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SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION

SMIC Integrated Circuit Manufacturing Co., Ltd. *

(Incorporated in Cayman Islands with limited liability)

(Stock Code: 00981)

SMIC's unaudited results for the three months ended December 31, 2024 were announced

Except as otherwise indicated below, this consolidated financial information has been prepared and expressed in accordance with International Financial Reporting Standards.

？ Sales revenue was $2,207.3 million for the fourth quarter of 2024 and $2,171.2 million for the third quarter of 2024, for the first quarter of 2023

The four seasons are $1,678.3 million.

？ Gross profit was $499.0 million for the fourth quarter of 2024, $444.2 million for the third quarter of 2024, and 275.0 for the fourth quarter of 2023

Million dollars.

？ Gross margin was 22.6% for the fourth quarter of 2024, 20.5% for the third quarter of 2024 and 16.4% for the fourth quarter of 2023.

？ Unaudited full-year sales revenue for 2024 was $8,029.9 million, and full-year 2023 sales revenue was $6,321.6 million.

？ Unaudited profit attributable to owners of the Company for the full year 2024 was US$492.7 million, compared to the full year 2023

Profit attributable to persons was US$902.5 million, a decrease of 45.4%, mainly due to lower investment income and capital income for the year.

The following is the year ended 11 February 2025 for the three months ended 31 December 2024 for the Company and its subsidiaries (the "Group").

Review the full text of the results announcement.

Unless otherwise specified, all currencies are shown in United States dollars.

Shanghai, China – February 11, 2025 – Semiconductor Manufacturing International Corporation (SMIC), a major international semiconductor foundry manufacturer

Stock Code: 00981; SSE STAR Market stock code: 688981) ("SMIC", "the Company", "we", "us" or "our") today

Announced consolidated operating results for the three months ended December 31, 2024.

* For identification purposes only

The following statements are forward-looking statements that are based on current expectations and involve risks and uncertainties.

Guidance for the first quarter of 2025

The Company expects guidance under IFRS to be:

？ Quarterly revenue increased 6% to 8% sequentially.

？ Gross margin ranged from 19% to 21%.

Management comments

The company's fourth-quarter sales exceeded $2.2 billion, an increase of 1.7% sequentially, and gross margin of 22.6% increased 2.1 percentage points sequentially.

According to unaudited financial data, the company's sales revenue in 2024 will be $8.03 billion, an increase of 27% year-over-year, and the gross margin will be 18%. 2024

The company's annual capital expenditure was 7.33 billion US dollars, and the monthly production capacity of 8-inch standard logic at the end of the year was 948,000 pieces, and the total shipment exceeded 8 million pieces.

The average annual capacity utilization rate is 85.6%.

The company's first-quarter guidance is for sales revenue growth of 6-8% sequentially, and gross margin is expected to be in the range of 19%-21%.

In the absence of significant changes in the external environment, the company's 2025 guidance is for sales revenue growth above the average of comparable peers and capital expenditures broadly flat compared to the prior year.

Conference Call/Online Results Announcement Details

Date: 12 February 2025 (Wednesday)

Time: 8:30-9:30 a.m

Online meetings

The meeting will be held at https://edge.media-server.com/mmc/p/ibhnk4ps

Do live streaming online.

teleconference

Please pass the https://register.vevent.com/register/BIb8860a75a7634636b8d789d5bc063b86 in advance

Register for the conference call.

Online playback

Approximately 1 hour after the end of the session, you will be able to listen to the session again for 12 months on the following page.

https://www.smics.com/tc/site/company_financialSummary

About SMIC

Semiconductor Manufacturing International Corporation Limited (SEHK stock code: 00981; SSE STAR Market stock code: 688981), is one of the world's leading integrated circuit foundry companies, and is also a leader in the Chinese mainland integrated circuit manufacturing industry, with leading process manufacturing capabilities, production capacity advantages, and service support, providing 8-inch and 12-inch wafer foundry and technical services to global customers. Headquartered in Shanghai, China, SMIC has a global manufacturing and service base with multiple 8-inch and 12-inch fabs in Shanghai, Beijing, Tianjin, and Shenzhen. SMIC also has marketing offices and customer service offices in the United States, Europe, Japan, and Taiwan.

For more information, please refer to SMIC's website www.smics.com.

