更多资料加入知识星球:水木调研纪要 关注公众号:水木纪要 华虹半导体 原文 20240624_ 2024年06月25日08:26 发言人 00:01 对，大家下午好，我是天风电子的陆阳。非常欢迎大家来参加我们这样的一个防护半导体的一 个电话会。其实从今年开始整个半导体行业编辑一直在变好。然后很多的行业的细分领域的库 存都已经去完了。 发言人 00:30 优先开启的是一个库存周期。其实看起来这个库存周期对上游的影响会非常的显著。就是去年 很多下游的设计公司，他们在谈单，在销库、在降价，然后再再卖加速的去卖掉他们的库存。 今年已经看很多环节都已经去完了。所以今年我觉得上游的这个制造，包括丰富这样这些环节 的好转是非常明显的。 发言人 01:04 华宏又是我们今年以来持续在推荐的一个品种，我们觉得公司不仅仅是受益于这样的一个行业 层面的库存周期，那其其他其他的包括这个客户结构对吧。那呃从大客户还有个需求，我们穿 透去看，也是跟这个人工智能有线性的相关。那也是跟着AI的浪潮，我觉得会是一个人工智能 需求驱动这样一个品种。所以往后去看的话，我们还是非常乐观去看待它的一个需求的趋势以 ...

一定会有更好的一个改善假设我们今年能够全年比去年能够增长10%我认为这也是一个非常不错的一个应该说一个非常不错的一个情况 好的 感谢领导的回答下一个问题想请问从过往来看我们驾动力是否要到120%才算饱满呢从订单及排产来看后续驾动力提升的趋势如何判断 谢谢那我们这个其实目前的驾动力已经非常好了我认为还有个空间可以上10个百分点然后就是不断地把这个 产品组合把它变得更好好的 感谢领导的回答下一个问题想请问今年的折旧会有多少呢 谢谢八亿场大概在1.2亿美元然后这个 我们的12英寸厂今年的折旧预计会在大概4.4亿左右 好的 感谢领导的回答下一个问题想请问毛利率指引目前能做到吗 谢谢我们应该还是非常有信心的我们希望能够做得更好一些好的 感谢领导的回答下一个问题想请问为什么公司产能利用率远远高于中芯国际等同行呢 谢谢 这个问题我真的不能回答其实我们的产能利用率在不同的时间点的确和其他的一些同业公司不一样总的来讲我们的产能利用率除了去年下半年有一个比较明显的下滑之后我觉得已经全部回升了那么为什么我们比人家好主要是因为我们是一个特色公益的经营代工企业 我们有各种不同的平台明显地就降低了我们的风险产能应用率下降的风险同时我们其 ...

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 21 June 2024 | 7:17AM HKT The 720: China Internet - 618 Shopping Festival, Sanhua, Japan Retail, Global Smartphone, Hon Hai, Hua Hong, China Macro In Focus | China Internet - 618 Shopping Festival Michael Snaith +852-2978-0455 | michael.snaith@gs.com China Internet - 618 Shopping Festival 5 key highlights - Buy BABA, PDD, Kuaishou Goldman Sachs (Asia) L.L.C. Caleb Chan (on CL). With China’s 618 Shopping Festival (the longest yet) now concluded (on +852-2978-0790 | caleb.chan@gs. ...

证券研究报告 | 2024年05月15日 华虹半导体（01347.HK） 买入 电子消费品呈现复苏，产能利用率攀升 核心观点 公司研究·海外公司财报点评 1Q24毛利率略超预期，2Q24预计环比增长。公司发布未经审核业绩：1Q24 电子·半导体 实现销售收入4.60亿美元(YoY -27.1%，QoQ +1.0%)，符合指引（4.5-5.0 证券分析师：胡剑 证券分析师：胡慧 亿美元），毛利率为6.4%(YoY-25.7pct，QoQ+2.4pct)，略超指引(3%-6%)， 021-60893306 021-60871321 hujian1@guosen.com.cn huhui2@guosen.com.cn 业绩同比下降主因平均售价下降以及产能利用率降低。公司指引2Q24销售 S0980521080001 S0980521080002 收入约4.7-5.0亿美元之间，毛利率约在6%-10%之间，营收及毛利率指引中 证券分析师：周靖翔 证券分析师：叶子 值皆环比提升。 021-60375402 0755-81982153 zhoujingxiang@guosen.com.cnyezi3@guosen.com ...

