SMIC Reports 2013 Second Quarter Results

All currency figures stated in this report are in US Dollars unless stated otherwise.The Company started to prepare consolidated financial statements in accordance withInternational Financial Reporting Standards (“IFRS”) in 2012's Annual Report. All prior period information has been reclassified to conform to IFRS presentation.

Shanghai, China –August 8, 2013. ----- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2013.

Second Quarter 2013 Highlights:

  • Revenue of $541.3 million in 2Q13, representing the fifth consecutive quarter of record high revenue, an increase of 28.3 % year over year, and up 7.9 % quarter over quarter.
  • Revenues from China-based customers increased to 40.9% of overall revenue in 2Q13, an all-time high, compared to 32.7% in 2Q12 and 38.6% in 1Q13.
  •  Gross profit of $135.2 million in 2Q13 was a record high, compared to $101.7 million in 2Q12 and $98.3 million in 1Q13.
  • Gross margin improved to 25.0% in 2Q13, compared to 24.1% in 2Q12 and 19.6% in 1Q13.
  •  Profit attributable to SMIC was $75.4 million in 2Q13, more than 10 times the profit of $7.1million in 2Q12 and an 85.7% increase compared to the profit of $40.6 million in 1Q13.

Third Quarter 2013 Guidance:

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.

  • Excluding wafer shipments from Wuhan Xinxin which is expected to gradually phase out starting in 3Q13, revenue is expected to be down 1% to up 2% quarter over quarter.
  • Revenue including wafer shipments from Wuhan Xinxin is expected to be down 3% to flat quarter over quarter.
  • Gross margin excluding wafer shipments from Wuhan Xinxin is expected to range from 18.5%to 21.5%.
  • Gross margin including Wuhan Xinxin is expected to range from 17.5% to 20.5%
  • Operating expenses excluding the effect of foreign exchange, funding of R&D contracts from the government and gain from the disposal of living quarters are expected to range from $81 million to $85 million.

Dr. Tzu-Yin Chiu, SMIC’s Chief Executive Officer and Executive Director, commented, “I am very pleased to report that SMIC has exceeded expectations and again achieved record high revenue of $541.3 million in the second quarter of 2013, representing year over year growth of 28.3% and sequential growth of 7.9%. The utilization increased to 98.5% in 2Q 2013 compared to 95.2% in 2Q 2012 and 89.0% in 1Q 2013. Both gross profit and profit from operations reached record highs of $135.2 million and $79.1 million respectively. ”

Revenue from our China customers grew 14.3% sequentially and 60.6% year-over-year, contributing 40.9% of total revenue in the second quarter of 2013, an all-time high. Our 40/45nm revenue grew 71.9% sequentially contributing 10.0% of total wafer revenue compared to 6.4% in the first quarter of 2013. “

Demand for our differentiated applications continues to be strong, especially in the areas of power management. CMOS Image Sensor, and EEPROM. In order to further capture the market opportunities and to enhance our position in differentiated technologies, we are looking into various opportunities to expand our 8-inch capacity. “

Conference Call / Webcast Announcement

Date: August 9, 2013
Time: 8:30 a.m. Shanghai time
Dial-in numbers and pass code:

China: 400-620-8038       (Pass code: SMIC)
Hong Kong: 852-2475-0994     (Pass code: SMIC)
Taiwan: 886-2-2650-7825 (Pass code: SMIC)
United States, New York: 1-845-675-0437   (Pass code: SMIC)

The call will be webcast live with audio at  http://www.smics.com/eng/investors/ir_presentations.php or  http://www.media-server.com/m/p/8s7n2w4d.

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

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