Earnings release
Page 1
- 1 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION 中 芯 國 際 集 成 電 路 製 造 有 限 公 司* (Incorporated in the Cayman Islands with limited liability) (STOCK CODE: 00981) SMIC REPORTS UNAUDITED RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 The consolidated financial information is prepared and presented in accordance with International Financial Reporting Standards (“IFRSs”), unless otherwise stated below. Revenue was $ 2,381.8 million in 3Q25, compared to $ 2,209.1 million in 2Q25, and $ 2,171.2 million in 3Q24. Gross profit was $522.8 million in 3Q25, compared to $449.8 million in 2Q25, and $444.2 million in 3Q24. Gross margin was 22.0% in 3Q25, compared to 20.4% in 2Q25 and 20.5% in 3Q24. Set out below is a copy of the full text of the release by the Company and its subsidiaries (the “Group”) on November 13, 2025, in relation to its unaudited results for the three months ended SEPTEMBER 30, 2025. All currency figures stated in this report are in US Dollars unless stated otherwise. Shanghai, China – November 13 , 20 25 – Semiconductor Manufacturing Int ernational Corporation (SEHK: 00981; SSE STAR MARKET: 688981 ) (“SMIC” , the “Company” or “ we”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended SEPTEMBER 30, 2025. * For identification purposes only
Page 2
- 2 - The following statements are forward looking statements based on current expectations and involved risks and uncertainties. Fourth Quarter 2025 Guidance The Company expects (in accordance with IFRSs): Revenue to be flat to up 2% QoQ. Gross margin to range from 18% to 20%. The Management Comments In the third quarter , the Company ’s revenue was $2,382 million, a sequential increase of 7.8%. Gross margin was 22.0%, increased by 1.6 percentage points sequentially. The capacity utilization rate was 95.8%, increased by 3.3 percentage points sequentially. According to the unaudited results, the Company's revenue for the first three quarters reached $6,838 million, up 17.4% comparing to the same period last year. The gross margin was 21.6%, up 5.3 percentage points comparing to the same period last year. In the fourth quarter, the revenue is expected to be flat to up 2% sequentially. The gross margin is expected to be in the range of 18% to 20%.
Page 3
- 3 - Conference Call / Webcast Announcement Date: Friday, November 14, 2025 Time: 8:30 A.M. - 9:30 A.M. WEBCAST The call will be webcast live at: https://edge.media-server.com/mmc/p/ohaxszsr CONFERENCE CALL Please register in advance for the conference call at: https://register-conf.media-server.com/register/BI3e7a02158f7643ffa62d4d9069003bda REPLAY Recording will be available 1 hour after the event and it will be archived for 12 months. https://www.smics.com/en/site/company_financialSummary About SMIC Semiconductor Manufacturing International Corporation ( SEHK: 00981; SSE STAR MARKET: 688981) is one of the leading foundries in the world and is the front runner in manufacturing ca pability, manufacturing scale, and comprehensive service in the Chinese Mainland. SMIC Group provides semiconductor foundry and technology services to global customers on 8 -inch and 12 -inch wafers. Headquartered in Shanghai, China, SMIC Group has an intern ational manufacturing and service base, with 8 -inch and 12 -inch wafer fabrication facilities in Shanghai, Beijing, Tianjin and Shenzhen. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, China . For more information, please visit www.smics.com. Forward-Looking Statements This release may contain, in addition to historical information, forward -looking statements. These forward-looking statements are based on SMIC's curre nt assumptions, expectations, beliefs, plans, objectives, and projections about future events or performance. SMIC uses words including but not limited to “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project”, “target”, “going forward”, “continue”, “ought to”, “may”, “seek”, “should”, “plan”, “could”, “vision”, “goal”, “aim”, “aspire”, “objective”, “schedule”, “outlook” and other similar expressions to identify forward looking statements. These forward-looking statements are estimates made by SMIC's senior management based on their best judgment and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different fr om those suggested by the forward -looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition in the semiconductor industry, timely wafer acceptance by SMIC's custom ers, timely introduction of new technologies, SMIC's ability to ramp new products into volume, supply and demand for semiconductor foundry services, shortages in equipment, parts, raw materials, software and service supports, orders or judgments from pendi ng litigation, common intellectual property litigation in the semiconductor indust ry, macro-economic conditions, fluctuations in currency exchange rates and the risk of geopolitics.
