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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 announced its unaudited results for the three months ended September 30, 2024

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

？ Sales revenue for the third quarter of 2024 was $2,171.2 million, compared to $1,901.3 million for the second quarter of 2024, 2023

$1,620.6 million for the third quarter.

？ Gross profit was $444.2 million for the third quarter of 2024, $265.1 million for the second quarter of 2024 and 321.6 for the third quarter of 2023

Million dollars.

？ Gross margin was 20.5% for the third quarter of 2024, 13.9% for the second quarter of 2024, and 19.8% for the third quarter of 2023.

The following is the unaudited report of the Company and its subsidiaries (the "Group") for the three months ended 30 September 2024 as at 7 November 2024

The full text of the nuclear results was announced.

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

Shanghai, China – November 7, 2024 – Semiconductor Manufacturing International Corporation Limited (Hong Kong), 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 September 30, 2024.

* For identification purposes only

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

Fourth Quarter 2024 Guidance

The Company expects guidance under IFRS to be:

？ Quarterly revenue was flat sequentially up 2%.

？ Gross margin ranged from 18% to 20%.

Management comments

In the third quarter, the company's revenue rose 14% quarter-on-quarter to $2.17 billion, the first time it stood at the level of $2 billion in a single quarter, a record high. New

The monthly production capacity of 21,000 pieces of 12 inches promoted the further optimization of product structure and increased the average sales unit price. The overall capacity utilization rate increased to 90.4%, and the gross profit margin increased to 20.5%.

In the fourth quarter, the company gave guidance for revenue flat to 2% growth sequentially and gross margin in the range of 18% to 20%.

The company will strengthen its confidence in development, maintain strategic focus, stabilize market share and consolidate its position in the industry.

Conference Call/Online Results Announcement Details

Date: 8 November 2024 (Friday)

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

Online meetings

The meeting will be held at https://edge.media-server.com/mmc/p/2axei2ms/

Do live streaming.

teleconference

Please pass the https://register.vevent.com/register/BIcb279f11a4744d38b004b10c73af896d in advance

Register for the conference call.

Online playback

Approximately 1 hour after the end of the session, you can repeat the session on the following page for 12 months.

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 enterprises, 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 third quarter of 2024

In thousands of dollars (excluding earnings per share and operating figures)

2024 2024 Quarter Comparison 2023 Annual Comparison

Q3 Q2 Q3

Revenue 2,171,188 1,901,276 14.2% 1,620,577 34.0%

Cost of sales (1,727,028) (1,636,183) 5.6% (1,298,957) 33.0%

Gross profit 444,160 265,093 67.5% 321,620 38.1%

Operating expenses (274,273) (177,953) 54.1% (234,232) 17.1%

Operating profit 169,887 87,140 95.0% 87,388 94.4%

Other income, net 72,985 99,875 -26.9% 80,426 -9.3%

Profit before tax 242,872 187,015 29.9% 167,814 44.7%

Income tax expense (19,602) (14,753) 32.9% (11,438) 71.4%

Profit for the period 223,270 172,262 29.6% 156,376 42.8%

Profit attributable to the following parties for the period:

Owners 148,800 164,569 -9.6% 93,984 58.3%

Non-controlling interests 74,470 7,693 868.0% 62,392 19.4%

Profit for the period 223,270 172,262 29.6% 156,376 42.8%

Gross margin 20.5% 13.9% 19.8%

Earnings per share(1)

Base $0.02 $0.02 $0.01

Diluted $0.02 $0.02 $0.01

Annotations:

(1) Based on a weighted average common stock of 7,960 million shares (basic) and 7,981 million shares (diluted) for the third quarter of 2024, compared to 7,954 million shares (basic) and 7,977 shares for the second quarter of 2024

million shares (diluted), 7,932 million shares (basic) and 7,959 million shares (diluted) in Q3 2023.

？ Sales revenue for the third quarter of 2024 was $2,171.2 million, an increase from $1,901.3 million for the second quarter of 2024

14.2%。 The increase in sales revenue was primarily due to the change in product mix in the third quarter of 2024.

？ Cost of sales was $1,727.0 million for the third quarter of 2024 and $1,636.2 million for the second quarter of 2024.

？ Gross profit for the third quarter of 2024 was $444.2 million, compared to $265.1 million for the second quarter of 2024.

？ Gross margin was 20.5% for the third quarter of 2024, compared to 13.9% for the second quarter of 2024.

