Semiconductor Manufacturing International Corporation Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = HK$573.50b | Revenue (TTM) = HK$197.43b
Market Cap = HK$573.50b | Estimated Revenue = HK$93.49b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = HK$583.14b | Revenue (TTM) = HK$197.43b
Enterprise Value = HK$583.14b | Forward Revenue = HK$93.49b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Semiconductor Manufacturing International Corporation Stock Analysis
Analyst Opinions
29 Analysts have issued a Semiconductor Manufacturing International Corporation forecast:
Analyst Opinions
29 Analysts have issued a Semiconductor Manufacturing International Corporation forecast:
Semiconductor Manufacturing International Corporation Events
Upcoming Event
Past Events
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AUG
13
Q2 2026 Earnings Call
3 months ago
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MAY
14
Q1 2026 Earnings Call
6 months ago
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FEB
10
Q4 2025 Earnings Call
9 months ago
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NOV
13
Q3 2025 Earnings Call
12 months ago
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StocksGuide Free
Semiconductor Manufacturing International Corporation — Q2 2026 Earnings Call
1. Management Discussion
[Interpreted] Welcome to Semiconductor Manufacturing International Corporation's Second Quarter 2026 Webcast Conference Call. Today's call will be simultaneously streamed through the Internet and telephone. [Operator Instructions]
Without further ado, I would like to introduce Ms. Guo Guangli, Senior Vice President and Board Secretary, to host the webcast.
[Interpreted] Greetings. Welcome to SMIC's Second Quarter 2026 Webcast Conference Call. Attending today's call are Dr. Zhao Haijun, Co-Chief Executive Officer; Dr. Wu Junfeng, Senior Vice President and person in charge of Finance.
Let me remind you that today's presentation contains forward-looking statements that do not guarantee future performance but represent the company's expectations and are subject to inherent risks and uncertainties. Please refer to the forward-looking statements in our earnings announcement. Please note that today's earnings statement is presented in accordance with International Financial Reporting Standards, IFRS, and currency figures are in U.S. dollars, unless otherwise stated.
I will now hand the call to Dr. Wu Junfeng to introduce the company's financial status.
[Interpreted] First, I will report our unaudited results for the second quarter and the first half of 2026, followed by our guidance for the third quarter.
The second quarter results were as follows. Revenue was $3,006 million, up 20% sequentially. Gross margin was 25.3%, up 5.2 percentage points sequentially. Profit from operations was $534 million. EBITDA was $2,109 million. EBITDA margin was 70.2%. Profit attributable to the company was $479 million.
Moving to the balance sheet. At the end of the second quarter, the company had total assets of $57.2 billion, of which total cash on hand was $13.9 billion. Total liabilities were $19.3 billion, of which total debt was $14 billion. Total equity was $37.9 billion. Debt-to-equity ratio was 37% and net debt-to-equity ratio was 0.4%.
In terms of cash flow, in the second quarter, net cash generated from operating activities was $2,522 million Net cash used in investing activities was $2,271 million. Net cash generated from financing activities was $607 million.
The company's unaudited results for the first half of 2026 were as follows: Revenue was $5,511 million, up 23.7% year-over-year. Gross margin was 22.9%, up 1.5 percentage points year-over-year. Profit from operations was $782 million. EBITDA was $3,545 million. EBITDA margin was 64.3%. Profit attributable to the company was $677 million.
For the third quarter 2026, our guidance is as follows: revenue is expected to increase by 2% to 4% sequentially, and gross margin is expected to be in the range of 26% to 28%.
This concludes the financial status. Thank you.
[Interpreted] Thank you, Dr. Wu. Next, I will hand the call to Dr. Zhao Haijun to comment on operations.
[Interpreted] Hello, everyone. Thank you for attending SMIC's Second Quarter 2026 Earnings Call.
In the second quarter, the company's business achieved growth in both wafer shipment and price. Quarterly revenue surpassed $3 billion, with all key operating metrics recording substantial increases year-over-year and quarter-over-quarter. Specifically, the company overall achieved a total revenue of $3,006 million, a sequential increase of 20%. Among that, the shipment increased by 14.4%, while the blended ASP increased by 5.7%.
The increase in shipment was mainly driven by surging demand for peripheral chips grown by AI as well as customer shipment pull in. The company newly added 8,000 12-inch equivalent monthly capacity and utilization rate increased by 0.6 percentage points sequentially to 93.7%.
In the second quarter, in terms of company's revenue by region, China, America and Eurasia accounted for 90%, 8% and 2%, respectively. All regions recorded revenue increases in absolute dollar terms. China recorded the most substantial growth at 22%, mainly driven by robust demand for AI peripheral chips, the backflow of overseas orders and continued strengthening of localized manufacturing.
