Core Viewpoint - The company, SMIC, is a leading integrated circuit foundry in the world and a leader in China's semiconductor manufacturing industry, focusing on expanding its production capacity and maintaining its competitive edge in a rapidly evolving market [5][13]. Company Overview - SMIC is recognized for its advanced manufacturing capabilities and service offerings, providing 8-inch and 12-inch wafer foundry services globally [5]. - The company operates under a red-chip structure and has a comprehensive ecosystem that includes design services, IP support, and photomask manufacturing [4]. Business Model - The primary business model involves wafer foundry services based on various technology nodes and platforms, along with supporting services such as design and photomask manufacturing [6]. - The company has a robust R&D mechanism with a structured process to ensure successful project transitions from conception to production [7]. Industry Situation - The global semiconductor industry is showing signs of recovery in 2024, with varying growth across different segments, driven by demand for advanced applications in smart devices and automotive electronics [10][11]. - The foundry industry remains a core segment of the semiconductor value chain, characterized by high technical, talent, and capital intensity [12]. Financial Performance - For the reporting period, the company achieved revenue of RMB 57,795.6 million, a 27.7% increase year-on-year, while net profit attributable to shareholders was RMB 3,698.7 million, a decrease of 23.3% [17]. - The cash flow from operating activities was RMB 22,658.6 million, a slight decrease of 1.7% compared to the previous year [17]. Future Development Trends - The company plans to maintain significant capital expenditures in 2025, exceeding 30% of its latest audited net assets, to support capacity expansion and core business development [23]. - The company aims to enhance its competitive edge through continuous investment in technology and production capabilities, ensuring long-term value creation for shareholders [24].