电子/半导体 公 司 研 华虹半导体（01347.HK）业绩如期逐季改善，复苏力度偏弱 究 2024年05月13日 ——港股公司信息更新报告 投资评级：增持（维持） 吴柳燕（分析师） wuliuyan@kysec.cn 日期 2024/5/10 证 书编号：S0790521110001 港 当前股价(港元) 18.020  PB估值仍处历史低位，2024年有望逐季改善，维持“增持”评级 股 一年最高最低(港元) 28.400/13.800 考虑到电源管理与CIS需求拉动公司产能利用率提升，我们将2024-2025年归母 公 司 总市值(亿港元) 309.37 净利润预测由1.01/1.19亿美金上调至1.52/1.88亿美金，新增2026年归母净利润 信 流通市值(亿港元) 235.89 预测 2.28 亿美金，对应同比增速分别为-45.9%/24.2%/21.3%，对应 EPS 分别为 息 总股本(亿股) 17.17 0.11/0.17/0.26美金。当前股价18.02港币对应2024-2026年21.8/13.6/8.8倍PE， 更 新 流通港股(亿股) 13.09 对应2024年0.6倍PB处在历史估 ...

Ladies and gentlemen, thank you for standing by and welcome to the Hua Hong Semiconductor's First Quarter 2024 Earnings Conference Call. The call is hosted by Mr. Zhenzhen Tang, President and Executive Director, and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Please be advised that your dial-in is in a listen-only mode. However, At the conclusion of the management presentation there will be a question and answer session at which time you will receive instructions on how to partici ...

Ladies and gentlemen, thank you for standing by and welcome to the Hua Hong Semiconductor's First Quarter 2024 Earnings Conference Call. The call is hosted by Mr. Zhenzhen Tang, President and Executive Director, and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Please be advised that your dial-in is in a listen-only mode. However, At the conclusion of the management presentation, there will be a question and answer session, at which time you will receive instructions on how to parti ...

Financial Performance - Q1 2024 sales revenue was $460 million, down 27.1% year-over-year and up 1.0% quarter-over-quarter[6]. - Net profit attributable to shareholders was $31.8 million, a decrease of 79.1% year-over-year and a decrease of 10.1% quarter-over-quarter[12]. - The company reported a net loss of $25.3 million for Q1 2024, compared to a profit of $140.9 million in the same quarter last year[12]. - Sales revenue for the first quarter was $459.986 million, down 27.1% from $630.842 million in the same quarter last year[15]. - Total sales revenue for the first quarter of 2024 was $459.986 million, a decrease of 27.1% compared to $630.842 million in the same quarter of 2023[24]. - Gross profit for the quarter was $29.632 million, down from $202.197 million year-over-year[37]. - The company reported a basic earnings per share of $0.019, down from $0.116 in the same quarter last year[14]. Gross Margin and Utilization - Gross margin for Q1 2024 was 6.4%, significantly lower than 32.1% in the same quarter last year, but improved from 4.0% in the previous quarter[6]. - Gross margin decreased to 6.4% from 32.1% year-over-year, primarily due to a decline in average selling prices and lower capacity utilization[14]. - The utilization rate for production capacity was 91.7%, down from 103.5% year-over-year but up from 84.1% in the previous quarter[12]. - The overall capacity utilization rate was 91.7%, an increase of 7.6 percentage points from the previous quarter[25]. Future Outlook - The company expects Q2 2024 sales revenue to be between $470 million and $500 million, with a gross margin forecast of 