[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the composition of the company's Board of Directors, including executive, non-executive, and independent non-executive directors, as well as members of the Audit and Remuneration and Nomination Committees - The Chairman of the Board is **Sun Jie**, and the Vice Chairman and Managing Director is **Chang Feng**[5](index=5&type=chunk) - The Chairman of the Audit Committee is **Chen Qichang**, and the Chairman of the Remuneration and Nomination Committee is **Qiu Hongsheng**[5](index=5&type=chunk) [Company Details and Contacts](index=3&type=section&id=Company%20Details%20and%20Contacts) This section provides essential company information, including registered and principal Hong Kong offices, investor relations contacts, stock code, principal bankers, share registrar, independent auditor, and legal advisors - The company's stock code is **00085**[7](index=7&type=chunk)[9](index=9&type=chunk) - The independent auditor is **Mazars CPA Limited**[8](index=8&type=chunk)[9](index=9&type=chunk) - Investor relations contact number is **(852) 2598 9088**, and the website is **www.cecht.com.cn**[7](index=7&type=chunk)[8](index=8&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group experienced a significant decline in both revenue and profit attributable to equity holders, reflecting challenging market conditions Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,112,346 | 1,360,635 | -18.2% | | Cost of sales | (698,249) | (793,267) | -12.0% | | Gross profit | 414,097 | 567,368 | -27.0% | | Operating profit | 151,391 | 354,569 | -57.3% | | Profit before taxation | 145,586 | 343,015 | -57.5% | | Profit for the period | 140,108 | 308,772 | -54.6% | | Profit attributable to equity holders of the Company | 138,560 | 309,545 | -55.2% | | Basic earnings per share (HK cents) | 6.83 | 15.25 | -55.2% | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly decreased, primarily due to lower profit for the period, despite a positive shift in exchange differences Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Profit for the period | 140,108 | 308,772 | | Exchange differences on translation of financial statements | 31,568 | (12,116) | | Exchange differences on translation of the Company's financial statements | 8,032 | (3,528) | | Total comprehensive income for the period | 179,708 | 293,128 | | Total comprehensive income attributable to equity holders of the Company | 178,160 | 294,066 | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, cash and cash equivalents significantly rose, while total equity remained stable and total liabilities saw a minor increase Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total assets | 4,232,865 | 4,174,001 | | Non-current assets | 944,204 | 1,067,587 | | Current assets | 3,288,661 | 3,106,414 | | Inventories | 833,025 | 847,662 | | Trade and other receivables (current) | 695,140 | 525,949 | | Cash and cash equivalents | 1,027,579 | 743,036 | | Total equity | 2,468,046 | 2,471,026 | | Total liabilities | 1,764,819 | 1,702,975 | | Non-current liabilities | 70,106 | 160,170 | | Current liabilities | 1,694,713 | 1,542,805 | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity slightly decreased during the period, mainly due to the dividend distribution at the end of 2024, partially offset by total comprehensive income for the period Overview of Changes in Equity (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Total equity at January 1 | 2,471,026 | 2,146,221 | | Total comprehensive income | 179,708 | 293,128 | | Dividends for the year ended December 31 | (182,688) | (213,137) | | Total equity at June 30 | 2,468,046 | 2,226,212 | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's net increase in cash and cash equivalents was primarily driven by a significant rise in cash flows from investing activities, despite a decrease in cash flows from operating activities Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash flows from operating activities | 25,505 | 146,006 | | Net cash flows from investing activities | 282,863 | 134,059 | | Net cash flows used in financing activities | (11,237) | (22,057) | | Net increase in cash and cash equivalents | 297,131 | 258,008 | | Cash and cash equivalents at end of period | 1,027,579 | 1,375,327 | - Net cash flows from investing activities significantly increased, primarily due to a **HK$298,810 thousand