All currency figures stated in this report are in US Dollars unless stated otherwise.

SHANGHAI, Aug. 5, 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 June 30, 2021.

2021 Second Quarter Highlights

• Revenue was $1,344.1 million in 2Q21, an increase of 21.8% QoQ from $1,103.6 million in 1Q21, and 43.2% YoY from $938.5 million in 2Q20.
• Gross profit was $405.0 million in 2Q21, an increase of 61.9% QoQ from $250.1 million in 1Q21, and 62.9% YoY from $248.6 million in 2Q20.
• Gross margin was 30.1% in 2Q21, compared to 22.7% in 1Q21 and 26.5% in 2Q20.

Third Quarter 2021 Guidance 

The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under "Forward-Looking Statements" below. The Company expects(in according with IFRS):

• Revenue to increase by 2% to 4% QoQ.
• Gross margin to range from  32% to 34%.

Dr. Gao Yonggang, Chief Financial Officer of SMIC commented:

"The Company's key financial metrics were better than expected in the second quarter. Revenue in the second quarter was $1,344 million, an increase of 21.8% quarter over quarter and an increase of 43.2% year over year. Gross margin was 30.1%, up 7.4 percentage points quarter over quarter, and up 3.6 percentage points year over year.

Revenue in the third quarter is expected to grow 2% to 4% sequentially, and gross margin is expected to range from 32% to 34%. Based on the first-half results and the second-half outlook, and under the uncertain assumption of a relatively stable external environment, we now raise our annual revenue growth target and gross margin target to be around 30% respectively. The adverse impact of advanced technology to the company's overall gross margin is expected to decrease to around 5 percentage points, due to depreciation and amortization allocated to more output.

The company still faces impact brought by the Entity List, and there are still uncertainties with our expectations in indicators. We will do our best to solve the problems, to ensure operation continuity and improve performance, for a better return to our shareholders."

Dr. Haijun Zhao and Dr. Liang Mong Song, Co-CEOs of SMIC commented:

"Since being placed on the Entity List last year, SMIC has been proceeding forward through difficult circumstances, and the entire company has been working hard. In terms of operation continuity, we are actively working with our suppliers to ensure that our commitments to customers are met, and the risks of uncertainty of mature technology is further reduced. In terms of capacity expansion, its progress is rollout as planned. However, uncontrollable factors such as license approvals, supply chain tightness, and logistics impacted by the epidemic have also inevitably affected the equipment arrival times. The company will make every effort to optimize the internal procurement process and speed up the efficiency of capacity installation, in order to shorten the procurement cycle as much as possible and reach production as soon as possible.

We understand that people have high expectations for SMIC, but there is no shortcut or leaping forward in the semiconductor manufacturing industry. We will take one step at a time, grasp our own advantages in specific market segments, improve our core competitiveness and enhance customer satisfaction."

To see the complete results including financial tables, please click here:  http://www.smics.com/uploads/610ba2e4/2021%20Q2%20Earnings%20Release_ENG%20final.pdf

Conference Call / Webcast Announcement

Date: Friday, August 6, 2021

Time: 8:30 A.M. (China Standard Time)

WEBCAST

The call will be webcast live at:

http://www.smics.com/en/site/company_financialSummary

 or https://edge.media-server.com/mmc/p/s68yswyb

CONFERENCE CALL

Please register in advance for the conference call at: http://apac.directeventreg.com/registration/event/3785105

REPLAY

Recording will be available approximately 1 hour after the event and it will be archived for 12 months.

http://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; 200mm fabs in Tianjin and 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 quotes of our Co-Chief Executive Officers and Chief Financial Officer are based on SMIC's current assumptions, expectations, beliefs, plans, objectives, and projections about future events or performance. SMIC uses words like "believe", "anticipate", "intend", "estimate", "expect", "project", "target", "going forward", "continue", "ought to", "may", "seek", "should", "plan", "could", "vision", "goals", "aim", "aspire", "objective", "schedules", "outlook" and similar expressions to identify forward looking statements, although not all forward-looking statements contain these words. 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.

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