FINANCIAL HIGHLIGHTS

The below information is prepared in accordance with International Financial Reporting Standards.

Revenue increased by 27.0% from US$6,321.6 million in 2023 to US$8,029.9 million in 2024.
Gross margin decreased from 19.3% in 2023 to 18.0% in 2024.
Profit for the year attributable to owners of the Company decreased from 902.5 million in 2023 to 492.7 million in 2024.
Earnings before interest, tax, depreciation and amortization increased by 7.8% from US$4,064.2 million in 2023 to US$4,379.7 million in 2024.

LETTER TO SHAREHOLDERS

DEAR SHAREHOLDERS AND INVESTORS,

The year 2024 was a pivotal year for SMIC to achieve new breakthroughs in driving high-quality development and overcoming challenges. Confronted with the severe and complex international geopolitical environment, macroeconomic situation and profoundly changing industry landscape, the Company has actively undertaken the original mission of “strengthening，refining and scaling up the Company to compete globally as a key player in the industry”. Guided by the development blueprint of "one SMIC, global operations", the Company has scientifically planned the development path and deeply advanced the reform and innovation. The Company’s efforts have yielded steady progress and enhanced quality for various work. The full year revenue increased by 27% year-over-year to $8.03 billion, hit a record high. Gross margin was 18%, and capacity utilization rate was 85.6%. By the end of 2024, the Company’s total assets were $49.2 billion, and the monthly capacity reached 948 thousand standard logic 8-inch equivalent wafers. The achievements the Company have made would not have been possible without the care, support, and assistance from our shareholders, investors, and the community. Here, on behalf of the Company's board of directors and management, I would like to extend our most heartfelt gratitude and sincerest respect to all the friends who have cared for and supported the development of SMIC over the years.

Adhering to innovation-driven strategies, the Company continuously enhances the core competitive capabilities. The Company has always aimed to improve the core competitive capabilities through benchmarking the world-class enterprises. As a result, multiple operational indicators reached record highs, utilization rate achieved an industry-leading level, process and platform development steadily expanded, technology iteration and product upgrade solidly advanced. The rapid involvement capabilities for various end applications significantly improved, and customer satisfaction as well as the market influence continued to grow.Adhering to open collaboration, the Company continuously expands the industry chain eco-system. Anchored “customer-centricity and value creation for customer” in the starting point and ultimate objective, the Company has deepened strategic partnerships with industry leaders in consumer electronics, automotive, IoT, industrial control, AI and other sectors, while strengthening industry-academia-research collaboration with top-tier universities and research institutes globally. Along with conducting more forward-looking R&D projects, the Company has achieved significant strides in process innovation and platform development, and accelerated the establishments of SMIC-featured industry chain, eco-system chain, and innovation chain.Adhering to a people-centric approach, the Company comprehensively advances the green and sustainable development. Guided by our mission of “creating value for customers, delivering returns to shareholders, providing a platform for employees and contributing to society”, the Company has forged a community of shared benefits, a community ofcareer aspirations and a community of shared future among the Company, employees and society. The Company has actively fulfilled the responsibilities in emission and carbon reduction, and constructed green factories. Through sustained initiatives like the "SMIC Liver Transplant Program for Children" and other philanthropic projects, the Company has cultivated a corporate culture with humanistic warmth.

The year 2025 signifies a transformative year for the Company as it comprehensively deepens reforms and drives high-quality development. Confronted with both challenges and opportunities, the Company will adhere to the overarching principle of seeking progress while maintaining stability, ground itself in the new development stage, implement the new development philosophy, and integrate into the new development paradigm. The Company will further balance development and security, scientifically plan development strategy, cultivate and advance new quality productive forces, and collaborate with broad base of customers and partners to contribute "SMIC Power" to the innovative development of the global integrated circuit industry!

Liu Xunfeng

Chairman of the Board

Shanghai, China March 27, 2025