decrease in fixed deposits and restricted cash**[23](index=23&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [1 Basis of preparation](index=12&type=section&id=1%20Basis%20of%20preparation) These condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with no significant impact from new accounting standards adoption - The financial statements comply with HKAS 34 'Interim Financial Reporting' and the disclosure requirements of Appendix D2 of the Listing Rules[26](index=26&type=chunk)[31](index=31&type=chunk) - Prepared using the historical cost convention, with modifications for investment properties measured at fair value[28](index=28&type=chunk)[32](index=32&type=chunk) - The adoption of new or revised HKFRSs had no significant impact on the Group's results and financial position[30](index=30&type=chunk)[33](index=33&type=chunk) [3 Fair value estimation](index=13&type=section&id=3%20Fair%20value%20estimation) The Group's investment properties, primarily Beijing office buildings and parking spaces, are measured at fair value (Level 3), with their total value slightly increasing due to exchange differences, despite a small loss from fair value changes during the period Fair Value Changes of Investment Properties (HK$'000) | Metric | June 30, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Total investment properties | 42,706 | 42,177 | | Exchange differences | 650 | - | | Fair value changes | (121) | - | - Office buildings are valued using the direct comparison approach, while parking spaces are valued using the income approach[36](index=36&type=chunk) [4 Revenue and segment information](index=14&type=section&id=4%20Revenue%20and%20segment%20information) The Group's revenue primarily derives from integrated circuit product sales and services, with almost all revenue and non-current assets concentrated in mainland China, thus reported as a single operating segment Revenue Sources (For the six months ended June 30) | Revenue Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Sales of integrated circuit products and provision of services | 1,112,346 | 1,360,635 | - The majority of the Group's revenue is from the sale of goods, recognized when control of the goods is transferred to customers[39](index=39&type=chunk)[42](index=42&type=chunk) - The Group's operations are managed as a single segment, with nearly **100% of revenue** and over **90% of non-current assets** located in mainland China[41](index=41&type=chunk)[44](index=44&type=chunk) [5 Other income – net](index=15&type=section&id=5%20Other%20income%20%E2%80%93%20net) Net other income decreased this period, mainly due to a significant reduction in government grants and a loss from fair value changes of investment properties Other Income – Net (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Government grants from ordinary activities | 16,539 | 36,650 | | Fair value changes of investment properties | (121) | (5,352) | | Interest income | 18,617 | 19,652 | | Rental income | 1,223 | – | | Others | 238 | 1,377 | | **Total** | **36,496** | **52,327** | [6 Finance costs – net](index=15&type=section&id=6%20Finance%20costs%20%E2%80%93%20net) Net finance costs decreased this period, primarily due to lower interest expenses on borrowings and interest expenses arising from deposits received Finance Costs – Net (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest expense on borrowings | 7,389 | 9,774 | | Interest expense on lease liabilities | 699 | 943 | | Interest expense arising from deposits received | 3,873 | 8,813 | | Interest income from cash and cash equivalents | (2,723) | (4,337) | | Interest income arising from deposits paid | (3,542) | (4,265) | | **Finance costs – net** | **5,696** | **10,928** | [7 Profit before taxation](index=16&type=section&id=7%20Profit%20before%20taxation) Profit before taxation was significantly impacted by increased employee benefit expenses, R&D costs, depreciation, and amortization, despite a reversal of inventory provisions Deductions from Profit Before Taxation (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 10,962 | 6,525 | | Depreciation of right-of-use assets | 11,475 | 11,515 | | Amortisation of intangible assets | 23,071 | 18,854 | | Inventories (reversal of provision)/provision | (9,132) | 10,288 | | Employee benefit expenses | 187,575 | 162,506 | - Research and development costs recognized as expenses and