Forward-Looking Statements

This announcement may contain forward-looking statements, other than historical data. These forward-looking statements are based on SMIC's current assumptions, expectations, beliefs, plans, goals and projections regarding future events or performance. SMIC uses words including (but not limited to) "believe," "anticipate," "intend," "estimate," "anticipate," "forecast," "metric," "outlook," "continue," "should," "may," "seek," "should," "plan," "may," "vision," "target," "aim," "desire," "purpose," "schedule," "prospect" and other similar expressions to identify forward-looking statements. These forward-looking statements reflect estimates made by SMIC's senior management based on best judgment and involve significant risks, known and unknown, uncertainties and other factors that could cause SMIC's actual results, financial condition or results of operations to differ materially from those contained in the forward-looking statements, including, but not limited to, risks related to the semiconductor industry cycle and market conditions, intense competition in the semiconductor industry, SMIC's ability to receive wafer products in a timely manner, the timely introduction of new technologies, SMIC's ability to mass-produce new products, supply and demand for semiconductor foundry services, equipment, spare parts, raw materials, software and service support shortages, orders or judgments from pending litigation, intellectual property litigation common in the semiconductor industry, macroeconomic conditions, currency exchange rate fluctuations and geopolitical risks.

Summary of operating results for the fourth quarter of 2024

In thousands of dollars (except EPS)

2024 2024 Quarter Comparison 2023 Year-on-Year Comparison

Q4 Q3 Q4

Income 2,207,281 2,171,188 1.7% 1,678,299 31.5%

Cost of Sales (1,708,270) (1,727,028) -1.1% (1,403,344) 21.7%

Gross profit 499,011 444,160 12.3% 274,955 81.5%

Operating expenses (284,544) (274,273) 3.7% (167,677) 69.7%

Operating profit 214,467 169,887 26.2% 107,278 99.9%

Other income, net 140,791 72,985 92.9% 140,703 0.1%

Profit before tax 355,258 242,872 46.3% 247,981 43.3%

Income tax expense (84,312) (19,602) 330.1% (10,713) 687.0%

Profit for the period 270,946 223,270 21.4% 237,268 14.2%

Profit attributable to the following parties for the period:

Owners 107,587 148,800 -27.7% 174,678 -38.4%

Non-controlling interests 163,359 74,470 119.4% 62,590 161.0%

Profit for the period 270,946 223,270 21.4% 237,268 14.2%

Gross margin 22.6% 20.5% 16.4%

Earnings per share(1)

Base $0.01 $0.02 $0.02

Diluted $0.01 $0.02 $0.02

Annotations:

(1) Based on a weighted average common stock of 7,975 million shares (basic) and 7,998 million shares (diluted) for the fourth quarter of 2024, 7,960 million shares (basic) and 7,981 shares for the third quarter of 2024

million shares (diluted), 7,946 million shares (basic) and 7,968 million shares (diluted) for Q4 2023.

？ Sales revenue for the fourth quarter of 2024 was $2,207.3 million, an increase of 1.7% compared to $2,171.2 million for the third quarter of 2024.

？ Cost of sales was $1,708.3 million for the fourth quarter of 2024 and $1,727.0 million for the third quarter of 2024.

？ Gross profit was $499.0 million for the fourth quarter of 2024 and $444.2 million for the third quarter of 2024.

？ Gross margin was 22.6% for the fourth quarter of 2024 and 20.5% for the third quarter of 2024.

？ Operating expenses for the fourth quarter of 2024 were $284.5 million, compared to $274.3 million for the third quarter of 2024. The main reason for the change is please

See Operating Expenses below.

？ Other income for the fourth quarter of 2024, net of $140.8 million, compared to a gain of $73.0 million for the third quarter of 2024. fluctuation

The main reasons are detailed below for other income, net.

Revenue analysis

2024 2024 2023

By region: Fourth Quarter, Third Quarter, Fourth Quarter

China 89.1% 86.4% 80.8%

U.S. 8.9% 10.6% 15.7%

Eurasia 2.0% 3.0% 3.5%

2024 2024 2023

Categorized by service type Q4 Q3 Q4

Wafer 92.5% 94.4% 92.9%

Others 7.5% 5.6% 7.1%

Wafer revenue analysis

2024 2024 2023

Categorized by application Q4 Q3 Q4

Smartphones 24.2% 24.9% 30.2%

Computers & Tablets 19.1% 16.4% 30.6%

Consumer Electronics 40.2% 42.6% 22.8%

Connected & Wearable 8.3% 8.2% 8.8%

Industrial & Automotive 8.2% 7.9% 7.6%

2024 2024 2023

Sort by size 4th quarter 3rd quarter 4th quarter

8-inch wafer 19.4% 21.5% 25.8%

12" Wafer 80.6% 78.5% 74.2%

Capacity

？ The monthly production capacity will increase from 884,250 pieces at the end of the third quarter of 2024, equivalent to 8-inch standard logic, to 947,625 pieces at the end of the fourth quarter of 2024

That's 8 inches of standard logic.

