On December 29, SMIC made an official announcement, stating its intention to issue shares to five shareholders of SMIC North, among whom is the National Integrated Circuit Fund. Through this move, SMIC aims to acquire their combined 49.00% stake in SMIC North, with the transaction valued at RMB 40.601 billion. SMIC North, a subsidiary firmly under SMIC's control, is dedicated to providing customers with 12-inch integrated circuit wafer foundry services along with a range of ancillary services. These services span across various process platforms, catering to diverse customer needs. This strategic transaction is set to bring multiple benefits. It is expected to significantly enhance the asset quality of the listed company. Moreover, it will foster stronger business synergies among different entities within the group. Ultimately, it paves the way for promoting the long-term, sustainable development of the company. Importantly, this acquisition will not lead to any changes in the scope of the listed company's main business operations.