The dialogue marks the beginning of a webcast conference call by Semiconductor Manufacturing International Corporation (SMIC) for its fourth quarter 2025 earnings. Senior management, including the co-CEO and finance head, are present to discuss financial performance under IFRS, cautioning on forward-looking statements. The session will proceed with financial updates followed by a Q&A segment.

The company reported Q4 2025 revenue of $2,000.489 million, up 4.5% sequentially, with a gross margin of 19.2%, down 2.8 percentage points. Profit from operations was $290.59 million, EBITDA reached $1,000.405 million with a 50.5% margin, and profit attributable to the company was $173 million. For the full year, revenue was $9,003.27 million, up 16.2% year-over-year, with a gross margin of 20%. EBITDA was $5,000.256 million, and capital expenditures amounted to $8.1 billion. Guidance for Q1 2026 was also provided.

The dialogue covers a detailed financial review, highlighting the company's total assets, liabilities, cash on hand, and cash flow from operating, investing, and financing activities in 2025, alongside forecasts for revenue and gross margin for the first quarter of 2026.

Despite the traditional off-season, the semiconductor company achieved a 2000 400 million revenue in Q4 2020, a 1.5% sequential increase in wafer revenue, and a 60% increase in other revenue due to bulk shipments. The industry saw a shift towards localization, with Chinese local firms gaining market share in analog products, display drivers, and memory. The company's utilization rate exceeded 100%, with a 12" capacity nearly fully loaded, reflecting the reshuffling effect. However, growth margins decreased by percentage points due to increased depreciation.

In 2025, a semiconductor company achieved a record high revenue of 9.32057 billion, a 16.2% year-over-year increase, driven by robust customer demand and market growth. The company's capital expenditure surged to 8.1 billion, exceeding initial projections due to advanced equipment procurement. Monthly capacity expanded to 1.059 million standard logic 8-inch equivalent wafers, with a 111,000-wafer increase from the previous year, and the annualized capacity utilization rate reached 93.5%, up 8 percentage points year-over-year. Revenue from China and overseas customers grew by 18% and 9%, respectively, with significant gains in automotive and consumer electronics sectors, attributed to supply chain reshuffling and national stimulus policies.

Robust AI-driven demand for memory chips is squeezing supply for mid-to-low end markets, impacting foundry orders. Despite challenges, proactive market engagement and capacity expansion strategies position the company for sustained revenue growth, with cautious guidance for the upcoming quarters reflecting current industry dynamics.

A company anticipates a 30% year-over-year increase in depreciation due to new fab operations. To counter this, it focuses on internal optimization, high utilization, and cost efficiency. The strategy includes enhancing customer service, market demand responsiveness, and fostering industrial chain synergy. Long-term sustainable development and shareholder value creation are prioritized through proactive management and leveraging market opportunities.

A conference call concluded SMIC's fourth quarter update, featuring a Q&A session where questions in Chinese and English were addressed by doctors, covering topics from computing supply drivers to market strategies, and expressing gratitude for participants' trust and support.