included in administrative expenses amounted to **HK$222,909 thousand** (2024: HK$183,250 thousand), primarily comprising employee costs and material costs[55](index=55&type=chunk) [8 Taxation](index=16&type=section&id=8%20Taxation) Total taxation for the period significantly decreased, mainly due to reduced PRC corporate income tax and lower withholding income tax on undistributed profits, with some subsidiaries benefiting from preferential tax rates Taxation Components (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | PRC corporate income tax | (5,594) | 22,442 | | Deferred taxation | 11,072 | 11,801 | | Withholding income tax on undistributed profits | 4,793 | 11,435 | | **Total taxation** | **5,478** | **34,243** | - Huada Electronic and Huahong enjoy preferential tax rates of **10%** and **15%** respectively, qualifying as 'integrated circuit design enterprises within national planning layout' and 'high-tech enterprises'[62](index=62&type=chunk) [9 Dividend](index=17&type=section&id=9%20Dividend) The Board of Directors resolved not to declare any dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any dividend for the six months ended June 30, 2025 (2024: nil)[59](index=59&type=chunk)[61](index=61&type=chunk) [10 Basic earnings per share](index=18&type=section&id=10%20Basic%20earnings%20per%20share) Basic earnings per share significantly decreased due to lower profit attributable to equity holders of the Company, and no diluted earnings per share were presented as there were no potential dilutive ordinary shares Basic Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company (HK$'000) | 138,560 | 309,545 | | Weighted average number of ordinary shares in issue | 2,029,872,000 | 2,029,872,000 | | Basic earnings per share (HK cents) | 6.83 | 15.25 | - No diluted earnings per share were disclosed as the Company had no outstanding potential dilutive ordinary shares[66](index=66&type=chunk)[68](index=68&type=chunk) [11 Property, plant and equipment](index=18&type=section&id=11%20Property,%20plant%20and%20equipment) Additions to property, plant and equipment significantly decreased during the period compared to the same period last year Additions to Property, Plant and Equipment (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 7,538 | 17,827 | [12 Trade and other receivables](index=19&type=section&id=12%20Trade%20and%20other%20receivables) The Group's trade receivables, net of impairment loss provisions, significantly increased, with the largest increase observed in receivables aged 61 to 180 days Ageing Analysis of Trade Receivables (HK$'000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 160,636 | 120,825 | | 31 to 60 days | 44,221 | 117,591 | | 61 to 180 days | 306,032 | 108,846 | | Over 180 days and within 1 year | 831 | 93 | | Over 1 year | 1,116 | 2,811 | | **Total** | **512,836** | **350,166** | - The majority of the Group's sales are on credit terms of **30 to 180 days**[70](index=70&type=chunk) [13 Trade and other payables](index=19&type=section&id=13%20Trade%20and%20other%20payables) The Group's total trade payables increased, with a significant rise in payables aged over 60 days Ageing Analysis of Trade Payables (HK$'000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 138,781 | 182,969 | | 31 to 60 days | 54,102 | 130,117 | | Over 60 days | 367,716 | 103,783 | | **Total** | **560,599** | **416,869** | [14 Contingent liabilities](index=20&type=section&id=14%20Contingent%20liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[74](index=74&type=chunk)[75](index=75&type=chunk) [15 Related party transactions and balances](index=20&type=section&id=15%20Related%20party%20transactions%20and%20balances) The Group engaged in several significant related party transactions and maintained balances with its ultimate holding company, China Electronics Corporation, and its commonly controlled entities, mostly unsecured and interest-free, except for cash and deposits and borrowings Significant Transactions with China Electronics Corporation and its Controlled Entities (For the six months ended June 30, HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Sales of products and services | 116,309 | 143,033 | | Purchases of products and services | 98,719 | 88,047 | | Interest income | 7,004 | 7,217 | | Interest expense | 7,184 | 9,150 | | Property management fees | 3,837 | 3,443 | | Maximum daily balance of financial