By size, wafer revenue from 12-inch and 8-inch accounted for 78% and 22%, respectively. The wafer revenue amount from 12-inch increased by 24% sequentially and wafer revenue amount from 8-inch increased by 11% sequentially.
By application, wafer revenue from smartphone, computer and tablets, consumer electronics, connectivity and IoT, industrial and automotive accounted for 17%, 16%, 44%, 7% and 17%, respectively. All absolute values rose quarter-over-quarter. The company allocated more capacity to segments facing tight demand, resulting in quarter-over-quarter absolute value revenue growth of approximately 40% for AI peripheral chips, computer and tablets as well as industrial and automotive. For other applications, despite an overall downturn in end device, customers pull in partially offset the impact, driving absolute value revenue growth of 8% and 16% and 13% for smartphone, computer -- consumer electronics and connectivity and IoT, respectively.
In the second quarter, the company's gross margin increased by 5.2 percentage points to 25.3%, mainly due to an increase in blended ASP and better-than-expected utilization rate which offset the drag on gross margin from increased depreciation. Besides, EBITDA margin increased by nearly 13 percentage points sequentially to 70%.
According to the unaudited results for the first and second quarters, the company's revenue in the first half of 2026 surpassed $5.5 billion, up 23.7% comparing to the same period last year. The gross margin was 22.9%, up 1.5 percentage points comparing to the same period last year. The company's total capital expenditures for the first half of the year were $3.4 billion.
In the third quarter, the company's shipment is expected to continue to grow, and the price is expected to remain resilient. The quarterly revenue is guided to increase 2% to 4% sequentially, and the gross margin is guided to rise sequentially to be in the range of 26% to 28% after offsetting incremental depreciation in the third quarter and peak summer season power costs. Utilization rate, inclusive of newly added capacity, is expected to remain at a high level of around 95%, which effectively dilutes unit fixed costs.
Looking ahead to the second half of this year, the industrial momentum and spillover effects generated by AI will persist driving broad-based demand for integrated circuit manufacturing. The company will flexibly allocate existing capacity and accelerate the qualification of newly added capacity to help ease supply constraints across the industrial chain.
At the same time, we also observed that pressure on upward supply chain cost has been passed through to the manufacturing segment. The company will proactively address these challenges and mitigate headwinds to minimize the overall impact. Overall, the company maintains an optimistic outlook on industry trends and the company's development.
Finally, we sincerely thank all customers suppliers, investors and community for your understanding and strong support. Thank you all.
[Interpreted] Thank you, Dr. Zhao. Next is our Q&A session. Questions will be answered by Dr. Zhao and Dr. Wu. Chinese questions will be answered in Chinese. English questions will be answered in English. Please limit your questions to 2 per person.
I would now like to open up the call for Q&A. Operator, please assist.
[Interpreted] [Operator Instructions] Your first question comes from Leping Huang of Huatai Securities.
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[Interpreted] Your next question comes from Ziyuan Wang of CITIC Securities.
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[Interpreted] Your next question comes from Yikang Zhang of CICC.
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[Interpreted] Your next question comes from Jian Kuai of Orient Securities.
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[Interpreted] Your next question comes from [ Tong Luo ] of Guotai Junan Securities.
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[Interpreted] Your next question comes from Tony Zhang of CLSA.
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[Interpreted] Last question for today comes from Jian Hu from Guohai Securities.
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[Interpreted] I would now like to hand the call back to Ms. Guo Guangli for closing remarks. .
[Interpreted] Thank you for participating in today's conference call. Thank you for your trust and support.
[Interpreted] This concludes SMIC's Second Quarter Webcast Conference Call. We thank you for joining us today.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Semiconductor Manufacturing International Corporation — Q1 2026 Earnings Call
1. Management Discussion
[Foreign Language] Welcome to Semiconductor Manufacturing International Corporation's first quarter 2026 webcast conference call. Today's call will be simultaneously streamed through the internet and telephone. [Operator Instructions]
Without further ado, I'd like to introduce Miss Guo Guangli, Senior Vice President and Board Secretary to host the webcast.
[Interpreted] Greetings. Welcome to SMIC's first quarter 2026 webcast conference call. Attending today's call are Dr. Zhao Haijun, Co-Chief Executive Officer; Dr. Wu Junfeng, Senior Vice President and Person in Charge of Finance.
Let me remind you that today's presentation contains forward-looking statements that do not guarantee future performance, but represent the company's expectations and are subject to inherent risks and uncertainties. Please refer to the forward-looking statements in our earnings announcement. Please note that today's earnings statement is presented in accordance with International Financial Reporting Standards, IFRS, and currency figures are U.S. dollars unless otherwise stated.
