Core Insights - The company achieved revenue of $2.2 billion in Q2 2025, a 2% decrease quarter-over-quarter, but better than guidance; gross margin was 20%, down 2 percentage points, slightly above guidance; net profit attributable to shareholders was $100 million [1] - For the first half of 2025, the company reported revenue of $4.5 billion, a 22% year-over-year increase, with a gross margin of 21%, up 8 percentage points year-over-year, and a net profit of $300 million, a 36% year-over-year increase [1] - The company is experiencing growth in both capacity and utilization rates, confirming the trend of domestic wafer production as more demand returns to local suppliers; wafer sales (equivalent to 8-inch) increased to 4.68 million pieces, a 20% year-over-year increase [1] - The company plans to purchase the remaining 49% stake in SMIC North, which will enhance shareholder returns; the acquisition will be funded through issuing shares to various investment entities [1][2] Financial Performance - The company expects Q3 revenue to increase by 5%-7% quarter-over-quarter, with gross margin maintained in the range of 18%-20% [1] - The projected net profits for 2025-2027 are $5 billion, $5.7 billion, and $6.3 billion respectively, with corresponding EPS of $0.62, $0.71, and $0.79; the latest closing price corresponds to PE ratios of 216x, 190x, and 170x, and PB ratios of 7x, 6.8x, and 6.5x [3] Strategic Developments - After the acquisition, SMIC North will become a wholly-owned subsidiary, enhancing the company's capabilities in 12-inch wafer foundry services across various technology platforms [2] - The collaboration with SMIC North is expected to create synergies in technology, customer networks, supply chains, core technologies, and capacity layout, thereby increasing business efficiency and shareholder returns [2]