Page 4
- 4 - Summary of Thrid Quarter 2025 Operating Results Amounts in US$ thousands, except for earnings per share 3Q25 2Q25 QoQ 3Q24 YoY Revenue 2,381,822 2,209,066 7.8% 2,171,188 9.7% Cost of sales (1,859,011) (1,759,267) 5.7% (1,727,028) 7.6% Gross profit 522,811 449,799 16.2% 444,160 17.7% Operating expenses (171,742) (299,122) -42.6% (274,273) -37.4% Profit from operations 351,069 150,677 133.0% 169,887 106.6% Other income, net (13,993) 9,725 N/A 72,985 N/A Profit before tax 337,076 160,402 110.1% 242,872 38.8% Income tax expense (21,610) (13,721) 57.5% (19,602) 10.2% Profit for the period 315,466 146,681 115.1% 223,270 41.3% Profit for the period attributable to: Owners of the Company 191,758 132,487 44.7% 148,800 28.9% Non-controlling interests 123,708 14,194 771.6% 74,470 66.1% Profit for the period 315,466 146,681 115.1% 223,270 41.3% Gross margin 22.0% 20.4% 20.5% Earnings per share(1) Basic $0.02 $0.02 $0.02 Diluted $0.02 $0.02 $0.02 Note: (1) Based on weighted average ordinary shares of 7,988 million (basic) and 8,009 million (diluted) in 3Q25, 7,986 million (basic) and 8,007 million (diluted) in 2Q25, and 7,960 million (basic) and 7,981 million (diluted) in 3Q24. Revenue was $2,381.8 million in 3Q25, an increase of 7.8% QoQ from $2,209.1 million in 2Q25. The growth was mainly due to the increase in wafer shipment and product mix change in 3Q25. Cost of sales was $1,859.0 million in 3Q25, compared to $1,759.3 million in 2Q25. Gross profit was $522.8 million in 3Q25, compared to $449.8 million in 2Q25. Gross margin was 22.0% in 3Q25, compared to 20.4% in 2Q25. Operating expenses were $171.7 million in 3Q25, compared to $299.1 million in 2Q25. The change was mainly due to the reasons stated in Operating Expenses below. Other income, net was $14.0 million loss in 3Q25, compared to $9.7 million gain in 2Q25. The change was mainly due to the reasons stated in Other Income, Net below.
Page 5
- 5 - Analysis of Revenue Revenue Analysis By Geography 3Q25 2Q25 3Q24 China 86.2% 84.1% 86.4% America 10.8% 12.9% 10.6% Eurasia 3.0% 3.0% 3.0% By Service Type 3Q25 2Q25 3Q24 Wafers 95.2% 94.6% 94.4% Others 4.8% 5.4% 5.6% Wafer Revenue Analysis By Application 3Q25 2Q25 3Q24 Smartphone 21.5% 25.2% 24.9% Computer and Tablet 15.2% 15.0% 16.4% Consumer Electronics 43.4% 41.0% 42.6% Connectivity and IoT 8.0% 8.2% 8.2% Industrial and Automotive 11.9% 10.6% 7.9% By Size 3Q25 2Q25 3Q24 8” wafers 23.0% 23.9% 21.5% 12” wafers 77.0% 76.1% 78.5% Capacity Monthly capacity in creased to 1,022,750 standard logic 8 -inch equivalent wafers in 3Q25 from 991,250 standard logic 8-inch equivalent wafers in 2Q25. Shipment and Utilization 3Q25 2Q25 QoQ 3Q24 YoY Wafer shipments(1) 2,499,465 2,390,236 4.6% 2,122,266 17.8% Utilization rate(2) 95.8% 92.5% 90.4% Notes: (1) Based on standard logic 8-inch equivalent wafers. (2) Based on total wafers out divided by estimated total quarterly capacity. Capex Summary Capital expenditure was $2,394.2 million in 3Q25, compared to $1,885.1 million in 2Q25.
