Zhao Haijun, CEO of SMIC: The company will resist price fluctuations pressure by reducing costs and increasing efficiency.

On the morning of May 9th, Zhao Haijun, co-CEO of SMIC International, stated in a first quarter earnings conference call that the company's gross profit margin for the first quarter was 22.5%, flat compared to the previous quarter; capacity utilization rate was 89.6%, an increase of 4.1 percentage points compared to the previous quarter; among which, the 12-inch capacity utilization rate remained steady, and the 8-inch capacity utilization rate also rose to the average level of the 12-inch plant, offsetting the impact of the decrease in average selling price and the increase in depreciation on the gross profit margin. Zhao Haijun also stated that the revenue guidance for the second quarter of this year was a decrease of 4% to 6% compared to the previous quarter, with shipment quantity expected to remain steady and average selling price expected to decrease. For the second quarter, the company's gross profit margin guidance was 18% to 20%, a decrease of 1 percentage point compared to the first quarter guidance. The company will resist price fluctuations by reducing costs and increasing efficiency, but the equipment depreciation expenses in the second quarter continue to rise, leading to a slight decrease in the gross profit margin guidance compared to the first quarter.