehensive income or loss | Year ended Year ended 12/31/17 12/31/16 USD’000 USD’000 Total fair value gain (loss) included in other comprehensive income (loss) 95,185 (66,861) Reclassified from other comprehensive income (loss) to offset foreign exchange gains or losses (60,042) 32,234 Other comprehensive income (losses) on cash flow hedges recognized during the year 35,143 (34,627) |
Outstanding cross currency swap contracts | Average exchange rate Foreign currency Notional value Net Fair value assets (liabilities) 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 FC’000 FC’000 FC’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Buy RMB 3 months to 1 year 6.6369 6.6592 — 1,040,000 787,000 — 159,163 113,450 — 3,997 (6,348) — 1 year to 5 years 6.6356 6.5830 6.4360 5,358,000 5,140,000 480,000 819,993 740,954 73,966 15,679 (74,170) (1,459) 979,156 854,404 73,966 19,676 (80,518) (1,459) |
Contractual maturity for non-derivative financial liabilities | Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 Interest-bearing bank and Fixed 3.20 % 140,338 24,757 313,497 338,632 817,224 other borrowings Floating 2.36 % 16,712 87,753 958,367 307,003 1,369,835 Convertible bonds 3.79 % — — 442,500 — 442,500 Bonds payable 4.52 % — — 500,000 — 500,000 Medium-term notes 3.70 % — — 226,162 — 226,162 Finance lease payables 3.68 % 434 1,308 4,935 — 6,677 Trade and other payables 880,795 5,492 161,169 3,004 1,050,460 Contingent consideration — — 12,549 — 12,549 1,038,279 119,310 2,619,179 648,639 4,425,407 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Interest-bearing bank and Fixed 2.50 % 130,728 6,729 131,474 384,382 653,313 other borrowings Floating 2.62 % 6,039 67,347 785,059 4,781 863,226 Convertible bonds 2.78%–3.79 % 393,200 — 450,000 — 843,200 Bonds payable 4.52 % — — 500,000 — 500,000 Medium-term notes 3.70 % — — 226,162 — 226,162 Short-term notes 2.99 % — 90,465 — — 90,465 Finance lease payables 3.68 % 382 1,147 6,118 — 7,647 Trade and other payables 915,840 1,353 21,706 1,654 940,553 1,446,189 167,041 2,120,519 390,817 4,124,566 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Interest-bearing bank and Fixed 1.69 % 42,963 — 149,253 238,831 431,047 other borrowings Floating 4.98 % — 71,944 158,744 — 230,688 Convertible bonds 2.78%–3.79 % — 404,000 — — 404,000 Bonds payable 4.52 % — — 500,000 — 500,000 Trade and other payables 920,426 28,508 5,350 93,482 1,047,766 963,389 504,452 813,347 332,313 2,613,501 |
Contractual maturity for non-derivative financial assets | Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 Trade and other receivables 616,308 — — — 616,308 Cash and cash equivalent, restricted cash & short-term investments* 1.25 % 2,231,089 276,723 116,282 — 2,624,094 Available for sale financial assets — — — 24,844 24,844 2,847,397 276,723 116,282 24,844 3,265,246 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Trade and other receivables 645,822 — — — 645,822 Cash and cash equivalent, restricted cash & short-term investments* 1.19 % 2,000,717 480,379 21,125 — 2,502,221 Available for sale financial assets — — — 21,966 21,966 2,646,539 480,379 21,125 21,966 3,170,009 Weighted average effective Less than 3 months interest rate 3 months to 1 year 1–5 years 5+ years Total % USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Trade and other receivables 499,846 — — — 499,846 Cash and cash equivalent, restricted cash & short-term investments* 2.12 % 1,549,692 45,038 — — 1,594,730 Available for sale financial assets — — — 19,750 19,750 2,049,538 45,038 — 19,750 2,114,326 The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period. The above restricted cash exclude the cash received from government funds. |
Contractual maturity for derivative financial liabilities | Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2017 ` Gross settled: Cross currency swap contracts— cash flow hedges — inflows — 37,703 512,067 — 549,770 — (outflows) — (34,254) (480,984) — (515,238) Net settled: Cross currency swap contracts— cash flow hedges — net inflows — 2,854 20,730 — 23,584 — 6,303 51,813 — 58,116 Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2016 Gross settled: Cross currency swap contracts— cash flow hedges — inflows — 71,120 403,265 — 474,385 — (outflows) — (72,872) (396,332) — (469,204) Net settled: Cross currency swap contracts— cash flow hedges — net outflows (1,355) (1,475) (2,830) — (3,107) 5,458 — 2,351 Less than 3 months above 3 months to 1 year 1–5 years 5 years Total USD’000 USD’000 USD’000 USD’000 USD’000 December 31, 2015 Net settled: Cross currency swap contracts — net inflows — — 4,381 — 4,381 — — 4,381 — 4,381 |
Fair value measurements recognized in the consolidated statement of financial position | 12/31/17 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 117,928 — 117,928 Available-for-sale investment Quoted prices in active markets 2,531 — — 2,531 Available-for-sale investment Recent transaction price — — 20,134 20,134 Cross currency swap contracts classified as other financial assets in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 22,337 — 22,337 Foreign currency forward contracts classified as other financial assets in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2,111 — 2,111 2,531 142,376 20,134 165,041 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2,661 — 2,661 Foreign currency forward contracts classified as other financial liabilities in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 2 — 2 Contingent consideration Discounted cash flow. Future cash flows.Future cash flows are basis on management’s best estimation and discounted. — — 12,549 12,549 — 2,663 12,549 15,212 12/31/16 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 24,931 — 24,931 Available-for-sale investment Quoted prices in active markets 4,713 — — 4,713 Available-for-sale investment Recent transaction price — — 16,067 16,067 Derivative financial instrument Measured by Binomial Model with key assumptions including exercise multiple (75%), risk free rate of interest (1.2%), expected volatility (46.8%) and rate of return (10%). — — 32,894 32,894 4,713 24,931 48,961 78,605 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position — cash flow hedges Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 80,518 — 80,518 — 80,518 — 80,518 12/31/15 Valuation technique(s) and key input Level 1 Level 2 Level 3 Total USD’000 USD’000 USD’000 USD’000 Financial assets at fair value Short-term investment carried at fair value through profit or loss Discounted cash flow. Future cash flows are estimated based on contracted interest rates and discounted. — 257,583 — 257,583 Foreign currency forward contracts classified as other financial assets in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 172 — 172 Available-for-sale investment Quoted prices in active markets 3,300 — — 3,300 Available-for-sale investment Recent transaction price — — 15,173 15,173 Derivative financial instrument Measured by Binomial Model with key assumptions including exercise multiple (75%), risk free rate of interest (1.2%), expected volatility (46.8%) and rate of return (10%). — — 30,173 30,173 3,300 257,755 45,346 306,401 Financial liabilities at fair value Cross currency swap contracts classified as other financial liabilities in the statement of financial position Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates and discounted. — 1,459 — 1,459 — 1,459 — 1,459 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash flow information | |
Schedule of reconciliation of liabilities arising from financing activities | Net cash flows Conversion Foreign Other in financing options exchange non-cash 12/31/2016 activities exercised loss movement(1) 12/31/2017 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Short-term borrowings 176,957 127,715 — 3,639 — 308,311 Long-term borrowings 1,265,811 529,928 — 80,497 — 1,876,236 Disposals 786,611 — (399,099) — 15,817 403,329 Convertible bonds 494,909 — — — 1,780 496,689 Bonds payable 214,502 — — 13,246 735 228,483 Medium-term notes 86,493 (87,858) — 1,365 — — Currency swap contracts classified as other financial assets — — — — (22,337) (22,337) Currency swap contracts classified as other financial liabilities 80,518 — — — (77,857) 2,661 Balance at December 31, 2017 3,105,801 569,785 (399,099) 98,747 (81,862) 3,293,372 Other non-cash movements were accrued interest expenses for bonds and notes and fair value change of currency swap contracts. |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business combination | |
Schedule of assets and liabilities recognized as a result of the acquisition | Fair value USD’000 Property, plant and equipment 113,119 Intangible assets 8,088 Restrict cash 26,042 Other assets 5,590 Total non-current assets 152,839 Inventories 29,252 Prepayment and prepaid operating expenses 2,864 Trade and other receivables 34,186 Other financial assets 111 Cash and cash equivalent 18,987 Total current assets 85,400 Total Assets 238,239 Borrowings 71,654 Deferred tax liability 15,639 Other long-term liabilities 35,354 Total non-current liabilities 122,647 Trade and other payables 37,005 Borrowings 4,904 Accrued liabilities 1,635 Total current liabilities 43,544 Total Liabilities 166,191 Total identifiable net assets at fair value 72,048 Less: non-controlling interests (21,615) Goodwill on acquisition 3,933 Satisfied by cash 54,366 |
Schedule of analysis of the cash flows in respect of the acquisition of a subsidiary | USD’000 Cash paid for acquisition (54,366) Other cash consideration (37,837) Cash and cash equivalent acquired 18,987 Net cash outflow (73,216) |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Schedule of related parties which had transactions with the Group and their relationship with the Group | The names of the related parties which had transactions with the Group for the year ended December 31, 2017 and the relationships with the Group are disclosed below: Related party name Relationship with the Group Datang Telecom Technology & Industry Holdings Co., Ltd. (“Datang Holdings”) A substantial shareholder of the Company Datang Microelectronics Technology Co., Ltd A member of Datang Group Datang Semiconductor Co., Ltd. A member of Datang Group Leadcore Technology Co., Ltd and Leadcore Technology (Hong Kong) Co., Ltd (“Leadcore”) A member of Datang Group Datang Telecom Group Finance Co., Ltd (“Datang Finance”) A member of Datang Group China IC Fund A substantial shareholder of the Company Country Hill A shareholder of the Company Toppan An associate of the Group Brite Semiconductor (Shanghai) Corporation and its subsidiaries (“Brite”) An associate of the Group China Fortune-Tech An associate of the Group Zhongxin Xiecheng An associate of the Group Jiangsu Changjiang Electronics Technology Co., Ltd (“JCET”) and its subsidiaries An associate of the Group Sino IC Leasing Co., Ltd (“Sino IC Leasing”) An associate of the Group |
Related party transactions with group entities that are not members of the Group | Sale of goods Sale of services Year ended Year ended 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Datang Microelectronics Technology Co., Ltd 15,667 14,146 12,885 — — — Datang Semiconductor Co., Ltd 535 464 865 — — — Leadcore 3,960 3,267 8,881 — — — Toppan — — — 3,896 3,481 3,699 Brite 44,212 31,506 31,379 — — — JCET and its subsidiaries 17 — 17 48 — 9 China Fortune-Tech — — — — 65 60 Purchase of goods Purchase of services Year ended Year ended 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Toppan 11,275 8,869 7,996 59 856 3,516 Zhongxin Xiecheng — — — — 4 1,199 Brite — 25 — 2,016 2,887 2,582 China Fortune-Tech — — — 959 313 938 Datang Finance — — — — 15 — JCET and its subsidiaries 1,778 1,097 — 620 1,189 869 Sino IC Leasing — — — 51,739 — — |
Summary of outstanding balances with related parties | Amounts due from related Amounts due to related parties parties 12/31/17 12/31/16 12/31/15 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Datang Microelectronics Technology Co., Ltd 4,279 6,354 5,338 — — — Datang Semiconductor Co., Ltd 302 — 61 — — — Leadcore — — 1,948 — — 3,667 Toppan 670 615 317 888 2,414 1,148 Brite 12,951 6,507 5,661 — 279 141 JCET and its subsidiaries 21 — 27 3 736 2 China Fortune-Tech — 38 40 — — — |
Compensation of key management personnel | year ended year ended year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Short-term benefit 4,853 4,921 4,731 Share-based payments 8,264 2,762 2,618 13,117 7,683 7,349 |
Commitments for expenditure (Ta
Commitments for expenditure (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments for expenditure | |
Schedule of purchase commitments | 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Commitments for the facility construction 484,468 239,759 165,274 Commitments for the acquisition of property, plant and equipment 476,132 800,597 1,146,275 Commitments for the acquisition of intangible assets 5,596 5,491 29,392 966,196 1,045,847 1,340,941 |
Summary of future minimum lease payments under non-cancellable operating leases | 12/31/17 12/31/16 USD’000 USD’000 Within one year 91,181 23,483 Later than one year but not later than five years 203,684 45,989 294,865 69,472 |
Financial information of pare94
Financial information of parent company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial information of parent company | |
Financial information of parent company | (i) Statement of profit or loss Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Revenue — — — General and administration expenses (47,354) (50,739) (51,682) Loss from operations (47,354) (50,739) (51,682) Interest income 2,670 1,154 474 Finance costs (14,956) (24,194) (12,477) Foreign exchange gains or losses 63,087 (15,269) (2,848) Share of profits of subsidiaries 169,880 477,510 321,199 Share of profits of associates 2,868 1,455 322 Other gains or losses, net 3,484 (13,287) (1,577) Profit before tax 179,679 376,630 253,411 Income tax expense — — — Profit for the year 179,679 376,630 253,411 Other comprehensive income (loss) Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations 21,590 (18,131) (8,185) Change in value of available-for-sale financial assets (2,356) 798 447 Cash flow hedges 35,143 (34,627) — Share of other comprehensive income of joint ventures accounted for using the equity method 17,646 — — Other (131) 1 130 Items that will not be reclassified to profit or loss Actuarial gains and losses on defined benefit plans (436) 1,520 — Total comprehensive income for the year 251,135 326,191 245,803 (ii) 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Assets Non-current assets Property, plant and equipment 47,090 89,404 30,123 Intangible assets 59,138 91,225 108,897 Investment in subsidiaries 4,779,485 4,333,604 3,312,113 Investments in associates 132,427 114,966 56,080 Other financial assets 11,732 — — Other assets 372,275 530,566 575,489 Total non-current assets 5,402,147 5,159,765 4,082,702 Current assets Prepayment and prepaid operating expenses 428 671 633 Trade and other receivables 29,061 24,749 22,945 Due from subsidiaries 1,609,556 908,716 427,279 Other financial assets 95,440 3,000 15,000 Cash and cash equivalent 140,411 317,873 115,726 Total current assets 1,874,896 1,255,009 581,583 Total assets 7,277,043 6,414,774 4,664,285 Equity and liabilities Capital and reserves Ordinary shares, $0.004 par value, 10,000,000,000 shares authorized, 4,916,106,889, 4,252,922,259 and 4,207,374,896 shares issued and outstanding at December 31, 2017, 2016 and 2015 19,664 17,012 16,830 Share premium 4,827,619 4,950,948 4,903,861 Reserves 134,669 93,563 96,644 Retained earnings (accumulated deficit) 187,008 (910,849) (1,287,479) 5,168,960 4,150,674 3,729,856 Perpetual subordinated convertible securities 64,073 — — Total equity 5,233,033 4,150,674 3,729,856 Non-current liabilities Borrowings 76,520 72,077 — Convertible bonds 403,329 395,210 — Bonds payable 496,689 494,909 493,207 Medium-term notes 228,483 214,502 — Other financial liabilities 1,885 60,610 — Other liabilities 520 2,560 2,080 Total non-current liabilities 1,207,426 1,239,868 495,287 Current liabilities Trade and other payables 17,489 1,683 — Due to subsidiaries 804,476 522,166 33,445 Convertible bonds — 391,401 392,632 Short-term notes — 86,493 — Accrued liabilities 13,877 19,570 11,606 Other financial liabilities 742 2,919 1,459 Total current liabilities 836,584 1,024,232 439,142 Total liabilities 2,044,010 2,264,100 934,429 Total equity and liabilities 7,277,043 6,414,774 4,664,285 (iii) Share of other Change in comprehensive value of income of Equity-settle Foreign available- Convertible Defined joint ventures Perpetual employee currency for-sale bonds benefit accounted for subordinated Ordinary Share benefits translation financial equity plan Cash flow using Accumulated convertible Total shares premium reserve reserve assets reserve reserve hedges equity method Others deficit securities equity USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 Balance at December 31, 2014 14,342 4,376,630 64,540 4,229 — 29,564 — — — — (1,540,890) — 2,948,415 Profit for the year — — — — — — — — — — 253,411 — 253,411 Other comprehensive loss for the year — — — (8,185) 447 — — — — 130 — — (7,608) Total comprehensive loss for the year — — — (8,185) 447 — — — — 130 253,411 — 245,803 Issuance of ordinary shares 2,395 506,412 — — — — — — — — — — 508,807 Exercise of stock options 93 20,819 (12,169) — — — — — — — — — 8,743 Share-based compensation — — 18,088 — — — — — — — — — 18,088 Subtotal 2,488 527,231 5,919 — — — — — — — — — 535,638 Balance at December 31, 2015 16,830 4,903,861 70,459 (3,956) 447 29,564 — — — 130 (1,287,479) — 3,729,856 Profit for the year — — — — — — — — — — 376,630 — 376,630 Other comprehensive income (losses) for the year — — — (18,131) 798 — 1,520 (34,627) — 1 — — (50,439) Total comprehensive income (losses) for the year — — — (18,131) 798 — 1,520 (34,627) — 1 376,630 — 326,191 Exercise of stock options 140 36,064 (18,594) — — — — — — — — — 17,610 Share-based compensation — — 13,838 — — — — — — — — — 13,838 Conversion options of convertible bonds exercised during the year 42 11,023 — — — (821) — — — — — — 10,244 Recognition of equity component of convertible bonds — — — — — 52,935 — — — — — — 52,935 Subtotal 182 47,087 (4,756) — — 52,114 — — — — — — 94,627 Balance at December 31, 2016 17,012 4,950,948 65,703 (22,087) 1,245 81,678 1,520 (34,627) — 131 (910,849) — 4,150,674 Profit for the year — — — — — — — — — — 179,679 — 179,679 Other comprehensive income (losses) for the year — — — 21,590 (2,356) — (436) 35,143 17,646 (131) — — 71,456 Total comprehensive income (losses) for the year — — — 21,590 (2,356) — (436) 35,143 17,646 (131) 179,679 — 251,135 Exercise of stock options 130 35,178 (18,220) — — — — — — — — — 17,088 Share-based compensation — — 17,495 — — — — — — — — — 17,495 Conversion options of convertible bonds exercised during the year 1,556 427,168 — — — (29,625) — — — — — — 399,099 Issuance of ordinary shares 966 325,174 — — — — — — — — — — 326,140 Perpetual subordinated convertible securities — — — — — — — — — — — 64,073 64,073 Share premium reduction — (910,849) — — — — — — — — 910,849 — — Gain on transfer of business operation — — — — — — — — — — 7,329 — 7,329 Subtotal 2,652 (123,329) (725) — — (29,625) — — — — 918,178 64,073 831,224 Balance at December 31, 2017 19,664 4,827,619 64,978 (497) (1,111) 52,053 1,084 516 17,646 — 187,008 64,073 5,233,033 (i) Statement of cash flow Year ended Year ended Year ended 12/31/17 12/31/16 12/31/15 USD’000 USD’000 USD’000 Operating activities Profit for the year 179,679 376,630 253,411 Adjustments for: Amortization of intangible assets and land use right 32,131 30,678 30,780 Depreciation of property, plant and equipment 10,706 8,062 4,046 Expense recognized in respect of equity-settled share-based payments 1,297 1,940 5,169 Finance costs 14,956 24,194 12,477 Interest income (2,670) (1,154) (474) Net (gain) loss arising on financial liabilities at fair value through profit or loss (3,554) 13,182 1,459 Net (gain) loss on foreign exchange (63,087) 5,982 184 Share of profit of investment accounted for using equity method (172,748) (478,965) (321,521) (3,290) (19,451) (14,469) Operating cash flows before movements in working capital: (Increase) decrease in trade and other receivables (2,374) (1,727) 465 Decrease (increase) in prepaid operating expenses 243 (57) 8 (Increase) decrease in other assets (7,710) 777 — Increase in trade and other payables 5,168 1,354 7,550 (Decrease) increase in accrued liabilities and other liabilities (5,534) 2,818 2,541 Cash used in operations (13,497) (16,286) (3,905) Interest paid (21,262) (16,149) (21,536) Interest received 1,347 1,135 474 Net cash used in operating activities (33,412) (31,300) (24,967) Investing activities Payments to acquire financial assets (92,000) (6,000) (12,000) Proceeds on sale of financial assets 3,000 18,000 9,000 Investment in subsidiaries (207,000) (550,426) (280,658) Investment in associates (15,095) (63,796) — Payments for property, plant and equipment — (52,445) — Payments for intangible assets (1,000) (11,526) (4,480) Proceeds from disposal of available-for-sale investment — 146 — Cash paid for subsidiaries (728,621) (437,437) (137,929) Distributions received from associates 255 — — Net cash used in investing activities (1,040,461) (1,103,484) (426,067) Financing activities Proceeds from borrowings — 76,006 21,912 Repayment of borrowings — — (83,133) Proceeds from issuance of new shares 326,351 — 508,807 Proceeds from issuance of convertible bonds — 441,155 — Proceeds from issuance of short-term and medium-term notes — 314,422 — Repayment of short-term notes (87,858) — — Proceeds from issuance of perpetual subordinated convertible securities 64,350 — — Proceeds from exercise of employee stock options 17,088 17,610 8,743 Cash received from subsidiaries 572,320 487,050 55,015 Net cash from financing activities 892,251 1,336,243 511,344 Net (decrease) increase in cash and cash equivalent (181,622) 201,459 60,310 Cash and cash equivalent at the beginning of the year 317,873 115,726 55,600 Effects of exchange rate changes on the balance of cash held in foreign currencies 4,160 688 (184) Cash and cash equivalent at the end of the year 140,411 317,873 115,726 |
Application of new and revise95
Application of new and revised International Financial Reporting Standards ("IFRSs") (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Application of new and revised International Financial Reporting Standards ("IFRSs") | |||
Available-for-sale investments | $ 24,844 | $ 21,966 | $ 19,750 |
Significant accounting polici96
Significant accounting policies - Retirement Plans (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | China, excluding the city of Shenzhen | |
Groups contribution plan | |
Percentage of the Group required to contribute to the state-managed retirement plan | 19.00% |
Minimum | Shenzhen | |
Groups contribution plan | |
Percentage of the Group required to contribute to the state-managed retirement plan | 13.00% |
Maximum | China, excluding the city of Shenzhen | |
Groups contribution plan | |
Percentage of the Group required to contribute to the state-managed retirement plan | 20.00% |
Maximum | Shenzhen | |
Groups contribution plan | |
Percentage of the Group required to contribute to the state-managed retirement plan | 14.00% |
Significant accounting polici97
Significant accounting policies - Useful lives property, plant and equipment & Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Property, plant and equipment | |
Useful lives of property, plant and equipment used in the calculation of depreciation | 25 years |
Minimum | |
Property, plant and equipment | |
Term of the land use agreements | 50 years |
Estimated useful lives of purchased intangible assets other than goodwill | 3 years |
Minimum | Plant and equipment | |
Property, plant and equipment | |
Useful lives of property, plant and equipment used in the calculation of depreciation | 5 years |
Minimum | Office equipment | |
Property, plant and equipment | |
Useful lives of property, plant and equipment used in the calculation of depreciation | 3 years |
Maximum | |
Property, plant and equipment | |
Term of the land use agreements | 70 years |
Estimated useful lives of purchased intangible assets other than goodwill | 10 years |
Maximum | Plant and equipment | |
Property, plant and equipment | |
Useful lives of property, plant and equipment used in the calculation of depreciation | 10 years |
Maximum | Office equipment | |
Property, plant and equipment | |
Useful lives of property, plant and equipment used in the calculation of depreciation | 5 years |
Significant accounting polici98
Significant accounting policies - Financial liabilities and equity instruments (Convertible Bonds) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Significant accounting policies | |
Gain or loss recognized in profit or loss upon conversion or expiration of the conversion option | $ 0 |
Segment information - Narrative
Segment information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017areasegment | |
Segment information | |
Number of operating segments | segment | 1 |
