SMIC issued a public announcement stating that its wholly-owned subsidiary, SMIC Holdings, along with several other shareholders of SMIC Integrated Circuits (Ningbo) Co., Ltd. (hereinafter referred to as "SMIC Ningbo"), had previously entered into an "Agreement on Asset Purchase via Share Issuance and Cash Payment" with Goke Microelectronics. Under this agreement, Goke Microelectronics intended to acquire a 94.366% stake in SMIC Ningbo, which included the 14.832% equity held by SMIC Holdings, through a combination of share issuance and cash payment. Upon the transaction's completion, SMIC Holdings had initially planned to divest entirely from SMIC Ningbo. Nevertheless, due to the involved parties' inability to reach a consensus on the transaction terms within the anticipated timeframe, they opted to terminate the deal. Following the termination, SMIC Holdings continues to hold a 14.832% interest in SMIC Ningbo. The cancellation of this transaction is not expected to exert a substantial influence on SMIC's financial standing.