[SMIC: Artificial Intelligence demand is expected to lengthen the semiconductor upward cycle] On November 13, SMIC co-CEO Zhao Haijun analyzed at the third quarter results meeting on the 13th that looking into the foreseeable future, industry certainty is mainly reflected in two aspects: First, the demand for artificial intelligence is expected to lengthen the semiconductor upward cycle, and the growth structure and cycle shape will change accordingly; second, the localization of the entire industry chain continues. In this context, the company relies on strategic binding with customers and cooperates with the innovation speed of Chinese customers to strengthen its advantages in features and customized processes. Based on this, the company promotes production capacity expansion based on customer demand, builds leading advantages with high value-added and high-quality product portfolios, strives to stabilize EBITDA - that is, operating cash flow capabilities, improve cost control and operating efficiency, enhance operational resilience through cycles, and achieve quality and sustainable growth.