？ Operating expenses for the third quarter of 2024 were $274.3 million, compared to $178.0 million for the second quarter of 2024. The main reason for the change is please

See Operating Expenses below.

？ Other income for the third quarter of 2024 was net of $73.0 million, compared to a gain of $99.9 million for the second quarter of 2024. fluctuation

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

Revenue analysis

By region: 2024, 2024, 2023

Q3 Q2 Q3

China 86.4% 80.3% 84.0%

U.S. 10.6% 16.0% 12.9%

Eurasia 3.0% 3.7% 3.1%

Categorized by service type: 2024, 2024, 2023

Q3 Q2 Q3

Wafer 94.4% 92.9% 91.1%

Others 5.6% 7.1% 8.9%

Wafer revenue analysis

Classified by application: 2024, 2024, 2023

Q3 Q2 Q3

Smartphones 24.9% 32.0% 25.9%

Computers & Tablets 16.4% 13.3% 29.2%

Consumer Electronics 42.6% 35.6% 24.1%

Connected & Wearable 8.2% 11.0% 11.5%

Industrial & Automotive 7.9% 8.1% 9.3%

Sort by size 2024, 2024, 2023

Q3 Q2 Q3

8-inch wafer 21.5% 26.4% 26.0%

12-inch wafer 78.5% 73.6% 74.0%

Capacity

？ The monthly production capacity will increase from 837,000 8-inch wafers equivalent in Q2 2024 to 884,250 8-inch wafers in Q3 2024

approx. equivalent.

Sales volume and capacity utilization

2024 2024 Quarter Comparison 2023 Annual Comparison

Q3 Q2 Q3

Wafers sold(1) 2,122,266 2,111,880 0.5% 1,536,845 38.1%

Capacity utilization rate (2) 90.4% 85.2% 77.1%

Annotations:

(1) Approximately the number of 8-inch wafers.

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

Summary of capital expenditures

？ Capital expenditures were $1,178.8 million for the third quarter of 2024 and $2,251.5 million for the second quarter of 2024.

Detailed financial analysis

gross profit

In thousands of dollars, 2024, 2024 quarter, 2023 annual comparison

Q3 Q2 Q3

Cost of sales 1,727,028 1,636,183 5.6% 1,298,957 33.0%

Depreciation and amortization 686,719 701,547 -2.1% 518,092 32.5%

Other manufacturing costs 1,040,309 934,636 11.3% 780,865 33.2%

Gross profit 444,160 265,093 67.5% 321,620 38.1%

Gross margin 20.5% 13.9% 19.8%

Depreciation and amortization

In thousands of dollars, 2024, 2024 quarter, 2023 annual comparison

Q3 Q2 Q3

Depreciation and amortization 831,097 797,166 4.3% 679,308 22.3%

Operating expenses

In thousands of dollars, 2024, 2024 quarter, 2023 annual comparison

Q3 Q2 Q3

Operating expenses 274,273 177,953 54.1% 234,232 17.1%

R&D expenditure 179,386 180,748 -0.8% 172,836 3.8%

General and administrative expenses 136,182 160,630 -15.2% 128,128 6.3%

Sales and marketing expenses 9,601 9,737 -1.4% 9,454 1.6%

Impairment loss on financial assets, net 620 (1,025) Not applicable (495) Not applicable

Other Operating Income (51,516) (172,137) -70.1% (75,691) -31.9%

？ General and administrative expenses decreased to $136.2 million in the third quarter of 2024 from $160.6 million in the second quarter of 2024. Change the Lord

This was due to lower start-up expenses in the third quarter of 2024.

？ The change in other operating income was primarily due to a decrease in government fund income recognized during the quarter.

Other income, net

In thousands of dollars, 2024, 2024 quarter, 2023 annual comparison

Q3 Q2 Q3

Other income, net 72,985 99,875 -26.9% 80,426 -9.3%

Interest income 131,868 142,233 -7.3% 187,713 -29.8%

Finance Expenses (83,302) (71,742) 16.1% (54,132) 53.9%

Exchange (loss)/gain (2,065) 4,933 N/A 6,540 N/A

Other (loss)/gain, net (2,927) 7,287 Not applicable (11,821) -75.2%

Attributable profit/(loss) of associates and joint ventures 29,411 17,164 71.4% (47,874) Not applicable

？ Other (loss)/gain, net change for the third quarter of 2024 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.