Page 6
- 6 - Detailed Financial Analysis Gross Profit Amounts in US$ thousands 3Q25 2Q25 QoQ 3Q24 YoY Cost of sales 1,859,011 1,759,267 5.7% 1,727,028 7.6% Depreciation and amortisation 804,406 751,492 7.0% 686,719 17.1% Other manufacturing costs 1,054,605 1,007,775 4.6% 1,040,309 1.4% Gross profit 522,811 449,799 16.2% 444,160 17.7% Gross margin 22.0% 20.4% 20.5% Depreciation and Amortisation Amounts in US$ thousands 3Q25 2Q25 QoQ 3Q24 YoY Depreciation and amortisation 995,857 878,816 13.3% 831,097 19.8% Operating Expenses Amounts in US$ thousands 3Q25 2Q25 QoQ 3Q24 YoY Operating expenses 171,742 299,122 -42.6% 274,273 -37.4% Research and development expenses 203,147 181,912 11.7% 179,386 13.2% General and administrative expenses 42,346 188,893 -77.6% 136,182 -68.9% Selling and marketing expenses 10,553 12,939 -18.4% 9,601 9.9% Impairment losses on financial assets, net 3,769 497 658.4% 620 507.9% Other operating income (88,073) (85,119) 3.5% (51,516) 71.0% Research and development expenses increased to $ 203.1 million in 3Q25 from $1 81.9 million in 2Q25. The change was mainly due to the higher level of R&D activities in 3Q25. General and administrative expenses decreased to $ 42.3 million in 3Q25 from $1 88.9 million in 2Q25. The change was mainly due to the decrease of start-up costs in 3Q25. Other Income, Net Amounts in US$ thousands 3Q25 2Q25 QoQ 3Q24 YoY Other income, net (13,993) 9,725 N/A 72,985 N/A Interest income 99,385 100,350 -1.0% 131,868 -24.6% Finance costs (97,323) (90,166) 7.9% (83,302) 16.8% Foreign exchange gain/(loss) 5,478 11,234 -51.2% (2,065) N/A Other losses, net (16,873) (365) 4,522.7% (2,927) 476.5% Share of profit or loss of associates and a joint venture (4,660) (11,328) -58.9% 29,411 N/A The change in other losses, net was mainly due to the passive dilution loss caused by the change in equity in an associate.
Page 7
- 7 - EBITDA Amounts in US$ thousands 3Q25 2Q25 3Q24 Profit for the period 315,466 146,681 223,270 Finance costs 97,323 90,166 83,302 Depreciation and amortisation 995,857 878,816 831,097 Income tax expense 21,610 13,721 19,602 EBITDA 1,430,256 1,129,384 1,157,271 Profit margin 13.2% 6.6% 10.3% EBITDA margin 60.0% 51.1% 53.3% Liquidity Amounts in US$ thousands 3Q25 2Q25 Inventories 3,490,757 3,143,020 Prepayment and prepaid operating expenses 82,912 63,409 Trade and other receivables 1,376,558 1,206,725 Financial assets at fair value through profit or loss 381,981 106,115 Financial assets at amortised cost 5,308,072 4,777,766 Derivative financial instruments 18,677 15,343 Cash and cash equivalents 3,481,713 5,082,675 Assets classified as held-for-sale 3,917 3,917 Total current assets 14,144,587 14,398,970 Trade and other payables 2,968,329 2,925,059 Contract liabilities 717,899 725,103 Borrowings 3,595,623 3,100,702 Lease liabilities 10,759 13,899 Deferred income 189,903 190,300 Accrued liabilities 422,786 406,548 Derivative financial instruments 82,419 80,763 Current tax liabilities 28,156 20,755 Total current liabilities 8,015,874 7,463,129 Cash ratio(1) 0.4 0.7 Quick ratio(2) 1.3 1.5 Current ratio(3) 1.8 1.9 Notes: (1) Cash and cash equivalents divided by total current liabilities. (2) Current assets excluding inventories divided by total current liabilities. (3) Total current assets divided by total current liabilities.
