Semiconductor Manufacturing International (981) investor relations material

Executive summary

• Second quarter revenue reached $3,006 million, up 20% sequentially and 36.1% year-over-year, driven by higher wafer shipments, increased ASP, and favorable product mix.

• Gross profit rose to $760.6 million, a 51% increase from 1Q26, with gross margin improving to 25.3% from 20.1% in the prior quarter.

• All key operating metrics improved both year-over-year and quarter-over-quarter, driven by AI-related demand and customer pull-ins.

• Profit for the period surged to $733.2 million, up 214.8% sequentially and 399.9% year-over-year.

• China led regional growth with a 22% sequential revenue increase, supported by AI chip demand and localization.

Financial highlights

• Gross margin for Q2 was 25.3%, up 5.2 percentage points sequentially; EBITDA margin rose to 70.2%.

• Profit from operations was $534 million; profit attributable to the company was $479 million.

• Operating expenses decreased 11.5% sequentially to $226.5 million, mainly due to lower general and administrative costs.

• Other income, net, jumped to $275.9 million from $7.5 million in 1Q26, primarily due to fair value changes in equity securities and increased gains from associates.

• Basic and diluted EPS were $0.06 and $0.02, respectively, for 2Q26.

Outlook and guidance

• Q3 2026 revenue expected to grow 2%-4% sequentially; gross margin guided at 26%-28%.

• Utilization rate projected to remain high at around 95%, helping dilute unit fixed costs.

• Management maintains an optimistic outlook, expecting continued AI-driven demand and proactive cost management, with plans to accelerate capacity qualification.