$SMIC(00981.HK) First take: The company's financial report is very good. Both revenue and gross margin exceeded market expectations. Although the average price of wafers fell this quarter, the company's wafer shipments increased significantly.

Compared with this financial report, the company's guidance is even more surprising. SMIC expects revenue to increase by 13-15% quarter-on-quarter next quarter, corresponding to $2.15-2.19 billion (market expectation: $1.87 billion); gross margin of 18-20% (market expectation: 12.08%), both core data significantly exceeded market expectations. Driven by the peak season for electronic products in the second half of the year, the company's operations are expected to recover from the trough next quarter.$SMIC(688981.SH)