Advanced Semiconductor Mfg Corp. Ltd. : ASMC Announces 2012 Annual Results

Advanced Semiconductor Manufacturing Corporation Limited

Announces 2012 Annual Results

Net income amounted to RMB44.5 million despite challenging industry environment

Hong Kong, 21 March 2013 - Advanced Semiconductor Manufacturing Corporation Limited ("ASMC" or "the Company", HKEX stock code: 3355), a leading foundry primarily focused on the manufacture of analog semiconductors and higher bipolar content-based mixed-signal semiconductors, announced its annual results for the year ended 31 December 2012.

Results Overview

n The Company's sales in 2012 were affected by the uncertain economic environment and an inventory correction in the semiconductor supply chain, which weakened customer orders in 2H 2012. Despite the headwinds in the macro environment, the Company still recorded net profit of RMB 44.5 million in 2012, achieving profitable results for the third consecutive year.

n Gross margin decreased by 3.4 percentage points to 14.0%, which was mainly due to lower sales, the decline in average selling prices and the appreciation of the RMB against the US dollar. However, the Company's efficient cost control and management and the decline in depreciation charges helped to offset the situation and to stabilize the gross margin.

n Net income was RMB44.5 million in 2012, with net margin maintained at almost at the same level as last year.

n The Company's financial position was further strengthened with a higher current ratio and a lower debt to equity ratio of 4.22 and 18.9%, respectively.

Results Summary

In 2012, the operating environment of the semiconductor industry became highly cyclical due to the significant downturn in demand throughput and inventory correction. As a result, the Company suffered a broad-based decline in customer orders during the second half of the year, which in turn exerted pressure on the Company's full year results. As at 31 December 2012, sales dropped 10.2% year-on-year to RMB853.6 million. Net income decreased 12.9% year-on-year to RMB44.5 million.

Gross margin decreased by 3.4 percentage points to 14.0%, which was mainly due to lower sales, the decline in average selling prices and the appreciation of the RMB against the US dollar. However, the Company's efficient cost control and management and the decline in depreciation charges as a result of certain assets being fully depreciated helped to offset the situation and to stabilize the gross margin.

Operations Review

In 2012, the Company appointed Dr. Jeffrey Wang, the Company's Vice President, President of the Company. Under the leadership of its new management team, the Company aggressively focused on financial and operational discipline. The new strategy has paid off as seen in the significant improvement in its liquidity in 2012. As at 31 December 2012, the Company's current ratio rose notably from 2.51 in 2011 to 4.22, while its debt-to-equity ratio saw a marked reduction from 34.8% last year to 18.9%.

With the new operating initiatives such as gains in operating efficiency and a flexible business strategy in place during the year under review, ASMC achieved sound operational performance for the full year of 2012. The Company's throughput of 8-inch equivalent wafers increased from 443,045 units in 2011 to 443,344 units in 2012. The utilization rate in 2012 recorded a slight decline of 2 percentage points year-on-year to 64%.

During the year, the Company also achieved stable growth in the automotive electronics segment, with its wafer shipment from automotive chips seeing 13.9% year-on-year growth to 111,637 units, which generated RMB142.4 million in sales, representing an increase of 13.5% over 2011.

Market Outlook and Future Plans

The semiconductor market recently witnessed market recovery in the first quarter of 2013. Given that many leading indicators imply that macroeconomic headwinds may persist through2013, the semiconductor marketis likelyto show a moderaterebound in demand. Combined with the seasonal and cyclical nature of the semiconductor industry, the aforementioned factors make the Company more vulnerable to economic downturns and adverse industry conditions.

In response to the challenging market conditions ahead, ASMC will on the one hand remain focused on operational discipline and core business growth while controlling costs. On the other hand, the Company will continue to implement its growth and development strategy. To this end, the Company will continue its efforts in improving its ability to provide total manufacturing solutions to its customers while optimizing its internal processes and management system to drive gains in productivity and efficiency.

Dr. Jeffrey Wang, President of ASMCsaid, "Looking ahead, we will continue to implement comprehensive cost reduction measures, to optimize our internal processes and management system and enhance operational efficiency, while focusing on operational discipline and core business growth. We will endeavor to expand our market share in the Greater China region by fostering cooperation with the major players in the domestic industrial chain. Moreover, we will adapt to internal and external changes and remain committed to providing best-in-class service to our clients. By implementing our mid-term business plans, we strive to reach new heights and to achieve sustainable growth and development in 2013 and beyond."

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About ASMC

ASMC was initially incorporated in October 1988 as a Sino-foreign equity joint venture, established exclusively to supply analog semiconductors to the Philips Group. On March 2nd, 2004, ASMC re-registered as a foreign invested joint stock company. On April 7th, 2006, ASMC was listed on the Main Board of The Stock Exchange of Hong Kong Limited.

ASMC operates two wafer fabrication facilities in Shanghai, one of which manufactures 5-inch and 6-inch wafers and the other 8-inch wafers. Major customers of ASMC include some of the world's leading integrated device manufacturers and fabless semiconductor companies.

For further enquiries, please contact:

ASMC Media Relations

Jimmy Xiao

Tel: 86-21-6485-1900x2387

Email:jimmy_xiao@asmc.com.cn

Hill and Knowlton Asia Ltd.

Crystal Yip Ada Ho

Tel: (852) 2894 6211Tel: (852) 2894 6290

Email:crystal.yip@hkstrategies.comEmail: ada.ho@hkstrategies.com

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