Number of principal geographical areas | area | 3 |
Segment information - Revenue b
Segment information - Revenue by geographical areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Revenue | $ 3,101,175 | $ 2,914,180 | $ 2,236,415 |
United States | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,240,906 | 858,858 | 776,223 |
Mainland China and Hong Kong | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,465,553 | 1,447,427 | 1,066,558 |
Eurasia | |||
Disclosure of geographical areas [line items] | |||
Revenue | $ 394,716 | $ 607,895 | $ 393,634 |
Segment information - Revenu101
Segment information - Revenue by product type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of products and services [line items] | |||
Revenue | $ 3,101,175 | $ 2,914,180 | $ 2,236,415 |
Wafers | |||
Disclosure of products and services [line items] | |||
Revenue | 3,038,947 | 2,803,819 | 2,134,943 |
Mask making, testing and others | |||
Disclosure of products and services [line items] | |||
Revenue | $ 62,228 | $ 110,361 | $ 101,472 |
Segment information - Property,
Segment information - Property, plant and eqiupment by geograhical location (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment by geographical location | |||
Property, plant and equipment | $ 6,523,403 | $ 5,687,357 | $ 3,903,818 |
United States | |||
Property, plant and equipment by geographical location | |||
Property, plant and equipment | 45 | 69 | 95 |
Europe | |||
Property, plant and equipment by geographical location | |||
Property, plant and equipment | 137,778 | 125,339 | 5 |
Asia | |||
Property, plant and equipment by geographical location | |||
Property, plant and equipment | 117 | 97 | 122 |
Hong Kong | |||
Property, plant and equipment by geographical location | |||
Property, plant and equipment | 2,618 | 2,839 | 3,040 |
Mainland China | |||
Property, plant and equipment by geographical location | |||
Property, plant and equipment | $ 6,382,845 | $ 5,559,013 | $ 3,900,556 |
Significant customers (Details)
Significant customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant customers revenue or gross accounts receivable | |||
Threshold percentage | 5.00% | 5.00% | 5.00% |
Revenue | $ 3,101,175 | $ 2,914,180 | $ 2,236,415 |
Customer A | |||
Significant customers revenue or gross accounts receivable | |||
Revenue | $ 636,662 | $ 382,853 | $ 366,696 |
Percentage of entity's revenue | 21.00% | 13.00% | 16.00% |
Gross accounts receivable | $ 133,281 | $ 78,639 | $ 75,643 |
Percentage of the entity's gross receivables | 33.00% | 16.00% | 19.00% |
Customer B | |||
Significant customers revenue or gross accounts receivable | |||
Revenue | $ 538,102 | $ 609,802 | $ 324,267 |
Percentage of entity's revenue | 17.00% | 21.00% | 15.00% |
Gross accounts receivable | $ 95,575 | $ 129,619 | $ 50,068 |
Percentage of the entity's gross receivables | 23.00% | 26.00% | 13.00% |
Customer C | |||
Significant customers revenue or gross accounts receivable | |||
Revenue | $ 206,635 | ||
Percentage of entity's revenue | 7.00% | ||
Gross accounts receivable | $ 28,521 | ||
Percentage of the entity's gross receivables | 7.00% |
Other operating income (expe104
Other operating income (expense), net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other operating income (expense), net | |||
Gain (loss) on disposal of property, plant and equipment and assets classified as held-for-sale | $ 17,513,000 | $ (1,846,000) | $ 28,949,000 |
Impairment loss recognised in profit or loss, property, plant and equipment | (7,529,000) | 0 | |
Government funding(Note 11.5) | 27,444,000 | 9,542,000 | 2,697,000 |
Loss on deconsolidation of subsidiaries | (57,000) | ||
Others | 10,000 | 5,000 | |
Other operating income (expense), net | 44,957,000 | $ 177,000 | $ 31,594,000 |
Gain related to sale and lease back transactions | $ 6,900,000 |
Finance costs (Details)
Finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance costs | |||
Interest on bank and other borrowings | $ 25,543 | $ 17,793 | $ 11,879 |
Interest on finance leases | 232 | 62 | |
Interest on convertible bonds | 15,818 | 16,352 | 13,238 |
Interest on corporate bonds | 22,405 | 22,327 | 22,253 |
Interest on medium-term notes | 8,185 | 4,625 | |
Interest on short-term notes | 1,164 | 1,509 | |
Less: government funding (Note 11.5) | (24,182) | (11,639) | (4,895) |
Total interest expense for financial liabilities not classified as at FVTPL | 49,165 | 51,029 | 42,475 |
Less: amounts capitalized | (31,144) | (27,992) | (30,257) |
Total | $ 18,021 | $ 23,037 | $ 12,218 |
Weighted average | |||
Finance costs | |||
Borrowings, interest rate | 1.65% | 2.12% | 3.75% |
Other gains or losses, net (Det
Other gains or losses, net (Details) - USD ($) $ in Thousands | Apr. 27, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other gains or losses, net | ||||
Net gain (loss) arising on financial instruments at FVTPL | $ 6,890 | $ (7,617) | $ 51,375 | |
Others | 9,609 | 5,504 | 4,236 | |
Total | 16,499 | (2,113) | 55,611 | |
Suzhou Changjiang Electric Xinke Investment Co., Ltd. ("Changjiang Xinke") | ||||
Other gains or losses, net | ||||
Gain arising from disposal agreement | $ 18,500 | |||
Loss of potential cash compensation accrued | 12,500 | |||
Cross currency swap | ||||
Other gains or losses, net | ||||
Net gain (loss) arising on financial instruments at FVTPL | 2,150 | (14,989) | (1,459) | |
Derivative financial instrument | ||||
Other gains or losses, net | ||||
Net gain (loss) arising on financial instruments at FVTPL | 1,544 | 2,721 | 30,173 | |
Foreign currency forward | ||||
Other gains or losses, net | ||||
Net gain (loss) arising on financial instruments at FVTPL | 2,109 | 172 | ||
Financial products sold by banks | ||||
Other gains or losses, net | ||||
Net gain (loss) arising on financial instruments at FVTPL | $ 1,087 | $ 4,651 | $ 22,489 |
Income taxes - Income tax expen
Income taxes - Income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense (benefit) | |||
Current tax - Enterprise Income Tax | $ (469) | $ 1,306 | $ (47) |
Deferred tax | 2,136 | (8,589) | 6,665 |
Current tax - Land Appreciation Tax | 179 | 731 | 1,923 |
Income tax recognized in profit or loss | $ 1,846 | $ (6,552) | $ 8,541 |
Income taxes - income tax ex108
Income taxes - income tax expense (benefit) reconciled to the accounting profit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of income tax expense (benefit) to the accounting profit | |||
Profit before tax | $ 128,269 | $ 309,882 | $ 230,864 |
Income tax expense calculated at 15% (2016: 15% and 2015: 15%) | 19,240 | 46,482 | 34,630 |
Effect of tax holiday | (50,258) | (41,484) | (49,864) |
Additional deduction for research and development expenditures | (25,260) | (13,107) | (4,619) |
Tax losses for which no deferred tax assets were recognized | 70,341 | 39,777 | 25,732 |
Reversal (utilization) of previously unrecognized tax losses of temporary differences | 5,687 | (43,440) | (3,687) |
Effect of different tax rates of subsidiaries operating in other jurisdictions | (18,082) | 4,517 | 4,226 |
Others | 26 | 82 | 488 |
Land Appreciation Tax (after tax) | 152 | 621 | 1,635 |
Income tax recognized in profit or loss | $ 1,846 | $ (6,552) | $ 8,541 |
Corporate tax rate (as a percent) | 15.00% | 15.00% | 15.00% |
Income taxes - Current tax liab
Income taxes - Current tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income taxes | |||
Income tax payable | $ 270 | $ 460 | $ 355 |
Income taxes - Deferred tax bal
Income taxes - Deferred tax balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Analysis of deferred tax assets (liabilities) | ||||
Deferred tax assets | $ 44,875 | $ 45,981 | $ 44,942 | |
Deferred tax liabilities | (16,412) | (15,382) | (7,293) | |
Net deferred tax assets (liabilities) | 28,463 | 30,599 | 37,649 | $ 44,314 |
Property plant and equipment | ||||
Analysis of deferred tax assets (liabilities) | ||||
Deferred tax assets | 41,271 | 45,981 | 44,523 | |
Deferred tax liabilities | (16,412) | (15,382) | (7,290) | |
Net deferred tax assets (liabilities) | 24,859 | $ 30,599 | 37,233 | 43,859 |
Intangible Assets | ||||
Analysis of deferred tax assets (liabilities) | ||||
Deferred tax assets | 1,844 | |||
Others | ||||
Analysis of deferred tax assets (liabilities) | ||||
Deferred tax assets | 1,760 | 419 | ||
Net deferred tax assets (liabilities) | 1,760 | 419 | 524 | |
Capitalized interest | ||||
Analysis of deferred tax assets (liabilities) | ||||
Deferred tax liabilities | (3) | |||
Net deferred tax assets (liabilities) | $ 1,844 | $ (3) | $ (69) |
Income taxes - Deferred tax rol
Income taxes - Deferred tax rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets/(liabilities) in relation to: | |||
Opening balance | $ 30,599 | $ 37,649 | $ 44,314 |
Business Combination | (15,639) | ||
Recognized in profit or loss | (2,136) | 8,589 | (6,665) |
Closing balance | 28,463 | 30,599 | 37,649 |
Property plant and equipment | |||
Deferred tax assets/(liabilities) in relation to: | |||
Opening balance | 30,599 | 37,233 | 43,859 |
Business Combination | (15,639) | ||
Recognized in profit or loss | (5,740) | 9,005 | (6,626) |
Closing balance | 24,859 | 30,599 | 37,233 |
Capitalized interest | |||
Deferred tax assets/(liabilities) in relation to: | |||
Opening balance | (3) | (69) | |
Recognized in profit or loss | 1,844 | 3 | 66 |
Closing balance | 1,844 | (3) | |
Others | |||
Deferred tax assets/(liabilities) in relation to: | |||
Opening balance | 419 | 524 | |
Recognized in profit or loss | 1,760 | $ (419) | (105) |
Closing balance | $ 1,760 | $ 419 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||||||||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017CNY (¥)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2017USD ($) | |
Tax rates | |||||||||||||
Non-PRC tax resident withholding tax rate (as a percent) | 10.00% | ||||||||||||
Enterprise income tax rate (as a percent) | 25.00% | ||||||||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | ||||||||||
Full exemption period | 5 years | ||||||||||||
Income tax reduction (as a percent) | 50.00% | ||||||||||||
Reduced tax period | 5 years | ||||||||||||
Tax losses with no deferred tax assets recognized | $ 444 | $ 577.3 | $ 235.1 | ||||||||||
Tax losses expiring in 2018 | 13.3 | ||||||||||||
Tax losses expiring in 2019 | 26.8 | ||||||||||||
Tax losses expiring in 2020 | 55.8 | ||||||||||||
Tax losses expiring in 2021 | 44.4 | ||||||||||||
Tax losses expiring in 2022 | 94.8 | ||||||||||||
Semiconductor Manufacturing International (Shanghai) Corporation ("SMIS" or "SMIC Shanghai") | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | ||||||||||
Tax holiday period | 10 years | ||||||||||||
Full exemption period | 5 years | ||||||||||||
Reduced tax period | 5 years | ||||||||||||
Semiconductor Manufacturing International (Tianjin) Corporation ("SMIT" or "SMIC Tianjin") | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Tax holiday period | 10 years | ||||||||||||
Full exemption period | 5 years | ||||||||||||
Reduced tax period | 5 years | ||||||||||||
Semiconductor Manufacturing International (Tianjin) Corporation ("SMIT" or "SMIC Tianjin") | Forecast | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | ||||||||
Semiconductor Manufacturing International (Beijing) Corporation ("SMIB" or "SMIC Beijing") | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 0.00% | 0.00% | 0.00% | ||||||||||
Tax holiday period | 10 years | ||||||||||||
Full exemption period | 5 years | ||||||||||||
Reduced tax period | 5 years | ||||||||||||
Semiconductor Manufacturing International (Beijing) Corporation ("SMIB" or "SMIC Beijing") | Forecast | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | 0.00% | 0.00% | ||||||
SMIC Shenzhen, SMNC and SJ Jiangyin | |||||||||||||
Tax rates | |||||||||||||
Preferential tax rate (as a percent) | 15.00% | ||||||||||||
Tax holiday period | 10 years | ||||||||||||
Full exemption period | 5 years | ||||||||||||
Reduced tax period | 5 years | ||||||||||||
Hong Kong | |||||||||||||
Tax rates | |||||||||||||
Withholding tax rate for enterprises with favorable tax treaty (as a percent) | 5.00% | ||||||||||||
ITALY | |||||||||||||
Tax rates | |||||||||||||
Enterprise income tax rate (as a percent) | 24.00% | ||||||||||||
Minimum | |||||||||||||
Tax rates | |||||||||||||
Integrated circuit production enterprise investment | ¥ 8,000 | $ 1,095 | |||||||||||
Operating period | 15 years | ||||||||||||
Maximum | |||||||||||||
Tax rates | |||||||||||||
Integrated circuit production circuit width | item | 0.25 |
Profit for the year (Details)
Profit for the year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment losses (reversal of impairment losses) on trade receivables | |||
Allowance on doubtful trade receivables (Note 25) | $ 301 | $ 201 | $ 528 |
Reversal of allowance on doubtful trade receivables (Note 25) | (438) | (1,603) | (541) |
Reversal of allowance on doubtful other receivables | (8,809) | ||
Impairment losses (reversal of impairment losses) on trade and other receivables | (137) | (10,211) | (13) |
Depreciation and amortization expense | |||
Depreciation of property, plant and equipment | 906,034 | 673,161 | 473,008 |
Amortization of intangible assets and land use right | 65,348 | 56,705 | 50,541 |
Total depreciation and amortisation expense | 971,382 | 729,866 | 523,549 |
Employee benefits expense | |||
Wages, salaries and social security contributions | 499,238 | 378,709 | 299,267 |
Bonus | 57,289 | 123,313 | 107,859 |
Paid annual leave | 66 | ||
Non-monetary benefits | 47,204 | 31,686 | 21,414 |
Equity-settled share-based payments (Note 39) | 18,214 | 14,210 | 18,329 |
Total employee benefits expense | 621,945 | 547,918 | 446,935 |
Royalties expense | |||
Royalties expense | 37,466 | 37,023 | 36,262 |
Government funding | |||
Government funding received under specific R and D projects | 178,300 | 181,100 | 40,200 |
Government funding recognized as reductions of certain R and D expenses under specific R and D projects | 82,200 | 52,500 | 34,300 |
Government funding received for specific intended use | 51,600 | 21,100 | 7,600 |
Government funding recognized as reduction of interest expense for specific intended use | 24,182 | 11,639 | 4,895 |
Government funding recognized as other operating income for specific intended use | 27,400 | 9,500 | 2,700 |
Auditors' remuneration | |||
Audit services | 1,413 | 1,529 | 1,322 |
Non-audit services | 85 | 587 | 65 |
Auditor's remuneration | $ 1,498 | $ 2,116 | $ 1,387 |
Directors' remuneration (Detail
Directors' remuneration (Details) | 11 Months Ended | 12 Months Ended | |||
Dec. 06, 2016EquityInstruments$ / shares | Dec. 31, 2017USD ($)OptionsEquityInstruments$ / shares | Dec. 31, 2016USD ($)OptionsEquityInstruments$ / sharesshares | Dec. 31, 2015USD ($)OptionsEquityInstruments$ / sharesshares | Dec. 07, 2016$ / shares | |
Related party | |||||
Equity-settled share-based payments | $ 8,264,000 | $ 2,762,000 | $ 2,618,000 | ||
Share consolidation ratio | 10 | ||||
Par value per share | $ / shares | $ 0.0004 | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.004 |
Directors | |||||
Related party | |||||
Salaries | $ 4,490,000 | $ 2,367,000 | $ 2,384,000 | ||
Equity-settled share-based payments | 8,158,000 | 2,214,000 | 1,550,000 | ||
Total | $ 12,648,000 | $ 4,581,000 | $ 3,934,000 | ||
Granted during the period, options | EquityInstruments | 5,726,477 | ||||
Granted during the period after Share Consolidation effect, options | shares | 1,068,955 | 3,091,724 | |||
Exercised during the period, options | EquityInstruments | 1,949,229 | ||||
Exercised during the period after Share Consolidation effect, options | shares | 1,800,000 | 1,835,343 | |||
Expired during the period, options | EquityInstruments | 0 | ||||
Expired during the period after Share Consolidation effect, options | shares | 732,820 | 111,781 | |||
Granted during the period, non-options | EquityInstruments | 5,726,477 | ||||
Granted during the period after Share Consolidation effect, non-options | shares | 1,068,955 | 1,080,499 | |||
Vested during period, non-options | EquityInstruments | 3,774,432 | ||||
Vested during the period after Share Consolidation effect, non-options | shares | 1,411,851 | 1,237,783 | |||
Forfeited during the period, non-options | EquityInstruments | 0 | 0 | 0 | ||
Other emoluments payable during the year | $ 0 | $ 0 | $ 0 | ||
Other emoluments waived during the year | 0 | 0 | 0 | ||
Independent non-executive directors | |||||
Related party | |||||
Salaries | 332,000 | 325,000 | 237,000 | ||
Equity-settled share-based payments | 643,000 | 281,000 | 248,000 | ||
Total | 975,000 | 606,000 | 485,000 | ||
Other emoluments payable during the year | 0 | 0 | 0 | ||
Lip-Bu Tan | |||||
Related party | |||||
Salaries | 91,000 | 100,000 | 70,000 | ||
Equity-settled share-based payments | 128,000 | 156,000 | |||
Total | 219,000 | 256,000 | 70,000 | ||
William Tudor Brown | |||||
Related party | |||||
Salaries | 89,000 | 85,000 | 47,000 | ||
Equity-settled share-based payments | 8,000 | 24,000 | 47,000 | ||
Total | 97,000 | 109,000 | 94,000 | ||
Carmen I-Hua Chang | |||||
Related party | |||||
Salaries | 70,000 | 68,000 | 42,000 | ||
Equity-settled share-based payments | 40,000 | 78,000 | 149,000 | ||
Total | 110,000 | 146,000 | 191,000 | ||
Shang-Yi Chiang | |||||
Related party | |||||
Salaries | 47,000 | 0 | |||
Equity-settled share-based payments | 250,000 | 0 | |||
Total | 297,000 | 0 | |||
Jason Jingsheng Cong | |||||
Related party | |||||
Salaries | 35,000 | ||||
Equity-settled share-based payments | 217,000 | ||||
Total | 252,000 | ||||
Sean Maloney | |||||
Related party | |||||
Salaries | 72,000 | 50,000 | |||
Equity-settled share-based payments | 23,000 | 46,000 | |||
Total | 95,000 | 96,000 | |||
Frank Meng | |||||
Related party | |||||
Salaries | 28,000 | ||||
Equity-settled share-based payments | 6,000 | ||||
Total | 34,000 | ||||
Executive directors | |||||
Related party | |||||
Salaries | 2,190,000 | 1,860,000 | 2,097,000 | ||
Equity-settled share-based payments | 1,849,000 | 1,775,000 | 1,236,000 | ||
Total | 4,039,000 | 3,635,000 | 3,333,000 | ||
Zhou Zixue | |||||
Related party | |||||
Salaries | 765,000 | 527,000 | 225,000 | ||
Equity-settled share-based payments | 311,000 | 655,000 | 873,000 | ||
Total | 1,076,000 | 1,182,000 | 1,098,000 | ||
Zhao Haijun | |||||
Related party | |||||
Salaries | 726,000 | ||||
Equity-settled share-based payments | 1,514,000 | ||||
Total | 2,240,000 | ||||
Liang Mong Song | |||||
Related party | |||||
Salaries | 65,000 | ||||
Total | 65,000 | ||||
Gao Yonggang | |||||
Related party | |||||
Salaries | 634,000 | 413,000 | 376,000 | ||
Equity-settled share-based payments | 24,000 | 82,000 | 201,000 | ||
Total | 658,000 | 495,000 | 577,000 | ||
Tzu-Yin Chiu | |||||
Related party | |||||
Salaries | 920,000 | 918,000 | |||
Equity-settled share-based payments | 1,038,000 | 130,000 | |||
Total | 1,958,000 | 1,048,000 | |||
Zhang Wenyi | |||||
Related party | |||||
Salaries | 578,000 | ||||
Equity-settled share-based payments | 32,000 | ||||
Total | 610,000 | ||||
Non-executive director | |||||
Related party | |||||
Salaries | 1,968,000 | 182,000 | 50,000 | ||
Equity-settled share-based payments | 5,666,000 | 158,000 | 66,000 | ||
Total | 7,634,000 | 340,000 | 116,000 | ||
Tzu-Yin Chiu | |||||
Related party | |||||
Salaries | 1,783,000 | ||||
Equity-settled share-based payments | 5,321,000 | ||||
Total | 7,104,000 | ||||
Chen Shanzhi | |||||
Related party | |||||
Salaries | 75,000 | 80,000 | 50,000 | ||
Equity-settled share-based payments | 128,000 | 136,000 | |||
Total | 203,000 | 216,000 | 50,000 | ||
Zhou Jie | |||||
Related party | |||||
Salaries | 0 | 0 | 0 | ||
Equity-settled share-based payments | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Ren Kai | |||||
Related party | |||||
Salaries | 70,000 | 63,000 | |||
Equity-settled share-based payments | 22,000 | 66,000 | |||
Total | 70,000 | 85,000 | 66,000 | ||
Lu Jun | |||||
Related party | |||||
Salaries | 0 | 39,000 | |||
Equity-settled share-based payments | 0 | ||||
Total | 0 | 39,000 | |||
Tong Guohua | |||||
Related party | |||||
Salaries | 40,000 | ||||
Equity-settled share-based payments | 217,000 | ||||
Total | 257,000 | ||||
Li Yonghua (Alternate to Chen Shanzhi) | |||||
Related party | |||||
Salaries | 0 | 0 | 0 | ||
Equity-settled share-based payments | 0 | 0 | 0 | ||
Total | $ 0 | $ 0 | $ 0 | ||
Stock Option Plan | |||||
Related party | |||||
Granted during the period, options | Options | 6,071,477 | 2,076,652 | 5,656,526 | ||
Exercised during the period, options | Options | 21,830,502 | 23,459,035 | 12,930,785 | ||
Share consolidation ratio | 10 | ||||
Par value per share | $ / shares | $ 0.0004 | $ 0.004 | |||
RSUs | |||||
Related party | |||||
Granted during the period, non-options | EquityInstruments | 14,055,477 | 8,738,247 | 14,685,298 | ||
Forfeited during the period, non-options | EquityInstruments | 950,412 | 1,124,847 | 1,342,168 | ||
Share consolidation ratio | 10 | ||||
Par value per share | $ / shares | $ 0.0004 | $ 0.004 |
Five highest paid employees (De
Five highest paid employees (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)individual | Dec. 31, 2016USD ($)individual | Dec. 31, 2015USD ($)individual | |
Disclosure of Highest Paid Employees [Line Items] | |||
Bonus | $ 57,289,000 | $ 123,313,000 | $ 107,859,000 |
Expense arising from equity-settled share-based payment transactions | 18,214,000 | 14,210,000 | 18,329,000 |
Total employee benefits expense | $ 621,945,000 | 547,918,000 | 446,935,000 |
Highest paid employees | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | individual | 5 | ||
Salaries and other benefits | $ 630,000 | 692,000 | 962,000 |
Bonus | 746,000 | 611,000 | 636,000 |
Expense arising from equity-settled share-based payment transactions | 338,000 | 412,000 | 552,000 |
Total employee benefits expense | 1,714,000 | 1,715,000 | 2,150,000 |
Emoluments paid to the highest paid individuals | $ 0 | $ 0 | $ 0 |
Highly paid directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | individual | 3 | 2 | 2 |
Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | individual | 2 | 3 | 3 |
Five highest paid employees - N
Five highest paid employees - Number of non-director, highest paid individuals (Details) - individual | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Highest paid employees | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 5 | ||
Highly paid directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 3 | 2 | 2 |
Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 2 | 3 | 3 |
HK$4,000,001 (US$511,801) to HK$4,500,000 (US$575,775) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 2 | ||
HK$4,500,001 (US$575,776) to HK$5,000,000 (US$639,750) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 1 | ||
HK$5,000,001 (US$639,751) to HK$5,500,000 (US$703,725) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 1 | ||
HK$5,500,001 (US$703,726) to HK$6,000,000 (US$767,700) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 1 | ||
HK$6,000,001 (US$767,701) to HK$6,500,000 (US$831,675) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 1 | ||
HK$6,500,001 (US$831,676) to HK$7,000,000 (US$895,650) | Highly paid non-directors | |||
Disclosure of Highest Paid Employees [Line Items] | |||
Number of highest paid individuals | 2 |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 07, 2016$ / shares | Dec. 06, 2016$ / shares | |
Earnings per share | |||||
Basic earnings per share | $ / shares | $ 0.04 | $ 0.09 | $ 0.07 | ||
Diluted earnings per share | $ / shares | $ 0.04 | $ 0.08 | $ 0.06 | ||
Basic earnings per share | |||||
Profit (loss) attributable to owners | $ | $ 179,679 | $ 376,630 | $ 253,411 | ||
Earnings used in the calculation of basic earnings per share | $ | $ 179,679 | $ 376,630 | $ 253,411 | ||
Weighted average number of ordinary shares for the purpose of basic earnings per share | 4,628,850,686 | 4,221,765,945 | 3,896,041,667 | ||
Share Consolidation ratio | 10 | ||||
Par value per share | $ / shares | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 |
Diluted earnings per share | |||||
Earnings used in the calculation of basic earnings per share | $ | $ 179,679 | $ 376,630 | $ 253,411 | ||
Interest expense from convertible bonds | $ | 905 | 16,352 | 13,238 | ||
Earnings used in the calculation of diluted earnings per share | $ | $ 180,584 | $ 392,982 | $ 266,649 | ||
Weighted average shares | |||||
Weighted average number of ordinary shares used in the calculation of basic earnings per share | 4,628,850,686 | 4,221,765,945 | 3,896,041,667 | ||
Employee option and restricted share units | 44,496,788 | 36,240,710 | 36,944,830 | ||
Convertible bonds | 38,241,356 | 575,099,614 | 393,257,100 | ||
Perpetual subordinated convertible securities | 1,848,513 | ||||
Weighted average number of ordinary shares used in the calculation of diluted earnings per share | 4,713,437,343 | 4,833,106,269 | 4,326,243,597 | ||
Employee stock options | |||||
Weighted average shares | |||||
Antidilutive weighted average outstanding employee stock options excluded from the computation of diluted earnings per share | 5,214,138 | 19,757,421 | 40,367,017 | ||
