|
Amounts in US$ thousands |
4Q17 |
3Q17 |
QoQ |
4Q16 |
YoY |
|
Operating expenses |
145,323 |
154,592 |
-6.0% |
196,994 |
-26.2% |
|
Research and development, net |
101,300 |
106,848 |
-5.2% |
118,325 |
-14.4% |
|
General and administrative |
58,201 |
46,104 |
26.2% |
60,934 |
-4.5% |
|
Selling and marketing |
6,393 |
9,587 |
-33.3% |
9,087 |
-29.6% |
|
Other operating (income) loss |
(20,571) |
(7,947) |
158.9% |
8,648 |
- |
- R&D expenses decreased by $5.5 million QoQ to $101.3 million in 4Q17, compared to $106.8 million in 3Q17. Excluding the funding of R&D contracts from the government, R&D expenses increased by $4.1 million QoQ to $135.1 million in 4Q17. The change was mainly due to higher level of R&D activities in 4Q17. Funding of R&D contracts from the government was $33.8 million in 4Q17, compared to $24.2 million in 3Q17.
- General and administrative expenses increased by 26.2% to $58.2 million in 4Q17, compared to $46.1 million in 3Q17. The change was mainly due to an increase in the government tax surcharges, accrued employee bonus and the patent expenses in 4Q17.
- The increase in other operating (income) loss was mainly due to the government funding received in 4Q17.
Other Income (Expense), Net
|
Amounts in US$ thousands |
4Q17 |
3Q17 |
QoQ |
4Q16 |
YoY |
|
Other income (expense), net |
(6,086) |
7,290 |
- |
473 |
- |
|
Interest income |
8,297 |
6,545 |
26.8% |
4,674 |
77.5% |
|
Finance costs |
(9,420) |
12,906 |
- |
(9,253) |
1.8% |
|
Foreign exchange gains or losses |
9,192 |
(11,685) |
- |
481 |
1811.0% |
|
Other gains or losses, net |
(11,132) |
(1,657) |
571.8% |
5,984 |
- |
|
Share of (loss) profit of investment
|
(3,023) |
1,181 |
- |
(1,413) |
113.9% |
- The change in finance costs was mainly due to the interest subsidies received from the government in 3Q17 and no interest subsidies in 4Q17.
- Foreign exchange gains were mainly due to an appreciation of RMB against USD. Foreign monetary assets mainly consist of cash and cash equivalent and trade and other receivables in RMB. Foreign monetary liabilities mainly consist of borrowings, medium-term notes and trade and other payables in RMB.
- The change in other gains or losses, net was mainly due to a potential cash compensation accrued at about $12.5 million in 4Q17 that may be incurred depending on the profit of Suzhou Changjiang Electric Xinke Investment Co., Ltd 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 Semiconductor ( Shanghai ) Corporation Limited (an indirectly wholly-owned subsidiary of the Company) and Jiangsu Changjiang Electronics Technology Co., Ltd on December 9, 2016 .