assistance provided to the Group | 68,993 | 31,918 | | Maximum daily balance of deposits placed by the Group | 737,933 | 742,709 | Significant Balances with China Electronics Corporation and its Controlled Entities (HK$'000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 26,932 | 29,107 | | Cash and deposits | 697,208 | 734,653 | | Trade payables | 109,167 | 86,710 | | Shareholder loans | 318,000 | 313,161 | | Entrusted loans from ultimate holding company | 65,841 | 64,859 | - Related party borrowings are unsecured and bear interest at a weighted average annual rate of **3.8%**[83](index=83&type=chunk) - Key management personnel remuneration increased to **HK$2,971 thousand** (2024: HK$1,358 thousand)[87](index=87&type=chunk) [Report on Review of Interim Financial Statements](index=23&type=section&id=Report%20on%20Review%20of%20Interim%20Financial%20Statements) Independent auditor Mazars CPA Limited reviewed the Group's condensed consolidated interim financial statements, concluding they were prepared in all material respects in accordance with HKAS 34 - The review was performed by **Mazars CPA Limited**[97](index=97&type=chunk) - The review concluded that the condensed consolidated interim financial statements are prepared in all material respects in accordance with HKAS 34[94](index=94&type=chunk)[96](index=96&type=chunk) - The scope of a review is substantially less than an audit, thus no audit opinion was expressed[93](index=93&type=chunk)[95](index=95&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=25&type=section&id=Business%20Review) The Group faced severe challenges in the smart card and security chip market in H1 2025, leading to significant declines in revenue and profit, yet increased R&D investment and achieved growth in secure master control chips and identification products Performance Overview (For the six months ended June 30) | Metric | 2025 (HK$ Million) | 2024 (HK$ Million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,112.3 | 1,360.6 | -18.2% | | Profit attributable to equity holders of the Company | 138.6 | 309.5 | -55.2% | | Basic earnings per share (HK cents) | 6.83 | 15.25 | -55.2% | - Global smart card and security chip market demand was sluggish, with intense domestic and international competition leading to significant product price drops[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[106](index=106&type=chunk) - Sales volume of secure master control chips and identification products significantly increased year-on-year, while sales of secure SE chips, financial card chips, and third-generation social security card chips decreased[100](index=100&type=chunk)[102](index=102&type=chunk) - Research and development costs increased by **14.3%** to **HK$222.9 million** (2024: HK$183.3 million), accounting for **20.0% of revenue** (2024: 13.5%)[107](index=107&type=chunk)[110](index=110&type=chunk) - Looking ahead, market demand is expected to remain challenging, but increasing security needs for smart devices and eSIM application promotion will bring new opportunities, prompting the Group to actively expand its customer base to consolidate market position[108](index=108&type=chunk)[111](index=111&type=chunk) - The Board of Directors resolved not to declare any dividend for the six months ended June 30, 2025[109](index=109&type=chunk)[112](index=112&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) The Group maintains a prudent treasury policy, meeting working capital needs primarily through internal resources and borrowings, ending the period with increased cash and cash equivalents, a net cash position, and no pledged assets, significant capital commitments, or contingent liabilities Financial Position Overview (HK$ Million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 1,027.6 | 743.0 | | Bank and other borrowings | 383.8 | 378.0 | | Undrawn committed borrowing facilities | 955.5 | - | - **94.5%** of cash and cash equivalents are denominated in RMB[113](index=113&type=chunk)[116](index=116&type=chunk) - All bank and other borrowings are due within one year, unsecured, and bear fixed interest rates[114](index=114&type=chunk)[116](index=116&type=chunk) - The Group was in a net cash position as of June 30, 2025, and December 31, 2024[118](index=118&type=chunk)[123](index=123&type=chunk) - The Group has not pledged any assets for its borrowings, nor does it have any significant