I will now hand the call to Dr. Wu Junfeng to introduce the company's financial status.
[Interpreted] First, I will report our unaudited results for the first quarter of 2026, followed by our guidance for the second quarter.
The first quarter results were as follows: Revenue was $2,505 million, up 0.7% sequentially. Gross margin was 20.1%, up 0.9 percentage points sequentially. Profit from operations was $248 million. EBITDA was $1,435 million. EBITDA margin was 57.3%. Profit attributable to the company was $197 million.
Moving to the balance sheet. At the end of the first quarter, the company had total assets of $55 billion, of which total cash on hand was $13.9 billion. Total liabilities were $13.2 billion, of which total debt was $14.5 billion. Total equity was $35.8 billion. Debt-to-equity ratio was 40.5%, and net debt-to-equity ratio was 1.8%.
In terms of cash flow, in the first quarter, net cash generated from operating activities was $685 million. Net cash used in investing activities was $1,697 million. Net cash generated from financing activities was $2,365 million.
For the second quarter 2026, our guidance is as follows. Revenue is expected to increase by 14% to 16% sequentially, and gross margin is expected to be in the range of 20% to 22%.
This concludes the financial status. Next, let me recap the relevant matters related to the company's 2025 annual report. According to the relevant regulations of, when a listed company has made profits during the annual reporting period and its accumulated undistributed profits are positive, but no cash dividends are distributed, the company should provide a key explanations on matters related to the cash dividend plan in the earnings conference after the disclosure of the annual report and before the record date of the annual general meeting.
In 2025, the company's free cash flow after deducting capital expenditure from operating cash flow remained negative. This indicates that the company is currently still in a pivotal phase of capacity expansion and consistently growing market presence, and the company still requires ongoing capital investment for both capacity construction and R&D activities. For 2026, the company anticipated [indiscernible] largely unchanged from the previous year. Under this investment plan, prioritizing fund allocation to its core operations, including capacity expansion and R&D, remains essential. This will enhance the company's core competitiveness and value, solidify its leadership in fierce market competition, and so as to protect investor interests with a maximum degree.
Thus, the company plan not to distribute profits for the year 2025. This decision better aligns with the company's sustainable development objectives and shareholders fundamental interests and is in accordance with relevant regulations, regulatory documents and the company's profit distribution policy as well. There are no circumstances that harms the interest of the company and its shareholders. The plan has been reviewed and approved by the Board of Directors and disclosed in the annual report and will be submitted for approval at the annual general meeting. We extend our sincere appreciation to shareholders for your understanding and support.
[Interpreted] Thank you Dr. Wu.
Next, I will hand the call to Dr. Zhao Haijun.
[Interpreted] Hello, everyone. Thank you for attending SMIC's first quarter 2026 earnings call. In the first quarter, the company realized revenue of $2,505 million, a sequential increase of 0.7%. By service type, wafer revenue accounted for 93.9% of total revenue, with a sequential increase 2.3% in amount. Among that, the shipment units decreased by 0.2%, while the blended wafer price increased by 2.5%, mainly due to the steady and rising prices for certain products in the company's advantages segmented markets. In the first quarter, the company added close to 9,000 12 in equivalent capacity, and overall utilization rates decreased by 2.6 percentage points sequentially to 93.1%.
There were two main reasons. First, affected by the AI siphon effect. In the fourth quarter of last year, mobile phone manufacturer partially transmitted to the first quarter this year. Second, in the first quarter, we have new fab exited startup phase, with its capacity newly added into the denominator of the capacity utilization rates.
In the first quarter, in terms of company's revenue by region, China, America, and Eurasia accounted for 89%, 9%, and 2% respectively. The revenue amount from China increased by 2% sequentially, continuously demonstrating the industrial chain reshuffling effect. By size, wafer revenue from 12 in and 8 in accounted for 76% and 24% respectively. The wafer revenue amount from 8 in increased by 6% sequentially, mainly because the company has secured incremental orders driven by strong demand for AI supporting chips and capacity supply squeeze in other application sectors. Our capacity could not fully meet BCD, logic, and embedded memory business all achieved quarter-over-quarter growth. By application, wafer revenue from smartphone, computer and tablet, consumer electronics, connectivity and IoT, industrial and automotive accounted for 19%, 14%, 46%, 7%, and 14% respectively.
The company allocated more capacity to high demand platforms such as BCD and memory to adapt to market changes, driving sequential revenue growth of 18% for computer and tablet, industrial and automotive respectively. Secondly, the revenue amount from smartphone decreased by 10% sequentially.