Conversion of convertible bonds | |||||
Weighted average shares | |||||
Antidilutive weighted average outstanding employee stock options excluded from the computation of diluted earnings per share | 377,137,509 |
Dividend (Details)
Dividend (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividend | |||
Payment of dividend | $ 0 | $ 0 | $ 0 |
Property, plant and equipmen119
Property, plant and equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | $ 5,687,357,000 | $ 3,903,818,000 | |
Depreciation expense | 906,034,000 | 673,161,000 | $ 473,008,000 |
Impairment loss | 7,529,000 | 0 | |
Property, plant and equipment at end of the year | 6,523,403,000 | 5,687,357,000 | 3,903,818,000 |
Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 13,751,241,000 | 11,334,965,000 | 10,005,682,000 |
Addition | 2,425,697,000 | 2,597,970,000 | 1,498,201,000 |
Disposals | (804,859,000) | (294,813,000) | (54,384,000) |
Reclassified as held for sale | (114,534,000) | ||
Business combination | 113,119,000 | ||
Property, plant and equipment at end of the year | 15,372,079,000 | 13,751,241,000 | 11,334,965,000 |
Accumulated depreciation and impairment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | (8,063,884,000) | (7,431,147,000) | (7,010,596,000) |
Disposals | (121,242,000) | (47,953,000) | (52,457,000) |
Depreciation expense | 906,034,000 | 673,161,000 | 473,008,000 |
Impairment loss | 7,529,000 | ||
Property, plant and equipment at end of the year | (8,848,676,000) | (8,063,884,000) | (7,431,147,000) |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 2,485,000 | ||
Property, plant and equipment at end of the year | 2,485,000 | 2,485,000 | |
Land | Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 2,485,000 | ||
Business combination | 2,485,000 | ||
Property, plant and equipment at end of the year | 2,485,000 | 2,485,000 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 571,585,000 | 453,282,000 | |
Property, plant and equipment at end of the year | 681,761,000 | 571,585,000 | 453,282,000 |
Buildings | Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 724,967,000 | 588,820,000 | 325,344,000 |
Transfer from (out) CIP | 174,143,000 | 93,535,000 | 263,476,000 |
Disposals | (28,543,000) | ||
Business combination | 42,612,000 | ||
Property, plant and equipment at end of the year | 870,567,000 | 724,967,000 | 588,820,000 |
Buildings | Accumulated depreciation and impairment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | (153,382,000) | (135,538,000) | (121,680,000) |
Disposals | (5,819,000) | (289,000) | |
Depreciation expense | 41,243,000 | 18,133,000 | 13,858,000 |
Property, plant and equipment at end of the year | (188,806,000) | (153,382,000) | (135,538,000) |
Plant and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 3,759,890,000 | 2,247,198,000 | |
Property, plant and equipment at end of the year | 3,957,791,000 | 3,759,890,000 | 2,247,198,000 |
Plant and equipment | Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 11,523,217,000 | 9,404,456,000 | 8,472,186,000 |
Transfer from (out) CIP | 1,696,092,000 | 2,338,662,000 | 985,820,000 |
Disposals | (767,210,000) | (283,420,000) | (53,550,000) |
Business combination | 63,519,000 | ||
Property, plant and equipment at end of the year | 12,452,099,000 | 11,523,217,000 | 9,404,456,000 |
Plant and equipment | Accumulated depreciation and impairment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | (7,763,327,000) | (7,157,258,000) | (6,758,071,000) |
Disposals | (108,370,000) | (33,917,000) | (51,840,000) |
Depreciation expense | 839,351,000 | 639,986,000 | 451,027,000 |
Property, plant and equipment at end of the year | (8,494,308,000) | (7,763,327,000) | (7,157,258,000) |
Office equipment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 43,195,000 | 23,401,000 | |
Property, plant and equipment at end of the year | 47,344,000 | 43,195,000 | 23,401,000 |
Office equipment | Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 167,558,000 | 134,858,000 | 120,072,000 |
Transfer from (out) CIP | 31,355,000 | 34,546,000 | 14,966,000 |
Disposals | (3,588,000) | (2,136,000) | (180,000) |
Business combination | 290,000 | ||
Property, plant and equipment at end of the year | 195,325,000 | 167,558,000 | 134,858,000 |
Office equipment | Accumulated depreciation and impairment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | (124,363,000) | (111,457,000) | (103,514,000) |
Disposals | (1,822,000) | (2,136,000) | (180,000) |
Depreciation expense | 25,440,000 | 15,042,000 | 8,123,000 |
Property, plant and equipment at end of the year | (147,981,000) | (124,363,000) | (111,457,000) |
Construction in progress (CIP) | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 1,310,202,000 | 1,179,937,000 | |
Property, plant and equipment at end of the year | 1,834,022,000 | 1,310,202,000 | 1,179,937,000 |
Construction in progress (CIP) | Cost | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | 1,333,014,000 | 1,206,831,000 | 1,088,080,000 |
Transfer from (out) CIP | (1,901,590,000) | (2,466,743,000) | (1,264,262,000) |
Addition | 2,425,697,000 | 2,597,970,000 | 1,498,201,000 |
Disposals | (5,518,000) | (9,257,000) | (654,000) |
Reclassified as held for sale | (114,534,000) | ||
Business combination | 4,213,000 | ||
Property, plant and equipment at end of the year | 1,851,603,000 | 1,333,014,000 | 1,206,831,000 |
Construction in progress (CIP) | Accumulated depreciation and impairment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of the year | (22,812,000) | (26,894,000) | (27,331,000) |
Disposals | (5,231,000) | (11,611,000) | (437,000) |
Impairment loss | 7,529,000 | ||
Property, plant and equipment at end of the year | $ (17,581,000) | $ (22,812,000) | $ (26,894,000) |
Property, plant and equipment -
Property, plant and equipment - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)facility | |
Property, plant and equipment | |||
Property, plant and equipment | $ 5,687,357,000 | $ 3,903,818,000 | $ 6,523,403,000 |
Impairment loss of equipment | 7,529,000 | 0 | |
Assets pledged as security | 631,400,000 | 323,900,000 | 362,300,000 |
Assets held under finance leases | 7,000,000 | 0 | 5,500,000 |
Subsidiary for the new technology research and development in Shanghai | |||
Property, plant and equipment | |||
Property, plant and equipment | 101,800,000 | ||
Other SMIC subsidiaries | |||
Property, plant and equipment | |||
Property, plant and equipment | 66,600,000 | ||
Construction in progress (CIP) | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 1,310,202,000 | $ 1,179,937,000 | 1,834,022,000 |
300mm fab | Beijing fabrication facilities | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 753,000,000 | ||
Number of facilities | facility | 2 | ||
300mm fab | Shanghai fabrication facilities | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 186,100,000 | ||
300mm fab | Shenzhen fabrication facility | |||
Property, plant and equipment | |||
Property, plant and equipment | 601,400,000 | ||
200mm fab | Tianjin fabrication facility | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 125,100,000 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | $ 248,581 | $ 224,279 | |
Intangible assets and goodwill at end of the year | 219,944 | 248,581 | $ 224,279 |
Goodwill | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | 3,933 | ||
Intangible assets and goodwill at end of the year | 3,933 | 3,933 | |
Other intangible assets | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | 244,648 | 224,279 | |
Intangible assets and goodwill at end of the year | 216,011 | 244,648 | 224,279 |
Cost | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | 449,970 | 391,177 | 370,721 |
Business combination | 12,021 | ||
Additions | 34,461 | 67,936 | 65,269 |
Expired and disposal | (21,164) | (44,813) | |
Intangible assets and goodwill at end of the year | 484,431 | 449,970 | 391,177 |
Cost | Goodwill | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | 3,933 | ||
Business combination | 3,933 | ||
Intangible assets and goodwill at end of the year | 3,933 | 3,933 | |
Cost | Other intangible assets | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | 446,037 | 391,177 | 370,721 |
Business combination | 8,088 | ||
Additions | 34,461 | 67,936 | 65,269 |
Expired and disposal | (21,164) | (44,813) | |
Intangible assets and goodwill at end of the year | 480,498 | 446,037 | 391,177 |
Accumulated amortization and impairment | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | (201,389) | (166,898) | (162,899) |
Amortization expense for the year | 63,098 | 55,080 | 48,812 |
Expired and disposal | 20,589 | 44,813 | |
Intangible assets and goodwill at end of the year | (264,487) | (201,389) | (166,898) |
Accumulated amortization and impairment | Other intangible assets | |||
Rollforward of intangible assets | |||
Intangible assets and goodwill at beginning of the year | (201,389) | (166,898) | (162,899) |
Amortization expense for the year | 63,098 | 55,080 | 48,812 |
Expired and disposal | 20,589 | 44,813 | |
Intangible assets and goodwill at end of the year | $ (264,487) | $ (201,389) | $ (166,898) |
Subsidiaries - Summary (Details
Subsidiaries - Summary (Details) | Aug. 10, 2017 | Dec. 31, 2017HKD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Jul. 29, 2016USD ($) | Jun. 24, 2016EUR (€) |
Better Way Enterprises Limited ("Better Way") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (Shanghai) Corporation ("SMIS" or "SMIC Shanghai") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 1,740,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC, Americas | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 500,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (Beijing) Corporation ("SMIB" or "SMIC Beijing") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 1,000,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Japan | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | ¥ | ¥ 10,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Europe S.R.L | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | € | € 100,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (Solar Cell) Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 11,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Commercial Shanghai Limited Company | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 373,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (Tianjin) Corporation ("SMIT" or "SMIC Tianjin") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 770,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Development (Chengdu) Corporation ("SMICD") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 5,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (BVI) Corporation ("SMIC (BVI)") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 10 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Admiral Investment Holdings Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 10 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Shanghai (Cayman) Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Beijing (Cayman) Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Tianjin (Cayman) Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SilTech Semiconductor Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 10,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Shenzhen (Cayman) Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC New Technology Research & Development (Shanghai) Corporation (formerly “SMIC Advanced Technology Research & Development (Shanghai) Corporation”) | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 199,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 94.874% | |||||||
Proportion of voting power held by the Company (as a percent) | 94.874% | |||||||
SMIC Holdings Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SJ Semiconductor Corporation | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 5,668 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 56.045% | |||||||
Proportion of voting power held by the Company (as a percent) | 56.045% | |||||||
SMIC Energy Technology (Shanghai) Corporation ("Energy Science") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 10,400,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Magnificent Tower Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 50,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Hong Kong International Company Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Beijing (HK) Company Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Tianjin (HK) Company Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Solar Cell (HK) Company Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Shenzhen (HK) Company Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SilTech Semiconductor (Hong Kong) Corporation Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing International (Shenzhen) Corporation (“SMIZ” or “SMIC Shenzhen”) | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 127,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SilTech Semiconductor (Shanghai) Corporation Limited ("SilTech Shanghai") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 12,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Semiconductor Manufacturing North China (Beijing) Corporation ("SMNC") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 3,000,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 51.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 51.00% | 51.00% | ||||||
China IC Capital Co., Ltd | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | ¥ | ¥ 987,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
Shanghai Hexin Investment Management Limited Partnership | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | ¥ | ¥ 50,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 99.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 99.00% | |||||||
SJ Semiconductor (HK) Limited | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 56.045% | |||||||
Proportion of voting power held by the Company (as a percent) | 56.045% | |||||||
SJ Semiconductor (Jiangyin) Corporation ("SJ Jiangyin") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 259,500,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 56.045% | |||||||
Proportion of voting power held by the Company (as a percent) | 56.045% | |||||||
LFoundry S.r.l. ("LFoundry") | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | € | € 2,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 70.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 70.00% | |||||||
Ningbo Semiconductor International Corporation (“NSI”) | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 255,000,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 53.725% | |||||||
Proportion of voting power held by the Company (as a percent) | 53.725% | |||||||
Semiconductor Manufacturing South China Corporation (“SMSC”) | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 200,475,706 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SJ Semiconductor USA Co. | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | 500,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 56.045% | |||||||
Proportion of voting power held by the Company (as a percent) | 56.045% | |||||||
SMIC (Sofia) EOOD | ||||||||
Subsidiaries | ||||||||
Paid up registered capital | $ 1,800,000 | |||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
SMIC Innovation Design Center (Ningbo) Co., Ltd. | ||||||||
Subsidiaries | ||||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||||
Proportion of voting power held by the Company (as a percent) | 100.00% | |||||||
LFoundry S.r.l. ("LFoundry") | ||||||||
Subsidiaries | ||||||||
Percentage of equity interests acquired | 70.00% | 70.00% | ||||||
Acquisition consideration | $ 54,366,000 | € 49,000,000 | ||||||
Goodwill | $ 3,933,000 |
Subsidiaries - subsidiaries wit
Subsidiaries - subsidiaries with material NCI (Details) $ in Thousands, € in Millions | Aug. 10, 2017USD ($) | Aug. 09, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 29, 2016USD ($) | Jun. 24, 2016EUR (€) |
Subsidiaries | |||||||
Profit (loss) attributable to the non-controlling interests | $ (53,256) | $ (60,196) | $ (31,088) | ||||
Accumulated non-controlling interests | 1,488,302 | 1,252,553 | 460,399 | ||||
Additional capital injection from NCI | 294,000 | 831,254 | 132,082 | ||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | |||||||
Subsidiaries | |||||||
Cash Contribution to Registered Capital | $ 900,000 | ||||||
Percentage of ownership interest in joint venture | 32.00% | 26.50% | |||||
E Town Capital | |||||||
Subsidiaries | |||||||
Cash Contribution to Registered Capital | $ 276,000 | ||||||
Percentage of ownership interest in joint venture | 5.75% | ||||||
Subsidiaries with material non-controlling interests | |||||||
Subsidiaries | |||||||
Profit (loss) attributable to the non-controlling interests | (44,009) | (59,413) | (30,673) | ||||
Accumulated non-controlling interests | $ 1,449,249 | $ 1,206,161 | $ 451,067 | ||||
Semiconductor Manufacturing North China (Beijing) Corporation ("SMNC") | |||||||
Subsidiaries | |||||||
Cash Contribution to Registered Capital | $ 1,224,000 | ||||||
Proportion of voting power held by the Company (as a percent) | 51.00% | 51.00% | |||||
Proportion of ownership interests and voting rights held by non-controlling interests (as a percent) | 49.00% | 49.00% | 45.00% | ||||
Profit (loss) attributable to the non-controlling interests | $ (39,113) | $ (55,868) | $ (25,596) | ||||
Accumulated non-controlling interests | 1,324,590 | 1,069,703 | 371,446 | ||||
Additional capital injection from NCI | $ 294,000 | $ 754,100 | $ 61,200 | ||||
SJ Semiconductor Corporation | |||||||
Subsidiaries | |||||||
Proportion of voting power held by the Company (as a percent) | 56.045% | ||||||
Proportion of ownership interests and voting rights held by non-controlling interests (as a percent) | 44.00% | 44.00% | 44.70% | ||||
Profit (loss) attributable to the non-controlling interests | $ (4,896) | $ (3,545) | $ (5,077) | ||||
Accumulated non-controlling interests | $ 124,659 | 136,458 | 79,621 | ||||
Additional capital injection from NCI | $ 60,000 | $ 60,000 | |||||
LFoundry S.r.l. ("LFoundry") | |||||||
Subsidiaries | |||||||
Percentage of equity interests acquired | 70.00% | 70.00% | |||||
Goodwill | $ 3,933 | ||||||
Acquisition consideration | $ 54,366 | € 49 |
Subsidiaries - SMNC (Details)
Subsidiaries - SMNC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries | |||
Current assets | $ 4,168,984 | $ 3,683,753 | $ 2,590,050 |
Non-current assets | 7,749,467 | 6,431,525 | 4,525,297 |
Current liabilities | (1,906,779) | (1,980,900) | (1,767,191) |
Non-current liabilities | (3,290,337) | (2,731,151) | (1,157,901) |
Equity attributable to owners of the Company | 5,168,960 | 4,150,674 | 3,729,856 |
Non-controlling interests | 1,488,302 | 1,252,553 | 460,399 |
Revenue | 3,101,175 | 2,914,180 | 2,236,415 |
Other income (expense) | 44,957 | 177 | 31,594 |
Profit for the year | 126,423 | 316,434 | 222,323 |
Profit (loss) attributable to owners | 179,679 | 376,630 | 253,411 |
Profit (loss) attributable to the non-controlling interests | (53,256) | (60,196) | (31,088) |
Total other comprehensive income | 73,054 | (51,330) | (7,603) |
Total comprehensive loss attributable to owners | 251,135 | 326,191 | 245,803 |
Total comprehensive loss attributable to the non-controlling interests | (51,658) | (61,087) | (31,083) |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Net cash inflow (outflow) from operating activities | 1,080,686 | 977,202 | 669,197 |
Net cash outflow from investing activities | (2,662,139) | (2,443,333) | (789,556) |
Net cash (outflow) inflow from financing activities | 1,271,591 | 2,614,778 | 537,078 |
Net increase in cash and cash equivalent | (309,862) | 1,148,647 | 416,719 |
Semiconductor Manufacturing North China (Beijing) Corporation ("SMNC") | |||
Subsidiaries | |||
Current assets | 1,559,016 | 1,103,214 | 381,640 |
Non-current assets | 2,046,290 | 1,807,207 | 917,719 |
Current liabilities | (596,500) | (409,898) | (350,298) |
Non-current liabilities | (315,718) | (327,995) | (123,626) |
Net assets | 2,693,088 | 2,172,528 | 825,435 |
Equity attributable to owners of the Company | 1,368,498 | 1,102,825 | 453,989 |
Non-controlling interests | 1,324,590 | 1,069,703 | 371,446 |
Revenue | 471,174 | 243,715 | 4,721 |
Expense | (574,386) | (339,910) | (64,032) |
Other income (expense) | 23,389 | (19,480) | 2,430 |
Profit for the year | (79,823) | (115,675) | (56,881) |
Profit (loss) attributable to owners | (40,710) | (59,807) | (31,285) |
Profit (loss) attributable to the non-controlling interests | (39,113) | (55,868) | (25,596) |
Other comprehensive income attributable to owners of the Company | 0 | 0 | 0 |
Other comprehensive income attributable to the non-controlling interests | 0 | 0 | 0 |
Total other comprehensive income | 0 | 0 | 0 |
Total comprehensive loss attributable to owners | (40,710) | (59,807) | (31,285) |
Total comprehensive loss attributable to the non-controlling interests | (39,113) | (55,868) | (25,596) |
Total comprehensive income (loss) for the year | (79,823) | (115,675) | (56,881) |
Dividends paid to non-controlling interests | 0 | 0 | 0 |
Net cash inflow (outflow) from operating activities | 188,115 | (13,082) | (71,817) |
Net cash outflow from investing activities | (820,606) | (1,627,788) | (173,535) |
Net cash (outflow) inflow from financing activities | 590,091 | 1,655,011 | 137,500 |
Net increase in cash and cash equivalent | $ (42,400) | $ 14,141 | $ (107,852) |
Subsidiaries - SJ Semi (Details
Subsidiaries - SJ Semi (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries | |||
Current assets | $ 4,168,984 | $ 3,683,753 | $ 2,590,050 |
Non-current assets | 7,749,467 | 6,431,525 | 4,525,297 |
Current liabilities | (1,906,779) | (1,980,900) | (1,767,191) |
Non-current liabilities | (3,290,337) | (2,731,151) | (1,157,901) |
Equity attributable to owners of the Company | 5,168,960 | 4,150,674 | 3,729,856 |
Non-controlling interests | 1,488,302 | 1,252,553 | 460,399 |
Revenue | 3,101,175 | 2,914,180 | 2,236,415 |
Other income (expense) | 44,957 | 177 | 31,594 |
Profit for the year | 126,423 | 316,434 | 222,323 |
Profit (loss) attributable to owners | 179,679 | 376,630 | 253,411 |
Profit (loss) attributable to the non-controlling interests | (53,256) | (60,196) | (31,088) |
Total other comprehensive income | 73,054 | (51,330) | (7,603) |
Total comprehensive loss attributable to owners | 251,135 | 326,191 | 245,803 |
Total comprehensive loss attributable to the non-controlling interests | (51,658) | (61,087) | (31,083) |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Net cash inflow (outflow) from operating activities | 1,080,686 | 977,202 | 669,197 |
Net cash outflow from investing activities | (2,662,139) | (2,443,333) | (789,556) |
Net cash (outflow) inflow from financing activities | 1,271,591 | 2,614,778 | 537,078 |
Net increase in cash and cash equivalent | (309,862) | 1,148,647 | 416,719 |
SJ Semiconductor Corporation | |||
Subsidiaries | |||
Current assets | 205,957 | 224,737 | 164,495 |
Non-current assets | 131,041 | 102,790 | 66,772 |
Current liabilities | (46,608) | (11,656) | (18,904) |
Non-current liabilities | (7,002) | (5,421) | (34,331) |
Net assets | 283,388 | 310,450 | 178,032 |
Equity attributable to owners of the Company | 158,729 | 173,992 | 98,411 |
Non-controlling interests | 124,659 | 136,458 | 79,621 |
Revenue | 21,862 | 12,782 | 1,543 |
Expense | (39,504) | (27,300) | (9,621) |
Other income (expense) | 6,505 | 6,564 | (3,274) |
Profit for the year | (11,137) | (7,954) | (11,352) |
Profit (loss) attributable to owners | (6,241) | (4,409) | (6,275) |
Profit (loss) attributable to the non-controlling interests | (4,896) | (3,545) | (5,077) |
Other comprehensive income attributable to owners of the Company | 0 | 0 | 0 |
Other comprehensive income attributable to the non-controlling interests | 0 | 0 | 0 |
Total other comprehensive income | 0 | 0 | 0 |
Total comprehensive loss attributable to owners | (6,241) | (4,409) | (6,275) |
Total comprehensive loss attributable to the non-controlling interests | (4,896) | (3,545) | (5,077) |
Total comprehensive income (loss) for the year | (11,137) | (7,954) | (11,352) |
Dividends paid to non-controlling interests | 0 | 0 | 0 |
Net cash inflow (outflow) from operating activities | 6,115 | (1,194) | (9,841) |
Net cash outflow from investing activities | (65,993) | (147,752) | (60,336) |
Net cash (outflow) inflow from financing activities | (1,983) | 109,291 | 175,211 |
Net increase in cash and cash equivalent | $ (61,861) | $ (39,655) | $ 105,034 |
Investments in associates (Deta
Investments in associates (Details) ¥ / shares in Units, ¥ in Millions | Apr. 27, 2016CNY (¥)¥ / sharesshares | Apr. 27, 2016USD ($)shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | SilTech Semiconductor (Shanghai) Corporation Limited ("SilTech Shanghai") | |||||
Disclosure of associates [line items] | |||||
Shares to be issued under a subscription agreement | 150,681,044 | 150,681,044 | |||
Value of shares to be issued under a subscription agreement | $ | $ 2,655 | ||||