unfulfilled capital commitments or contingent liabilities[115](index=115&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[123](index=123&type=chunk) [Employee and Remuneration Policies](index=29&type=section&id=Employee%20and%20Remuneration%20Policies) As of June 30, 2025, the Group employed approximately 450 staff, mostly in mainland China, implementing stringent recruitment, performance evaluation, and performance-based remuneration policies, alongside multi-level training programs - As of June 30, 2025, the Group employed approximately **450 staff**, mostly working in mainland China[120](index=120&type=chunk)[124](index=124&type=chunk) - Employee benefit expenses for the period amounted to **HK$187.6 million**[120](index=120&type=chunk)[124](index=124&type=chunk) - Remuneration policy is generally in line with industry practice, determined by performance and experience, regularly reviewed, with bonuses linked to Group and individual performance[121](index=121&type=chunk)[124](index=124&type=chunk) - Employee training is structured into company-level, department-level, and individual levels, focusing on general applicability, professional knowledge, and skill enhancement[122](index=122&type=chunk)[124](index=124&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, only Executive Director Mr. Chang Feng held a small interest in the Company's ordinary shares, with no other directors or chief executives having declarable interests or short positions - Executive Director Mr. Chang Feng beneficially held a long position interest in **28,000 ordinary shares** of the Company, representing **0.01%** of the issued share capital[125](index=125&type=chunk)[127](index=127&type=chunk) - Save as disclosed above, no other directors or chief executive had any interests or short positions required to be recorded in the register[125](index=125&type=chunk)[127](index=127&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=30&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries entered into any arrangements enabling directors or their close associates to acquire benefits by purchasing shares or debentures of the Company or other bodies corporate - The Company had not entered into any arrangements enabling directors or their close associates to acquire benefits by purchasing shares or debentures[126](index=126&type=chunk)[128](index=128&type=chunk) [Shareholders with Notifiable Interests](index=31&type=section&id=Shareholders%20with%20Notifiable%20Interests) As of June 30, 2025, several entities held **5% or more** of the Company's issued share capital, with Huada Semiconductor Co., Ltd. and its ultimate parent China Electronics Corporation being significant shareholders Shareholders with Notifiable Interests (As of June 30, 2025) | Name of Interest Holder | Capacity | Number of Shares Held or Attributable | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | China Electronics Corporation (BVI) Holdings Company Limited | Beneficial owner | 812,500,000 | 40.03% | | Huada Semiconductor Co., Ltd. | Beneficial owner and interest in corporations controlled by Huada Semiconductor | 1,206,180,000 | 59.42% | | China Electronics Corporation Limited | Interest in corporations controlled by China Electronics | 1,206,180,000 | 59.42% | | China Electronics Corporation | Interest in corporations controlled by China Electronics Corporation | 1,206,180,000 | 59.42% | - All disclosed interests represent long positions in the Company's shares[131](index=131&type=chunk)[135](index=135&type=chunk) [Purchase, Sale or Redemption of Securities](index=32&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company's securities - Neither the Company nor any of its subsidiaries repurchased or sold any of the Company's securities, nor did the Company redeem any of its securities[132](index=132&type=chunk)[136](index=136&type=chunk) [Corporate Governance Code](index=32&type=section&id=Corporate%20Governance%20Code) The Company is committed to best corporate governance practices and confirmed compliance with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2025 - The Company complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2025[133](index=133&type=chunk)[137](index=137&type=chunk) [The Model Code for Securities Transactions by Directors](index=32&type=section&id=The%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the required standards set out