SMIC Reports 2016 Third Quarter Results

SHANGHAI, Nov. 7, 2016 -- 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 September 30, 2016.

Third Quarter 201 6 Highlights

Revenue was a record high of $774.8 million in 3Q16, an increase of 12.3% QoQ from $690.2 million in 2Q16 and an increase of 36.0% YoY from $569.9 million in 3Q15.
Gross profit was $232.1 million in 3Q16, compared to $217.8 million in 2Q16 and $182.4 million in 3Q15.
Gross margin was 30.0% in 3Q16, compared to 31.6% in 2Q16 and 32.0% in 3Q15.
Net profit for the period attributable to SMIC was $113.6 million in 3Q16, as compared to $97.6 million in 2Q16 and $82.6 million in 3Q15.
Return on equity was 11.4% in 3Q16, compared to 10.2% in 2Q16 and 9.3% in 3Q15.

Fourth Quarter 201 6 Guidance:

The following statements are forward looking statements based on current expectations and involved risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below. The Company expects:

Revenue to increase by 5% to 7% QoQ.
Gross margin to range from 28% to 30%.
Non-GAAP operating expenses, excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters to range from $179 million to $184 million.
Non-controlling interests of our majority-owned subsidiaries to range from positive $37 million to positive $39 million (losses to be borne by non-controlling interests).

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director commented, "SMIC is seeing robust demand across the board and we reiterate our growth target of 20% compounded annual growth from 2016 to 2019. In 2016, SMIC is growing in excess of 28% YoY. We are forecasting growth for both 4Q16 and 1Q17 given current visibility. We are on track to achieve another record year of revenue and net profit attributable to SMIC.

We had a fantastic third quarter, achieving our 7th consecutive quarter of revenue growth and 18th consecutive quarter of profit. Our revenue was a record high of $774.8 million, representing a growth of 36.0% YoY and 12.3% QoQ. Our net profit attributable to SMIC was also a record high of 113.6 million, a growth of 37.4% YoY and 16.3% QoQ. This marks the first time our quarterly net profit exceeds $100 million, and the second consecutive quarter to exceed 10% ROE.

We are still experiencing robust demand from various regions, applications, and nodes, and we are addressing the demand opportunities by laying the foundation for continued growth with prudent expansion to meet customers' needs. In the last month, we announced several new fab construction projects to address our diverse demand. Actual production capacity will only be executed with careful planning to meet overlapping conditions of assured customer demand, technological readiness, and sustained profitability."

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services on process nodes from 0.35 micron to 28 nanometer. Headquartered in Shanghai, China, SMIC has an international manufacturing and service base. In China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab and a majority-owned 300mm fab for advanced nodes in Beijing; 200mm fabs in Tianjin and Shenzhen; and a majority-owned joint-venture 300mm bumping facility in Jiangyin; additionally, in Italy SMIC has a majority-owned 200mm fab. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.

For more information, please visit www.smics.com.