Zhongxin International released its fourth quarter results in 2018. Affected by the cooling of the semiconductor market, sales fell slightly from the third quarter, with gross profit rate of 17.0%. However, breakthroughs have been made in the research and development of advanced technology. Liang Mengsong, chief executive of China Central International Co-operation, said that the first generation of FinFET 14nm technology has entered the stage of customer verification. At the same time, a breakthrough has been made in the process development of 12 nm.

Zhongxin International announced its unaudited performance for three months as of December 31, 2018. Sales in the fourth quarter of 2018 amounted to $787.6 million, down slightly from $850.7 million in the third quarter of 2018 and almost the same as $787.2 million in the fourth quarter of 2017. Gross margin was 17.0%, compared with 20.5% in the third quarter of 2018 and 18.9% in the fourth quarter of 2017. For the first quarter of 2019, quarterly revenue fell by 16% to 18%. Gross profit margin ranges from 20% to 22%. The operating expenses of the non-recognized criteria will be between $250 million and $250 million after deducting the effects of employee bonus deduction, government project funds, impairment losses of tangible and intangible assets, profit and loss from the sale of machinery and equipment, and income from the sale of assets in living parks. It shows that the cooling of semiconductor market in the fourth quarter of 2018 has no effect on MCI.

In response, Dr. Zhao Navy and Dr. Liang Mengsong, Co-CEO of Zhongxin International, commented: "With the support of customers and the efforts of all colleagues, revenue increased by 8.3% year-on-year in 2018, and continued to grow for four consecutive years, with record performance. Revenue in the fourth quarter of 2018 was flat compared with the same period last year. Revenue in China grew by 12% over the same period last year. Looking forward to 2019, the annual growth target of core business income is similar to that of wafer manufacturing industry; based on the current visibility, the first quarter revenue is expected to be a relative low for the whole year, with a decline of 16% to 18% annually.

Dr. Zhao Navy pointed out: "Faced with many uncertainties in the environment in 2019, we strive to seek growth opportunities; bring in stable, actively develop customers, expand the product mix and application scope of mature and characteristic processes, explore market value opportunities, and reserve strength for growth."

Nevertheless, Zhongxin International has again achieved results in the development of advanced technology. Liang Mengsong pointed out: "At present, the first generation of FinFET14nm technology of Zhongxin International has entered the stage of customer verification, and the reliability and yield of products have been further improved. At the same time, a breakthrough has been made in the process development of 12 nm. Through active innovation in R&D, optimizing production lines, strengthening design and striving for potential markets, we are confident of future opportunities.

At present, 14nm technology is widely used in the manufacture of high-end smartphone chips, such as Qualcomm Miaolong 820, Miaolong 821, Miaolong 660 and so on. The 12NM process is a miniature and improved version of the 14nm process, which will have lower leakage current and cost.