in the Model Code for Securities Transactions by Directors for the six months ended June 30, 2025 - All directors confirmed compliance with the required standards set out in the Model Code for Securities Transactions by Directors[134](index=134&type=chunk)[138](index=138&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Audit Committee under the Board of Directors reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[139](index=139&type=chunk)[141](index=141&type=chunk) [Changes in Directors' Particulars](index=33&type=section&id=Changes%20in%20Directors'%20Particulars) Ms. Huang Yaping was appointed as an independent director of Shenzhen Qianfenyi Intelligent Technology Co., Ltd. in May 2025 - Ms. Huang Yaping was appointed as an independent director of Shenzhen Qianfenyi Intelligent Technology Co., Ltd. in May 2025[140](index=140&type=chunk)[142](index=142&type=chunk)

Core Viewpoint - *ST Gaohong faces the risk of being delisted due to its stock price falling below par value, with a closing price of 0.48 yuan as of September 19, 2025, and has been below 1 yuan for 15 consecutive trading days [1][5] Group 1: Delisting Risks - The company announced that its stock may be terminated from listing if it continues to trade below 1 yuan for 20 consecutive trading days, as per the Shenzhen Stock Exchange regulations [1] - The company is also at risk of being subject to mandatory delisting due to significant legal violations, as indicated by a notice from the China Securities Regulatory Commission (CSRC) regarding fraudulent issuance of shares [2] Group 2: Financial Misconduct - The CSRC's notice revealed that from 2015 to 2023, the company inflated its reported revenue by a total of 192.67 million yuan across various years, with the highest inflation occurring in 2020 at 56.34 million yuan, representing 49.38% of that year's reported revenue [3] - The company also inflated its reported costs and total profits during the same period, with the highest profit inflation in 2020 amounting to 2.19 million yuan, which was 64.88% of the reported profit for that year [3] Group 3: Stock Issuance Issues - The notice further stated that the company's 2020 non-public stock issuance documents contained false data regarding business income and profits, leading to a fraudulent issuance classification [4] - The company has been experiencing abnormal stock trading fluctuations, with a cumulative price drop exceeding 12% over three consecutive trading days [4]

Core Viewpoint - *ST Gaohong faces the risk of being delisted due to its stock price falling below par value, with a closing price of 0.48 yuan as of September 19, 2025, and has been below 1 yuan for 15 consecutive trading days [1][5]. Group 1: Delisting Risks - The company announced that its stock may be terminated from listing if it continues to trade below 1 yuan for 20 consecutive trading days, as per the Shenzhen Stock Exchange listing rules [1]. - The company is also at risk of being subject to mandatory delisting due to significant legal violations, as indicated by a notice from the China Securities Regulatory Commission (CSRC) regarding fraudulent issuance of stocks and false financial reporting from 2015 to 2023 [2]. Group 2: Financial Misreporting - The CSRC's notice revealed that the company inflated its reported revenue and costs significantly over multiple years, with inflated revenues ranging from 6.94 million yuan to 56.34 million yuan, constituting up to 49.38% of reported revenues in certain years [3]. - The inflated profits reported by the company also varied, with the highest inflation reaching 2,190.52 million yuan, which accounted for 64.88% of the total reported profit in 2020 [3]. Group 3: Stock Performance and Market Reaction - The company’s stock has experienced significant volatility, with a cumulative price drop exceeding 12% over three consecutive trading days in September 2025, indicating abnormal trading conditions [4]. - Despite the possibility of a continuous price increase, the stock price would still not reach the par value of 1 yuan even with five consecutive limit-up trading days [5]. Group 4: Company Background - *ST Gaohong, established by the China Academy of Telecommunications Technology, is a high-tech enterprise that has developed a business structure focusing on digital applications, information services, and IT sales since its listing in 2003 [8].

