SMIC(00981)2022-04-26 09:51Financial Performance - Semiconductor Manufacturing International Corporation reported a revenue of approximately 3.9 billion to 5,443,112 thousand, a 39.3% increase from 5,443.1 million in 2021, representing a year-on-year increase of 39.3%[58]. - The wafer foundry business revenue was 1,701,803 thousand, up 137.8% from 1,775,158 thousand, a significant increase from 3,011,895 thousand, an increase of 81.4% compared to 1,823,173 thousand, compared to 600 million, accounting for 17% of total revenue, reflecting the company's commitment to innovation[28]. - Research and development expenses for 2021 were $638,842 thousand, reflecting the company's commitment to innovation and technology advancement[52]. - Research and development expenses as a percentage of sales decreased by 5.6 percentage points to 11.7% in 2021 due to increased sales revenue[43]. - The company is focused on enhancing its R&D capabilities to support advanced process technologies and maintain competitive advantages[61]. - The company is focusing on developing low-power and high-performance technology platforms, with applications in IoT products and high-end display technologies[76][78]. Market Strategy and Expansion - The company plans to expand its production capacity by 30% over the next two years to meet increasing demand in the semiconductor market[28]. - The company plans to continue expanding production capacity and enhancing cooperation with customers and suppliers to meet market demands[32]. - The company aims to address structural shortages in the supply chain and balance existing and incremental demand in 2022, amidst a challenging external environment[32]. - The company is actively expanding its customer base through various marketing strategies, including direct communication and collaboration with design service companies and industry associations[65]. - The company aims to maintain its leading position in the semiconductor industry by investing in sustainable talent and capital resources[73]. Challenges and Risks - The company has faced export restrictions from the US, which may introduce uncertainty into its future performance[89]. - The company is at risk of technological obsolescence if it fails to keep pace with industry advancements and market demands[91]. - Supply chain risks are present due to reliance on a limited number of qualified suppliers for critical materials and equipment, which could impact production if shortages or delays occur[96]. - The ongoing COVID-19 pandemic poses risks to normal operations, with potential supply chain disruptions and increased procurement costs if the situation worsens[107]. - The company has been affected by ongoing US-China trade tensions, which have led to restrictions on its securities and related derivatives trading by US individuals[108]. Corporate Governance - The company has maintained a high level of corporate governance to protect shareholder interests[180]. - The company has adopted a set of corporate governance policies since January 25, 2005, which are regularly updated to comply with the corporate governance code[181]. - The board of directors includes a mix of executive and non-executive members, with a total of 8 directors, including 4 independent non-executive directors[199]. - The company emphasizes the importance of timely communication with shareholders and investors, committing to quarterly financial performance announcements approximately 45 days after each quarter-end[193]. - The company is committed to maintaining compliance with the Shanghai Stock Exchange's regulations regarding related party transactions[196].