In the first quarter, the company's growth margin increased by 0.9 percentage point to 20.1%, mainly due to an increase in pricing and improved product mix.
Given the current conditions, the company has negotiated price increase with customers for product categories that are in short supply, and the effect will be gradually reflected. In addition, concern that lingering uncertainty in the external may lead to short supply and further push up supply chain prices. Some customers have built inventory for consumer and IoT products in advance. Therefore, the company has sufficient order in hand. Combining above factors, in the second quarter, the revenue is expected to increase 14% to 16% sequentially. The shipment unit and blended ASP are expected to improve meaningfully. The growth margin is expected to be in the range of 20% to 22%, representing an increase of 2 percentage points from the previous quarter's guidance, mainly driven by increased blended ASP.
In terms of product platforms, the company has continued to strengthen its layouts. Over the past two years, AI boom has directly driven the demand for power management and data transmission chips, while squeeze the capacity supply for NOR flash and SLC NAND flash. Therefore, at present, the company's standalone flash platform and Analog platform are seeing strong market demand. The company has a comprehensive automotive-grade processes covering logic, Analog BCD, embedded memory, standalone flash, display drivers IC, image sensors, power devices, and etc. After years of technical refinement, automotive-grade products have gradually ramped up. In particular, the automotive-grade BCD platform is seeing strong market demand with a solid order book. The company's ToF products have been widely applied into automotive LiDAR and handheld imaging devices. The company's Micro OLED platform has been adopted in emerging products such as smart head-mounted displays and AI glasses. The company's ultra-low power logic process platform provides wired and wireless connectivity solutions for both cloud AI and edge AI applications.
Based on customer demand and order in hand, compared to last quarter, we are more optimistic about our overall business performance for this year. The main reasons are as follows. First, the strong demand for supporting chips from AI has directly pushed up demand for the company's power management capacity, which is now under shortage. Second, driven by overseas AI siphon effects, customers in consumer and IoT fields trying to secure capacity in Mainland China, with orders flowing back to domestic. Third, AI has also driven demand for chips in emerging fields such as ToF, electric vehicle, and robots, where local companies have actively explored the markets. Fourth, a peer for localization promoted the demand for domestic logic and network chips. The fifth reason is the price increase effects and customers' earlier inventory building on concerns over insufficient supply in the future, as mentioned before.
Under the backdrop of the market changes, the company's advantages of technological reserves, diversified platform layouts and flexible capacity conversion support its order taking capability. We have shifted the capacity to continuously iterated products such as logic, specialty memory, PMIC, analog front end, ADC products, Micro OLED, and et cetera. The company continues to promote capacity expansion by long term agreements with customers to lock in future demand and thereby generate steady growth momentum.
The current global macro environment is still confronted with numerous uncertainties, which continue to pose challenges to supply chain costs, stability and market expectations. Leveraging our experience gained over the years, we will continue to strengthen the resilience management of our supply chain, adopt multi-channel procurement strategies, and make efforts to mitigate the adverse impacts. At the same time, the company will closely monitor customer demand, flexibly allocate resources, accelerate product response speed, and ensure sustained high quality delivery amid a complex environment.
In addition, we would like to recap the company's market value management over the past year. The company attached great importance to market value management. It formulated accordingly. Over the past year, the company has stayed focusing on its core business and reached a new milestone in its operating performance, continuously advanced technological breakthroughs and promoted coordinated development across the industrial chain, further strengthened its talent team and fully promoted green and sustainable development and deepened mutual communication between investors and the company, proactively conveying the company's value to the capital market through a variety of online and offline channels.
Finally, we sincerely thank all customers, suppliers, investors and community for your understanding and strong support. Thank you all.
[Interpreted] Thank you, Dr. Zhao. Next is our Q&A session. Questions will be answered by Dr. Zhao and Dr. Wu. Chinese questions will be answered in Chinese. English questions will be answered in English. [Operator Instructions]
I would now like to open up the call for Q&A. Operator, please assist.
[Operator Instructions] Our first question comes from the line of Leping Huang of Huatai Securities. Please ask your question.
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[Interpreted] The next question comes from the line of Ziyuan Wang of CITIC Securities. Please go ahead.
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Our next question comes from the line of Yikang Zhang from CICC. Please ask your question.
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[Interpreted] The next question comes from the line of [indiscernible] of [ Orient ] Securities. Please ask your question.
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[Interpreted] I would like to hand the call back to Ms. Guo Guangli for closing remarks.
[Interpreted] Thank you for participating in today's conference call. Thank you for your trust and support.