Sales volume and capacity utilization

2024 2024 Quarter Comparison 2023 Year-on-Year Comparison

Q4 Q3 Q4

Wafers sold(1) 1,991,761 2,122,266 -6.1% 1,675,002 18.9%

Capacity Utilization (2) 85.5% 90.4% 76.8%

Annotations:

(1) Equivalent to 8 inches of standard logic.

(2) Capacity utilization is calculated by dividing the total wafer output by the estimated quarterly capacity.

Summary of capital expenditures

？ Capital expenditures were $1,660.1 million for the fourth quarter of 2024 and $1,178.8 million for the third quarter of 2024. Full Year 2024 Capital

The expenditure was about $7.33 billion.

Detailed financial analysis

gross profit

2024 2024 Quarter Comparison 2023 Year-on-Year Comparison

In thousands of dollars Q4 Q3 Q4

Cost of sales 1,708,270 1,727,028 -1.1% 1,403,344 21.7%

Depreciation and amortization 788,055 686,719 14.8% 602,245 30.9%

Other manufacturing costs 920,215 1,040,309 -11.5% 801,099 14.9%

Gross profit 499,011 444,160 12.3% 274,955 81.5%

Gross margin 22.6% 20.5% 16.4%

Depreciation and amortization

2024 2024 Quarter Comparison 2023 Year-on-Year Comparison

In thousands of dollars Q4 Q3 Q4

Depreciation and amortization 849,263 831,097 2.2% 700,034 21.3%

Operating expenses

2024 2024 Quarter Comparison 2023 Year-on-Year Comparison

In thousands of dollars Q4 Q3 Q4

Operating expenses 284,544 274,273 3.7% 167,677 69.7%

R&D expenditure 217,035 179,386 21.0% 189,138 14.7%

General and administrative expenses 166,851 136,182 22.5% 147,821 12.9%

Sales and marketing expenses 11,466 9,601 19.4% 9,348 22.7%

Impairment loss on financial assets, net (502) 620 Not applicable (990) -49.3%

Other Operating Income (110,306) (51,516) 114.1% (177,640) -37.9%

？ General and administrative expenses increased to US$166.9 million in the fourth quarter of 2024 from US$136.2 million in the third quarter of 2024. Change the Lord

This is due to increased start-up expenses for new plants in the fourth quarter of 2024.

Other income, net

2024 2024 Quarter vs. 2023 Year-on-Year Comparison

In thousands of dollars, Q4 Q3 vs. Q4

Other income, net 140,791 72,985 92.9% 140,703 0.1%

Interest income 107,850 131,868 -18.2% 176,919 -39.0%

Finance Expenses (75,342) (83,302) -9.6% (62,905) 19.8%

Exchange gain/(loss) 4,215 (2,065) N/A 7,255 -41.9%

Other gains/(losses), net 97,363 (2,927) Not applicable 7,203 1,251.7%

Profit attributable to associates and joint ventures 6,705 29,411 -77.2% 12,231 -45.2%

？ Other income/(loss) for the fourth quarter of 2024, the change in net was primarily due to the recognition of finance at fair value through profit or loss

Resulting from changes in the fair value of securities investments in assets and gains on disposal of an associate.

EBITDA

2024 2024 2023

In thousands of dollars Q4 Q3 Q4

Profit for the period was 270,946 223,270 237,268

Finance expenses 75,342 83,302 62,905

Depreciation and amortization 849,263 831,097 700,034

Income tax expenses 84,312 19,602 10,713

EBITDA 1,279,863 1,157,271 1,010,920

Profit margin 12.3% 10.3% 14.1%

EBITDA margin 58.0% 53.3% 60.2%

Liquidity

2024 2024

In thousands of dollars Q4 Q3

Inventories 2,958,350 2,877,125

Advance payments and prepaid operating expenses 56,394 78,827

Trade and other receivables 840,153,938,800

Financial assets at fair value through profit or loss 272,257 232,983

Financial assets at amortized cost 4,206,926 2,869,070

Derivative financial instruments 66,054 70,518

Restricted cash – 285,876

Cash and cash equivalents 6,364,189 3,651,385

Classified as assets held for sale 19,392 22,030

Total current assets 14,783,715 11,026,614

Trade and other payables 3,278,966 3,351,346

Contract liabilities 1,185,932 1,019,979

Borrowings 2,926,311 1,436,334

Lease liabilities 18,529 23,168

Bonds payable 605,258 601,027

Deferred government funds 198,645 157,027

Provision liabilities 363,353 353,592

Derivative financial instruments 97,865 73,020

Current tax liabilities 84,828 12,376

Total current liabilities 8,759,687 7,027,869

Cash ratio(1) 0.7 0.5

Quick Ratio(2) 1.3 1.2

Current ratio(3) 1.7 1.6

Annotations:

(1) The cash ratio is cash and cash equivalents divided by total current liabilities.

