SMIC announced that its wholly-owned subsidiary SMIC Holdings Limited intends to sell its 14.832% stake in SMIC Ningbo Co., Ltd. to Hunan Goke Microelectronics Co., Ltd. After the transaction is completed, SMIC Holdings will no longer hold shares in SMIC Ningbo. The transaction price of the target assets of this transaction will be determined by negotiation between the parties to the transaction based on the evaluation results of the evaluation report issued by the asset evaluation agency. This transaction does not constitute an affiliated transaction, nor does it constitute a major asset restructuring matter as stipulated in the "Administrative Measures for Major Asset Restructuring of Listed Companies", and does not need to be submitted to the company's shareholders' meeting for deliberation.