[Interpreted] This concludes SMIC's First Quarter Webcast Conference Call. We thank you for joining us today.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Semiconductor Manufacturing International Corporation — Q4 2025 Earnings Call
1. Management Discussion
[Interpreted] Welcome to Semiconductor Manufacturing International Corporation's Fourth Quarter 2025 Webcast Conference Call. Today's call will be simultaneously streamed through the Internet and telephone. [Operator Instructions]
Without further ado, I would like to introduce Ms. Guo Guangli, Senior Vice President and Board Secretary, to host the webcast.
[Interpreted] Greetings. Welcome to SMIC's Fourth Quarter 2025 Webcast Conference Call. Attending today's call are Dr. Zhao Haijun, Co-Chief Executive Officer; Dr. Wu Junfeng, Senior Vice President and Person-in-charge of Finance.
Let me remind you that today's presentation contains forward-looking statements that do not guarantee future performance but represent the company's expectations and are subject to inherent risks and uncertainties. Please refer to the forward-looking statements in our earnings announcement. Please note that today's earnings statement is presented in accordance with International Financial Reporting Standards, IFRS, and currency figures are in U.S. dollars, unless otherwise stated.
I will now hand the call to Dr. Wu Junfeng to introduce the company's financial status.
[Interpreted] First, I will report our unaudited results for the fourth quarter and full year of 2025, followed by our guidance for the first quarter of 2026.
The fourth quarter results were as follows: Revenue was $2,489 million, up 4.5% sequentially. Gross margin was 19.2%, down 2.8 percentage points sequentially. Profit from operations was $299 million. EBITDA was $1,405 million. EBITDA margin was 56.5%. Profit attributable to the company was $173 million.
The company's unaudited results for 2025 were as follows: Revenue was $9,327 million, up 16.2% year-over-year. Gross margin was 21%, up 3 percentage points year-over-year. Profit from operations was $1,110 million. EBITDA was $5,256 million. EBITDA margin was 56.4%. Profit attributable to the company was $685 million. Capital expenditures was $8.1 billion.
Moving to the balance sheet. At the end of 2025, the company has total assets of $52.3 billion, of which total cash on hand was $11.9 billion. Total liabilities were $17.3 billion, of which total debt was $12.6 billion. Total equity was $35 billion. Debt-to-equity ratio was 36% and net debt-to-equity ratio was 1.9%.
In terms of cash flow, in 2025, net cash generated from operating activities was $3,194 million. Net cash used in investing activities was $6,495 million. Net cash generated from financing activities was $2,676 million.
For the first quarter 2026, our guidance are as follows: Revenue is expected to be flat sequentially, and gross margin is expected to be in the range of 18% to 20%.
This concludes the financial status. Thank you.
[Interpreted] Thank you, Dr. Wu. Next, I will hand the call to Dr. Zhao Haijun to comment on operations.
[Interpreted] Good morning, everyone, with the Chinese New Year approaching, I'd like to wish you all an early Happy New Year. Thank you for attending today's SMIC Fourth Quarter 2025 Earnings Webcast Conference Call.
The fourth quarter remained strong despite being the traditional off-season. The company's revenue was $2,489 million, a sequential increase of 4.5%. The wafer revenue increased by 1.5% sequentially, while both the wafer shipment and blended ASPs slightly increased sequentially. Other revenue increased by 64% sequentially, mainly due to the bulk shipments of [ MAX ] at the end of the year. On the basis of the incremental 16,000, 12-inch wafers capacity in the quarter, the company's utilization rate remained at 95.7%. The overall 8-inch utilization rate exceeded 100% and the overall 12-inch was nearly fully loaded, mainly due to the effect of industry reshuffling and iteration continuing. In the fourth quarter, the company's gross margin decreased by 2.8 percentage points sequentially to 19.2%, mainly because of the increase in depreciation.
Looking back at the full year of 2025, the semiconductor industry chain shifted to localization from a model of overseas design, overseas production for domestic markets, and the reshuffling effects continue throughout the whole year. Analog products saw the fastest shift, followed by display driver, CIS, memory and then MCU, mixed-signals, logic and et cetera. Chinese local fabless sees the opportunity to gain shares in the supply chain. By targeting customers demand for segmented products, accelerating product verification and ramping of production volume, the company's performance in 2025 reached a new high with a new leap in its production and revenue scale.
According to the unaudited financial results, the company's revenue in 2025 increased by 16.2% year-over-year to $9,327 million, hit a record high. Gross margin was 21%, up 3 percentage points year-over-year. By region, revenue percentage from China, America and Asia in 2025 accounted for 85%, 12% and 3%, respectively, remained flat compared to last year. From the perspective of the absolute revenue based on the aforementioned industrial chain reshuffling and overall market demand growth. Revenue from Chinese customers increased by 18% year-over-year. And revenue from overseas customers increased by 9% year-over-year.