(2) The quick ratio is current assets (excluding inventories) divided by total current liabilities.

(3) The current ratio is the total current assets divided by the total current liabilities.

Capital structure

2024 2024

In thousands of dollars Q4 Q3

Cash and cash equivalents 6,364,189 3,651,385

Restricted cash 372,514 379,314

Finance at fair value through profit or loss 272,257 232,983

Assets - Current(1)

Financial assets at amortized cost(2) 7,954,060 8,368,227

Total funds in stock 14,963,020 12,631,909

Borrowings - current 2,926,311 1,436,334

Borrowings - non-current 8,038,148 8,322,826

Lease liabilities 26,280 34,387

Bonds payable 605,258 601,027

Total interest-bearing debt 11,595,997 10,394,574

Net debt (3) (3,367,023) (2,237,335)

Equity 31,869,658 31,426,011

Interest-bearing debt-to-equity ratio(4) 36.4% 33.1%

Net debt-to-equity ratio(5) -10.6% -7.1%

Annotations:

(1) Mainly includes structured deposits and money market funds.

(2) Mainly consists of bank fixed deposits of more than three months.

(3) Total interest-bearing liabilities minus total inventory funds.

(4) Total interest-bearing debt divided by equity.

(5) Net debt divided by equity.

Summary of cash flows

2024 2024

In thousands of dollars Q4 Q3

Net cash from operating activities 1,449,842 1,236,416

Net cash used in investing activities (207,300) (1,345,115)

Net cash received/(used) from financing activities 1,614,792 (97,009)

Effect of exchange rate changes (144,530) 162,816

Net increase/(decrease) in cash and cash equivalents 2,712,804 (42,892)

Semiconductor Manufacturing International Corporation (SMIC).

Condensed consolidated statement of profit and loss and other comprehensive income

(in thousands of United States dollars)

For the three months ended below

December 31, 2024 September 30, 2024

(Unaudited) (Unaudited)

Income 2,207,281 2,171,188

Cost of Sales (1,708,270) (1,727,028)

Gross profit 499,011 444,160

R&D Expenditure (217,035) (179,386)

Sales & Marketing Expenses (11,466) (9,601)

General and Administrative Expenses (166,851) (136,182)

Impairment loss on financial assets, net 502 (620)

Other operating income 110,306 51,516

Operating Expenses (284,544) (274,273)

Operating profit 214,467 169,887

Other income, net 140,791 72,985

Profit before tax was 355,258 242,872

Income tax expense (84,312) (19,602)

Profit for the period 270,946 223,270

Other comprehensive income:

Items that may subsequently be reclassified as profit or loss

Foreign Currency Statement Translation Difference (26,897) 31,479

Cash Flow Hedging (103,537) 146,558

Total comprehensive income for the period was 140,512 401,307

Profit attributable to the following parties for the period:

The owner of the company is 107,587 148,800

Non-controlling interests 163,359 74,470

270,946 223,270

The total comprehensive income attributable to the following parties for the period:

Owners of the Company (22,683) 326,735

Non-controlling interests 163,195 74,572

140,512 401,307

Semiconductor Manufacturing International Corporation (SMIC).

Condensed Consolidated Statement of Financial Position

(in thousands of United States dollars)

As of the following dates

December 31, 2024 September 30, 2024

(Unaudited) (Unaudited)

asset

Non-current assets

Property, plant and equipment 28,092,037 27,274,634

Right-of-use assets 432,148 442,924

Intangible assets 24,268 25,942

Investment in associates 1,252,507 2,076,372

Investment in joint ventures 13 970

Deferred tax assets 29,212 13,128

Financial assets at fair value through profit or loss 427,373 466,007

Financial assets at amortized cost 3,747,134 5,499,157

Derivative financial instruments - 5,812

Restricted cash 372,514 379,314

Other assets 327 269

Total non-current assets 34,377,533 36,184,529

liquid asset

Inventories 2,958,350 2,877,125

Advance payments and prepaid operating expenses 56,394 78,827

Trade and other receivables 840,153,938,800

Financial assets at fair value through profit or loss 272,257 232,983

Financial assets at amortized cost 4,206,926 2,869,070

Derivative financial instruments 66,054 70,518

Restricted cash – 285,876

Cash and cash equivalents 6,364,189 3,651,385

14,764,323 11,004,584

Classified as Assets Held for Sale 19,392 22,030

Total current assets 14,783,715 11,026,614

Total assets 49,161,248 47,211,143

Semiconductor Manufacturing International Corporation (SMIC).

