FINANCIAL HIGHLIGHTS

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

Revenue increased by 16.2% from US$8,030 million in 2024 to US$9,327 million in 2025.
Gross margin increased from 18.0% in 2024 to 21.0% in 2025.
Profit for the year attributable to owners of the Company increased by 39.0% from US$493 million in 2024 to US$685 million in 2025.
Earnings before interest, tax, depreciation and amortization increased by 20.0% from US$4,380 million in 2024 to US$5,256 million in 2025.

LETTER TO SHAREHOLDERS

DEAR SHAREHOLDERS AND INVESTORS,

2025 was the 25th anniversary of SMIC’s founding, a transformative year for the Company to further deepen reforms comprehensively and drive high-quality development.

This year, the Company continued to focus on its core business development, ensured the smooth progress of its projects, and achieved new heights in its business performance. Confronted with thecomplex and volatile external environment, the Company remained committed to its long-term strategy of deeply engaging in wafer manufacturing and carried out capacity expansion in a steady manner, and the monthly capacityscale exceeded 1 million standard logic 8-inch equivalent wafers; revenue increased by 16.2% year-over-year to US$9,327 million, continuing to solidify its position as the second-largest pure-play wafer foundry worldwide;utilization rate increased by 8 percentage points year-over-year to 93.5%; the gross margin increased to 21%,up 3 percentage points year-over-year, despite a substantial increase in depreciation. At the same time, theCompany made substantive progress in the projects including acquisition of minority stakes in SMNC, capitalinjection and share expansion in SMSC, building a solid foundation for its future development.

This year, the Company continued to drive technological breakthroughs, promoted incremental growth through open cooperation, and synergized with the industrial chain for common development. Asdownstream application scenarios became more diversified, sectors such as artificial intelligence, data centers andautonomous driving led the industry into a new round of rapid growth cycle, smart terminals such as consumerelectronics upgraded and iterated, and the local transformation of the industrial chain accelerated. All abovefurther boosted the industry’s demand for domestic chip manufacturing in the mid-to high-end areas. In thiscontext, the Company prioritized fostering and developing its new productive forces, and sustained innovationto consolidate its core competitive advantages. In 2025, the Company maintained a high level of R&D investmentof US$774 million, accounting for 8.3% of its revenue; the Company refined its technological innovation system,actively responded to customer needs, and continuously promoted process iteration and product upgrading; atthe same time, the Company carried out industrial chain cooperation with upstream and downstream partnersand established advanced packaging research institute to support the high-quality development of the industry.

This year, the Company continued to strengthen talent force, fostered a heartwarming corporate culture, and fully promoted green and sustainable development. Faced with the profoundly evolving industriallandscape, the Company fully recognized that competition in IC industry boiled down to the competition fortalent. The Company selected and cultivated outstanding young cadres, and comprehensively strengthened thedevelopment of its talent pipeline. In terms of talent recruitment, the Company kept stepping up the hiring offresh graduates and proactively introduced professional elites and high-end experts; in terms of talent retention,the Company nurtured employees’ sense of responsibility, mission and belonging through measures such asstrengthening positive incentives and implementing a diversified compensation system. Adhering to the peopleorientedphilosophy at all times, the Company consistently practiced its corporate social responsibility of “caringfor people, environment and society”, consolidated the resilience of green and sustainable development, deepenedhumanistic care, and achieved the common development of the Company and society.

2026 is a year of strategic opportunity and window for the development of the industry, and is also a pivotalyear for SMIC to seize the momentum, serve the overall interests, take proactive actions, embrace innovationfor transformation, and pursue collaborative innovation. The Company focuses on ten key priorities: ensuringsafety, delivering projects, strengthening technology, expanding new drivers, forging a capable team, optimizingoperations, controlling costs, mitigating risks, adapting to changing landscapes and deepening humanistic care.The Company consolidates and expands its competitive edges, overcomes bottleneck constraints, and shores upits weaknesses, so as to seize the strategic initiative in the fierce domestic and international competition, achievegreater breakthroughs of promoting its strategic layout of “one SMIC, global operations”, and strive to createa new glory for SMIC in the new era!

Here, on behalf of the Company’s board of directors and management, I would like to extend most heartfelt gratitude and sincerest respect to all the shareholders and friends from all walks of life who have cared for and supported the development of SMIC over the years.

Liu Xunfeng

Chairman of the Board

Shanghai, China March 26, 2026