Core Viewpoint - *ST Gaohong faces the risk of being delisted due to its stock price falling below par value, with a closing price of 0.48 yuan as of September 19, 2025, and has been below 1 yuan for 15 consecutive trading days [1][5] Group 1: Delisting Risks - The company announced that its stock may be terminated from listing if it continues to trade below 1 yuan for 20 consecutive trading days, as per the Shenzhen Stock Exchange regulations [1] - The company is also at risk of being subject to mandatory delisting due to significant legal violations, as indicated by a notice from the China Securities Regulatory Commission (CSRC) regarding fraudulent issuance of shares [2] Group 2: Financial Irregularities - The CSRC's notice revealed that from 2015 to 2023, the company inflated its reported revenue by a total of 6.94 billion yuan to 3.94 billion yuan across various years, representing a percentage increase of 9.34% to 49.38% of the reported revenue for those years [3] - The company also inflated its reported costs and total profits during the same period, with total profit inflation ranging from 67.36 thousand yuan to 2.19 million yuan, accounting for 0.42% to 64.88% of the reported profit [3] Group 3: Recent Developments - The CSRC identified that the company's 2020 non-public stock issuance involved false data from 2018 to 2020, leading to accusations of fraudulent issuance [4] - The company experienced a significant stock price drop, with a cumulative decline of over 12% in three consecutive trading days leading up to September 19, 2025, indicating abnormal trading fluctuations [4]

Core Viewpoint - The company *ST Gao Hong (000851) is at risk of being delisted due to its stock price falling below the par value of 1 yuan for 15 consecutive trading days, with potential for major illegal delisting due to fraudulent activities in its financial reporting [1][2]. Summary by Sections Stock Price and Delisting Risk - As of September 19, 2025, *ST Gao Hong's stock price closed at 0.48 yuan per share, indicating that even with five consecutive trading days of limit-up, it cannot return to the par value of 1 yuan [5]. - The company has been warned that if its stock price remains below 1 yuan for 20 consecutive trading days, it will face delisting according to the Shenzhen Stock Exchange rules [1]. Regulatory Actions and Violations - On August 8, 2025, the company received an administrative penalty notice from the China Securities Regulatory Commission (CSRC), indicating that its non-public stock issuance in 2020 constituted fraudulent issuance and that its annual reports from 2015 to 2023 contained false records [2][3]. - The fraudulent activities include inflated revenue and profit figures, with reported inflated revenues ranging from 6.94 million yuan to 56.34 million yuan across various years, significantly impacting the reported financial performance [3]. Financial Misrepresentation - The company’s annual reports from 2015 to 2023 showed inflated operating income and costs, with the inflated profits totaling up to 2,190.52 million yuan in 2020, representing 64.88% of the reported profit for that year [3]. - The CSRC's notice also highlighted that the documents related to the 2020 non-public stock issuance included false data from 2018 to 2020, further complicating the company's legal standing [4]. Company Background - *ST Gao Hong, established in 2003 and initiated by the China Academy of Telecommunications Technology, has developed a business structure focusing on digital applications, information services, and IT sales over the past two decades [7].

Core Viewpoint - *ST Gaohong's stock price has been below the par value for an extended period, raising the risk of delisting due to continuous low trading prices and previous fraudulent activities [1][2] Group 1: Stock Performance - As of September 18, 2025, *ST Gaohong's stock closed at 0.51 yuan, down 5.56% from the previous trading day, with a total market capitalization of 591 million yuan [1] - The stock has been trading at 0.51 yuan for the entire day, with a trading volume of 1.88 million yuan and a turnover rate of 0.33% [1] Group 2: Risk of Delisting - The company issued its sixth risk warning regarding the potential for delisting due to its stock price being below 1 yuan for fourteen consecutive trading days [1] - If the stock price remains below 1 yuan for an additional twenty consecutive trading days, the company will face delisting without entering a delisting adjustment period [1] Group 3: Regulatory Issues - On August 8, 2025, the company received a notice from the China Securities Regulatory Commission (CSRC) indicating that its 2020 private placement constituted fraudulent issuance, and its annual reports from 2015 to 2023 contained false records [1] - The company has been subject to delisting risk warnings and other risk alerts since August 11, 2025, following the issuance of an audit report with no opinion from Zhongshen Yatai Accounting Firm for internal controls in 2023 and from Shenzhen Xutai Accounting Firm for the 2024 financial statements [1]

格隆汇9月18日｜港股市场半导体股集体拉升，其中，华虹半导体涨9%，晶门半导体、芯智控股涨超6%，中芯国 际涨超5%，中电华大科技、上海复旦、宏光半导体涨超3%。 | 代码 | 名称 | 涨跌幅 √ | 最新价 | 总市值 | 年初至今涨跌 | | --- | --- | --- | --- | --- | --- | | 01347 | 华虹半导体 | 9.09% | 58.200 | 1008.97亿 | 168.82% | | 02878 | 晶门半导体 | 6.12% | 0.520 | 12.99 Z | 5.05% | | 02166 | 芯智控股 | 6.81% | 2.040 | 9.97亿 | 43.66% | | 00981 | 中村国际 | 5.39% | 71.350 | 5707.46 Z | 124.37% | | 00085 | 中电华大科技 | 3.73% | 1.670 | 33.9亿 | 43.97% | | 01385 | 下海道目 | 3.40% | 41.360 | 339.74亿 | 175.14% | | 06908 | 宏光半导体 | 3.45% | 0.600 ...