EBITDA

In thousands of dollars, 2024, 2024, 2023

Q3 Q2 Q3

Profit for the period was 223,270 172,262 156,376

Financial expenses 83,302 71,742 54,132

Depreciation and amortization amounted to 831,097,797,166,679,308

Income tax expenses 19,602 14,753 11,438

EBITDA 1,157,271 1,055,923 901,254

Profit margin 10.3% 9.1% 9.6%

EBITDA margin 53.3% 55.5% 55.6%

Liquidity

In thousands of dollars, 2024, 2024

Q3 Q2

Inventories 2,877,125 2,740,168

Advance payments and prepaid operating expenses 78,827 98,660

Trade and other receivables 938,800 1,235,380

Financial assets at fair value through profit or loss 232,983 101,109

Financial assets at amortized cost 2,869,070 2,963,006

Derivative financial instruments 70,518 85,204

Restricted cash 285,876 280,228

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

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

Total current assets 11,026,614 11,220,062

Trade and other payables 3,351,346 3,978,441

Contract liabilities 1,019,979 1,015,698

Borrowings 1,436,334 1,361,165

Lease liabilities 23,168 27,794

Bonds payable 601,027 604,877

Deferred government funds 157,027 159,591

Provision liabilities 353,592 310,052

Derivative financial instruments 73,020 63,872

Current tax liabilities 12,376 18,049

Total current liabilities 7,027,869 7,539,539

Cash ratio(1) 0.5 0.5

Quick Ratio(2) 1.2 1.1

Current ratio(3) 1.6 1.5

Annotations:

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

(2) The quick ratio is defined as 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

In thousands of dollars, 2024, 2024

Q3 Q2

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

Restricted cash 379,314 370,445

Finance at fair value through profit or loss 232,983 101,109

Assets - Current(1)

Financial assets at amortized cost (2) 8,368,227 8,814,627

Total funds in stock 12,631,909 12,980,458

Borrowings - current 1,436,334 1,361,165

Borrowings - non-current 8,322,826 8,424,725

Lease liabilities 34,387 42,483

Bonds payable 601,027 604,877

Total interest-bearing debt 10,394,574 10,433,250

Net debt (3) (2,237,335) (2,547,208)

Equity 31,426,011 30,969,673

Interest-bearing debt-to-equity ratio(4) 33.1% 33.7%

Net debt-to-equity ratio(5) -7.1% -8.2%

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

In thousands of dollars, 2024, 2024

Q3 Q2

Net cash from operating activities 1,236,416 19,275

Net cash used in investing activities (1,345,115) (1,637,666)

Financing activities (used)/net cash received (97,009) 46,379

Effect of exchange rate changes 162,816 (82,429)

Net decrease in cash and cash equivalents (42,892) (1,654,441)

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

September 30, 2024 June 30, 2024

(Unaudited) (Unaudited)

Income 2,171,188 1,901,276

Cost of Sales (1,727,028) (1,636,183)

Gross profit 444,160 265,093

R&D Expenditure (179,386) (180,748)

Sales & Marketing Expenses (9,601) (9,737)

General and administrative expenses (136,182) (160,630)

Impairment loss on financial assets, net (620) 1,025

Other operating income 51,516 172,137

Operating Expenses (274,273) (177,953)

Operating profit 169,887 87,140

Other income, net 72,985 99,875

Profit before tax was 242,872 187,015

Income tax expense (19,602) (14,753)

Profit for the period 223,270 172,262

Other comprehensive income:

Items that may subsequently be reclassified as profit or loss

Foreign Currency Report Translation Differences 31,479 (9,158)

Cash Flow Hedges 146,558 (42,127)

Total comprehensive income for the period was 401,307 120,977

Profit attributable to the following parties for the period:

The owners of the company are 148,800 164,569

Non-controlling interests 74,470 7,693

223,270 172,262

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

The owner of the company is 326,735 113,320

Non-controlling interests 74,572 7,657

401,307 120,977

Semiconductor Manufacturing International Corporation (SMIC).