6% to 10%[6]. - The semiconductor market remains sluggish, but the company has seen improvements in capacity utilization, sales revenue, and gross margin compared to the previous quarter[7]. Revenue Breakdown - Revenue from 8-inch wafers was $239.95 million, representing 52.2% of total sales, while 12-inch wafers generated $220.036 million, or 47.8% of total sales[16]. - Sales revenue from China was $365.695 million, accounting for 79.5% of total sales, down 23.4% year-over-year[19]. - Embedded non-volatile memory sales dropped 50.2% year-over-year to $119.214 million, mainly due to decreased demand for MCU and smart card chips[21]. - Revenue from discrete devices fell 38.4% year-over-year to $143.344 million, driven by lower demand and average selling prices for IGBT and MOSFET products[21]. - Sales revenue from 55nm and 65nm process nodes reached $94.5 million, a year-over-year increase of 61.5%, driven by increased demand for CIS and other power management products[23]. - Sales revenue from 90nm and 95nm process nodes was $88.5 million, a year-over-year decrease of 25.8%, primarily due to reduced demand for smart card chips[23]. - The electronics consumer segment contributed $287.863 million, accounting for 62.6% of total sales revenue, down 21.9% year-over-year[26]. Operating Expenses and Cash Flow - Operating expenses increased by 3.0% year-over-year to $78.5 million, primarily due to increased R&D spending[14]. - Net cash flow from operating activities was $40.660 million, a decrease of 69.2% year-over-year[31]. - The net cash flow from operating activities for the quarter was $40.7 million, a decrease of 69.2% year-over-year and 79.3% quarter-over-quarter, primarily due to reduced customer collections and government subsidies[9]. - The company reported a change in working capital and other items resulting in a cash outflow of $45,899, compared to an outflow of $118,952 in the previous year[42]. Capital Expenditures and Assets - Capital expenditures for the first quarter totaled $302.574 million, with $199.429 million allocated to Huahong Manufacturing[32]. - Total assets increased to $11.648 billion as of March 31, 2024, compared to $10.943 billion at the end of December 2023[32]. - As of March 31, 2024, total current assets amounted to $7.14 billion, an increase from $6.57 billion as of December 31, 2023[34]. - The current ratio improved to 7.4x from 6.8x in the previous quarter, indicating enhanced liquidity[34]. - Total assets as of March 31, 2024, were $10.68 billion, up from $9.97 billion at the end of the previous quarter[40]. Other Financial Metrics - The annualized return on equity was 2.0%, down from 19.6% year-over-year and slightly down from 2.4% in the previous quarter[12]. - The company experienced a foreign exchange loss of $8,817 during the quarter, contrasting with a gain of $17,946 in the previous year[42]. - Depreciation and amortization expenses rose to $133,088, compared to $120,338 in the same quarter last year[42]. - The company received $689,430 from non-controlling interest capital injections, significantly higher than $296,197 in the previous year[42].