Toppan SMIC Electronic (Shanghai) Co., Ltd ("Toppan") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 30.00% | 30.00% | 30.00% | ||
Zhongxin Xiecheng Investment (Beijing) Co., Ltd ("Zhongxin Xiecheng") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 49.00% | 49.00% | 49.00% | ||
Brite Semiconductor (Shanghai) Corporation (“Brite Shanghai”) | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 46.60% | 47.30% | 47.80% | ||
Suzhou Changjiang Electric Xinke Investment Co., Ltd. ("Changjiang Xinke") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 19.60% | 19.60% | |||
Suzhou Changjiang Electric Xinke Investment Co., Ltd. ("Changjiang Xinke") | SilTech Semiconductor (Shanghai) Corporation Limited ("SilTech Shanghai") | Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |||||
Disclosure of associates [line items] | |||||
Proportion of equity interest disposed | 19.61% | 19.61% | |||
Consideration received | ¥ | ¥ 664 | ||||
Suzhou Changjiang Electric Xinke Investment Co., Ltd. ("Changjiang Xinke") | Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | SilTech Semiconductor (Shanghai) Corporation Limited ("SilTech Shanghai") | |||||
Disclosure of associates [line items] | |||||
Number of shares issued | 43,229,166 | 43,229,166 | |||
Price per share | ¥ / shares | ¥ 15.36 | ||||
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 14.30% | ||||
Sino IC Leasing Co., Ltd. ("Sino IC Leasing") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 8.10% | 11.40% | 8.80% | ||
China Fortune-Tech Capital Co., Ltd ("China Fortune-Tech") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 30.00% | 30.00% | 45.00% | ||
Beijing Wu Jin Venture Investment Center (Limited Partnership) ("WuJin") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 32.60% | 32.60% | 32.60% | ||
Shanghai Fortune-Tech Qitai Invest Center (Limited Partnership) ("Fortune-Tech Qitai") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 33.00% | 33.00% | 33.00% | ||
Shanghai Fortune-Tech Zaixing Invest Center (Limited Partnership) ("Fortune-Tech Zaixing") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 66.20% | 66.20% | 66.20% | ||
Suzhou Fortune-Tech Oriental Invest Fund Center (Limited Partnership) ("Fortune-Tech Oriental") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 44.80% | 44.80% | 44.80% | ||
Juyuan Juxin Integrated Circuit Fund ("Juyuan Juxin") | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest and voting power held by the Group (as a percent) | 31.60% | 40.90% |
Investments in associates - Sum
Investments in associates - Summary financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Current assets | $ 4,168,984 | $ 3,683,753 | $ 2,590,050 |
Non-current assets | 7,749,467 | 6,431,525 | 4,525,297 |
Current liabilities | (1,906,779) | (1,980,900) | (1,767,191) |
Non-current liabilities | (3,290,337) | (2,731,151) | (1,157,901) |
Equity attributable to owners | 5,168,960 | 4,150,674 | 3,729,856 |
Non-controlling interests | 1,488,302 | 1,252,553 | 460,399 |
Total revenue | 3,101,175 | 2,914,180 | 2,236,415 |
Profit (loss) attributable to owners | 179,679 | 376,630 | 253,411 |
Profit (loss) attributable to the non-controlling interests | (53,256) | (60,196) | (31,088) |
Profit for the year | 126,423 | 316,434 | 222,323 |
Other comprehensive income (loss) for the year | 73,054 | (51,330) | (7,603) |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Total comprehensive loss attributable to owners | 251,135 | 326,191 | 245,803 |
Total comprehensive loss attributable to the non-controlling interests | (51,658) | (61,087) | (31,083) |
Toppan SMIC Electronic (Shanghai) Co., Ltd ("Toppan") | |||
Disclosure of associates [line items] | |||
Current assets | 55,966 | 53,716 | 51,661 |
Non-current assets | 19,978 | 17,205 | 22,554 |
Current liabilities | (1,727) | (2,246) | (2,062) |
Net assets | 74,217 | 68,675 | 72,153 |
Total revenue | 18,391 | 20,711 | 20,782 |
Profit for the year | 1,235 | 1,178 | 3,267 |
Total comprehensive income (loss) for the year | $ 1,235 | $ 1,178 | $ 3,267 |
Proportion of ownership interest and voting power (as a percent) | 30.00% | 30.00% | 30.00% |
Carrying amount of the Group's interest in associate | $ 22,265 | $ 20,603 | $ 21,646 |
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |||
Disclosure of associates [line items] | |||
Current assets | 1,401,575 | ||
Non-current assets | 3,305,615 | ||
Current liabilities | (1,639,114) | ||
Non-current liabilities | (1,661,532) | ||
Net assets | 1,406,544 | ||
Equity attributable to owners | 1,385,372 | ||
Non-controlling interests | 21,172 | ||
Total revenue | 958,087 | ||
Profit (loss) attributable to owners | 11,480 | ||
Profit (loss) attributable to the non-controlling interests | 628 | ||
Profit for the year | 12,108 | ||
Other comprehensive income (loss) for the year | (19,986) | ||
Total comprehensive income (loss) for the year | (7,878) | ||
Total comprehensive loss attributable to owners | (8,496) | ||
Total comprehensive loss attributable to the non-controlling interests | $ 618 | ||
Proportion of ownership interest and voting power (as a percent) | 14.30% | ||
Value of ownership interest in associate | $ 197,832 | ||
Valuation premium | 340,561 | ||
Carrying amount of the Group's interest in associate | 538,393 | ||
Shanghai Fortune-Tech Zaixing Invest Center (Limited Partnership) ("Fortune-Tech Zaixing") | |||
Disclosure of associates [line items] | |||
Current assets | 2,264 | 12,720 | 15,513 |
Non-current assets | 19,965 | 8,520 | 7,581 |
Current liabilities | (2) | (1) | (3) |
Net assets | 22,227 | 21,239 | 23,091 |
Profit for the year | (366) | (329) | (178) |
Total comprehensive income (loss) for the year | $ (366) | $ (329) | $ (178) |
Proportion of ownership interest and voting power (as a percent) | 66.20% | 66.20% | 66.20% |
Carrying amount of the Group's interest in associate | $ 14,714 | $ 14,087 | $ 15,292 |
Sino IC Leasing Co., Ltd. ("Sino IC Leasing") | |||
Disclosure of associates [line items] | |||
Current assets | 1,038,538 | 702,570 | 502,454 |
Non-current assets | 3,464,412 | 1,859,267 | 21,374 |
Current liabilities | (523,228) | (117,287) | (8,679) |
Non-current liabilities | (2,509,732) | (1,653,206) | (190,021) |
Net assets | 1,469,990 | 791,344 | 325,128 |
Equity attributable to owners | 1,366,367 | 776,959 | 325,128 |
Non-controlling interests | 103,623 | 14,385 | |
Total revenue | 215,538 | 36,085 | 2,437 |
Profit (loss) attributable to owners | 39,003 | 12,938 | 3,761 |
Profit (loss) attributable to the non-controlling interests | 460 | 48 | |
Profit for the year | 39,463 | 12,986 | 3,761 |
Other comprehensive income (loss) for the year | (10,206) | 3,594 | |
Total comprehensive income (loss) for the year | 29,257 | 16,580 | 3,761 |
Total comprehensive loss attributable to owners | 28,797 | 16,532 | $ 3,761 |
Total comprehensive loss attributable to the non-controlling interests | 460 | $ 48 | |
Dividends received from the associate during the year | $ 255 | ||
Proportion of ownership interest and voting power (as a percent) | 8.10% | 11.40% | 8.80% |
Carrying amount of the Group's interest in associate | $ 110,162 | $ 88,651 | $ 28,736 |
Juyuan Juxin Integrated Circuit Fund ("Juyuan Juxin") | |||
Disclosure of associates [line items] | |||
Current assets | 108,639 | 47,494 | |
Non-current assets | 55,761 | ||
Current liabilities | (33) | (7) | |
Net assets | 164,367 | 47,487 | |
Profit for the year | (3,120) | (1,893) | |
Total comprehensive income (loss) for the year | $ (3,120) | $ (1,893) | |
Proportion of ownership interest and voting power (as a percent) | 31.60% | 40.90% | |
Carrying amount of the Group's interest in associate | $ 51,940 | $ 19,408 |
Investments in joint venture128
Investments in joint ventures (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shanghai Xinxin Investment Centre (Limited Partnership) ("Shanghai Xinxin") | |||
Disclosure of joint operations [line items] | |||
Proportion of ownership interest and voting power (as a percent) | 49.00% | 49.00% | 49.00% |
Shanghai Chengxin Investment Center (Limited Partnership) ("Shanghai Chengxin") | |||
Disclosure of joint operations [line items] | |||
Proportion of ownership interest and voting power (as a percent) | 31.50% | 42.00% | 42.00% |
Investments in joint ventures -
Investments in joint ventures - Summary financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint operations [line items] | |||
Current assets | $ 4,168,984 | $ 3,683,753 | $ 2,590,050 |
Non-current assets | 7,749,467 | 6,431,525 | 4,525,297 |
Current liabilities | (1,906,779) | (1,980,900) | (1,767,191) |
Non-current liabilities | (3,290,337) | (2,731,151) | (1,157,901) |
Total revenue | 3,101,175 | 2,914,180 | 2,236,415 |
Profit (loss) for the year | 126,423 | 316,434 | 222,323 |
Other comprehensive income (loss) for the year | 73,054 | (51,330) | (7,603) |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Shanghai Xinxin Investment Centre (Limited Partnership) ("Shanghai Xinxin") | |||
Disclosure of joint operations [line items] | |||
Current assets | 1,453 | 10,679 | 4,917 |
Non-current assets | 53,782 | 13,283 | 28,631 |
Current liabilities | (6) | (7) | (3,287) |
Net assets | 55,229 | 23,955 | 30,261 |
Profit (loss) for the year | (390) | 4,540 | (609) |
Other comprehensive income (loss) for the year | 30,441 | ||
Total comprehensive income (loss) for the year | $ 30,051 | 4,540 | $ (609) |
Dividends received from the joint venture during the year | $ 2,027 | ||
Proportion of ownership interest and voting power (as a percent) | 49.00% | 49.00% | 49.00% |
Carrying amount of the Group's interest in joint venture | $ 27,062 | $ 11,740 | $ 14,829 |
Other financial assets (Details
Other financial assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets [line items] | |||
Derivatives - Non-current | $ 32,894 | $ 30,173 | |
Financial products sold by banks | $ 117,928 | 24,931 | 257,583 |
Bank deposits will mature over 3 months | 559,034 | 6,612 | 25,125 |
Other financial assets - current | 683,812 | 31,543 | 282,880 |
Other financial assets | 701,410 | $ 31,543 | 282,880 |
Cross currency swap | Cash flow hedges | |||
Disclosure of financial assets [line items] | |||
Derivatives - Non-current | 17,598 | ||
Derivatives - Current | 4,739 | ||
Foreign currency forward | |||
Disclosure of financial assets [line items] | |||
Derivatives - Current | $ 2,111 | $ 172 |
Restricted cash (Details)
Restricted cash (Details) € in Millions | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Disclosure of detailed information about restricted cash [Line Items] | ||||
Non-current | € 11.2 | $ 13,438,000 | $ 20,080,000 | |
Current | 336,043,000 | 337,699,000 | $ 302,416,000 | |
Restricted cash | 349,481,000 | 357,779,000 | 302,416,000 | |
Bank time deposits pledged against long-term borrowing, restricted cash - non current | 11.2 | 13,400,000 | 20,100,000 | 0 |
Bank time deposits pledged against long-term borrowings, restricted cash - current | 4.7 | 5,600,000 | ||
Government funding received mainly for the reimbursement of research and development expenses | 235,300,000 | 191,900,000 | 74,000,000 | |
China Development Bank | ||||
Disclosure of detailed information about restricted cash [Line Items] | ||||
Cash from low interest cost entrusted loans and designated to be used for future capacity expansion | 85,800,000 | 142,900,000 | 227,300,000 | |
2014 MPS capital service loan (LFoundry) | ||||
Disclosure of detailed information about restricted cash [Line Items] | ||||
Bank time deposits pledged against long-term borrowing, restricted cash - non current | 1.1 | 1,300,000 | ||
Bank time deposits pledged against long-term borrowings, restricted cash - current | 0.5 | 500,000 | ||
2014 Cassa Depositie Prestiti loan (LFoundry) | ||||
Disclosure of detailed information about restricted cash [Line Items] | ||||
Bank time deposits pledged against long-term borrowing, restricted cash - non current | 10.1 | 12,100,000 | ||
Bank time deposits pledged against long-term borrowings, restricted cash - current | € 4.2 | 5,100,000 | ||
Short-term commercial bank loans | ||||
Disclosure of detailed information about restricted cash [Line Items] | ||||
Bank time deposits pledged, restricted cash - current | 14,900,000 | $ 2,900,000 | $ 1,100,000 | |
Bank time deposits pledged against letters of credit and short-term borrowings, restricted cash - current | $ 9,300,000 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other assets | |||
Available-for-sale investments | $ 24,844 | $ 21,966 | $ 19,750 |
MPS Bonds | 4,634 | ||
Others | 17,966 | 16,270 | 12,328 |
Non-current | $ 42,810 | $ 42,870 | $ 32,078 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories | |||
Raw materials | $ 149,574 | $ 126,526 | $ 88,134 |
Work in process | 321,695 | 280,216 | 225,475 |
Finished goods | 151,410 | 57,474 | 73,717 |
Inventories | 622,679 | 464,216 | 387,326 |
Cost of inventories recognised as an expense | $ 46,900 | $ 3,700 | |
Cost of inventories recognised as a income | $ (13,300) |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trade and other receivables | ||||
Trade receivables | $ 407,975 | $ 491,018 | $ 399,200 | |
Allowance on doubtful trade receivables | (1,335) | (1,491) | (41,976) | $ (42,014) |
Trade receivables, net | 406,640 | 489,527 | 357,224 | |
Other receivables and refundable deposits | 209,668 | 156,295 | 142,622 | |
Total trade and other current receivables | 616,308 | 645,822 | 499,846 | |
Bad debt allowance on trade receivables | $ 301 | $ 201 | $ 528 | |
Minimum | ||||
Trade and other receivables | ||||
Credit terms | 30 days | |||
Maximum | ||||
Trade and other receivables | ||||
Credit terms | 60 days |
Trade and other receivables - A
Trade and other receivables - Age of receivables, impaired and not impaired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade and other receivables | |||
Trade receivables | $ 407,975 | $ 491,018 | $ 399,200 |
Trade receivables current and past due but not impaired | 406,640 | 489,527 | 357,224 |
Neither past due nor impaired/ Current | |||
Trade and other receivables | |||
Trade receivables current and past due but not impaired | $ 331,469 | $ 444,145 | $ 312,479 |
Past due but not impaired | |||
Trade and other receivables | |||
Average overdue days | 26 days | 27 days | 23 days |
Two largest customers | |||
Trade and other receivables | |||
Trade receivables | $ 228,900 | $ 208,300 | $ 125,700 |
Within 30 days | |||
Trade and other receivables | |||
Trade receivables | 148,131 | 274,087 | 177,542 |
Within 30 days | Past due but not impaired | |||
Trade and other receivables | |||
Trade receivables current and past due but not impaired | 62,267 | 34,872 | 39,737 |
31-60 days | |||
Trade and other receivables | |||
Trade receivables | 187,623 | 179,453 | 151,377 |
31-60 days | Past due but not impaired | |||
Trade and other receivables | |||
Trade receivables current and past due but not impaired | 9,583 | 8,875 | 3,534 |
Over 60 days | |||
Trade and other receivables | |||
Trade receivables | 72,221 | 37,478 | 70,281 |
Over 60 days | Past due but not impaired | |||
Trade and other receivables | |||
Trade receivables current and past due but not impaired | $ 3,321 | $ 1,635 | $ 1,474 |
Trade and other receivables - M
Trade and other receivables - Movement in the allowance for doubtful debts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in allowance on doubtful trade receivables | |||
Balance at beginning of the year | $ 1,491 | $ 41,976 | $ 42,014 |
Addition in allowance on doubtful trade receivables | 301 | 201 | 528 |
Amounts written off during the year as uncollectible | (19) | (39,083) | (25) |
Reversal of allowance on doubtful trade receivables | (438) | (1,603) | (541) |
Balance at end of the year | $ 1,335 | $ 1,491 | $ 41,976 |
Assets classified as held fo137
Assets classified as held for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets classified as held for sale | |||
Assets related to employee's living quarters | $ 37,471 | $ 50,813 | $ 72,197 |
Shares and issued capital - Ful
Shares and issued capital - Fully Paid Ordinary Shares - Number of Shares (Details) - USD ($) $ in Thousands | Dec. 06, 2017 | Oct. 09, 2015 | Sep. 25, 2015 | Jun. 08, 2015 | Dec. 31, 2016 | Dec. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of classes of share capital [line items] | |||||||||
Balance at the beginning of period, before adjustment from share consolidation (in shares) | 42,073,748,961 | 4,252,922,259 | 42,073,748,961 | 35,856,096,167 | |||||
Balance at the beginning of period (in shares) | 4,207,374,896 | 4,252,922,259 | 4,207,374,896 | ||||||
Balance at beginning of year | $ 4,190,255 | $ 5,403,227 | $ 4,190,255 | $ 3,307,722 | |||||
Issuance of shares under the Company's employee share option plan (in shares) | 329,531,926 | 32,723,622 | 232,284,137 | ||||||
Issuance of shares under the Company's employee share option plan | $ 17,105 | $ 17,610 | $ 8,743 | ||||||
Ordinary shares issued (in shares) | 241,418,625 | 961,849,809 | 323,518,848 | 4,700,000,000 | |||||
Ordinary shares issued | $ 1,000 | $ 326,140 | $ 508,807 | ||||||
Conversion of convertible bonds during the year (in shares) | 389,042,383 | 105,128,132 | |||||||
Conversion of convertible bonds during the year | $ 399,099 | $ 10,244 | |||||||
Adjustment arising from the Share Consolidation (in shares) | (38,257,568,118) | ||||||||
Issuance of shares under the Company's employee share option plan after the Share Consolidation (in shares) | 2,081,358 | ||||||||
Balance at the end of period, before adjustment from share consolidation (in shares) | 4,252,922,259 | 4,252,922,259 | 42,073,748,961 | ||||||
Balance at the end of period (in shares) | 4,252,922,259 | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 | |||||
Balance at end of year | $ 5,403,227 | $ 6,721,335 | $ 5,403,227 | $ 4,190,255 | |||||
Ordinary shares | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Balance at beginning of year | $ 16,830 | 17,012 | 16,830 | 14,342 | |||||
Issuance of shares under the Company's employee share option plan | 966 | 132 | 130 | 140 | 93 | ||||
Ordinary shares issued | $ 385 | $ 130 | $ 1,880 | 966 | 2,395 | ||||
Conversion of convertible bonds during the year | 1,556 | 42 | |||||||
Ordinary Shares Issued During Period Share Option Plan After Share Consolidation value | 8 | ||||||||
Balance at end of year | 17,012 | 19,664 | 17,012 | 16,830 | |||||
Share premium | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Balance at beginning of year | 4,903,861 | 4,950,948 | 4,903,861 | 4,376,630 | |||||
Issuance of shares under the Company's employee share option plan | 325,174 | $ 35,367 | 35,178 | 36,064 | 20,819 | ||||
Ordinary shares issued | $ 81,440 | $ 27,392 | $ 397,580 | 325,174 | 506,412 | ||||
Conversion of convertible bonds during the year | 427,168 | 11,023 | |||||||
Ordinary Shares Issued During Period Share Option Plan After Share Consolidation value | 697 | ||||||||
Share premium reduction | (910,849) | ||||||||
Balance at end of year | $ 4,950,948 | $ 4,827,619 | $ 4,950,948 | $ 4,903,861 |
Shares and issued capital - Sha
Shares and issued capital - Share Consolidation (Details) | Dec. 06, 2017USD ($)$ / shares | Dec. 06, 2017USD ($)item | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Jun. 23, 2017USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 07, 2016$ / shares | Dec. 06, 2016$ / shares |
Disclosure of classes of share capital [line items] | ||||||||
Percentage of shares on issued share capital | 4.92% | |||||||
Number of independent placees | item | 6 | |||||||
Price per placing share | $ / shares | $ 10.65 | |||||||
Issue of equity | $ | $ 1,000,000 | $ 326,140,000 | $ 508,807,000 | |||||
Share premium | $ | $ 325,200,000 | $ 325,200,000 | $ 4,827,619,000 | $ 4,903,861,000 | $ 4,950,948,000 | |||
Authorized share capital | $ | $ 42,000,000 | |||||||
Number of shares authorised | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |||||
Creation of an additional shares | 4,916,106,889 | 4,207,374,896 | 4,252,922,259 | |||||
Share Consolidation ratio | 10 | |||||||
Par value per share | $ / shares | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 | |||
Ordinary shares | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares authorised | 10,000,000,000 | |||||||
Creation of an additional shares | 5,000,000,000 | |||||||
Preferred shares | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares authorised | 500,000,000 |
Shares and issued capital - 140
Shares and issued capital - Share Purchase Agreements (Details) $ / shares in Units, $ in Thousands, $ in Thousands | Dec. 06, 2017USD ($)shares | Oct. 09, 2015USD ($)shares | Sep. 25, 2015USD ($)shares | Jun. 08, 2015USD ($)shares | Feb. 12, 2015HKD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Oct. 09, 2015$ / shares | Sep. 25, 2015$ / shares | Jun. 11, 2015$ / shares | Jun. 08, 2015$ / shares |
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued (in shares) | shares | 241,418,625 | 961,849,809 | 323,518,848 | 4,700,000,000 | |||||||
Ordinary shares issued | $ 1,000 | $ 326,140 | $ 508,807 | ||||||||
Ordinary shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued | $ 385 | $ 130 | $ 1,880 | 966 | 2,395 | ||||||
Share premium | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued | $ 81,440 | $ 27,392 | 397,580 | $ 325,174 | $ 506,412 | ||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued (in shares) | shares | 4,700,000,000 | ||||||||||
Proposed consideration | $ 3,098,710 | ||||||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Ordinary shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued | 1,880 | ||||||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Share premium | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued | $ 397,580 | ||||||||||
Xinxin (Hongkong) Capital Co., Limited | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued (in shares) | shares | 4,700,000,000 | ||||||||||
Share purchase agreement, share price (in HKD per share) | $ / shares | $ 0.6593 | ||||||||||
Datang Telecom Technology & Industry Holdings Co., Ltd. ("Datang Holdings") | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued (in shares) | shares | 961,849,809 | ||||||||||
Share purchase agreement, share price (in HKD per share) | $ / shares | $ 0.6593 | $ 0.6593 | |||||||||
Country Hill Limited ("Country Hill") | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Ordinary shares issued (in shares) | shares | 323,518,848 | ||||||||||
Share purchase agreement, share price (in HKD per share) | $ / shares | $ 0.6593 |
Shares and issued capital - Gen
Shares and issued capital - General information (Details) | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Dec. 07, 2016$ / shares | Dec. 06, 2016$ / shares | Dec. 31, 2015$ / shares |
Disclosure of classes of share capital | |||||
Par value per share | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 | $ 0.004 |
Votes per share | 1 |
Reserves (Details)
Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at beginning of year | $ 5,403,227 | $ 4,190,255 | $ 3,307,722 |
Arising on share-based payments | 18,214 | 14,210 | 18,329 |
Exercise of stock options | 17,105 | 17,610 | 8,743 |
Exchange differences arising on translating the foreign operations | 23,213 | (19,031) | (8,185) |
Change in value of available-for-sale financial assets during this year | (2,381) | 807 | 452 |
Recognition of equity component of convertible bonds | 52,935 | ||
Conversion options of convertible bonds exercised during the year | 399,099 | 10,244 | |
Actuarial gains or losses on defined benefit plans | (436) | 1,520 | |
Gain (loss) recognized during this year | 35,143 | (34,627) | |
Change in share of other comprehensive income of joint ventures accounted for using the equity method | 17,646 | ||
Balance at end of year | 6,721,335 | 5,403,227 | 4,190,255 |
Equity-settled employee benefits reserve | |||
Balance at beginning of year | 65,703 | 70,459 | 64,540 |
Arising on share-based payments | 17,495 | 13,838 | 18,088 |
Exercise of stock options | (18,220) | (18,594) | (12,169) |
Balance at end of year | 64,978 | 65,703 | 70,459 |
Foreign currency translation reserve | |||
Balance at beginning of year | (22,087) | (3,956) | 4,229 |
Exchange differences arising on translating the foreign operations | 21,590 | (18,131) | (8,185) |
Balance at end of year | (497) | (22,087) | (3,956) |
Change in value of available-for-sale financial assets | |||
Balance at beginning of year | 1,245 | 447 | |
Change in value of available-for-sale financial assets during this year | (2,356) | 798 | 447 |
Balance at end of year | (1,111) | 1,245 | 447 |
Convertible bonds equity reserve | |||
Balance at beginning of year | 81,678 | 29,564 | 29,564 |
Recognition of equity component of convertible bonds | 52,935 | ||
Conversion options of convertible bonds exercised during the year | (29,625) | (821) | |
Balance at end of year | 52,053 | 81,678 | $ 29,564 |
Defined benefit plan reserve | |||
Balance at beginning of year | 1,520 | ||
Actuarial gains or losses on defined benefit plans | (436) | 1,520 | |
Balance at end of year | 1,084 | 1,520 | |