Page 8
- 8 - Capital Structure Amounts in US$ thousands 3Q25 2Q25 Cash and cash equivalents 3,481,713 5,082,675 Restricted cash - 379,078 Financial assets at fair value through profit or loss - current(1) 381,981 106,115 Financial assets at amortised cost(2) 7,521,544 7,486,436 Total cash on hand 11,385,238 13,054,304 Borrowings - current 3,595,623 3,100,702 Borrowings - non-current 7,912,678 8,828,546 Lease liabilities 11,867 14,689 Total debt 11,520,168 11,943,937 Net debt(3) 134,930 (1,110,367) Equity 33,076,364 32,741,774 Debt to equity ratio(4) 34.8% 36.5% Net debt to equity ratio(5) 0.4% -3.4% Notes: (1) Mainly contain structural deposits and monetary funds. (2) Mainly contain bank deposits over 3 months. (3) Total debt minus total cash on hand. (4) Total debt divided by equity. (5) Net debt divided by equity. Cash Flow Amounts in US$ thousands 3Q25 2Q25 Net cash generated from operating activities 941,112 1,069,672 Net cash used in investing activities (2,062,136) (1,559,603) Net cash (used in)/generated from financing activities (489,594) 958,185 Effect of exchange rate changes 9,656 27,072 Net (decrease)/increase in cash and cash equivalents (1,600,962) 495,326
Page 9
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (In US$ thousands) - 9 - For the three months ended September 30, 2025 June 30, 2025 (Unaudited) (Unaudited) Revenue 2,381,822 2,209,066 Cost of sales (1,859,011) (1,759,267) Gross profit 522,811 449,799 Research and development expenses (203,147) (181,912) Selling and marketing expenses (10,553) (12,939) General and administration expenses (42,346) (188,893) Impairment losses on financial assets, net (3,769) (497) Other operating income 88,073 85,119 Operating expenses (171,742) (299,122) Profit from operations 351,069 150,677 Other income, net (13,993) 9,725 Profit before tax 337,076 160,402 Income tax expense (21,610) (13,721) Profit for the period 315,466 146,681 Other comprehensive income: Items that may be reclassified to profit or loss in subsequent periods Exchange differences on translating foreign operations 11,663 2,494 Cash flow hedges (30,719) 71,455 Total comprehensive income for the period 296,410 220,630 Profit for the period attributable to: Owners of the Company 191,758 132,487 Non-controlling interests 123,708 14,194 315,466 146,681 Total comprehensive income for the period attributable to: Owners of the Company 172,702 206,436 Non-controlling interests 123,708 14,194 296,410 220,630
Page 10
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (In US$ thousands) - 10 - As of September 30, 2025 June 30, 2025 (Unaudited) (Unaudited) ASSETS Non-current assets Property, plant and equipment 31,213,807 29,812,316 Right-of-use assets 380,556 385,571 Intangible assets 21,887 20,031 Investments in associates 1,274,591 1,289,373 Investment in a joint venture 78 78 Deferred tax assets 31,397 31,001 Financial assets at fair value through profit or loss 140,685 417,030 Financial assets at amortised cost 2,213,472 2,708,670 Restricted cash - 379,078 Other assets 5,492 4,045 Total non-current assets 35,281,965 35,047,193 Current assets Inventories 3,490,757 3,143,020 Prepayment and prepaid operating expenses 82,912 63,409 Trade and other receivables 1,376,558 1,206,725 Financial assets at fair value through profit or loss 381,981 106,115 Financial assets at amortised cost 5,308,072 4,777,766 Derivative financial instruments 18,677 15,343 Cash and cash equivalents 3,481,713 5,082,675 14,140,670 14,395,053 Assets classified as held-for-sale 3,917 3,917 Total current assets 14,144,587 14,398,970 TOTAL ASSETS 49,426,552 49,446,163
Page 11