By size, wafer revenue percentage from 12-inch and 8-inch accounted for 77% and 23%, respectively, flat compared to last year. From the perspective of the absolute revenue, 12-inch and 8-inch increased by 17% and 18%, respectively. Wafer revenue percentage by application smartphone, computer and tablets, consumer electronics, connectivity and IoT, industrial and automotive accounted for 23%, 15%, 43% and 8% and 11%, respectively, benefiting from accelerated reshuffling of the automotive supply chain as well as the company's platform deployment over the past 2 years. The absolute wafer revenue from industrial and automotive increased by more than 60% year-over-year, benefiting from the boost of national consumer stimulus policies and the growth in international demand driving the increase in China exports. The absolute wafer revenue from consumer electronics increased by more than 30% year-over-year.
The company's capital expenditure in 2025 was $8.1 billion, higher than originally projected at the beginning of the year. This was primarily driven by the need to address robust customer demand, changes in the external environment and extended over time of equipment leading to the advanced procurement of planned capacity. Monthly capacity was 1,059,000 standard logic 8-inch equivalent wafers by the end of the year, increased by around 111,000 wafers compared to the end of previous year. Total shipments reached around 9.7 million wafers. And annualized capacity utilization rate increased by 8 percentage points year-over-year to 93.5%.
Looking ahead to 2026, the effect of industrial chain reshoring from overseas and domestic customers new products replacing legacy overseas products will persist, creating sustained incremental growth opportunities for the domestic industrial chain. The impact of the memory macro cycle to the industry and foundry sector was discussed during the November earnings conference call. Over the past 2 months, we have engaged in extensive discussions with partners across the industrial chain. Our findings show that the robust demand for memory chips driven by AI has squeezed the supply for other application sectors, such as mobile phones, particularly in the mid to low end markets. Consequently, end user companies in these segments are facing pressure from both tight supply and rising prices for memory chips.
Even if end user companies can pass on this cost increase to consumers via end product price rises, such moves will lead to a decline in demand for end products. The combined effect of these factors has resulted in a decline in mid- to low-end orders received by foundries. However, orders related to AI, memory, and mid- to high-end applications are increasing. In such market environment, leveraging its technological reserves and leading advantages in segmented markets such as BCD, analog, memory, MCU, and mid-to high-end display driver together with customers product layout, the company is still well positioned in the current industry development cycle. The company will proactively address urgent market demand to drive continued revenue growth in 2026.
Combining the above factors, the company's first quarter guidance is as follows: Revenue is expected to be flat sequentially, and the gross margin is expected to be in the range of 18% to 20%. Based on the premise that there is no significant changes in the external environment, the company's guidance for the year 2026 are: The revenue growth is expected to be higher than industry average in the same market and the capital expenditure is expected to be roughly flat compared to that of 2025.
Let me give some comments for the 2026 company's outlook. Firstly, in the past few years, the company has stepped up investment and accelerated capacity expansion. The company added around 50,000 12-inch capacity in 2025, and continues to expand capacity in 2026. However, due to the impact of external factors, the company has procured some key equipment in advance while the supporting equipment may not be purchased yet. This timing difference has brought an even situation that the procured equipment may not be able to form production lines this year. Based on the current situation, it is estimated that by the end of this year, the increase in monthly capacity will be around 40,000 12-inch equivalent wafers compared to the end of last year.
Secondly, in order to actively seize local manufacturing opportunities, the company has maintained a high level of investment, which has driven rapid revenue growth, but also placed high depreciation pressure on gross margins. As new fab exists, start-up phase and begin depreciation, the company's 2026 total depreciation is expected to grow around 30% year-over-year. To counter this pressure, the company will focus on internal optimization by striving to maintain high utilization and improve cost efficiency through operational enhancements.
From the perspective of current operations management, the core factor influencing changes in gross margin is the increase in depreciation per unit of revenue. For other influencing factors, the company aims to mitigate the impact through proactive management.
We firmly believe that enduring success is built on a long-term foundation through persistent effort. After 25 years of forging ahead through trials, hardships and hard work, we are more confident than ever to participate in support and drive the all around development of the upstream and downstream of the local IC industry. The company will always focus on customer service and market demand, solidly advance the construction of high-quality capacity. Facilitate the synergetic development of the industrial chain, reduce cost and increase efficiency by boosting new productive forces, sees the current market opportunities, drive the launch and sustainable development of the company, and create long-term value for shareholders.
Finally, we would like to extend our sincere thanks to friends who care and support the development of the company.