Cash flow hedges | |||
Balance at beginning of year | (34,627) | ||
Gain (loss) recognized during this year | 35,143 | (34,627) | |
Balance at end of year | 516 | $ (34,627) | |
Share of other comprehensive income of joint ventures accounted for using equity method | |||
Change in share of other comprehensive income of joint ventures accounted for using the equity method | 17,646 | ||
Balance at end of year | $ 17,646 |
Retained earnings (accumulat143
Retained earnings (accumulated deficit) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 29, 2017 | |
Retained earnings (accumulated deficit) | ||||
Annual appropriation (as a percent) | 10.00% | |||
General reserve fund threshold (as a percent) | 50.00% | |||
Non-distributable reserve appropriation | $ 0 | |||
Accumulated non-distributable reserve | 30,000,000 | $ 30,000,000 | $ 30,000,000 | |
PRC subsidiaries' restricted paid-in capital | 10,782,000,000 | |||
Reserve and capital not available for distribution to the Company by its PRC subsidiaries | 10,812,000,000 | |||
Dividend declared | 0 | 0 | 0 | |
Dividends paid | 0 | 0 | 0 | |
Retained earnings (accumulated deficit) | $ 187,008,000 | $ (910,849,000) | $ (1,287,479,000) | $ 7,300,000 |
Perpetual subordinated conve144
Perpetual subordinated convertible securities (Details) - Perpetual subordinated convertible securities | Dec. 14, 2017USD ($)$ / shares$ / shares | Dec. 31, 2017USD ($)shares | Dec. 06, 2017USD ($) |
Perpetual subordinated convertible securities | |||
Par value of subordinate debt | $ / shares | $ 250,000 | ||
Principal amount | $ 65,000,000 | ||
Distribution Rate (as a percent) | 2.00% | ||
Number of shares issued up on conversion of PSCS | shares | 0 | ||
Threshold consecutive trading days | 7 days | ||
Maximum days from the last threshold consecutive trading date | 10 days | ||
Minimum days from the last threshold consecutive trading date | 5 days | ||
Conversion period | 40 days | ||
Initial conversion price | $ / shares | $ 12.78 | ||
Initial conversion ratio | 152,648.6697 | ||
Closing foreign exchange rate | $ / shares | 7.8034 | ||
Increase in distribution rate | 3.00% | ||
Call up period of securities | 30 days | ||
Net book value of PSCS | $ 64,100,000 | $ 64,100,000 | |
Issue expenses on PSCS | $ 900,000 | ||
Dividends paid | $ 0 | ||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | |||
Perpetual subordinated convertible securities | |||
Principal amount | $ 300,000,000 | ||
Datang | |||
Perpetual subordinated convertible securities | |||
Principal amount | $ 200,000,000 | ||
Company Call | |||
Perpetual subordinated convertible securities | |||
Threshold trading Days | 20 days | ||
Threshold consecutive trading days | 30 days | ||
Threshold stock price (as a percent) | 130.00% | ||
Company Call | Minimum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 60 days | ||
Company Call | Maximum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 30 days | ||
Clean Up Call | |||
Perpetual subordinated convertible securities | |||
Minimum percentage of aggregate principal amount to redeem outstanding bonds | 90.00% | ||
Clean Up Call | Minimum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 45 days | ||
Clean Up Call | Maximum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 60 days | ||
Tax Call | Minimum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 30 days | ||
Tax Call | Maximum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 60 days | ||
Accounting Call | Minimum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 30 days | ||
Accounting Call | Maximum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 60 days | ||
Rating Call | Minimum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 30 days | ||
Rating Call | Maximum | |||
Perpetual subordinated convertible securities | |||
Notice period for redemption | 60 days |
Borrowings - Summary (Details)
Borrowings - Summary (Details) $ in Thousands, € in Millions, ¥ in Millions, ¥ in Millions | Dec. 31, 2017CNY (¥) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||
Short-term borrowings | $ 308,311 | $ 176,957 | $ 62,872 | |||
Long-term borrowings | 1,876,236 | 1,265,811 | 466,232 | |||
Total borrowings | 2,184,547 | 1,442,768 | 529,104 | |||
Total current borrowings and current portion of non-current borrowings | 440,608 | 209,174 | 113,068 | |||
Non-current maturities of long-term debt | 1,743,939 | 1,233,594 | 416,036 | |||
Borrowings other than bonds and notes | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Short-term borrowings | 308,311 | 176,957 | 62,872 | |||
Total borrowings | 2,184,547 | 1,442,768 | 529,104 | |||
Current maturities of long-term borrowings | 132,297 | 32,217 | 50,196 | |||
Non-current maturities of long-term debt | 1,743,939 | 1,233,594 | 416,036 | |||
Short-term commercial bank loans | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Short-term borrowings | 308,311 | 176,957 | 62,872 | |||
2013 USD loan (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 10,760 | 10,760 | 10,760 | |||
2015 USD loan (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 39,641 | 52,854 | ||||
2015 CDB USD loan (SJ Jiangyin) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 2,000 | 20,000 | ||||
2015 RMB loan I (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 153,041 | 144,155 | 154,095 | |||
2015 RMB loan II (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 72,694 | 68,473 | 73,195 | |||
2015 CDB RMB loan (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | ¥ 191 | 29,231 | 28,110 | 30,048 | ||
2016 CDB RMB loan (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 223,440 | 210,466 | ||||
2017 CDB RMB loan (SMIC Shenzhen) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 185,792 | |||||
2015 EXIM RMB loan (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 76,520 | 72,077 | 73,966 | |||
2017 EXIM RMB loan (SMIC Shanghai) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 153,041 | |||||
2014 EXIM RMB loan (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 36,983 | |||||
2016 EXIM RMB loan I (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 36,730 | 34,597 | ||||
2016 EXIM RMB loan II (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 61,216 | 57,662 | ||||
2017 EXIM RMB loan (SMIC Beijing) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 76,520 | |||||
2016 EXIM RMB loan (SMIC) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 76,520 | 72,077 | ||||
2017 EXIM RMB loan (SMIC Tianjin) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 76,520 | |||||
2017 EXIM USD loan (SMIC Tianjin) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 25,000 | |||||
2017 EXIM RMB loan (SMIC Shenzhen) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 76,520 | |||||
2015 RMB entrust loan (SJ Jiangyin) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | $ 14,331 | |||||
2014 Cassa Depositie Prestiti loan (LFoundry) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | € 24.4 | 25,871 | 26,026 | |||
2014 MPS capital service loan (LFoundry) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 4.8 | 5,132 | 4,578 | |||
2014 Citizen Finetech Miyota loan (LFoundry) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | ¥ 439 | 3,502 | 3,926 | |||
2017 Banca del Mezzogiorno loan (LFoundry) | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 1,529 | |||||
Finance lease payables | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | 6,252 | 7,057 | ||||
Loans from non-controlling interests shareholders | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | € 10.6 | 12,750 | 1,627 | |||
Others | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Long-term borrowings | $ 487,655 | $ 482,579 |
Borrowings - Repayment schedule
Borrowings - Repayment schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | $ 2,184,547 | $ 1,442,768 | $ 529,104 |
Borrowings other than bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | 2,184,547 | 1,442,768 | 529,104 |
Within 1 year | Borrowings other than bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | 440,608 | 209,174 | 113,068 |
Within 1-2 years | Borrowings other than bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | 399,301 | 171,900 | 15,830 |
Within 2-5 years | Borrowings other than bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | 877,315 | 698,070 | 172,916 |
Over 5 years | Borrowings other than bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowing by repayment | $ 467,323 | $ 363,624 | $ 227,290 |
Borrowings - Arrangements of sh
Borrowings - Arrangements of short term debt (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||
Short-term borrowings | $ 308,311 | $ 176,957 | $ 62,872 |
Short-term commercial bank loans | |||
Disclosure of detailed information about borrowings [line items] | |||
Number of short-term credit agreements | item | 34 | ||
Maximum credit facility | $ 2,118,500 | ||
Short-term borrowings | $ 308,311 | $ 176,957 | $ 62,872 |
Short-term commercial bank loans | Minimum | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 0.98% | ||
Short-term commercial bank loans | Maximum | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 3.48% |
Borrowings - Arrangements of lo
Borrowings - Arrangements of long term debt (Details) $ / shares in Units, $ in Thousands, € in Millions, ¥ in Millions, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2017CNY (¥)agreement | Sep. 30, 2017CNY (¥) | Aug. 31, 2017USD ($) | Jun. 30, 2017EUR (€) | Mar. 31, 2017CNY (¥) | Feb. 28, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | May 31, 2016CNY (¥) | Jan. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Jun. 30, 2014JPY (¥) | Jan. 31, 2014EUR (€) | Aug. 31, 2013USD ($) | Dec. 31, 2017CNY (¥)agreement | Dec. 31, 2016CNY (¥) | Dec. 31, 2017JPY (¥)agreement | Dec. 31, 2017EUR (€)agreement | Dec. 31, 2017USD ($)agreement$ / shares | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Outstanding balance | $ 1,876,236 | $ 1,265,811 | $ 466,232 | ||||||||||||||||||
Property, plant and equipment and land use right pledged as security | 362,300 | 631,400 | 323,900 | ||||||||||||||||||
2013 USD loan (SMIC Shanghai) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | $ 470,000 | ||||||||||||||||||||
Term of loan | 7 years | ||||||||||||||||||||
Drawn down | 260,000 | ||||||||||||||||||||
Repaid | 249,200 | ||||||||||||||||||||
Outstanding balance | $ 10,760 | 10,760 | 10,760 | ||||||||||||||||||
2013 USD loan (SMIC Shanghai) | Minimum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 5.03% | 5.03% | 5.03% | 5.03% | 5.03% | ||||||||||||||||
2013 USD loan (SMIC Shanghai) | Maximum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 5.71% | 5.71% | 5.71% | 5.71% | 5.71% | ||||||||||||||||
2015 RMB loan I (SMIC Shanghai) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 1,000 | ||||||||||||||||||||
Term of loan | 15 years | ||||||||||||||||||||
Drawn down | ¥ 1,000 | ¥ 1,000 | $ 153,000 | ||||||||||||||||||
Outstanding balance | $ 153,041 | 144,155 | 154,095 | ||||||||||||||||||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | ||||||||||||||||
2015 RMB loan II (SMIC Shanghai) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | 475,000 | ||||||||||||||||||||
Term of loan | 10 years | ||||||||||||||||||||
Drawn down | ¥ 475 | ¥ 475 | $ 72,700 | ||||||||||||||||||
Outstanding balance | $ 72,694 | 68,473 | 73,195 | ||||||||||||||||||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | ||||||||||||||||
2015 CDB RMB loan (SMIC Beijing) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 195 | ||||||||||||||||||||
Term of loan | 15 years | ||||||||||||||||||||
Drawn down | ¥ 195 | ¥ 195 | $ 29,200 | ||||||||||||||||||
Outstanding balance | ¥ 191 | ¥ 191 | $ 29,231 | 28,110 | 30,048 | ||||||||||||||||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | ||||||||||||||||
2016 CDB RMB loan (SMIC Beijing) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 1,460 | ||||||||||||||||||||
Term of loan | 15 years | ||||||||||||||||||||
Drawn down | ¥ 1,460 | ¥ 1,460 | $ 223,400 | ||||||||||||||||||
Outstanding balance | $ 223,440 | 210,466 | |||||||||||||||||||
Interest rate | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | ||||||||||||||||
2017 CDB RMB loan (SMIC Shenzhen) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 5,400 | ¥ 5,400 | |||||||||||||||||||
Term of loan | 7 years | ||||||||||||||||||||
Drawn down | ¥ 1,214 | ¥ 1,214 | $ 185,800 | ||||||||||||||||||
Outstanding balance | $ 185,792 | ||||||||||||||||||||
Interest rate | 4.46% | 4.46% | 4.46% | 4.46% | 4.46% | ||||||||||||||||
2015 EXIM RMB loan (SMIC Shanghai) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 500 | ||||||||||||||||||||
Term of loan | 3 years | ||||||||||||||||||||
Drawn down | ¥ 500 | ¥ 500 | $ 76,500 | ||||||||||||||||||
Outstanding balance | $ 76,520 | 72,077 | 73,966 | ||||||||||||||||||
Interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||||||
2017 EXIM RMB loan (SMIC Shanghai) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 1,000 | ||||||||||||||||||||
Term of loan | 2 years | ||||||||||||||||||||
Drawn down | ¥ 1,000 | $ 153,000 | |||||||||||||||||||
Outstanding balance | 153,041 | ||||||||||||||||||||
Interest rate | 2.65% | ||||||||||||||||||||
2016 EXIM RMB loan I (SMIC Beijing) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 240 | ¥ 240 | |||||||||||||||||||
Term of loan | 2 years | ||||||||||||||||||||
Drawn down | ¥ 240 | ¥ 240 | 36,700 | ||||||||||||||||||
Outstanding balance | $ 36,730 | 34,597 | |||||||||||||||||||
Interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||||||
2016 EXIM RMB loan II (SMIC Beijing) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 400 | ||||||||||||||||||||
Term of loan | 3 years | ||||||||||||||||||||
Drawn down | ¥ 400 | ¥ 400 | $ 61,200 | ||||||||||||||||||
Outstanding balance | $ 61,216 | 57,662 | |||||||||||||||||||
Interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||||||
2017 EXIM RMB loan (SMIC Beijing) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 500 | ||||||||||||||||||||
Term of loan | 5 years | ||||||||||||||||||||
Drawn down | ¥ 500 | ¥ 500 | $ 76,500 | ||||||||||||||||||
Outstanding balance | $ 76,520 | ||||||||||||||||||||
Interest rate | 2.92% | 2.92% | 2.92% | 2.92% | 2.92% | ||||||||||||||||
2016 EXIM RMB loan (SMIC) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 500 | ||||||||||||||||||||
Term of loan | 3 years | ||||||||||||||||||||
Drawn down | ¥ 500 | ¥ 500 | $ 76,500 | ||||||||||||||||||
Outstanding balance | $ 76,520 | 72,077 | |||||||||||||||||||
2016 EXIM RMB loan (SMIC) | Minimum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||||||||||
2016 EXIM RMB loan (SMIC) | Maximum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 3.05% | 3.05% | 3.05% | 3.05% | 3.05% | ||||||||||||||||
2017 EXIM RMB loan (SMIC Tianjin) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 500 | ||||||||||||||||||||
Term of loan | 3 years | ||||||||||||||||||||
Drawn down | ¥ 500 | ¥ 500 | $ 76,500 | ||||||||||||||||||
Outstanding balance | $ 76,520 | ||||||||||||||||||||
Interest rate | 4.04% | 4.04% | 4.04% | 4.04% | 4.04% | ||||||||||||||||
2017 EXIM USD loan (SMIC Tianjin) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | $ 25,000 | ||||||||||||||||||||
Term of loan | 5 years | ||||||||||||||||||||
Drawn down | $ 25,000 | ||||||||||||||||||||
Outstanding balance | $ 25,000 | ||||||||||||||||||||
Interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||||||
2017 EXIM RMB loan (SMIC Shenzhen) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | $ 500,000 | ||||||||||||||||||||
Term of loan | 5 years | ||||||||||||||||||||
Drawn down | ¥ 500 | ¥ 500 | 76,500 | ||||||||||||||||||
Outstanding balance | $ 76,520 | ||||||||||||||||||||
2017 EXIM RMB loan (SMIC Shenzhen) | Minimum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 3.40% | 3.40% | 3.40% | 3.40% | 3.40% | ||||||||||||||||
2014 Cassa Depositie Prestiti loan (LFoundry) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | € | € 35.8 | ||||||||||||||||||||
Term of loan | 10 years | ||||||||||||||||||||
Drawn down | € | € 35.8 | ||||||||||||||||||||
Repaid | € | 11.8 | ||||||||||||||||||||
Outstanding balance | € 24.4 | $ 25,871 | 26,026 | ||||||||||||||||||
Interest rate | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||||||||||
Secured by bank deposits | € | € 14.3 | ||||||||||||||||||||
Present value of debt | € | € 21.5 | ||||||||||||||||||||
Principal amount payable | € | 24 | ||||||||||||||||||||
Interest cash flow | € | 0.4 | ||||||||||||||||||||
2014 MPS capital service loan (LFoundry) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | € | € 4 | ||||||||||||||||||||
Term of loan | 10 years | ||||||||||||||||||||
Drawn down | € | 4 | ||||||||||||||||||||
Outstanding balance | € 4.8 | $ 5,132 | 4,578 | ||||||||||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||
Secured by bank deposits | € | € 1.6 | ||||||||||||||||||||
Present value of debt | € | € 4.2 | ||||||||||||||||||||
Principal amount payable | € | 4 | ||||||||||||||||||||
Interest cash flow | € | € 0.8 | ||||||||||||||||||||
2014 Citizen Finetech Miyota loan (LFoundry) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | ¥ | ¥ 480 | ||||||||||||||||||||
Term of loan | 5 years | ||||||||||||||||||||
Drawn down | ¥ | ¥ 480 | ||||||||||||||||||||
Repaid | ¥ | 58 | ||||||||||||||||||||
Outstanding balance | ¥ 439 | $ 3,502 | 3,926 | ||||||||||||||||||
Interest rate | 4.04% | 4.04% | 4.04% | 4.04% | 4.04% | ||||||||||||||||
Present value of debt | ¥ 406 | $ 3,500 | |||||||||||||||||||
Principal amount payable | ¥ | 422 | ||||||||||||||||||||
Interest cash flow | ¥ | ¥ 17 | ||||||||||||||||||||
2017 Banca del Mezzogiorno loan (LFoundry) | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | € | € 1.2 | ||||||||||||||||||||
Term of loan | 9 years | ||||||||||||||||||||
Drawn down | € 1.2 | 1,500 | |||||||||||||||||||
Outstanding balance | $ 1,529 | ||||||||||||||||||||
2017 Banca del Mezzogiorno loan (LFoundry) | Minimum | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Interest rate | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | ||||||||||||||||
Finance lease payables | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Outstanding balance | $ 6,252 | 7,057 | |||||||||||||||||||
Remaining lease term | 5 years | ||||||||||||||||||||
Effective interest rate | 3.68% | ||||||||||||||||||||
Loans from non-controlling interests shareholders | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | € | € 15 | ||||||||||||||||||||
Term of loan | 7 years | ||||||||||||||||||||
Drawn down | € | € 10.6 | ||||||||||||||||||||
Outstanding balance | € 10.6 | $ 12,750 | 1,627 | ||||||||||||||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||||||||||||||
Others | |||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||
Principal amount | $ 487,700 | $ 0 | |||||||||||||||||||
Outstanding balance | $ 487,655 | $ 482,579 | |||||||||||||||||||
Number of financing arrangements | agreement | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||
Maximum repurchase price (in dollars per share) | $ / shares | $ 1 |
Borrowings - Future minimum lea
Borrowings - Future minimum lease payments under finance leases and their present values (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total minimum finance lease payments | $ 6,677 |
Less: future finance cost charges | (425) |
Total net finance lease payables | 6,252 |
Less: current portion of finance lease payables | (1,564) |
Non-current portion of finance lease payables | 4,688 |
Within 1 year | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total minimum finance lease payments | 1,742 |
Total net finance lease payables | 1,564 |
Within 1-2 years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total minimum finance lease payments | 1,742 |
Total net finance lease payables | 1,601 |
In the third to fifth years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total minimum finance lease payments | 3,193 |
Total net finance lease payables | $ 3,087 |
Convertible bonds (Details)
Convertible bonds (Details) | Jul. 07, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 10, 2017$ / shares | Mar. 10, 2017USD ($)$ / shares | Mar. 03, 2017USD ($) | Dec. 07, 2016$ / sharesshares | Jul. 07, 2016$ / shares | Jul. 07, 2016USD ($)$ / sharesshares |
Convertible bonds | |||||||||||
Convertible bonds outstanding | $ 391,401,000 | $ 391,401,000 | $ 392,632,000 | ||||||||
Fixed exchange rate | 7.7677% | ||||||||||
Total interest charged | $ 25,543,000 | 17,793,000 | $ 11,879,000 | ||||||||
Conversion options of convertible bonds exercised during the year | $ 399,099,000 | 10,244,000 | |||||||||
Zero coupon convertible bonds due 2018 | |||||||||||
Convertible bonds | |||||||||||
Coupon interest rate | 0.00% | ||||||||||
Convertible bonds outstanding | $ 0 | ||||||||||
Issue price (as a percentage as a percentage of the aggregate principal amount) | 100.00% | ||||||||||
Conversion price | (per share) | $ 7.965 | $ 1.027 | |||||||||
US$200 million zero coupon convertible bonds due 2018 | |||||||||||
Convertible bonds | |||||||||||
Principal amount | $ 200,000,000 | ||||||||||
US$86.8 million zero coupon convertible bonds due 2018 | |||||||||||
Convertible bonds | |||||||||||
Principal amount | 86,800,000 | ||||||||||
US$95 million zero coupon convertible bonds due 2018 | |||||||||||
Convertible bonds | |||||||||||
Principal amount | 95,000,000 | ||||||||||
US$22.2 million zero coupon convertible bonds due 2018 | |||||||||||
Convertible bonds | |||||||||||
Principal amount | $ 22,200,000 | ||||||||||
US$450 million zero coupon convertible bonds due 2022 (the “2016 Convertible Bonds”) | |||||||||||
Convertible bonds | |||||||||||
Coupon interest rate | 0.00% | ||||||||||
Par value of convertible bonds | $ / shares | $ 250,000 | ||||||||||
Principal amount | $ 450,000,000 | ||||||||||
Term of loan | 6 years | ||||||||||
Interest rate on payment improperly withheld or refused | 2.00% | ||||||||||
Conversion price | $ / shares | $ 9.250 | $ 0.9250 | |||||||||
Conversion period prior to maturity or redemption date | 7 days | ||||||||||
Number of conversion shares issuable | shares | 377,888,108 | 3,778,881,081 | |||||||||
Threshold consecutive trading days | 20 days | ||||||||||
Maximum days from the last threshold consecutive trading date to the redemption notice given date | 10 days | ||||||||||
Threshold stock price (as a percent) | 130.00% | ||||||||||
Minimum percentage of aggregate principal amount to redeem outstanding bonds | 10.00% | ||||||||||
Transaction cost | $ (9,194,000) | ||||||||||
Liability Component | 395,210,000 | $ 403,329,000 | 395,210,000 | $ 387,871,000 | |||||||
Equity Component | 52,935,000 | 52,053,000 | 52,935,000 | 52,935,000 | |||||||
Total | 448,145,000 | 455,382,000 | $ 448,145,000 | $ 440,806,000 | |||||||
Interest charged - Liability Component | 7,339,000 | 14,913,000 | |||||||||
Total interest charged | $ 7,339,000 | $ 14,913,000 | |||||||||
Effective interest rate | 3.78% | ||||||||||
Conversion option exercised | $ (6,794,000) | ||||||||||
Conversion options of convertible bonds exercised during the year | (882,000) | ||||||||||
Total conversion option exercised | $ (7,676,000) | ||||||||||
US$450 million zero coupon convertible bonds due 2022 (the “2016 Convertible Bonds”) | Minimum | |||||||||||
Convertible bonds | |||||||||||
Notice period for redemption for tax reasons | 30 days | ||||||||||
Notice period for redemption at the Option | 45 days | ||||||||||
US$450 million zero coupon convertible bonds due 2022 (the “2016 Convertible Bonds”) | Maximum | |||||||||||
Convertible bonds | |||||||||||
Notice period for redemption for tax reasons | 60 days | ||||||||||
Notice period for redemption at the Option | 60 days |
Bonds payable (Details)
Bonds payable (Details) - USD ($) $ in Thousands | Oct. 07, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 07, 2014 |
Bonds payable | |||||
Bonds payable as at the date of issue | $ 494,909 | $ 493,207 | $ 493,207 | ||
The movement of the corporate bonds | |||||
Beginning balance | 494,909 | 493,207 | |||
Interest charged | 31,144 | 27,992 | 30,257 | ||
Interest payable recognized | (49,165) | (51,029) | (42,475) | ||
Ending balance | 496,689 | 494,909 | 493,207 | ||
Bonds payable | |||||
Bonds payable | |||||
Term of loan | 5 years | ||||
Coupon interest rate | 4.125% | ||||
Principal amount | $ 500,000 | ||||
Discount of bonds payable | (5,185) | ||||
Transaction cost | $ (3,634) | ||||
Bonds payable as at the date of issue | 491,181 | 494,909 | 493,207 | 491,579 | $ 491,181 |
The movement of the corporate bonds | |||||
Beginning balance | 494,909 | 493,207 | 491,579 | ||
Interest charged | 22,405 | 22,327 | 22,253 | ||
Interest payable recognized | (20,625) | (20,625) | (20,625) | ||
Ending balance | $ 491,181 | $ 496,689 | $ 494,909 | $ 493,207 |
Medium-term notes (Details)
Medium-term notes (Details) $ in Thousands, ¥ in Millions | Jun. 08, 2016USD ($) | Jun. 08, 2016CNY (¥) | Jun. 08, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 08, 2016CNY (¥) | Jun. 08, 2016USD ($) |
Movement of the short-term and medium-term notes | |||||||||