Financial Performance - Revenue for 2023 reached US$2,475.5 million, representing a 36% increase compared to the previous year[16] - The company reported an earnings per share (EPS) of US$0.34, up from US$0.25 in 2022, indicating a 36% growth[16] - The consolidated statement of cash flows showed a net cash inflow of US$1,630.8 million, reflecting a 24% increase from the previous year[16] - In 2023, Hua Hong Semiconductor reported revenue of US$2,286.1 million, a decrease of 7.7% compared to 2022[19] - The overall gross profit margin decreased by 12.8 percentage points to 21.3% compared to the previous year[19] - Profit for the year attributable to owners of the parent decreased by 37.8% to US$280.0 million, resulting in a net profit margin of 5.5% compared to 16.4% in 2022[138] - Gross profit decreased by 42.3% to US$487.1 million, primarily due to decreased average selling prices and increased depreciation costs[130] - Other income and gains increased by 103.4% to US$144.4 million, mainly driven by increased government subsidies and interest income[131] Market Expansion and Strategy - The company plans to expand its market presence through strategic partnerships and investments in new technologies[16] - The company aims to enhance production capacity by 20% in the next fiscal year to meet growing demand[16] - A new product line is expected to launch in Q3 2024, targeting the automotive semiconductor market[16] - The company is exploring potential acquisitions to strengthen its position in the semiconductor industry[16] - Future guidance estimates revenue growth of 25% for the next fiscal year, supported by strong market demand[16] - The company is focused on penetrating emerging markets such as communication, new energy, IoT, and automotive electronics[19] - The company emphasizes a dual-pronged strategy of "Specialty IC + Power Discrete" to navigate market challenges[19] Research and Development - Research and development expenses increased by 30% year-over-year, highlighting a commitment to innovation[16] - Looking ahead to 2024, the company plans to advance research and development of new technologies and optimize existing platforms[21] - The company continues to focus on R&D in differentiated technologies, particularly in eNVM and power management ICs, to meet market demand[120] Corporate Governance - The Company has a nine-member Board comprising two Executive Directors, four Non-Executive Directors, and three Independent Non-Executive Directors[51] - The Company complied with the Corporate Governance Code during the year ended 31 December 2023[48] - The Company has adopted the Model Code for Securities Transactions by Directors, with all Directors confirming compliance throughout the year[49] - The Board is responsible for the overall management of the Company, delegating day-to-day management to the Chairman and management team[50] - The Company has established corporate governance procedures that comply with the principles in the Corporate Governance Code[46] - The Company has continually monitored and updated its corporate governance practices in response to regulatory changes[47] - The Company has implemented mechanisms for independent views and input to the Board, ensuring effective governance[61] Board Composition and Diversity - Ms. Chengyan Xiong was appointed as a Non-executive Director effective from 28 March 2024, bringing nearly 20 years of experience in finance and accounting[31] - The term for each Non-Executive Director is three years, subject to re-nomination and re-election[52] - The Board has achieved measurable objectives for diversity, with a focus on cultural and educational background, professional experience, and skills[82] - The Nomination Committee is actively seeking to improve gender diversity on the Board after the resignation of a director in September 2023[82] - The Company is committed to maintaining a balance of diverse perspectives on the Board to support its growth[83] Risk Management - The Company has implemented a robust risk management system, including a three-line model for risk management and internal monitoring[104] - The internal auditing department reported no material deficiencies in the Company's risk management and internal monitoring system for the year ended December 31, 2023[105] Shareholder Communication and Financial Management - The Company has adopted a shareholders' communication policy to ensure equal and timely access to information for shareholders[88] - The Company paid US$0.75 million for audit services and US$0.01 million for non-audit related services during the year ended December 31, 2023[76] - The Company maintains a policy to monitor liquidity requirements regularly to ensure sufficient cash reserves and funding lines[157] - The company has no significant exposure to credit risk as it trades only with recognized and creditworthy parties[155] Investments and Capital Projects - The Hua Hong Manufacturing Project, launched in June 2023, involves an investment of US$6.7 billion for a new 12-inch specialty technology production line with a monthly capacity of 83,000 wafers[20] - The Company plans to utilize the proceeds for various projects, including RMB12.5 billion for the Hua Hong Manufacturing (Wuxi) Project, with RMB11.72 billion unutilized as of the reporting period[188] - A joint venture was established on 18 January 2023, with an investment of US$880.38 million for the Wuxi Phase II project (HH Fab9) to manufacture integrated circuits and 12-inch wafers[189] Share Options and Dividends - The company recommended a final dividend of HK$0.165 per share, totaling approximately US$36,234,000 for the year ended December 31, 2023[162] - The share option scheme allows for a total of 21,144,481 shares to be issued, representing approximately 1.23% of the total shares in issue[173] - The company granted 30,250,000 share options at an exercise price of HK$6.912, representing 1.76% of the issued shares as of December 31, 2023[174] - A total of 34,500,000 share options were granted at an exercise price of HK$15.056, representing 2.01% of the issued shares as of December 31, 2023[176] Sales and Revenue Breakdown - Revenue from semiconductor wafers accounted for 95.4% of total revenue, amounting to US$2,181.6 million, down 8.2% year-on-year[112] - Revenue from systems and fabless companies was US$2,109.5 million, representing 92.3% of total revenue, a decline of 7.0% year-on-year[113] - Revenue from the European market grew by 17.5% year-on-year, reaching US$134.8 million, while North America and Other Asia saw declines of 31.2% and 29.2%, respectively[114] - Power discrete revenue increased by 16.5% year-on-year to US$902.3 million, driven by demand in the new energy vehicle and industrial sectors[115]