[Interpreted] Thank you, Dr. Zhao. Next is our Q&A session. Questions will be answered by Dr. Zhao and Dr. Wu. Chinese questions will be answered in Chinese. English questions will be answered in English. Please limit your questions to 2 per person. I would now like to open up the call for Q&A. Operator, please assist.
[Interpreted] [Operator Instructions] Your first question comes from Leping Huang of Huatai Securities.
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[Interpreted] Your next question comes from Ziyuan Wang of Citic Securities.
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[Interpreted] Your next question comes from [ Jiang Helei ] of Orient Securities.
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[Interpreted] Next question comes from Jian Hu of Guosen Securities.
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[Interpreted] Thank you all very much for your questions. I'll now turn the conference back to Ms. Guo Guangli for closing remarks.
[Interpreted] Thank you for participating in today's conference call. Thank you for your trust and support.
[Interpreted] This concludes SMIC's Fourth Quarter Webcast Conference Call. We thank you for joining us today.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Semiconductor Manufacturing International Corporation — Q3 2025 Earnings Call
1. Management Discussion
[Foreign Language] Welcome to the Semiconductor Manufacturing International Corporation's Third Quarter 2025 Webcast Conference Call. Today's call will be simultaneously streamed through the Internet and telephone. [Operator Instructions]
Without further ado, I would like to introduce Ms. Guo Guangli, Senior Vice President and Board Secretary, to host the webcast.
[Interpreted] Greetings. Welcome to SMIC's Third Quarter 2025 Webcast Conference Call. Attending today's call are Dr. Zhao Haijun, Co-Chief Executive Officer; Dr. Wu Junfeng, Senior Vice President and Person in charge of Finance.
Let me remind you that today's presentation may contain forward-looking statements that do not guarantee future performance, but represent the company's expectations and are subject to inherent risks and uncertainties. Please refer to the forward-looking statements in our earnings announcement. Please note that today's earnings statement is presented in accordance with International Financial Reporting Standards, IFRS, and currency figures are in U.S. dollars, unless otherwise stated.
I will now hand the call to Dr. Wu Junfeng to introduce the company's financial status.
[Interpreted] First, I will report our unaudited results for the third quarter followed by our guidance for the fourth quarter.
The third quarter results are as follows: revenue was $2,382 million, up 7.8% sequentially. Gross margin was 22%, up 1.6 percentage points sequentially. Profit from operations was $351 million. EBITDA was $1,430 million. EBITDA margin was 60%. Profit attributable to the company was $192 million.
Moving to the balance sheet. At the end of the third quarter, the company had total assets of $49.4 billion, of which, total cash on hand was $11.4 billion. Total liabilities were $16.4 billion, of which total debt was $11.5 billion. Total equity was $33.1 billion. Debt-to-equity ratio was 34.8%, and net debt-to-equity ratio was 0.4%.
In terms of cash flow, in the third quarter, net cash generated from operating activities was $941 million, net cash used in investing activities was $2,062 million. Net cash used in financing activities was $490 million.
For the fourth quarter 2025, our guidance are as follows: revenue is expected to be flat to up 2% sequentially, and gross margin is expected to be in the range of 18% to 20%.
This concludes the financial status. Thank you.
[Interpreted] Thank you, Dr. Wu. Next, I will hand the call to Dr. Zhao Haijun to comment on operations.
[Interpreted] Morning, everyone. Thank you for attending SMIC's Third Quarter 2025 Earnings Webcast Conference Call.
In the third quarter, the company's revenue was $2,382 million, a sequential increase of 7.8%. By the end of the third quarter, the monthly capacity reached 1 million wafer level, totaling 1,023,000 standard logic 8-inch equivalent wafers. Wafer revenue from 12-inch and 8-inch accounted for 77% and 23%, respectively, with proportion stable. The utilization rate was 95.8%, and wafer shipment continued to increase by 4.6% sequentially to 2,499,000 standard logic 8-inch equivalent wafers, mainly because the industrial chain has been reshuffling at an accelerated pace, and distributors continuously stocked up and replenished their inventory.
The company actively collaborated with customers to ensure their shipments. Blended wafer price increased by 3.8% sequentially, mainly due to the product mix change with higher growth in shipments for complex process products.
In the third quarter, in terms of revenue by region, China, America and Asia accounted for 86%, 11% and 3%, respectively. The absolute revenue from China region increased by 11% sequentially, mainly due to the customers' demand for shipment pull-in, driven by the accelerated industrial chain reshuffling as mentioned earlier, coupled with the continuous expansion of the domestic market. To support urgent needs, the company adjusted its capacity allocation, leading to fluctuations in the quarterly revenue proportion by region.