Condensed Consolidated Statement of Financial Position

(in thousands of United States dollars)

As of the following dates

December 31, 2024 September 30, 2024

(Unaudited) (Unaudited)

Equity and Liabilities

Share capital and reserves

Common shares 31,905 31,887

Share premium 14,266,359 14,251,767

Other reserves 142,470 268,311

Retained surplus 6,173,075 6,065,488

Equity attributable to owners of the Company 20,613,809 20,617,453

Non-controlling interests 11,255,849 10,808,558

Total equity 31,869,658 31,426,011

Non-current liabilities

Borrowings 8,038,148 8,322,826

Lease liabilities 7,751 11,219

Deferred tax liabilities 73,627 58,863

Deferred government funds 374,801 337,730

Derivative Financial Instruments 37,576 26,625

Total non-current liabilities 8,531,903 8,757,263

Current liabilities

Trade and other payables 3,278,966 3,351,346

Contract liabilities 1,185,932 1,019,979

Borrowings 2,926,311 1,436,334

Lease liabilities 18,529 23,168

Bonds payable 605,258 601,027

Deferred government funds 198,645 157,027

Provision liabilities 363,353 353,592

Derivative financial instruments 97,865 73,020

Current tax liabilities 84,828 12,376

Total current liabilities 8,759,687 7,027,869

Total liabilities 17,291,590 15,785,132

Total equity and liabilities 49,161,248 47,211,143

Semiconductor Manufacturing International Corporation (SMIC).

Condensed consolidated statement of cash flows

(in thousands of United States dollars)

For the three months ended below

December 31, 2024 September 30, 2024

(Unaudited) (Unaudited)

Business Activities:

Profit for the period 270,946 223,270

Depreciation and amortization 849,263 831,097

Profit attributable to associates and joint ventures (6,705) (29,411)

Other (gain)/loss, net (97,363) 2,927

Changes in working capital and others 433,701 208,533

Net cash from operating activities 1,449,842 1,236,416

Investment Activities:

Acquisition of financial assets at fair value through profit or loss (220,744) (291,812)

Proceeds from the sale of financial assets at fair value through profit or loss 212,525 162,945

Acquisition of financial assets at amortized cost (41,731) (8,458)

Proceeds due from financial assets at amortized cost 421,541 577,279

Acquisition of property, plant and equipment (1,516,058) (1,880,836)

Proceeds from the sale of property, plant and equipment 15,953 11,419

Acquisition of intangible assets (1,048) (1,078)

Acquisition of land use rights (84) -

Proceeds from the sale of equity interests in associates and joint ventures 920,588 49,797

Dividends received from associates - 1,612

Proceeds from settlement of derivative financial instruments 1,758 34,017

Net cash used in investing activities (207,300) (1,345,115)

Financing Activities:

Proceeds from borrowings 1,658,024 127,683

Repayment of borrowings (224,108) (305,139)

Repayment of principal portion of lease liabilities (8,108) (8,100)

Proceeds from the issuance of shares in relation to the share incentive scheme 9,879 41,935

Capital injection of non-controlling equity 281,865 -

Payment for Non-Controlling Interest (6,950) -

Settlement of Derivative Financial Instruments (Paid)/Proceeds (95,810) 46,612

Net cash received/(used) from financing activities 1,614,792 (97,009)

Effect of exchange rate changes on cash and cash equivalents (144,530) 162,816

Net increase/(decrease) in cash and cash equivalents 2,712,804 (42,892)

Opening cash and cash equivalents 3,651,385 3,694,277

Cash and cash equivalents at the end of the period 6,364,189 3,651,385

Undertake the orders of the board of directors

Semiconductor Manufacturing International Corporation (SMIC).

Secretary of the Board of Directors/Company Secretary

Guo Guangli

Shanghai, February 11, 2025

As at the date of this announcement, the Directors of the Company are:

Executive Director

Liu Xunfeng

Non-Executive Director

Lu Guoqing

Chen Shanzhi

Yang Lumin

Yellow Mountaineering

Independent Non-Executive Director

Fan Renda

Liu ming

Wu Hanming

Chen Xinyuan