Interest charged | $ 25,543 | $ 17,793 | $ 11,879 | ||||||
Foreign exchange gain | 12,694 | 1,640 | $ 26,349 | ||||||
Medium-term notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Term of notes | 3 years | 3 years | |||||||
Principal amount | ¥ 1,500 | $ 226,162 | |||||||
Coupon interest rate | 3.35% | 3.35% | |||||||
Transaction cost | $ (2,226) | ||||||||
Notes payable as at the issue date | 223,936 | ¥ 1,485.2 | $ 223,936 | $ 223,936 | 214,502 | 214,502 | ¥ 1,485.2 | $ 223,936 | |
Movement of the short-term and medium-term notes | |||||||||
As at the date of issue | 223,936 | 214,502 | |||||||
Interest charged | 4,625 | 8,185 | |||||||
Interest payable recognized in 2016 | (4,225) | (7,450) | |||||||
Foreign exchange gain | (9,834) | 13,246 | |||||||
At the year end | $ 223,936 | ¥ 1,485.2 | $ 223,936 | $ 214,502 | $ 228,483 | $ 214,502 |
Other financial liabilities (De
Other financial liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial liabilities [line items] | |||
Current derivatives | $ 744 | $ 6,348 | $ 1,459 |
Other financial liabilities | 2,663 | 80,518 | 1,459 |
Cross currency swap | |||
Disclosure of financial liabilities [line items] | |||
Current derivatives | $ 1,459 | ||
Foreign currency forward | |||
Disclosure of financial liabilities [line items] | |||
Current derivatives | 2 | ||
Cash flow hedges | Cross currency swap | |||
Disclosure of financial liabilities [line items] | |||
Non-current derivatives | 1,919 | 74,170 | |
Current derivatives | $ 742 | $ 6,348 |
Other Liabilities - Components
Other Liabilities - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other liabilities | |||
Bonus accrued | $ 48,000 | ||
Defined benefit obligation | $ 28,162 | $ 24,213 | |
Contingent Consideration | 12,549 | ||
Others — non-current | 59,106 | 13,284 | 17,761 |
Total other liabilities | 99,817 | 37,497 | 65,761 |
Others – current | 40,627 | ||
Total | $ 140,444 | $ 37,497 | $ 65,761 |
Other Liabilities - Amounts Rec
Other Liabilities - Amounts Recognized and Movements in Net Defined Benefit Obligation (Details) - Foreign defined benefit plan $ in Thousands | 5 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016USD ($) | Jun. 30, 2007employee | Dec. 31, 2017USD ($) | |
Minimum | |||
Defined Benefit Plan Obligation | |||
Threshold of employees for which funds were obligated to be transferred under amendments of Italian legislation | employee | 50 | ||
Defined benefit obligation | |||
Amounts recognized in statement of financial position and movements in net defined benefit obligation | |||
Balance at beginning of period | $ 27,569 | $ 24,213 | |
Interest expense recognized in profit or loss | 87 | 376 | |
Actuarial (gains)/losses recognized in other comprehensive income | (1,520) | 436 | |
Exchange differences | (1,875) | 3,455 | |
Contribution to employees | (48) | (318) | |
Balance at end of period | $ 24,213 | $ 28,162 |
Other Liabilities - Significant
Other Liabilities - Significant actuarial assumptions (Details) - Foreign defined benefit plan - employee | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan | ||
Discount rate (as a percent) | 1.18% | 1.37% |
Inflation rate (as a percent) | 1.50% | 1.50% |
Salary growth rate (as a percent) | 1.50% | 1.50% |
Labor turnover rate (as a percent) | 2.65% | 2.65% |
Probability of request of advances of TFR (as a percent) | 1.50% | 1.50% |
Percentage required in case of advance (as a percent) | 70.00% | 70.00% |
Number of employees with TFR | 1,485 | 1,421 |
Average age (in years) | 47 years | 46 years |
Average seniority (in years) | 20 years | 20 years |
Other Liabilities - Sensitivity
Other Liabilities - Sensitivity Analysis of Defined Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2017 |
Sensitivity analysis of defined benefit obligation | ||
Current portion of long-term payables | $ 40,600 | |
Non current portion of long-term payables | 57,500 | |
Contingent Consideration | $ 12,549 | |
Discount rate | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Rate increase (as a percent) | 0.50% | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | (6.05%) | (5.85%) |
Rate decrease (as a percent) | (0.50%) | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | 6.61% | 6.38% |
Payments rate | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Rate increase (as a percent) | 20.00% | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | (0.57%) | (0.65%) |
Rate decrease (as a percent) | (20.00%) | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | 0.63% | 0.71% |
Inflation rate | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Rate increase (as a percent) | 0.50% | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | 3.94% | 3.80% |
Rate decrease (as a percent) | (0.50%) | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | (3.86%) | (3.72%) |
Salary growth rate | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Rate increase (as a percent) | 0.50% | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | 0.00% | 0.00% |
Rate decrease (as a percent) | (0.50%) | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | 0.00% | 0.00% |
Retirement age | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Increase (in years) | 1 year | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | 0.38% | 0.49% |
Decrease (in years) | 1 year | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | (0.40%) | (0.52%) |
Longevity | Foreign defined benefit plan | ||
Sensitivity analysis of defined benefit obligation | ||
Increase (in years) | 1 year | |
Var. (Increase (decrease) in defined benefit obligation) due to increase in assumption (as a percent) | 0.00% | 0.00% |
Decrease (in years) | 1 year | |
Var. (Increase (decrease) in defined benefit obligation) due to decrease in assumption (as a percent) | 0.00% | 0.00% |
Suzhou Changjiang Electric Xinke Investment Co., Ltd. ("Changjiang Xinke") | ||
Sensitivity analysis of defined benefit obligation | ||
Contingent Consideration | $ 12,500 |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ifrs Statement [Line Items] | |||
Trade payables | $ 837,843 | $ 781,161 | $ 885,438 |
Advance receipts from customers | 65,044 | 60,157 | 72,865 |
Deposit received | 54,895 | 41,324 | 47,468 |
Other payable | 92,678 | 57,911 | 41,995 |
Total trade and other payables | 1,050,460 | 940,553 | 1,047,766 |
Payables for property, plant, and equipment | 506,700 | 483,000 | 660,700 |
Neither past due nor impaired/ Current | |||
ifrs Statement [Line Items] | |||
Trade payables | 705,835 | 659,094 | 814,553 |
Within 30 days | |||
ifrs Statement [Line Items] | |||
Trade payables | 658,804 | 630,896 | 788,936 |
Within 30 days | Past due but not impaired | |||
ifrs Statement [Line Items] | |||
Trade payables | 46,318 | 55,394 | 24,554 |
31-60 days | |||
ifrs Statement [Line Items] | |||
Trade payables | 68,358 | 43,984 | 36,596 |
31-60 days | Past due but not impaired | |||
ifrs Statement [Line Items] | |||
Trade payables | 22,052 | 7,658 | 10,458 |
Over 60 days | |||
ifrs Statement [Line Items] | |||
Trade payables | 110,681 | 106,281 | 59,906 |
Over 60 days | Past due but not impaired | |||
ifrs Statement [Line Items] | |||
Trade payables | $ 63,638 | $ 59,015 | $ 35,873 |
Minimum | |||
ifrs Statement [Line Items] | |||
Settlement term on trade payables | 30 days | ||
Maximum | |||
ifrs Statement [Line Items] | |||
Settlement term on trade payables | 60 days |
Accrued liabilities (Details)
Accrued liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued liabilities | |||
Accrued liabilities | $ 180,912 | $ 230,450 | $ 132,452 |
Accrued payroll expenses | $ 116,700 | $ 163,600 | $ 71,500 |
Share-based payments - Stock in
Share-based payments - Stock incentive plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 07, 2016$ / shares | Dec. 06, 2016$ / shares | |
Share-based payments | |||||
Expense arising from equity-settled share-based payment transactions | $ | $ 18,214 | $ 14,210 | $ 18,329 | ||
Share consolidation ratio | 10 | ||||
Par value per share | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 |
Stock Option Plan | |||||
Share-based payments | |||||
Award term | 10 years | ||||
Vesting period | 4 years | ||||
Share consolidation ratio | 10 | ||||
Par value per share | $ 0.004 | 0.0004 | |||
RSUs | |||||
Share-based payments | |||||
Award term | 10 years | ||||
Vesting period | 4 years | ||||
Share consolidation ratio | 10 | ||||
Par value per share | $ 0.004 | $ 0.0004 | |||
Subsidiary Plan | |||||
Share-based payments | |||||
Award term | 10 years | ||||
Vesting period | 4 years |
Share-based payments - Movement
Share-based payments - Movements during the year - Share options (Details) - Stock Option Plan | 11 Months Ended | 12 Months Ended | |||||||||||
Dec. 06, 2016USD ($)Options | Dec. 31, 2017USD ($)OptionsY | Dec. 31, 2016USD ($)OptionsY | Dec. 31, 2015USD ($)OptionsY | Sep. 07, 2017USD ($) | May 22, 2017USD ($) | Apr. 05, 2017USD ($) | Nov. 18, 2016USD ($) | Sep. 12, 2016USD ($) | May 25, 2016USD ($) | Sep. 11, 2015USD ($) | May 20, 2015USD ($) | Feb. 24, 2015USD ($) | |
Share-based payments | |||||||||||||
Outstanding at beginning of period | Options | 100,295,578 | 72,482,764 | 100,295,578 | 116,362,727 | |||||||||
Granted during the period | Options | 6,071,477 | 2,076,652 | 5,656,526 | ||||||||||
Forfeited and expired during the period | Options | (3,842,461) | (6,430,431) | (8,792,890) | ||||||||||
Exercised during the period | Options | (21,830,502) | (23,459,035) | (12,930,785) | ||||||||||
Outstanding at end of period | Options | 52,881,278 | 72,482,764 | 100,295,578 | ||||||||||
Exercisable at end of period | Options | 39,511,002 | 50,708,535 | 51,319,799 | ||||||||||
Outstanding at beginning of period, WAEP | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.84 | |||||||||
Granted during the period, WAEP | 1.14 | 0.92 | 1.02 | ||||||||||
Forfeited and expired during the period. WAEP | 1.33 | 1.16 | 1.37 | ||||||||||
Exercised during the period, WAEP | 0.78 | 0.75 | 0.67 | ||||||||||
Outstanding at end of period, WAEP | 0.83 | 0.82 | 0.82 | ||||||||||
Exercisable at end of period, WAEP | $ 0.78 | $ 0.77 | $ 0.80 | ||||||||||
Weighted average remaining contractual life | Y | 5.21 | 5.29 | 6.04 | ||||||||||
Weighted average closing price prior to exercise | $ 1.44 | $ 1.24 | $ 1.07 | ||||||||||
Fair value at grant date | $ 0.40 | $ 0.42 | $ 0.56 | $ 0.52 | $ 0.42 | $ 0.36 | $ 0.54 | $ 0.44 | $ 0.36 | ||||
Dividend yield (%) | 0.00% | 0.00% | 0.00% | ||||||||||
Expected volatility | 42.80% | 44.80% | 46.13% | ||||||||||
Risk-free interest rate | 1.84% | 1.39% | 1.61% | ||||||||||
Expected life of share options | Y | 6 | 6 | 6 | ||||||||||
Minimum | |||||||||||||
Share-based payments | |||||||||||||
Exercise prices for shares outstanding | $ 0.23 | $ 0.23 | $ 0.23 | ||||||||||
Maximum | |||||||||||||
Share-based payments | |||||||||||||
Exercise prices for shares outstanding | $ 1.38 | $ 1.48 | $ 1.52 |
Share-based payments - Movem162
Share-based payments - Movements during the year - RSUs (Details) - RSUs | Dec. 07, 2017USD ($) | Sep. 07, 2017USD ($) | May 22, 2017USD ($) | Apr. 05, 2017USD ($) | Nov. 18, 2016USD ($) | Sep. 12, 2016USD ($) | May 25, 2016USD ($) | Nov. 23, 2015USD ($) | Sep. 11, 2015USD ($) | May 20, 2015USD ($) | Dec. 06, 2016USD ($)EquityInstruments | Dec. 31, 2017USD ($)EquityInstrumentsY | Dec. 31, 2016USD ($)EquityInstrumentsY | Dec. 31, 2015USD ($)EquityInstrumentsY |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||
Outstanding at beginning of period | EquityInstruments | 30,451,268 | 26,489,152 | 30,451,268 | 27,405,767 | ||||||||||
Granted during the period | EquityInstruments | 14,055,477 | 8,738,247 | 14,685,298 | |||||||||||
Forfeited during the period | EquityInstruments | (950,412) | (1,124,847) | (1,342,168) | |||||||||||
Exercised during the period | EquityInstruments | (10,893,120) | (11,575,516) | (10,297,629) | |||||||||||
Outstanding at end of period | EquityInstruments | 28,701,097 | 26,489,152 | 30,451,268 | |||||||||||
Outstanding at beginning of period, WAFV | $ 0.99 | $ 0.98 | $ 0.99 | $ 0.87 | ||||||||||
Granted during the period, WAFV | $ 1.31 | $ 1.01 | $ 1.09 | $ 1.24 | $ 1.39 | $ 1.11 | $ 0.82 | $ 1.11 | $ 0.89 | $ 1.07 | 1.11 | 0.86 | 1.06 | |
Forfeited during the period, WAFV | 1.04 | 0.98 | 0.96 | |||||||||||
Exercised during the period, WAFV | 0.97 | 0.91 | 0.79 | |||||||||||
Outstanding at end of period, WAFV | $ 1.05 | $ 0.98 | $ 0.99 | |||||||||||
Weighted average remaining contractual life | 8 years 6 months 4 days | 8 years 4 months 13 days | 8 years 8 months 9 days | |||||||||||
Weighted average closing price prior to exercise | $ 1.29 | $ 0.83 | $ 0.94 | |||||||||||
Dividend yield (%) | 0.00% | 0.00% | 0.00% | |||||||||||
Expected volatility | 39.45% | 39.66% | 37.07% | |||||||||||
Risk-free interest rate | 1.24% | 0.90% | 0.60% | |||||||||||
Expected life of share options | Y | 2 | 2 | 2 |
Share-based payments - Movem163
Share-based payments - Movements during the year - Share options of the Subsidiary Plan (Details) - Subsidiary Plan | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)OptionsY | Dec. 31, 2016USD ($)OptionsY | Dec. 31, 2015USD ($)OptionsY | Dec. 27, 2016USD ($) | Sep. 15, 2015USD ($) | May 04, 2015USD ($) | Jan. 01, 2015USD ($) | |
Share-based payments | |||||||
Outstanding at beginning of period | Options | 14,598,750 | 7,000,000 | |||||
Granted during the period | Options | 1,598,750 | 7,698,750 | 8,330,000 | ||||
Forfeited and expired during the period | Options | (934,948) | (100,000) | (1,192,500) | ||||
Exercised during the period | Options | (343,750) | (137,500) | |||||
Outstanding at end of period | Options | 14,918,802 | 14,598,750 | 7,000,000 | ||||
Exercisable at end of period | Options | 7,079,401 | 3,297,135 | 689,479 | ||||
Outstanding at beginning of period, WAEP | $ 0.19 | $ 0.06 | |||||
Granted during the period, WAEP | 0.31 | 0.31 | $ 0.06 | ||||
Forfeited and expired during the period. WAEP | 0.05 | 0.05 | 0.06 | ||||
Exercised during the period, WAEP | 0.25 | 0.05 | |||||
Outstanding at end of period, WAEP | 0.20 | 0.19 | 0.06 | ||||
Exercisable at end of period, WAEP | $ 0.15 | $ 0.07 | $ 0.05 | ||||
Weighted average remaining contractual life | Y | 8.3 | 9.2 | 9.1 | ||||
Fair value at grant date | $ 0.11 | $ 0.14 | $ 0.099 | $ 0.069 | $ 0.069 | ||
Dividend yield (%) | 0.00% | 0.00% | 0.00% | ||||
Expected volatility | 32.00% | 41.50% | 36.00% | ||||
Risk-free interest rate | 1.90% | 2.10% | 1.01% | ||||
Expected life of share options | Y | 6 | 6 | 3 | ||||
Minimum | |||||||
Share-based payments | |||||||
Exercise prices for shares outstanding | $ 0.05 | $ 0.05 | $ 0.05 | ||||
Maximum | |||||||
Share-based payments | |||||||
Exercise prices for shares outstanding | $ 0.31 | $ 0.31 | $ 0.08 |
Financial instruments - Gearing
Financial instruments - Gearing Ratio (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial instruments | ||||
Debt | $ 3,313,048 | $ 3,025,283 | $ 1,414,943 | |
Cash and cash equivalent | (1,838,300) | (2,126,011) | (1,005,201) | $ (603,036) |
Other financial assets - current | (683,812) | (31,543) | (282,880) | |
Net debt | 790,936 | 867,729 | 126,862 | |
Equity | $ 6,721,335 | $ 5,403,227 | $ 4,190,255 | $ 3,307,722 |
Net debt to equity ratio | 11.80% | 16.10% | 1.30% |
Financial instruments - Foreign
Financial instruments - Foreign Currency Risk Management (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Liabilities | $ 5,197,116 | $ 4,712,051 | $ 2,925,092 |
Assets | 11,918,451 | 10,115,278 | 7,115,347 |
EUR | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Liabilities | 125,171 | 112,827 | 76,462 |
Assets | 72,181 | 39,619 | 33,968 |
JPY | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Liabilities | 30,422 | 41,976 | 5,553 |
Assets | 29,245 | 35,237 | 2,986 |
RMB | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Liabilities | 2,410,284 | 2,714,492 | 586,931 |
Assets | 1,765,846 | 1,633,433 | 909,497 |
Others | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Liabilities | 43,824 | 27,083 | 14,127 |
Assets | $ 8,688 | $ 3,860 | $ 2,529 |
Financial instruments - Fore166
Financial instruments - Foreign Currency Sensitivity Analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Foreign currency sensitivity analysis percentage (as a percent) | 5.00% | 5.00% | 5.00% |
EUR | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Profit or loss | $ (2,650) | $ (3,660) | $ (2,125) |
Equity | (2,650) | (3,660) | (2,125) |
JPY | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Profit or loss | (62) | (355) | (128) |
Equity | (62) | (355) | (128) |
RMB | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Profit or loss | (33,918) | (6,611) | 16,128 |
Equity | (33,918) | (6,611) | 16,128 |
Others | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Profit or loss | (1,848) | (1,222) | (580) |
Equity | $ (1,848) | $ (1,222) | $ (580) |
Financial instruments - Forward
Financial instruments - Forward Foreign Exchange Contracts (Details) - Foreign currency forward € in Thousands, ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Disclosure of financial assets [line items] | |||||
Notional amount | $ 98,381 | $ 42,872 | |||
EUR | Less than 3 months | |||||
Disclosure of financial assets [line items] | |||||
Average exchange rate | 1.2019 | 1.2019 | 1.2019 | 1.0895 | 1.0895 |
Notional amount | € 2,080 | $ 2,500 | € 39,192 | $ 42,872 | |
RMB | Less than 3 months | |||||
Disclosure of financial assets [line items] | |||||
Average exchange rate | 6.7622 | 6.7622 | 6.7622 | ||
Notional amount | ¥ 648,364 | $ 95,881 | |||
Financial assets at FVTPL | Recurring fair value measurement | |||||
Disclosure of financial assets [line items] | |||||
Net Fair value assets (liabilities) | 2,109 | 172 | |||
Financial assets at FVTPL | Recurring fair value measurement | EUR | Less than 3 months | |||||
Disclosure of financial assets [line items] | |||||
Net Fair value assets (liabilities) | (2) | $ 172 | |||
Financial assets at FVTPL | Recurring fair value measurement | RMB | Less than 3 months | |||||
Disclosure of financial assets [line items] | |||||
Net Fair value assets (liabilities) | $ 2,111 |
Financial instruments - Cross C
Financial instruments - Cross Currency Swap Contracts - Short-term and Medium-term Notes (Details) ¥ in Millions, $ in Millions | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Short-term and medium-term notes | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Principal amount | ¥ 3,714 | $ 568.4 | ¥ 5,447 | $ 785.2 | ¥ 480 | $ 74 |
Financial instruments - Cros169
Financial instruments - Cross Currency Swap Contracts - Notional Amounts and Loss of Fair Value (Details) - Cross currency swap $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | |
Disclosure of financial liabilities [line items] | |||||
Notional value | $ 854,404 | $ 73,966 | ¥ 6,398 | $ 979,156 | |
Gain recognized in other gains or losses, net (hedging instrument) | $ 2,200 | ||||
Losses on financial liabilities at fair value through profit or loss | $ 15,000 | $ 1,500 |
Financial instruments - Amounts
Financial instruments - Amounts Recognized in Profit or Loss and Other Comprehensive Income or Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial instruments | ||
Total fair value gain (loss) included in other comprehensive income (loss) | $ 95,185 | $ (66,861) |
Reclassified from other comprehensive income (loss) to offset foreign exchange gains or losses | (60,042) | 32,234 |
Other comprehensive income (losses) on cash flow hedges recognized during the year | $ 35,143 | $ (34,627) |
Financial instruments - Cros171
Financial instruments - Cross Currency Swap Contracts - Outstanding Contracts (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Disclosure of financial liabilities [line items] | ||||||
Assets | $ 11,918,451 | $ 10,115,278 | $ 7,115,347 | |||
Liabilities | (5,197,116) | (4,712,051) | (2,925,092) | |||
RMB | ||||||
Disclosure of financial liabilities [line items] | ||||||
Assets | 1,765,846 | 1,633,433 | 909,497 | |||
Liabilities | (2,410,284) | (2,714,492) | (586,931) | |||
Cross currency swap | ||||||
Disclosure of financial liabilities [line items] | ||||||
Notional value | ¥ 6,398,000 | $ 979,156 | $ 854,404 | $ 73,966 | ||
Cross currency swap | RMB | 3 months to 1 year | ||||||
Disclosure of financial liabilities [line items] | ||||||
Average exchange rate | 6.6369 | 6.6369 | 6.6592 | 6.6592 | ||
Notional value | ¥ 1,040,000 | $ 159,163 | ¥ 787,000 | $ 113,450 | ||
Cross currency swap | RMB | 1 year to 5 years | ||||||
Disclosure of financial liabilities [line items] | ||||||
Average exchange rate | 6.6356 | 6.6356 | 6.5830 | 6.5830 | 6.436 | 6.436 |
Notional value | ¥ 5,358,000 | $ 819,993 | ¥ 5,140,000 | $ 740,954 | ¥ 480,000 | $ 73,966 |
Financial liabilities at FVTPL | Recurring fair value measurement | ||||||
Disclosure of financial liabilities [line items] | ||||||
Liabilities | (15,212) | (80,518) | (1,459) | |||
Financial liabilities at FVTPL | Recurring fair value measurement | Cross currency swap | ||||||
Disclosure of financial liabilities [line items] | ||||||
Assets | 19,676 | |||||
Liabilities | (2,661) | (80,518) | (1,459) | |||
Financial liabilities at FVTPL | Recurring fair value measurement | Cross currency swap | RMB | 3 months to 1 year | ||||||
Disclosure of financial liabilities [line items] | ||||||
Assets | 3,997 | |||||
Liabilities | (6,348) | |||||
Financial liabilities at FVTPL | Recurring fair value measurement | Cross currency swap | RMB | 1 year to 5 years | ||||||
Disclosure of financial liabilities [line items] | ||||||
Assets | $ 15,679 | |||||
Liabilities | $ (74,170) | $ (1,459) |
Financial instruments - Interes
Financial instruments - Interest Rate Sensitivity Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Interest rate sensitivity analysis percentage (as a percent) | 0.10% | 0.10% | 0.10% |
Increase (decrease) in profit | $ 0.4 | $ (0.5) | $ (0.4) |
Financial instruments - Credit
Financial instruments - Credit Risk Management (Details) - customer | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of major customers [line items] | |||
Number of large customer not having significant credit risk | 4 | ||
Threshold percentage | 5.00% | 5.00% | 5.00% |
Customer A | Maximum | |||
Disclosure of major customers [line items] | |||
Percentage of entity's gross monetary assets (as a percent) | 5.00% | ||
Customer B | Maximum | |||
Disclosure of major customers [line items] | |||
Percentage of entity's gross monetary assets (as a percent) | 4.00% | ||
Customer C | Maximum | |||
Disclosure of major customers [line items] | |||
Percentage of entity's gross monetary assets (as a percent) | 1.00% | ||
Customer D | Maximum | |||
Disclosure of major customers [line items] | |||
Percentage of entity's gross monetary assets (as a percent) | 1.00% | ||
Other customers | Maximum | |||
Disclosure of major customers [line items] | |||
Percentage of entity's gross monetary assets (as a percent) | 1.00% |
Financial instruments - Liquidi
Financial instruments - Liquidity and Interest Risk Tables - Non-derivative Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds, weighted average effective interest rate (as a percent) | 3.79% | ||
Convertible bonds | $ 442,500 | $ 843,200 | $ 404,000 |
Bonds payable, weighted average effective interest rate (as a percent) | 4.52% | 4.52% | 4.52% |
Bonds payable | $ 500,000 | $ 500,000 | $ 500,000 |
Medium-term notes, weighted average effective interest rate (as a percent) | 3.70% | 3.70% | |
Medium-term notes | $ 226,162 | $ 226,162 | |
Short-term notes, weighted average effective interest rate (as a percent) | 2.99% | ||
Short-term notes | $ 90,465 | ||
Finance lease payables, weighted average effective interest rate (as a percent) | 3.68% | 3.68% | |
Finance lease payables | $ 6,677 | $ 7,647 | |
Trade and other payables | 1,050,460 | 940,553 | 1,047,766 |
Contingent consideration | 12,549 | ||
Non-derivative financial liabilities | $ 4,425,407 | $ 4,124,566 | $ 2,613,501 |
Fixed interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings, weighted average effective interest rate (as a percent) | 3.20% | 2.50% | 1.69% |
Interest-bearing bank and other borrowings | $ 817,224 | $ 653,313 | $ 431,047 |
Floating interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings, weighted average effective interest rate (as a percent) | 2.36% | 2.62% | 4.98% |
Interest-bearing bank and other borrowings | $ 1,369,835 | $ 863,226 | $ 230,688 |
Minimum | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds, weighted average effective interest rate (as a percent) | 2.78% | 2.78% | |
Maximum | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds, weighted average effective interest rate (as a percent) | 3.79% | 3.79% | |
Less than 3 months | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds | $ 393,200 | ||
Finance lease payables | 434 | 382 | |
Trade and other payables | 880,795 | 915,840 | $ 920,426 |
Non-derivative financial liabilities | 1,038,279 | 1,446,189 | 963,389 |
Less than 3 months | Fixed interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 140,338 | 130,728 | 42,963 |