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (In US$ thousands) - 11 - As of September 30, 2025 June 30, 2025 (Unaudited) (Unaudited) EQUITY AND LIABILITIES Capital and reserves Ordinary shares 31,999 31,944 Share premium 14,393,091 14,298,320 Other reserves 155,840 231,661 Retained earnings 6,685,355 6,493,597 Equity attributable to owners of the Company 21,266,285 21,055,522 Non-controlling interests 11,810,079 11,686,252 Total equity 33,076,364 32,741,774 Non-current liabilities Borrowings 7,912,678 8,828,546 Lease liabilities 1,108 790 Deferred tax liabilities 62,391 62,259 Deferred income 358,137 349,665 Total non-current liabilities 8,334,314 9,241,260 Current liabilities Trade and other payables 2,968,329 2,925,059 Contract liabilities 717,899 725,103 Borrowings 3,595,623 3,100,702 Lease liabilities 10,759 13,899 Deferred income 189,903 190,300 Accrued liabilities 422,786 406,548 Derivative financial instruments 82,419 80,763 Current tax liabilities 28,156 20,755 Total current liabilities 8,015,874 7,463,129 Total liabilities 16,350,188 16,704,389 TOTAL EQUITY AND LIABILITIES 49,426,552 49,446,163
Page 12
Semiconductor Manufacturing International Corporation CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In US$ thousands) - 12 - For the three months ended September 30, 2025 June 30, 2025 (Unaudited) (Unaudited) Operating activities: Profit for the period 315,466 146,681 Depreciation and amortisation 995,857 878,816 Share of profit or loss of associates and a joint venture 4,660 11,328 Other losses, net 16,873 365 Changes in working capital and others (391,744) 32,482 Net cash generated from operating activities 941,112 1,069,672 Investing activities: Acquisition of financial assets at fair value through profit or loss (65,922) (25,052) Proceeds from sale of financial assets at fair value through profit or loss 71,118 37,980 Acquisition of financial assets at amortised cost (150,473) (1,189,777) Proceeds from maturity of financial assets at amortised cost 528,200 1,257,126 Acquisition of property, plant and equipment (2,474,789) (1,587,185) Proceeds from disposal of property, plant and equipment and assets classified as held-for-sale 137 4,491 Acquisition of intangible assets (3,579) - Proceeds from disposal of land-use right 27,597 5,168 Capital injection in associates (21,060) (30,117) Proceeds from/(payments for) sale of equity interests in associates 22,952 (40,793) Dividends received from associates 4,664 - (Payments for)/proceeds from settlement of derivative financial instruments (981) 8,556 Net cash used in investing activities (2,062,136) (1,559,603) Financing activities: Proceeds from borrowings 224,871 2,167,048 Repayment of borrowings (727,255) (1,498,726) Repayment of the principal portion of the lease liabilities (3,463) (3,465) Proceeds from issue of shares under share incentive plans 34,846 1,309 Capital injection from non-controlling interests - 276,899 (Payments for)/Proceeds from settlement of derivative financial instruments (18,593) 15,120 Net cash (used in)/generated from financing activities (489,594) 958,185 Effects of exchange rate changes on cash and cash equivalents 9,656 27,072 Net (decrease)/increase in cash and cash equivalents (1,600,962) 495,326 Cash and cash equivalents at the beginning of the period 5,082,675 4,587,349 Cash and cash equivalents at the end of the period 3,481,713 5,082,675
Page 13
- 13 - By order of the Board Semiconductor Manufacturing International Corporation Company Secretary / Board Secretary Guo Guangli Shanghai, November 13, 2025 As at the date of this announcement, the directors of the Company are: Executive Director LIU Xunfeng Non-executive Directors LU Guoqing CHEN Shanzhi YANG Lumin HUANG D engshan Independent Non -executive Directors FAN Ren Da Anthony LIU Ming WU Hanming CHEN Xinyuan