In response to this matter, Guoke Micro stated that the termination of the transaction will not have a significant adverse impact on the company's production, operation, and financial condition. In the future, while the company continues to deepen its main business and strengthen its endogenous growth momentum, it will also actively seek opportunities for outward mergers and acquisitions that are in line with policy incentives, have reasonable valuations, and high strategic synergy. In June of this year, Guoke Micro disclosed the transaction plan. As a leading integrated circuit design enterprise in China, Guoke Microelectronics plans to achieve strategic extension in the field of special process outsourcing through transactions. The market generally believes that Guoke Microelectronics and SMIC Ningbo have high synergy and complementarity in their business fields. Acquiring SMIC Ningbo can accelerate Guoke Microelectronics' layout process in high-end filter, MEMS and other special process OEM fields, and further expand downstream application markets with strong demand and huge growth potential, such as smartphones and intelligent connected vehicles, and enhance the full chain service capabilities of core customers in the industry. Looking back at the progress of the transaction, Guoke Microelectronics stated that the company has always followed the principle of compliant operation. The company and relevant parties strictly comply with legal and regulatory requirements, hired intermediary agencies to conduct due diligence on SMIC Ningbo, organized various parties to discuss and discuss the transaction plan, and actively promoted various work. However, after months of negotiation and consultation, it was not possible to reach an agreement on the relevant matters of this transaction within the expected time. In order to effectively safeguard the long-term interests of the company and all shareholders, after careful evaluation and consultation with the counterparty, Guoke Micro has decided to terminate this restructuring, reflecting the company's high responsibility for shareholder rights and the prudence of decision-making. "Guoke Micro stated. Data shows that over 50 A-share companies have terminated major asset restructuring plans within the year, and most listed companies have not shaken their strategic determination to expand their business and upgrade their industries in the face of adjustments. The termination of this transaction by Guoke Microelectronics does not mean that it will completely abandon the restructuring in the future. According to the reporter's understanding, in the future, Guoke Microelectronics will continue to deepen its main business and strengthen its endogenous growth momentum, while actively seeking opportunities for outward mergers and acquisitions that are in line with policy encouragement, reasonably valued, and have high strategic synergy, in order to drive the improvement of development quality and company value. Looking ahead, Guoke Microelectronics plans to continue its long-term strategic layout and carry out various business management work in an orderly manner. While continuously consolidating its advantages in smart vision and ultra high definition intelligent display, it will accelerate the expansion of emerging fields such as in car electronics, wireless LAN, and artificial intelligence products, and develop various products that meet market demand. In recent years, the "ALL IN AI" strategy laid out by the State Science and Microelectronics Institute is gradually landing: around the "ALL IN AI" strategy, the company continues to focus on AI edge computing research and development based on self-developed MLPU technology, and enables intelligent terminal application based on big model+SoC. Among them, AI AISoC series products include 8Tops small computing power AIoT terminal chips, 16Tops edge computing chips, and 64~128Tops large computing power chips pre researched. At the same time, Guoke Micro has clearly stated that it will continue to seize policy opportunities in the future, explore industry chain integration opportunities that are highly coordinated with the company's strategy in terms of technology, market, products, and other dimensions. At the same time, it will continue to consolidate the foundation of its main business, driven by both endogenous growth and external expansion, and promote the long-term healthy development of the company.