Less than 3 months | Floating interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 16,712 | 6,039 | |
3 months to 1 year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds | 404,000 | ||
Short-term notes | 90,465 | ||
Finance lease payables | 1,308 | 1,147 | |
Trade and other payables | 5,492 | 1,353 | 28,508 |
Non-derivative financial liabilities | 119,310 | 167,041 | 504,452 |
3 months to 1 year | Fixed interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 24,757 | 6,729 | |
3 months to 1 year | Floating interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 87,753 | 67,347 | 71,944 |
1 year to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Convertible bonds | 442,500 | 450,000 | |
Bonds payable | 500,000 | 500,000 | 500,000 |
Medium-term notes | 226,162 | 226,162 | |
Finance lease payables | 4,935 | 6,118 | |
Trade and other payables | 161,169 | 21,706 | 5,350 |
Contingent consideration | 12,549 | ||
Non-derivative financial liabilities | 2,619,179 | 2,120,519 | 813,347 |
1 year to 5 years | Fixed interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 313,497 | 131,474 | 149,253 |
1 year to 5 years | Floating interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 958,367 | 785,059 | 158,744 |
Over 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade and other payables | 3,004 | 1,654 | 93,482 |
Non-derivative financial liabilities | 648,639 | 390,817 | 332,313 |
Over 5 years | Fixed interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | 338,632 | 384,382 | $ 238,831 |
Over 5 years | Floating interest rate [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest-bearing bank and other borrowings | $ 307,003 | $ 4,781 |
Financial instruments - Liqu175
Financial instruments - Liquidity and Interest Risk Tables - Non-derivative Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets [line items] | |||
Trade and other receivables | $ 616,308 | $ 645,822 | $ 499,846 |
Cash and cash equivalent, restricted cash & short-term investments, weighted average effective interest rate (as a percent) | 1.25% | 1.19% | 2.12% |
Cash and cash equivalent, restricted cash & short-term investments | $ 2,624,094 | $ 2,502,221 | $ 1,594,730 |
Available for sale financial assets | 24,844 | 21,966 | 19,750 |
Non-derivative financial assets | 3,265,246 | 3,170,009 | 2,114,326 |
Less than 3 months | |||
Disclosure of financial assets [line items] | |||
Trade and other receivables | 616,308 | 645,822 | 499,846 |
Cash and cash equivalent, restricted cash & short-term investments | 2,231,089 | 2,000,717 | 1,549,692 |
Non-derivative financial assets | 2,847,397 | 2,646,539 | 2,049,538 |
3 months to 1 year | |||
Disclosure of financial assets [line items] | |||
Cash and cash equivalent, restricted cash & short-term investments | 276,723 | 480,379 | 45,038 |
Non-derivative financial assets | 276,723 | 480,379 | 45,038 |
1 year to 5 years | |||
Disclosure of financial assets [line items] | |||
Cash and cash equivalent, restricted cash & short-term investments | 116,282 | 21,125 | |
Non-derivative financial assets | 116,282 | 21,125 | |
Over 5 years | |||
Disclosure of financial assets [line items] | |||
Available for sale financial assets | 24,844 | 21,966 | 19,750 |
Non-derivative financial assets | $ 24,844 | $ 21,966 | $ 19,750 |
Financial instruments - Short-t
Financial instruments - Short-term Financing Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | |||
Undrawn borrowing facilities | $ 1,810.2 | $ 1,873.8 | $ 1,351.7 |
Financial instruments - Liqu177
Financial instruments - Liquidity and Interest Risk Tables - Derivative Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | $ 58,116 | $ 4,381 | |
3 months to 1 year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 6,303 | ||
1 year to 5 years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 51,813 | 4,381 | |
Cross currency swap | Cash flow hedges | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | $ 2,351 | 4,381 | |
Cross currency swap | Cash flow hedges | Gross settled, inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 549,770 | 474,385 | |
Cross currency swap | Cash flow hedges | Gross settled, (outflows) | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | (515,238) | (469,204) | |
Cross currency swap | Cash flow hedges | Net settled, net inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 23,584 | ||
Derivative financial liabilities | (2,830) | ||
Cross currency swap | Cash flow hedges | 3 months to 1 year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | (3,107) | ||
Cross currency swap | Cash flow hedges | 3 months to 1 year | Gross settled, inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 37,703 | 71,120 | |
Cross currency swap | Cash flow hedges | 3 months to 1 year | Gross settled, (outflows) | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | (34,254) | (72,872) | |
Cross currency swap | Cash flow hedges | 3 months to 1 year | Net settled, net inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 2,854 | ||
Derivative financial liabilities | (1,355) | ||
Cross currency swap | Cash flow hedges | 1 year to 5 years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 5,458 | $ 4,381 | |
Cross currency swap | Cash flow hedges | 1 year to 5 years | Gross settled, inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | 512,067 | 403,265 | |
Cross currency swap | Cash flow hedges | 1 year to 5 years | Gross settled, (outflows) | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | (480,984) | (396,332) | |
Cross currency swap | Cash flow hedges | 1 year to 5 years | Net settled, net inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial assets | $ 20,730 | ||
Derivative financial liabilities | $ (1,475) |
Financial instruments - Fair Va
Financial instruments - Fair Value Hierarcy Transfers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Assets, transfers out of Level 1 into Level 2 | $ 0 | $ 0 | $ 0 |
Assets, transfers out of Level 2 into Level 1 | 0 | 0 | 0 |
Assets, transfers into Level 3 | 0 | 0 | 0 |
Assets, transfers out of Level 3 | 0 | 0 | 0 |
Liabilities, transfers out of Level 1 into Level 2 | 0 | 0 | 0 |
Liabilities, transfers out of Level 2 into Level 1 | 0 | 0 | 0 |
Liabilities, transfers into Level 3 | 0 | 0 | 0 |
Liabilities, transfers out of Level 3 | $ 0 | $ 0 | $ 0 |
Financial instruments - Fair179
Financial instruments - Fair Value Measurements Recognized in the Consolidated Statement of Financial Position - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [line items] | |||
Assets | $ 11,918,451 | $ 10,115,278 | $ 7,115,347 |
Financial assets at FVTPL | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 165,041 | 78,605 | 306,401 |
Financial assets at FVTPL | Level 1 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2,531 | 4,713 | 3,300 |
Financial assets at FVTPL | Level 2 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 142,376 | 24,931 | 257,755 |
Financial assets at FVTPL | Level 3 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 20,134 | 48,961 | 45,346 |
Financial assets at FVTPL | Financial products | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 117,928 | 24,931 | 257,583 |
Financial assets at FVTPL | Financial products | Level 2 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 117,928 | 24,931 | 257,583 |
Financial assets at FVTPL | Foreign currency forward | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2,111 | 172 | |
Financial assets at FVTPL | Foreign currency forward | Level 2 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2,111 | 172 | |
Financial assets at FVTPL | Available-for-sale investment, level 1 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2,531 | 4,713 | 3,300 |
Financial assets at FVTPL | Available-for-sale investment, level 1 | Level 1 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2,531 | 4,713 | 3,300 |
Financial assets at FVTPL | Available-for-sale investment, level 3 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 20,134 | 16,067 | 15,173 |
Financial assets at FVTPL | Available-for-sale investment, level 3 | Level 3 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 20,134 | 16,067 | 15,173 |
Financial assets at FVTPL | Cross currency swap | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 22,337 | ||
Financial assets at FVTPL | Cross currency swap | Level 2 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | $ 22,337 | ||
Financial assets at FVTPL | Put option | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 32,894 | 30,173 | |
Financial assets at FVTPL | Put option | Level 3 | Recurring fair value measurement | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | $ 32,894 | $ 30,173 |
Financial instruments - Fair180
Financial instruments - Fair Value Measurements Recognized in the Consolidated Statement of Financial Position - Assets - Key Input (Details) - Put option - Option pricing model [member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Exercise multiple | 0.75 | 0.75 |
Risk free rate of interest (as a percent) | 1.20% | 1.20% |
Expected volatility (as a percent) | 46.80% | 46.80% |
Rate of return (as a percent) | 10.00% | 10.00% |
Financial instruments - Fair181
Financial instruments - Fair Value Measurements Recognized in the Consolidated Statement of Financial Position - Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | $ 5,197,116 | $ 4,712,051 | $ 2,925,092 |
Recurring fair value measurement | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 15,212 | 80,518 | 1,459 |
Recurring fair value measurement | Level 2 | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 2,663 | 80,518 | 1,459 |
Recurring fair value measurement | Level 3 | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 12,549 | ||
Recurring fair value measurement | Cross currency swap | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 2,661 | 80,518 | 1,459 |
Recurring fair value measurement | Cross currency swap | Level 2 | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 2,661 | $ 80,518 | $ 1,459 |
Recurring fair value measurement | Foreign currency forward | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 2 | ||
Recurring fair value measurement | Foreign currency forward | Level 2 | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 2 | ||
Recurring fair value measurement | Contingent consideration | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | 12,549 | ||
Recurring fair value measurement | Contingent consideration | Level 3 | Financial liabilities at FVTPL | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Liabilities | $ 12,549 |
Cash flow information (Details)
Cash flow information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | $ 3,105,801 |
Net cash flows in financing activities | 569,785 |
Conversion option exercised | (399,099) |
Foreign exchange loss | 98,747 |
Other non-cash movement | (81,862) |
Balance at end of period | 3,293,372 |
Non cash acquisition of tangible and intangible assets | 97,600 |
Short-term borrowings | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 176,957 |
Net cash flows in financing activities | 127,715 |
Foreign exchange loss | 3,639 |
Balance at end of period | 308,311 |
Long-term borrowings | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 1,265,811 |
Net cash flows in financing activities | 529,928 |
Foreign exchange loss | 80,497 |
Balance at end of period | 1,876,236 |
Disposals | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 786,611 |
Conversion option exercised | (399,099) |
Other non-cash movement | 15,817 |
Balance at end of period | 403,329 |
Convertible bonds | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 494,909 |
Other non-cash movement | 1,780 |
Balance at end of period | 496,689 |
Bonds payable | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 214,502 |
Foreign exchange loss | 13,246 |
Other non-cash movement | 735 |
Balance at end of period | 228,483 |
Medium-term notes | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 86,493 |
Net cash flows in financing activities | (87,858) |
Foreign exchange loss | 1,365 |
Currency swap contracts classified as other financial assets | |
Reconciliation of liabilities arising from financing activities | |
Other non-cash movement | (22,337) |
Balance at end of period | (22,337) |
Currency swap contracts classified as other financial liabilities | |
Reconciliation of liabilities arising from financing activities | |
Balance at beginning of period | 80,518 |
Other non-cash movement | (77,857) |
Balance at end of period | $ 2,661 |
Business combination - Narrativ
Business combination - Narrative and Assets and Liabilities Recognized (Details) - LFoundry S.r.l. ("LFoundry") $ in Thousands, € in Millions | Jul. 29, 2016USD ($) | Jun. 24, 2016EUR (€) |
Business combination | ||
Percentage of equity interests acquired | 70.00% | 70.00% |
Acquisition consideration | $ 54,366 | € 49 |
Assets and liabilities recognized | ||
Property, plant and equipment | 113,119 | |
Intangible assets | 8,088 | |
Restrict cash | 26,042 | |
Other assets | 5,590 | |
Total non-current assets | 152,839 | |
Inventories | 29,252 | |
Prepayment and prepaid operating expenses | 2,864 | |
Trade and other receivables | 34,186 | |
Other financial assets | 111 | |
Cash and cash equivalent | 18,987 | |
Total current assets | 85,400 | |
Total Assets | 238,239 | |
Borrowings | 71,654 | |
Deferred tax liabilities | 15,639 | |
Other long-term liabilities | 35,354 | |
Total non-current liabilities | 122,647 | |
Trade and other payables | 37,005 | |
Borrowings | 4,904 | |
Accrued liabilities | 1,635 | |
Total current liabilities | 43,544 | |
Total Liabilities | 166,191 | |
Total identifiable net assets at fair value | 72,048 | |
Less: non-controlling interests | (21,615) | |
Goodwill on acquisition | 3,933 | |
Satisfied by cash | $ 54,366 | € 49 |
Business combination - Analysis
Business combination - Analysis of Acquisition Cash Flows (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Dec. 31, 2016 |
Business combination | ||
Net cash outflow | $ (73,216) | |
LFoundry S.r.l. ("LFoundry") | ||
Business combination | ||
Cash paid for acquisition | $ (54,366) | |
Other cash consideration | (37,837) | |
Cash and cash equivalent acquired | 18,987 | |
Net cash outflow | $ (73,216) |
Related party transactions - Tr
Related party transactions - Trading Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Datang Microelectronics Technology Co., Ltd. | |||
Related party transactions | |||
Sale of goods | $ 15,667 | $ 14,146 | $ 12,885 |
Datang Semiconductor Co., Ltd. | |||
Related party transactions | |||
Sale of goods | 535 | 464 | 865 |
Leadcore | |||
Related party transactions | |||
Sale of goods | 3,960 | 3,267 | 8,881 |
Toppan SMIC Electronic (Shanghai) Co., Ltd ("Toppan") | |||
Related party transactions | |||
Sale of services | 3,896 | 3,481 | 3,699 |
Purchase of goods | 11,275 | 8,869 | 7,996 |
Purchase of services | 59 | 856 | 3,516 |
Brite | |||
Related party transactions | |||
Sale of goods | 44,212 | 31,506 | 31,379 |
Purchase of goods | 25 | ||
Purchase of services | 2,016 | 2,887 | 2,582 |
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |||
Related party transactions | |||
Sale of goods | 17 | 17 | |
Sale of services | 48 | 9 | |
Purchase of goods | 1,778 | 1,097 | |
Purchase of services | 620 | 1,189 | 869 |
China Fortune-Tech Capital Co., Ltd ("China Fortune-Tech") | |||
Related party transactions | |||
Sale of services | 65 | 60 | |
Purchase of services | 959 | 313 | 938 |
Datang Finance | |||
Related party transactions | |||
Purchase of services | 15 | ||
Sino IC Leasing Co., Ltd. ("Sino IC Leasing") | |||
Related party transactions | |||
Purchase of services | $ 51,739 | ||
Zhongxin Xiecheng Investment (Beijing) Co., Ltd ("Zhongxin Xiecheng") | |||
Related party transactions | |||
Purchase of services | $ 4 | $ 1,199 |
Related party transactions - Ou
Related party transactions - Outstanding Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Datang Microelectronics Technology Co., Ltd. | |||
Related party transactions | |||
Amounts due from related parties | $ 4,279 | $ 6,354 | $ 5,338 |
Datang Semiconductor Co., Ltd. | |||
Related party transactions | |||
Amounts due from related parties | 302 | 61 | |
Leadcore | |||
Related party transactions | |||
Amounts due from related parties | 1,948 | ||
Amounts due to related parties | 3,667 | ||
Toppan SMIC Electronic (Shanghai) Co., Ltd ("Toppan") | |||
Related party transactions | |||
Amounts due from related parties | 670 | 615 | 317 |
Amounts due to related parties | 888 | 2,414 | 1,148 |
Brite | |||
Related party transactions | |||
Amounts due from related parties | 12,951 | 6,507 | 5,661 |
Amounts due to related parties | 279 | 141 | |
Jiangsu Changjiang Electronics Technology Co., Ltd. (“JCET”) | |||
Related party transactions | |||
Amounts due from related parties | 21 | 27 | |
Amounts due to related parties | $ 3 | 736 | 2 |
China Fortune-Tech Capital Co., Ltd ("China Fortune-Tech") | |||
Related party transactions | |||
Amounts due from related parties | $ 38 | $ 40 |
Related party transactions - Na
Related party transactions - Narrative (Details) $ in Thousands, € in Millions, ¥ in Millions | Dec. 06, 2017shares | Aug. 10, 2017USD ($) | Aug. 09, 2017 | Jul. 20, 2017CNY (¥) | Jul. 20, 2017USD ($) | Jul. 19, 2017CNY (¥) | Jul. 19, 2017USD ($) | Dec. 28, 2015 | Dec. 18, 2015 | Oct. 09, 2015shares | Sep. 25, 2015shares | Jun. 08, 2015shares | Feb. 12, 2015shares | Jul. 31, 2017USD ($)agreement | Feb. 28, 2017USD ($)agreement | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€)agreement | Dec. 31, 2016USD ($)agreement |
Related party transactions | |||||||||||||||||||||||||
Proceeds from disposal of property, plant and equipment | $ | $ 688,192 | $ 259,799 | $ 87,890 | ||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 241,418,625 | 961,849,809 | 323,518,848 | 4,700,000,000 | |||||||||||||||||||||
Outstanding balance | $ | $ 466,232 | $ 1,876,236 | $ 1,265,811 | ||||||||||||||||||||||
Sino IC Leasing (Tianjin) Co., Ltd. | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Number of financing arrangements | agreement | 3 | 2 | 2 | ||||||||||||||||||||||
Proceeds from disposal of property, plant and equipment | $ | $ 250,600 | $ 249,200 | |||||||||||||||||||||||
Xincheng Leasing (Tianjin) Co., Ltd, Xindian Leasing (Tianjin) Co., Ltd and Xinlu Leasing (Tianjin) Co., Ltd | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Number of financing arrangements | agreement | 7 | ||||||||||||||||||||||||
Proceeds from disposal of property, plant and equipment | $ | $ 410,800 | ||||||||||||||||||||||||
Xinxin (Hongkong) Capital Co., Limited | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 4,700,000,000 | ||||||||||||||||||||||||
Country Hill Limited ("Country Hill") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 323,518,848 | ||||||||||||||||||||||||
Datang | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 961,849,809 | ||||||||||||||||||||||||
Datang Finance | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Agreement term (in years) | 3 years | ||||||||||||||||||||||||
Datang Telecom Technology & Industry Holdings Co., Ltd. ("Datang Holdings") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Agreement term (in years) | 3 years | ||||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 961,849,809 | ||||||||||||||||||||||||
Sino IC Leasing Co., Ltd. ("Sino IC Leasing") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Capital contribution made into the registered capital | ¥ 800 | $ 117,800 | ¥ 600 | $ 88,300 | |||||||||||||||||||||
Ownership in entity (as a percent) | 7.44% | 7.44% | |||||||||||||||||||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Ordinary shares issued (in shares) | shares | 4,700,000,000 | ||||||||||||||||||||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Semiconductor Manufacturing North China (Beijing) Corporation ("SMNC") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Capital contribution made into the registered capital | $ | $ 900,000 | $ 636,000 | |||||||||||||||||||||||
Ownership in entity (as a percent) | 32.00% | 26.50% | |||||||||||||||||||||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | SJ Semiconductor (Jiangyin) Corporation ("SJ Jiangyin") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Capital contribution made into the registered capital | $ | $ 50,000 | ||||||||||||||||||||||||
Loans from non-controlling interests shareholders | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Term of loan | 7 years | ||||||||||||||||||||||||
Outstanding balance | € 10.6 | $ 12,750 | $ 1,627 | ||||||||||||||||||||||
Loans from non-controlling interests shareholders | LFoundry S.r.l. ("LFoundry") | |||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||
Term of loan | 7 years | ||||||||||||||||||||||||
Outstanding balance | € 10.6 | $ 12,700 |
Related party transactions - Ke
Related party transactions - Key Management Personnel and Directors (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)directorcontract | Dec. 31, 2015USD ($)person | |
Related party | |||
Short-term benefit | $ 4,853 | $ 4,921 | $ 4,731 |
Share-based payments | 8,264 | 2,762 | 2,618 |
Key management personnel compensation | 13,117 | 7,683 | 7,349 |
Directors | |||
Related party | |||
Share-based payments | 8,158 | $ 2,214 | $ 1,550 |
Number of directors and/or key management | director | 1 | ||
Outstanding consideration per arrangement/contract | $ 1,000 | ||
Directors and key management | |||
Related party | |||
Number of directors and/or key management | person | 4 | ||
Outstanding consideration per arrangement/contract | $ 3,600 | ||
Number of arrangements/contracts completed | contract | 3 | ||
Value of completed arrangements/contracts | $ 2,400 |
Commitments for expenditure - P
Commitments for expenditure - Purchase commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments for expenditure | |||
Commitments for facility construction | $ 484,468 | $ 239,759 | $ 165,274 |
Commitments for the acquisition of property, plant and equipment | 476,132 | 800,597 | 1,146,275 |
Commitments for the acquisition of intangible assets | 5,596 | 5,491 | 29,392 |
Total capital commitments | $ 966,196 | $ 1,045,847 | $ 1,340,941 |
Commitments for expenditure - N
Commitments for expenditure - Non-cancellable operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Non-cancellable operating leases | ||
Total future minimum lease payments | $ 294,865 | $ 69,472 |
Minimum | ||
Non-cancellable operating leases | ||
Terms of leases | 3 years | |
Maximum | ||
Non-cancellable operating leases | ||
Terms of leases | 5 years | |
Within 1 year | ||
Non-cancellable operating leases | ||
Total future minimum lease payments | $ 91,181 | 23,483 |
1 year to 5 years | ||
Non-cancellable operating leases | ||
Total future minimum lease payments | $ 203,684 | $ 45,989 |
Financial information of par191
Financial information of parent company - Statement of profit or loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ifrs Statement [Line Items] | |||
Revenue | $ 3,101,175 | $ 2,914,180 | $ 2,236,415 |
General and administration expenses | (197,899) | (157,371) | (213,177) |
Profit from operations | 124,895 | 339,206 | 222,004 |
Interest income | 27,090 | 11,243 | 5,199 |
Finance costs | (18,021) | (23,037) | (12,218) |
Foreign exchange gains or losses | (12,694) | (1,640) | (26,349) |
Other gains or losses, net | 16,499 | (2,113) | 55,611 |
Profit before tax | 128,269 | 309,882 | 230,864 |
Income tax benefit (expense) | (1,846) | 6,552 | (8,541) |
Profit for the year | 126,423 | 316,434 | 222,323 |
Items that may be reclassified subsequently to profit or loss | |||
Exchange differences on translating foreign operations | 23,213 | (19,031) | (8,185) |
Change in value of available-for-sale financial assets | (2,381) | 807 | 452 |
Cash flow hedges | 35,143 | (34,627) | |
Share of other comprehensive income of joint ventures accounted for using equity method | 17,646 | ||
Other | (131) | 1 | 130 |
Items that will not be reclassified to profit or loss | |||
Actuarial gains or losses on defined benefit plans | (436) | 1,520 | |
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 |
Parent company | |||
ifrs Statement [Line Items] | |||
Revenue | 0 | 0 | 0 |
General and administration expenses | (47,354) | (50,739) | (51,682) |
Profit from operations | (47,354) | (50,739) | (51,682) |
Interest income | 2,670 | 1,154 | 474 |
Finance costs | (14,956) | (24,194) | (12,477) |
Foreign exchange gains or losses | 63,087 | (15,269) | (2,848) |
Share of profits of subsidiaries | 169,880 | 477,510 | 321,199 |
Share of profits of associates | 2,868 | 1,455 | 322 |
Other gains or losses, net | 3,484 | (13,287) | (1,577) |
Profit before tax | 179,679 | 376,630 | 253,411 |
Income tax benefit (expense) | 0 | 0 | 0 |
Profit for the year | 179,679 | 376,630 | 253,411 |
Items that may be reclassified subsequently to profit or loss | |||
Exchange differences on translating foreign operations | 21,590 | (18,131) | (8,185) |
Change in value of available-for-sale financial assets | (2,356) | 798 | 447 |
Cash flow hedges | 35,143 | (34,627) | |
