SHANGHAI, Nov. 11, 2021 /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 September 30, 2021.
2021 Third Quarter Highlights
Fourth Quarter 2021 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: "Since SMIC was placed on the "Entity List" by the U.S., the company has faced tremendous challenges in production and operations. Since the beginning of the year, we have focused on the two main priorities of ensuring operation continuity and continuous capacity expansion, realigning the supply chain and finding ways to optimize the procurement process, accelerate supplier qualification, and improve production planning and engineering management. At present, operation continuity has been basically stabilized, expansion of mature technology is progressing in an orderly manner and overall as scheduled, and advanced technology business is steadily improving. Starting from the second quarter, in response to the problem of capacity tightness, we have further defined our capacity allocation tactics. We orderly allocated capacity, optimized production scheduling and looked at the actual end demand from the perspective of end user companies, in order to support the needs of the overall customers and try our best to solve the problem of customer chip shortage.
In the face of complex situations, we continued to adhere to compliant operations, with a spirit of truthfulness and pragmatism, and continued to overcome difficulties with robust resilience, solid strategic focus and precise work tactics. This year's performance is expected to be improved significantly compared to the expectations at the beginning of the year.
Both revenue and gross margin for the third quarter reached record highs. Revenue was $1,415 million, up 5.3% sequentially and 30.7% year-over-year. Gross margin was 33.1%, up 3.0 percentage points sequentially and 8.9 percentage points year-over-year.
The company will continue to maintain growth momentum in the fourth quarter, with revenue expected to grow 11% to 13% sequentially and gross margin expected to range from 33% to 35%. Based on the results of the first three quarters and the guidance for the fourth quarter, the company's full-year revenue growth target is further revised upward to around 39% and gross margin target is maintained at around 30%.
Looking ahead to next year, we believe the overall market prosperity remains positive and the company's capacity shortage as compared to our customers' demand is expected to continue through next year. Building on this year's rapid growth, the company's revenue growth next year is expected to be no less than the industry average. We would like to thank all our employees, customers, suppliers, investors, and community for your trust and support!"
To see the complete results including financial tables, please click here: https://www.smics.com/uploads/618cf5dc/2021%20Q3%20Earnings%20Release_ENG_Final.pdf
Conference Call / Webcast Announcement
Date: Friday, November 12, 2021
Time: 8:30 A.M. (China Standard Time)
WEBCAST
The call will be webcast live at:
https://www.smics.com/en/site/company_financialSummary
or https://edge.media-server.com/mmc/p/3d3ttt24
CONFERENCE CALL
Please register in advance for the conference call at:
https://apac.directeventreg.com/registration/event/1454006
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 ("SMIC", 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