Condensed Consolidated Statement of Financial Position

(in thousands of United States dollars)

As of the following dates

September 30, 2024 June 30, 2024

(Unaudited) (Unaudited)

asset

Non-current assets

Real Estate, Plant & Equipment 27,274,634 26,914,232

Right-of-use assets 442,924 453,217

Intangible assets 25,942 28,757

Investment in associates 2,076,372 2,027,205

Investments in joint ventures 970 1,482

Deferred tax assets 13,128 13,192

Financial assets at fair value through profit or loss 466,007 462,380

Financial assets at amortized cost 5,499,157 5,851,621

Derivative Financial Instruments 5,812 8,928

Restricted cash 379,314 370,445

Other assets 269 246

Total non-current assets 36,184,529 36,131,705

liquid asset

Inventories 2,877,125 2,740,168

Advance payments and prepaid operating expenses 78,827 98,660

Trade and other receivables 938,800 1,235,380

Financial assets at fair value through profit or loss 232,983 101,109

Financial assets at amortized cost 2,869,070 2,963,006

Derivative financial instruments 70,518 85,204

Restricted cash 285,876 280,228

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

11,004,584 11,198,032

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

Total current assets 11,026,614 11,220,062

Total assets 47,211,143 47,351,767

Semiconductor Manufacturing International Corporation (SMIC).

Condensed Consolidated Statement of Financial Position

(in thousands of United States dollars)

As of the following dates

September 30, 2024 June 30, 2024

(Unaudited) (Unaudited)

Equity and Liabilities

Share capital and reserves

Common shares 31,887 31,825

Share premium 14,251,767 14,138,415

Other reserves 268,311 149,821

Retained surplus 6,065,488 5,916,688

Equity attributable to owners of the Company 20,617,453 20,236,749

Non-controlling interests 10,808,558 10,732,924

Total equity 31,426,011 30,969,673

Non-current liabilities

Borrowings 8,322,826 8,424,725

Lease liabilities 11,219 14,689

Deferred tax liabilities 58,863 40,393

Deferred government funds 337,730 306,787

Derivative Financial Instruments 26,625 55,961

Total non-current liabilities 8,757,263 8,842,555

Current liabilities

Trade and other payables 3,351,346 3,978,441

Contract liabilities 1,019,979 1,015,698

Borrowings 1,436,334 1,361,165

Lease liabilities 23,168 27,794

Bonds payable 601,027 604,877

Deferred government funds 157,027 159,591

Provision liabilities 353,592 310,052

Derivative financial instruments 73,020 63,872

Current tax liabilities 12,376 18,049

Total current liabilities 7,027,869 7,539,539

Total liabilities 15,785,132 16,382,094

Total equity and liabilities 47,211,143 47,351,767

Semiconductor Manufacturing International Corporation (SMIC).

Condensed consolidated statement of cash flows

(in thousands of United States dollars)

For the three months ended below

September 30, 2024 June 30, 2024

(Unaudited) (Unaudited)

Business Activities:

Profit for the period 223,270 172,262

Depreciation and amortization amounted to 831,097 797,166

Profit attributable to associates and joint ventures (29,411) (17,164)

Other loss/(gain), net 2,927 (7,287)

Changes in working capital and others 208,533 (925,702)

Net cash from operating activities 1,236,416 19,275

Investment Activities:

Acquisition of financial assets at fair value through profit or loss (291,812) (142,163)

Proceeds from the sale of financial assets at fair value through profit or loss 162,945 280,657

Acquisition of financial assets at amortized cost (8,458) (805,521)

Proceeds due from financial assets measured at amortized cost 577,279 1,384,989

Acquisition of property, plant and equipment (1,880,836) (2,361,507)

Proceeds from sale of property, plant and equipment 11,419 1,777

Acquisition of intangible assets (1,078) (2,110)

Capital injection into associates - (48,081)

Proceeds from the sale of equity interests in associates and joint ventures 49,797 16,600

Received dividends from associates 1,612 1,373

Proceeds from settlement of derivative financial instruments 34,017 36,320

Net cash used in investing activities (1,345,115) (1,637,666)

Financing Activities:

Proceeds from borrowings 127,683 1,037,652

Repayment of borrowings (305,139) (879,071)

Principal Portion of Lease Liabilities Repayment (8,100) (8,081)

Proceeds from the issue of shares in relation to the share incentive scheme 41,935 241

Proceeds from settlement of derivative financial instruments 46,612 (104,362)

Net cash used in financing activities (97,009) 46,379

Effect of exchange rate changes on cash and cash equivalents 162,816 (82,429)

Net decrease in cash and cash equivalents (42,892) (1,654,441)

Opening cash and cash equivalents 3,694,277 5,348,718

Cash and cash equivalents at the end of the period 3,651,385 3,694,277

Undertake the orders of the board of directors

Semiconductor Manufacturing International Corporation (SMIC).

Company Secretary/Board Secretary

Guo Guangli

Shanghai, November 7, 2024

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