SHANGHAI, Feb. 10, 2022 /PRNewswire/ -- Semiconductor Manufacturing International 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 December 31, 2021.
2021 Fourth Quarter Highlights
First Quarter 2022 Guidance
The following statements are forward looking statements based on current expectations and involved risks and uncertainties. The Company expects (in accordance with IFRS):
SMIC management commented: "The year 2021 is an exceptional year in SMIC's development history. The global shortage of chips and the strong demand for local and indigenous manufacturing brought the Company a rare opportunity, while the restrictions of the "Entity List" set many obstacles to the Company's development. Focusing on the primary task of ensuring operation continuity, meeting customer demand, and alleviating the supply chain shortage, the Company rose to the challenge, tackled difficulties precisely and achieved sound performance.
The Company's single-quarter revenue exceeded US$1.5 billion for the first time, and the annual revenue was US$5.4 billion, an annual increase of 39%, making us the fastest growing company among the top four pure-play foundries in the world that year, and many financial indicators such as gross margin, operating margin, and net margin also hit record highs.
There are opportunities and challenges in 2022, and there is a gradual shift from capacity shortage across the board to a phase of structural shortage. SMIC's product platforms and capacity built up over the years are concentrated in the industry's structural gaps. The Company will consistently adhere to compliant operations, continuing internationalization and deeply integrate into the global ecosystem, in order to service customers across the globe, seek progress in a steady manner, continue to strengthen strategic cooperation with customers and suppliers, and steadily advance capacity expansion projects. Under the dual preparation effect of diversified customer base and multi-product platforms, the Company will secure the existing volume, expand incremental volume, and build our competitive advantage in the IC ecosystem on higher ground.
Under the assumption of a relatively stable external environment, the growth rate of annual revenue is expected to be better than the average of the foundry industry, and the gross margin is expected to be higher than our level in 2021. In order to continuously expand the existing fabs and roll out of the three new projects, it is still a high-investment year in 2022. The Capex is expected to be about $5.0 billion, and the incremental production capacity is expected to be higher than last year.
We would like to thank all employees, customers, suppliers, investors, and the community for their trust and support! We wish you all a happy and prosperous New Year!"
To see the complete results including financial tables, please click here:
https://smic.shwebspace.com/uploads/2021%20Q4%20Earnings%20Release_ENG%20final.pdf
Conference Call / Webcast Announcement
Date: Friday, February 11, 2022
Time: 8:30 A.M. (China Standard Time)
WEBCAST
The call will be webcast live at:
https://edge.media-server.com/mmc/p/rf6efvgk
CONFERENCE CALL
Please register in advance for the conference call at:
http://apac.directeventreg.com/registration/event/2578464
REPLAY
Recording will be available approximately 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) and its subsidiaries constituting one of the leading foundries in the world, is the most advanced and the largest foundry with the broadest technology coverage and the most comprehensive semiconductor manufacturing services in Chinese Mainland. SMIC Group provides integrated circuit ("IC") foundry and technology services on process nodes from 0.35 micron to 14 nanometer. Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base. In China, SMIC has a 200mm wafer fabrication facility ("fab") and an effectively controlled joint-venture 300mm fab for advanced nodes in Shanghai; a 300mm fab and a majority-owned 300mm fab in Beijing; a 200mm fab in Tianjin and a majority-owned 200mm fab in Shenzhen. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, China, and a representative office in Hong Kong, China.
For more information, please visit www.smics.com.
Forward-Looking Statements
This release contains, in addition to historical information, forward-looking statements. These forward-looking statements, including statements under "Quarterly Guidance", "Capex Summary" and the statements contained in the SMIC Management Comments are based on SMIC's current 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 necessary estimates reflecting judgment of SMIC's senior management 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 from 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, SMIC's reliance on a small number of customers, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components, raw materials and software, availability of manufacturing capacity, financial stability in end markets, orders or judgments from pending litigation, intensive intellectual property litigation in the semiconductor industry, general economic conditions and fluctuations in currency exchange rates.
In addition to the information contained in this release, you should also consider the information contained in our other filings with The Stock Exchange of Hong Kong Limited ("SEHK") and Shanghai Stock Exchange ("SSE") from time to time. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this release. Except as required by applicable laws, SMIC undertakes no obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the possible or actual occurrence of unanticipated events after the date on which such statement is made, whether as a result of new information, future events or otherwise.
About Non-International Financial Reporting Standards ("non-IFRS") Financial Measures
To supplement SMIC's consolidated financial results presented in accordance with IFRS, SMIC uses the presentation of non-IFRS financial measures, including EBITDA, EBITDA margin and non-IFRS operating expenses in this release. The presentation of non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures are not calculated or presented in accordance with, and are not alternatives or substitutes for financial measures prepared in accordance with IFRS, and should be read only in conjunction with the Group's financial measures prepared in accordance with IFRS. The Group's non-IFRS financial measures may be different from similarly-titled non-IFRS financial measures used by other companies.
SMIC believes that use of these non-IFRS financial measures facilitates investors' and management's comparisons to SMIC's historical performance. The Group's management regularly uses these non-IFRS financial measures to understand, manage and evaluate the Group's business and make financial and operational decisions.
The accompanying table has more information and reconciliations of each non-IFRS financial measure to its most directly comparable IFRS financial measure.
Contact:
Investor Relations
+86-21-2081-2800