Share of other comprehensive income of joint ventures accounted for using equity method | 17,646 | ||
Other | (131) | 1 | 130 |
Items that will not be reclassified to profit or loss | |||
Actuarial gains or losses on defined benefit plans | (436) | 1,520 | |
Total comprehensive income (loss) for the year | $ 251,135 | $ 326,191 | $ 245,803 |
Financial information of par192
Financial information of parent company - Statement of financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 29, 2017 | Dec. 06, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Non-current assets | ||||||
Property, plant and equipment | $ 6,523,403 | $ 5,687,357 | $ 3,903,818 | |||
Investments in associates | 758,241 | 240,136 | 181,331 | |||
Other financial assets | 17,598 | |||||
Other assets | 42,810 | 42,870 | 32,078 | |||
Total non-current assets | 7,749,467 | 6,431,525 | 4,525,297 | |||
Current assets | ||||||
Prepayment and prepaid operating expenses | 34,371 | 27,649 | 40,184 | |||
Trade and other receivables | 616,308 | 645,822 | 499,846 | |||
Other financial assets | 683,812 | 31,543 | 282,880 | |||
Cash and cash equivalent | 1,838,300 | 2,126,011 | 1,005,201 | $ 603,036 | ||
Total current assets | 4,168,984 | 3,683,753 | 2,590,050 | |||
Total assets | 11,918,451 | 10,115,278 | 7,115,347 | |||
Capital and reserves | ||||||
Ordinary shares, $0.004 par value, 10,000,000,000 shares authorized, 4,916,106,889, 4,252,922,259 and 4,207,374,896 shares issued and outstanding at December 31, 2017, 2016 and 2015, respectively | 19,664 | 17,012 | 16,830 | |||
Share premium | 4,827,619 | $ 325,200 | 4,950,948 | 4,903,861 | ||
Reserves | 134,669 | 93,563 | 96,644 | |||
Retained earnings (accumulated deficit) | 187,008 | $ 7,300 | (910,849) | (1,287,479) | ||
Perpetual subordinated convertible securities | 64,073 | |||||
Equity attributable to owners of the Company | 5,168,960 | 4,150,674 | 3,729,856 | |||
Non-current liabilities | ||||||
Borrowings | 1,743,939 | 1,233,594 | 416,036 | |||
Convertible bonds | 403,329 | 395,210 | ||||
Bonds payable | 496,689 | 494,909 | 493,207 | |||
Medium-term notes | 228,483 | 214,502 | ||||
Other financial liabilities | 1,919 | 74,170 | ||||
Other liabilities | 99,817 | 37,497 | 65,761 | |||
Total non-current liabilities | 3,290,337 | 2,731,151 | 1,157,901 | |||
Current liabilities | ||||||
Trade and other payables | 1,050,460 | 940,553 | 1,047,766 | |||
Convertible bonds | 391,401 | 392,632 | ||||
Accrued liabilities | 180,912 | 230,450 | 132,452 | |||
Other financial liabilities | 744 | 6,348 | 1,459 | |||
Total current liabilities | 1,906,779 | 1,980,900 | 1,767,191 | |||
Total liabilities | 5,197,116 | 4,712,051 | 2,925,092 | |||
Total equity and liabilities | 11,918,451 | 10,115,278 | 7,115,347 | |||
Parent company | ||||||
Non-current assets | ||||||
Property, plant and equipment | 47,090 | 89,404 | 30,123 | |||
Intangible assets | 59,138 | 91,225 | 108,897 | |||
Investments in subsidiaries | 4,779,485 | 4,333,604 | 3,312,113 | |||
Investments in associates | 132,427 | 114,966 | 56,080 | |||
Other financial assets | 11,732 | |||||
Other assets | 372,275 | 530,566 | 575,489 | |||
Total non-current assets | 5,402,147 | 5,159,765 | 4,082,702 | |||
Current assets | ||||||
Prepayment and prepaid operating expenses | 428 | 671 | 633 | |||
Trade and other receivables | 29,061 | 24,749 | 22,945 | |||
Due from subsidiaries | 1,609,556 | 908,716 | 427,279 | |||
Other financial assets | 95,440 | 3,000 | 15,000 | |||
Cash and cash equivalent | 140,411 | 317,873 | 115,726 | 55,600 | ||
Total current assets | 1,874,896 | 1,255,009 | 581,583 | |||
Total assets | 7,277,043 | 6,414,774 | 4,664,285 | |||
Capital and reserves | ||||||
Ordinary shares, $0.004 par value, 10,000,000,000 shares authorized, 4,916,106,889, 4,252,922,259 and 4,207,374,896 shares issued and outstanding at December 31, 2017, 2016 and 2015, respectively | 19,664 | 17,012 | 16,830 | |||
Share premium | 4,827,619 | 4,950,948 | 4,903,861 | |||
Reserves | 134,669 | 93,563 | 96,644 | |||
Retained earnings (accumulated deficit) | 187,008 | (910,849) | (1,287,479) | |||
Total equity, excluding perpetual subordinated convertible securities | 5,168,960 | 4,150,674 | 3,729,856 | |||
Perpetual subordinated convertible securities | 64,073 | |||||
Equity attributable to owners of the Company | 5,233,033 | 4,150,674 | 3,729,856 | $ 2,948,415 | ||
Non-current liabilities | ||||||
Borrowings | 76,520 | 72,077 | ||||
Convertible bonds | 403,329 | 395,210 | ||||
Bonds payable | 496,689 | 494,909 | 493,207 | |||
Medium-term notes | 228,483 | 214,502 | ||||
Other financial liabilities | 1,885 | 60,610 | ||||
Other liabilities | 520 | 2,560 | 2,080 | |||
Total non-current liabilities | 1,207,426 | 1,239,868 | 495,287 | |||
Current liabilities | ||||||
Trade and other payables | 17,489 | 1,683 | ||||
Due to subsidiaries | 804,476 | 522,166 | 33,445 | |||
Convertible bonds | 391,401 | 392,632 | ||||
Short-term notes | 86,493 | |||||
Accrued liabilities | 13,877 | 19,570 | 11,606 | |||
Other financial liabilities | 742 | 2,919 | 1,459 | |||
Total current liabilities | 836,584 | 1,024,232 | 439,142 | |||
Total liabilities | 2,044,010 | 2,264,100 | 934,429 | |||
Total equity and liabilities | $ 7,277,043 | $ 6,414,774 | $ 4,664,285 |
Financial information of par193
Financial information of parent company - Statement of financial position parenthetical values (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 07, 2016 | Dec. 06, 2016 | Dec. 31, 2015 |
ifrs Statement [Line Items] | |||||
Ordinary shares, par value (in dollars per share) | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.0004 | $ 0.004 |
Ordinary shares, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||
Ordinary shares, shares issued (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 | ||
Ordinary shares, shares outstanding (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 | ||
Parent company | |||||
ifrs Statement [Line Items] | |||||
Ordinary shares, par value (in dollars per share) | $ 0.004 | $ 0.004 | $ 0.004 | ||
Ordinary shares, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||
Ordinary shares, shares issued (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 | ||
Ordinary shares, shares outstanding (in shares) | 4,916,106,889 | 4,252,922,259 | 4,207,374,896 |
Financial information of par194
Financial information of parent company - Statement of changes in equity (Details) - USD ($) $ in Thousands | Dec. 06, 2017 | Oct. 09, 2015 | Sep. 25, 2015 | Jun. 08, 2015 | Dec. 31, 2016 | Dec. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Balance at beginning of period | $ 3,729,856 | $ 4,150,674 | $ 3,729,856 | ||||||
Profit for the year | 126,423 | 316,434 | $ 222,323 | ||||||
Other comprehensive income (losses) for the year | 73,054 | (51,330) | (7,603) | ||||||
Total comprehensive income (loss) for the year | 199,477 | 265,104 | 214,720 | ||||||
Issuance of ordinary shares | $ 1,000 | 326,140 | 508,807 | ||||||
Exercise of stock options | 17,105 | 17,610 | 8,743 | ||||||
Share-based compensation | 18,214 | 14,210 | 18,329 | ||||||
Conversion options of convertible bonds exercised during the year | 399,099 | 10,244 | |||||||
Recognition of equity component of convertible bonds | 52,935 | ||||||||
Perpetual subordinated convertible securities | 64,073 | ||||||||
Subtotal | 1,118,631 | 947,868 | 667,813 | ||||||
Balance at end of period | $ 4,150,674 | 5,168,960 | 4,150,674 | 3,729,856 | |||||
Ordinary shares | |||||||||
Issuance of ordinary shares | $ 385 | $ 130 | $ 1,880 | 966 | 2,395 | ||||
Exercise of stock options | 966 | 132 | 130 | 140 | 93 | ||||
Conversion options of convertible bonds exercised during the year | 1,556 | 42 | |||||||
Subtotal | 2,652 | 182 | 2,488 | ||||||
Share premium | |||||||||
Issuance of ordinary shares | $ 81,440 | $ 27,392 | $ 397,580 | 325,174 | 506,412 | ||||
Share premium reduction | (910,849) | ||||||||
Exercise of stock options | 325,174 | 35,367 | 35,178 | 36,064 | 20,819 | ||||
Conversion options of convertible bonds exercised during the year | 427,168 | 11,023 | |||||||
Subtotal | (123,329) | 47,087 | 527,231 | ||||||
Equity-settled employee benefits reserve | |||||||||
Exercise of stock options | (18,220) | (18,594) | (12,169) | ||||||
Share-based compensation | 17,495 | 13,838 | 18,088 | ||||||
Subtotal | (725) | (4,756) | 5,919 | ||||||
Foreign currency translation reserve | |||||||||
Other comprehensive income (losses) for the year | 21,590 | (18,131) | (8,185) | ||||||
Total comprehensive income (loss) for the year | 21,590 | (18,131) | (8,185) | ||||||
Change in value of available-for-sale financial assets | |||||||||
Other comprehensive income (losses) for the year | (2,356) | 798 | 447 | ||||||
Total comprehensive income (loss) for the year | (2,356) | 798 | 447 | ||||||
Convertible bonds equity reserve | |||||||||
Conversion options of convertible bonds exercised during the year | (29,625) | (821) | |||||||
Recognition of equity component of convertible bonds | 52,935 | ||||||||
Subtotal | (29,625) | 52,114 | |||||||
Defined benefit plan reserve | |||||||||
Other comprehensive income (losses) for the year | (436) | 1,520 | |||||||
Total comprehensive income (loss) for the year | (436) | 1,520 | |||||||
Cash flow hedges | |||||||||
Other comprehensive income (losses) for the year | 35,143 | (34,627) | |||||||
Total comprehensive income (loss) for the year | 35,143 | (34,627) | |||||||
Share of other comprehensive income of joint ventures accounted for using equity method | |||||||||
Other comprehensive income (losses) for the year | 17,646 | ||||||||
Total comprehensive income (loss) for the year | 17,646 | ||||||||
Others | |||||||||
Other comprehensive income (losses) for the year | (131) | 1 | 130 | ||||||
Total comprehensive income (loss) for the year | (131) | 1 | 130 | ||||||
Accumulated deficit | |||||||||
Profit for the year | 179,679 | 376,630 | 253,411 | ||||||
Total comprehensive income (loss) for the year | 179,679 | 376,630 | 253,411 | ||||||
Share premium reduction | 910,849 | ||||||||
Effect of transfer of business operation | 7,329 | ||||||||
Subtotal | 918,178 | ||||||||
Perpetual subordinated convertible securities | |||||||||
Perpetual subordinated convertible securities | 64,073 | ||||||||
Subtotal | 64,073 | ||||||||
Parent company | |||||||||
Balance at beginning of period | 3,729,856 | 4,150,674 | 3,729,856 | 2,948,415 | |||||
Profit for the year | 179,679 | 376,630 | 253,411 | ||||||
Other comprehensive income (losses) for the year | 71,456 | (50,439) | (7,608) | ||||||
Total comprehensive income (loss) for the year | 251,135 | 326,191 | 245,803 | ||||||
Issuance of ordinary shares | 326,140 | 508,807 | |||||||
Exercise of stock options | 17,088 | 17,610 | 8,743 | ||||||
Share-based compensation | 17,495 | 13,838 | 18,088 | ||||||
Conversion options of convertible bonds exercised during the year | 399,099 | 10,244 | |||||||
Recognition of equity component of convertible bonds | 52,935 | ||||||||
Effect of transfer of business operation | 7,329 | ||||||||
Perpetual subordinated convertible securities | 64,073 | ||||||||
Subtotal | 831,224 | 94,627 | 535,638 | ||||||
Balance at end of period | 4,150,674 | 5,233,033 | 4,150,674 | 3,729,856 | |||||
Parent company | Ordinary shares | |||||||||
Balance at beginning of period | 16,830 | 17,012 | 16,830 | 14,342 | |||||
Issuance of ordinary shares | 966 | 2,395 | |||||||
Exercise of stock options | 130 | 140 | 93 | ||||||
Conversion options of convertible bonds exercised during the year | 1,556 | 42 | |||||||
Subtotal | 2,652 | 182 | 2,488 | ||||||
Balance at end of period | 17,012 | 19,664 | 17,012 | 16,830 | |||||
Parent company | Share premium | |||||||||
Balance at beginning of period | 4,903,861 | 4,950,948 | 4,903,861 | 4,376,630 | |||||
Issuance of ordinary shares | 325,174 | 506,412 | |||||||
Share premium reduction | (910,849) | ||||||||
Exercise of stock options | 35,178 | 36,064 | 20,819 | ||||||
Conversion options of convertible bonds exercised during the year | 427,168 | 11,023 | |||||||
Subtotal | (123,329) | 47,087 | 527,231 | ||||||
Balance at end of period | 4,950,948 | 4,827,619 | 4,950,948 | 4,903,861 | |||||
Parent company | Equity-settled employee benefits reserve | |||||||||
Balance at beginning of period | 70,459 | 65,703 | 70,459 | 64,540 | |||||
Exercise of stock options | (18,220) | (18,594) | (12,169) | ||||||
Share-based compensation | 17,495 | 13,838 | 18,088 | ||||||
Subtotal | (725) | (4,756) | 5,919 | ||||||
Balance at end of period | 65,703 | 64,978 | 65,703 | 70,459 | |||||
Parent company | Foreign currency translation reserve | |||||||||
Balance at beginning of period | (3,956) | (22,087) | (3,956) | 4,229 | |||||
Other comprehensive income (losses) for the year | 21,590 | (18,131) | (8,185) | ||||||
Total comprehensive income (loss) for the year | 21,590 | (18,131) | (8,185) | ||||||
Balance at end of period | (22,087) | (497) | (22,087) | (3,956) | |||||
Parent company | Change in value of available-for-sale financial assets | |||||||||
Balance at beginning of period | 447 | 1,245 | 447 | ||||||
Other comprehensive income (losses) for the year | (2,356) | 798 | 447 | ||||||
Total comprehensive income (loss) for the year | (2,356) | 798 | 447 | ||||||
Balance at end of period | 1,245 | (1,111) | 1,245 | 447 | |||||
Parent company | Convertible bonds equity reserve | |||||||||
Balance at beginning of period | 29,564 | 81,678 | 29,564 | 29,564 | |||||
Conversion options of convertible bonds exercised during the year | (29,625) | (821) | |||||||
Recognition of equity component of convertible bonds | 52,935 | ||||||||
Subtotal | (29,625) | 52,114 | |||||||
Balance at end of period | 81,678 | 52,053 | 81,678 | 29,564 | |||||
Parent company | Defined benefit plan reserve | |||||||||
Balance at beginning of period | 1,520 | ||||||||
Other comprehensive income (losses) for the year | (436) | 1,520 | |||||||
Total comprehensive income (loss) for the year | (436) | 1,520 | |||||||
Balance at end of period | 1,520 | 1,084 | 1,520 | ||||||
Parent company | Cash flow hedges | |||||||||
Balance at beginning of period | (34,627) | ||||||||
Other comprehensive income (losses) for the year | 35,143 | (34,627) | |||||||
Total comprehensive income (loss) for the year | 35,143 | (34,627) | |||||||
Balance at end of period | (34,627) | 516 | (34,627) | ||||||
Parent company | Share of other comprehensive income of joint ventures accounted for using equity method | |||||||||
Other comprehensive income (losses) for the year | 17,646 | ||||||||
Total comprehensive income (loss) for the year | 17,646 | ||||||||
Balance at end of period | 17,646 | ||||||||
Parent company | Others | |||||||||
Balance at beginning of period | 130 | 131 | 130 | ||||||
Other comprehensive income (losses) for the year | (131) | 1 | 130 | ||||||
Total comprehensive income (loss) for the year | (131) | 1 | 130 | ||||||
Balance at end of period | 131 | 131 | 130 | ||||||
Parent company | Accumulated deficit | |||||||||
Balance at beginning of period | $ (1,287,479) | (910,849) | (1,287,479) | (1,540,890) | |||||
Profit for the year | 179,679 | 376,630 | 253,411 | ||||||
Total comprehensive income (loss) for the year | 179,679 | 376,630 | 253,411 | ||||||
Share premium reduction | 910,849 | ||||||||
Effect of transfer of business operation | 7,329 | ||||||||
Subtotal | 918,178 | ||||||||
Balance at end of period | $ (910,849) | 187,008 | $ (910,849) | $ (1,287,479) | |||||
Parent company | Perpetual subordinated convertible securities | |||||||||
Perpetual subordinated convertible securities | 64,073 | ||||||||
Subtotal | 64,073 | ||||||||
Balance at end of period | $ 64,073 |
Financial information of par195
Financial information of parent company - Statement of cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Profit for the year | $ 126,423 | $ 316,434 | $ 222,323 |
Adjustments for: | |||
Amortization of intangible assets and land use right | 65,348 | 56,705 | 50,541 |
Depreciation of property, plant and equipment | 906,034 | 673,161 | 473,008 |
Expense recognized in respect of equity-settled share-based payments | 18,214 | 14,210 | 18,329 |
Finance costs | 18,021 | 23,037 | 12,218 |
Interest income | (27,090) | (11,243) | (5,199) |
Net (gain) loss on foreign exchange | 26,101 | (26,236) | 15,608 |
Share of profit of investment accounted for using equity method | 9,500 | 13,777 | 13,383 |
Operating cash flows before movements in working capital: | 1,147,830 | 1,063,955 | 714,747 |
(Increase) decrease in trade and other receivables | 59,084 | (100,980) | (39,902) |
Decrease (increase) in prepaid operating expenses | (6,722) | 17,615 | (856) |
(Increase) decrease in other assets | 2,938 | 1,576 | (6,476) |
Increase in trade and other payables | 109,374 | 59,046 | 39,096 |
(Decrease) increase in accrued liabilities and other liabilities | (40,604) | 25,031 | 49,928 |
Cash generated from operations | 1,095,784 | 993,910 | 690,195 |
Interest paid | (34,086) | (27,497) | (26,174) |
Interest received | 19,425 | 12,464 | 4,894 |
Net cash generated from operating activities | 1,080,686 | 977,202 | 669,197 |
Investing activities | |||
Payments to acquire financial assets | (829,371) | (917,272) | (2,412,259) |
Proceeds on sale of financial assets | 186,509 | 1,175,768 | 2,782,181 |
Investment in subsidiaries | (73,216) | ||
Payments for property, plant and equipment | (2,287,205) | (2,757,202) | (1,230,812) |
Payments for intangible assets | (43,755) | (85,729) | (29,384) |
Net cash used in investing activities | (2,662,139) | (2,443,333) | (789,556) |
Financing activities | |||
Proceeds from borrowings | 1,194,659 | 1,239,265 | 341,176 |
Repayment of borrowings | (537,016) | (228,928) | (453,730) |
Proceeds from issuance of new shares | 326,351 | 508,807 | |
Proceeds from issuance of convertible bonds | 441,155 | ||
Proceeds from issuance of short-term and medium-term notes | 314,422 | ||
Repayment of short-term notes | (87,858) | ||
Proceeds from issuance of perpetual subordinated convertible securities | 64,350 | ||
Proceeds from exercise of employee stock options | 17,105 | 17,610 | 8,743 |
Net cash from financing activities | 1,271,591 | 2,614,778 | 537,078 |
Net increase in cash and cash equivalent | (309,862) | 1,148,647 | 416,719 |
Cash and cash equivalent at the beginning of the year | 2,126,011 | 1,005,201 | 603,036 |
Effects of exchange rate changes on the balance of cash held in foreign currencies | 22,151 | (27,837) | (14,554) |
Cash and cash equivalent at the end of the year | 1,838,300 | 2,126,011 | 1,005,201 |
Parent company | |||
Operating activities | |||
Profit for the year | 179,679 | 376,630 | 253,411 |
Adjustments for: | |||
Amortization of intangible assets and land use right | 32,131 | 30,678 | 30,780 |
Depreciation of property, plant and equipment | 10,706 | 8,062 | 4,046 |
Expense recognized in respect of equity-settled share-based payments | 1,297 | 1,940 | 5,169 |
Finance costs | 14,956 | 24,194 | 12,477 |
Interest income | (2,670) | (1,154) | (474) |
Net (gain) loss arising on financial liabilities at fair value through profit or loss | (3,554) | 13,182 | 1,459 |
Net (gain) loss on foreign exchange | (63,087) | 5,982 | 184 |
Share of profit of investment accounted for using equity method | (172,748) | (478,965) | (321,521) |
Operating cash flows before movements in working capital: | (3,290) | (19,451) | (14,469) |
(Increase) decrease in trade and other receivables | (2,374) | (1,727) | 465 |
Decrease (increase) in prepaid operating expenses | 243 | (57) | 8 |
(Increase) decrease in other assets | (7,710) | 777 | |
Increase in trade and other payables | 5,168 | 1,354 | 7,550 |
(Decrease) increase in accrued liabilities and other liabilities | (5,534) | 2,818 | 2,541 |
Cash generated from operations | (13,497) | (16,286) | (3,905) |
Interest paid | (21,262) | (16,149) | (21,536) |
Interest received | 1,347 | 1,135 | 474 |
Net cash generated from operating activities | (33,412) | (31,300) | (24,967) |
Investing activities | |||
Payments to acquire financial assets | (92,000) | (6,000) | (12,000) |
Proceeds on sale of financial assets | 3,000 | 18,000 | 9,000 |
Investment in subsidiaries | (207,000) | (550,426) | (280,658) |
Purchase of interests in associates | 15,095 | 63,796 | |
Payments for property, plant and equipment | (52,445) | ||
Payments for intangible assets | (1,000) | (11,526) | (4,480) |
Proceeds from disposal of available-for-sale investment | 146 | ||
Cash paid for subsidiaries | (728,621) | (437,437) | (137,929) |
Distributions received from associates | 255 | ||
Net cash used in investing activities | (1,040,461) | (1,103,484) | (426,067) |
Financing activities | |||
Proceeds from borrowings | 76,006 | 21,912 | |
Repayment of borrowings | (83,133) | ||
Proceeds from issuance of new shares | 326,351 | 508,807 | |
Proceeds from issuance of convertible bonds | 441,155 | ||
Proceeds from issuance of short-term and medium-term notes | 314,422 | ||
Repayment of short-term notes | (87,858) | ||
Proceeds from issuance of perpetual subordinated convertible securities | 64,350 | ||
Proceeds from exercise of employee stock options | 17,088 | 17,610 | 8,743 |
Cash received from subsidiaries | 572,320 | 487,050 | 55,015 |
Net cash from financing activities | 892,251 | 1,336,243 | 511,344 |
Net increase in cash and cash equivalent | (181,622) | 201,459 | 60,310 |
Cash and cash equivalent at the beginning of the year | 317,873 | 115,726 | 55,600 |
Effects of exchange rate changes on the balance of cash held in foreign currencies | 4,160 | 688 | (184) |
Cash and cash equivalent at the end of the year | $ 140,411 | $ 317,873 | $ 115,726 |
Subsequent Events (Details)
Subsequent Events (Details) ¥ in Millions | Mar. 23, 2018CNY (¥) | Mar. 22, 2018USD ($) | Jan. 30, 2018USD ($) | Dec. 31, 2017CNY (¥) | Mar. 23, 2018USD ($) | Dec. 31, 2017USD ($) |
Semiconductor Manufacturing South China Corporation (“SMSC”) | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||
Ningbo Semiconductor International Corporation (“NSI”) | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 53.725% | |||||
Semiconductor Manufacturing International (Shanghai) Corporation ("SMIS" or "SMIC Shanghai") | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||
SMIC Holdings Corporation | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 100.00% | |||||
Capital contribution | Semiconductor Manufacturing South China Corporation (“SMSC”) | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 50.10% | |||||
Equity transfer and capital contribution | Ningbo Semiconductor International Corporation (“NSI”) | ||||||
Subsequent events | ||||||
Gain or loss expected to accrue | $ 0 | |||||
SMIC Holdings Corporation | Ningbo Semiconductor International Corporation (“NSI”) | ||||||
Subsequent events | ||||||
Proportion of ownership interest held by the Company (as a percent) | 66.76% | |||||
SMIC Holdings Corporation | Semiconductor Manufacturing South China Corporation (“SMSC”) | Capital contribution | ||||||
Subsequent events | ||||||
Cash contribution to the registered capital | $ 1,543,500,000 | |||||
SMIC Holdings Corporation | Ningbo Semiconductor International Corporation (“NSI”) | Equity transfer and capital contribution | ||||||
Subsequent events | ||||||
Cash contribution to the registered capital | ¥ 565 | $ 89,400,000 | ||||
Percentage of ownership interest in joint venture | 38.57% | 38.59% | ||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Semiconductor Manufacturing South China Corporation (“SMSC”) | Capital contribution | ||||||
Subsequent events | ||||||
Cash contribution to the registered capital | $ 946,500,000 | |||||
Percentage of ownership interest in joint venture | 27.04% | |||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Ningbo Semiconductor International Corporation (“NSI”) | ||||||
Subsequent events | ||||||
Percentage of ownership interest in joint venture | 28.17% | |||||
China Integrated Circuit Industry Investment Fund Co., Ltd., (the "China IC Fund") | Ningbo Semiconductor International Corporation (“NSI”) | Equity transfer and capital contribution | ||||||
Subsequent events | ||||||
Cash contribution to the registered capital | ¥ 500 | 79,200,000 | ||||
Percentage of ownership interest in joint venture | 32.97% | |||||
Shanghai IC Fund | Semiconductor Manufacturing South China Corporation (“SMSC”) | Capital contribution | ||||||
Subsequent events | ||||||
Cash contribution to the registered capital | $ 800,000,000 | |||||
Percentage of ownership interest in joint venture | 22.86% | |||||
Semiconductor Manufacturing South China Corporation (“SMSC”) | ||||||
Subsequent events | ||||||
Registered capital | $ 210,000,000 | |||||
Semiconductor Manufacturing South China Corporation (“SMSC”) | Capital contribution | ||||||
Subsequent events | ||||||
Registered capital | $ 3,500,000,000 | |||||
Ningbo Semiconductor International Corporation (“NSI”) | ||||||
Subsequent events | ||||||
Registered capital | ¥ 355 | $ 56,200,000 | ||||
Ningbo Semiconductor International Corporation (“NSI”) | Equity transfer and capital contribution | ||||||
Subsequent events | ||||||
Registered capital | ¥ 1,820 | $ 288,100,000 |