By application, wafer revenue from smartphone, computer and tablets, consumer electronics connectivity and IoT, industrial and automotive accounted for 22%, 15%, 43%, 8% and 12%, respectively. Among that, consumer electronics increased by 15% sequentially, primarily because during the phase when domestic companies have accelerated their replacement of overseas peers' market share.
The company's customers with long-term-oriented partnership have seized opportunities in the industrial chain. Therefore, supply chain demand remained robust for various electronic products, such as diversified home appliance.
In the third quarter, the company's gross margin was 22%, increased by 1.6 percentage points sequentially, mainly because the utilization rate increased. The increase in output offset the impact of rising depreciation. According to the unaudited results, for the first 3 quarters, the company's revenue 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, and the capital expenditure totaled $5.7 billion.
The fourth quarter follows traditional seasonal pattern. Customers slowed down their stock up. However, the effect of industry reshuffling and iteration continues, leading to a busier-than-expected season, thus, the company's fourth quarter revenue is expected to be flat to up 2% sequentially, and the overall production line continues to keep fully loaded. The gross margin is expected to be in the range of 18% to 20%, the same level as the guidance for the third quarter. According to this guidance, the company's full year revenue is expected to exceed $9 billion, marking a new milestone in its revenue scale.
In terms of product platforms, the company has continued to strengthen its layout. So far this year, specialty technologies have demonstrated steady progress across multiple platforms. 28-nanometer ULP logic process has entered production, providing customers with lower power consumption and higher quality solutions. Continuous technology iterations in CIS and ISP processes have enhanced light sensitivity capability, image quality and signal-to-noise ratio.
While optical process platforms have been developed to cover a broader range of wave bands, the embedded memory platforms has been expanded from consumer to automotive grade and industrial MCU fields. Specialty memories like NOR Flash and NAND Flash have delivered high reliability platform with higher density, smaller size and lower power consumption. Additionally, the company has seized the growth opportunities in automotive chip market by launching multiple specialty processes, such as automotive grade of sensors, BCD, MCU, RF, memory and display, providing customers with system-level solutions.
So far this year, excluding AI, other major application fields have achieved moderate growth or return to stability. During the reshuffling and iteration in the domestic industrial chain, the company has worked together with customers to seize opportunities and become a reliable supplier, thus ensuring sustainable orders for the company, both present and in the foreseeable future.
Currently, the company's production lines are still in short supply overall, and the shipment volume cannot meet customer needs.
I will conclude my presentation here as we anticipate the successful completion of 2025.
Finally, we sincerely thank all customers, suppliers, investors and community for your strong support. Thank you all.
[Interpreted] Thank you, Dr. Zhao. Next is our Q&A session. Questions will be answered by Dr. Zhao and Dr. Wu. Chinese questions will be answered in Chinese. English questions will be answered in English. [Operator Instructions]
I would now like to open up the call for Q&A. Operator, please assist.
[Interpreted] [Operator Instructions] Your first question comes from Leping Huang of Huatai Securities.
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[Interpreted] Your next question comes from [indiscernible] of Orient Securities.
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[Interpreted] Your next question comes from Ziyuan Wang of Citic Securities.
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[Interpreted] Your next question comes from Tianzi Fu of Everbright Securities.
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[Interpreted] Last question for today comes from Jian Hu of Guosen Securities.
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[Interpreted] I would now like to hand the call back to Ms. Guo Guangli for closing remarks.
[Interpreted] Thank you for participating in today's conference call. Thank you for your trust and support.
[Interpreted] This concludes SMIC's Third Quarter Webcast Conference Call. We thank you for joining us today.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Financial data from Semiconductor Manufacturing International Corporation
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 197,426 197,426 |
185%
185%
100%
|
|
| - Direct Costs | 150,102 150,102 |
176%
176%
76%
|
|
| Gross Profit | 13,671 13,671 |
8%
8%
7%
|
|
| - Selling and Administrative Expenses | 5,671 5,671 |
5%
5%
3%
|
|
| - Research and Development Expense | 4,985 4,985 |
13%
13%
3%
|
|
| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 28,465 28,465 |
330%
330%
14%
|
|
| Net Profit | 18,568 18,568 |
311%
311%
9%
|
|
In millions HKD.
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Semiconductor Manufacturing International Corporation Stock News
Company Profile
Semiconductor Manufacturing International Corp. engages in the production and sale of semiconductor products. It provides integrated circuit foundry and technology services, as well as technology solutions for logic, mixed-signal and radio frequency, high voltage, system on a chip, flash, and electrically erasable programmable read-only memory (EEPROM) circuits. The company was founded on April 3, 2000 and is headquartered in Shanghai, China.
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| Head office | Cayman Islands |
| CEO | Dr. Liang |
| Employees | 19,952 |
| Website | www.smics.com |
