On May 15, reports indicated that Zhao Haijun, co-CEO of SMIC, disclosed at the Q1 earnings briefing that the company's gross profit margin in the first quarter climbed to 20.1%, marking a sequential increase of 0.9 percentage points. This improvement was primarily driven by a rise in unit sales prices and the optimization of the product mix. Given the current market scenario where demand outstrips supply, SMIC has entered into negotiations with its customers to implement price increases for certain products, and the effects of these price adjustments are now progressively manifesting. Concurrently, some customers, apprehensive about potential supply shortages or further price escalations stemming from uncertainties in the external environment, have ramped up their inventory levels of consumer and IoT products. This strategic move has resulted in a robust order book for the company. Considering these factors, SMIC anticipates its revenue in the second quarter to experience a sequential growth of 14% to 16%, with notable surges in both shipment volume and average selling prices. The gross profit margin is projected to range between 20% and 22%, reflecting a 2 percentage point increase from the previous quarter's guidance, primarily attributable to the uptick in average selling prices.