Core Viewpoint - The emerging technology sector is witnessing significant stock performance, particularly in AI and humanoid robotics, with major indices showing strong fluctuations and new highs being reached in various stocks [1][5]. Group 1: Market Performance - Major indices, including the Sci-Tech 50 Index, have reached new highs, with the big tech sector continuing to surge, particularly in areas like lithography machines and PEEK materials [1]. - Leading stocks such as SMIC have surpassed 120 CNY per share, while humanoid robot leaders like Sanhua Intelligent Control and Top Group have also hit historical highs [1]. - Low-priced stocks remain popular, with Shoukai Co. hitting the daily limit up, while *ST Gaohong continues to hit historical lows [1][2]. Group 2: Company-Specific Issues - *ST Gaohong has been identified as the lowest-priced stock in the A-share market, with a recent closing price of 0.54 CNY per share, marking a new historical low [2]. - The company faces severe risks, including a potential forced delisting due to fraudulent issuance of stocks and false reporting from 2015 to 2023, as indicated by the China Securities Regulatory Commission [4]. - Auditors have issued disclaimers regarding the effectiveness of the company's internal controls and have raised concerns about its ability to continue as a going concern [4]. Group 3: Investment Opportunities - The technology sector, particularly AI and humanoid robotics, has shown strong performance, with AI glasses being highlighted as a promising area for future growth [5]. - Meta's upcoming event, Meta Connect 2025, is expected to showcase advancements in AI glasses, indicating a strong push from major tech companies towards commercialization [5]. - Several AI glasses-related stocks have seen significant net buying from financing, with 41 stocks predicted to have net profit growth exceeding 20% in the coming years [6][7].

格隆汇9月15日丨*ST高鸿（维权）(000851.SZ)公布，公司丁明锋先生在任职财务总监、副总经理兼董 事会秘书期间，未能做到勤勉尽责。自2024年7月起，丁明锋先生已不再担任财务总监、董事会秘书， 现经公司第十届董事会第二十三次会议审议通过，决定暂停其副总经理职务。 ...

Group 1 - Chip stocks collectively rose, with notable increases: Beike Micro up 6.94% to HKD 58.7, Zhongdian Huada Technology up 3.8% to HKD 1.64, InnoCare up 2.41% to HKD 102, and Huahong Semiconductor up 2.16% to HKD 52 [1] - On September 13, the Ministry of Commerce announced an anti-dumping investigation into imported analog chips from the United States, effective from September 13, 2025 [1] - The Ministry of Commerce also initiated an anti-discrimination investigation regarding U.S. measures in the integrated circuit sector [1] Group 2 - CITIC Securities noted that major overseas manufacturers like Texas Instruments have been aggressively expanding production and implementing price measures in the domestic market, which has slowed the pace of domestic substitution in the analog chip sector [1] - The recent tariff events since 2025 have increased domestic customers' willingness to substitute, and Texas Instruments' price hikes from June to August indicate a shift in competitive strategy [1] - As the anti-dumping investigation progresses, domestic manufacturers are expected to benefit from a better market environment, leading to potential recovery in profitability [1]