Financial Performance - Revenue for the year ended December 31, 2023, reached $2.5 billion, representing a 15% year-over-year growth[7] - Net profit for the year increased by 20% to $500 million, driven by higher sales and improved operational efficiency[7] - The company's gross margin improved to 30%, up from 28% in the previous year, due to cost optimization and higher production yields[7] - Revenue for 2023 was US$2,286.1 million, a decrease of 7.7% compared to 2022[14] - Gross profit margin decreased by 12.8 percentage points to 21.3% in 2023[14] - Profit attributable to owners of the parent was US$449.9 million in 2023, up from US$280.0 million in 2022[13] - EPS increased to 0.345 in 2023 from 0.201 in 2022[13] - Revenue decreased by 7.7% to US$2,286.1 million in 2023 due to lower average selling prices[123] - Gross profit declined by 42.3% to US$487.1 million, impacted by decreased selling prices and increased depreciation costs[125] - Net profit margin dropped to 5.5% in 2023 from 16.4% in 2022, with profit for the year falling to US$126.4 million[133] Capital Expenditures and Investments - Capital expenditures for the year amounted to $1.2 billion, primarily allocated to the expansion of manufacturing facilities in Wuxi[7] - The company issued 407.75 million RMB shares, which were listed and began trading on the STAR Market on August 7, 2023[9] - Hua Hong Semiconductor's Wuxi subsidiary saw its registered capital increase from $1.8 billion to approximately $2.54 billion following a capital injection[7] - The company's total assets grew by 18% to $6.8 billion, supported by increased investments in new technologies and market expansion[7] - The Hua Hong Manufacturing Project was launched with an investment of US$6.7 billion for a new 12-inch production line with a monthly capacity of 83,000 wafers[15] - The company commenced construction of a 12-inch production line in Wuxi with a total investment of US$6.7 billion, targeting a monthly capacity of 83,000 wafers[119] - Formation of a joint venture (Wuxi Phase II project) with an investment of US$880.38 million, US$1,169.82 million, US$1,165.8 million, and US$804 million by the Company, HHGrace, China IC Fund II, and Wuxi Xi Hong Guo Xin, respectively, totaling US$4.02 billion in registered capital[185] Research and Development - Research and development expenses for the year totaled $300 million, representing 12% of total revenue, focusing on advanced semiconductor technologies[7] - The company filed 672 patent applications in 2023, bringing the cumulative number of granted invention patents to 4,427[120] - The company focuses on specialty technologies including Embedded/Standalone Non-Volatile Memory, Power Discrete, Analog & PM, and Logic & RF[13] Production Capacity and Shipments - The company achieved an annual shipment of 4.103 million wafers in 2023[15] - Monthly capacity (8-inch equivalent) expanded to 391,000 wafers by the end of 2023[15] - Hua Hong Wuxi reached a monthly capacity of 94,500 wafers, covering IC process nodes from 90 nm to 65/55 nm[15] - Capacity utilization for 8-inch wafer equivalent was 94.3%, a decrease of 13.1% compared to 2022[113] - Wafer shipments increased by 0.4% year-on-year, reaching 4,103 thousand wafers[114] - The company expanded 12-inch capacity and technology, diversifying the product mix of "Specialty IC + Power Discrete"[115] Market and Revenue Segmentation - 95.4% of revenue was generated from semiconductor wafers, with a year-on-year decrease of 8.2%[107] - Revenue from systems and fabless companies accounted for 92.3%, a decrease of 7.0% compared to 2022[108] - Europe revenue increased by 17.5% year-on-year, reaching US$134.76 million[109] - Power discrete revenue grew by 16.5% due to strong demand in new energy vehicles and industrial sectors[110] - Revenue for ≥0.35μm technology nodes grew by 6.6%, driven by power discrete business[111] - Industrial & Automotive Electronics revenue increased by 22.4%, reaching US$673.395 million[112] - Automotive electronics revenue maintained year-to-year double-digit growth, driven by mass production of automotive-grade chip products[116] - Power discrete business maintained growth despite market challenges, with a record high number of new products introduced for automotive, electric vehicle, and industrial sectors[117] Corporate Governance and Board Activities - The Board held 10 meetings during the year ended 31 December 2023, with attendance records for each Director provided[60] - The Company has three Independent Non-Executive Directors, representing more than one-third of the Board, ensuring compliance with Listing Rules 3.10 and 3.10A[50] - The Remuneration Committee met on 10 August 2023 to discuss the vesting of options under the Company's share option scheme[67] - The Nomination Committee met on 9 November 2023 to discuss remuneration policy and salary competitiveness[69] - The Company arranged Directors' and Officers' liabilities insurance to cover potential legal actions arising from corporate activities[59] - All Directors participated in continuous professional development, including reading materials and attending training courses[65] - The Board ensures independent views through mechanisms such as independence assessments and communication between the Chairman and Independent Non-Executive Directors[51][53] - The Company complied with the Corporate Governance Code during the year ended 31 December 2023[43] - The Board is responsible for approving material transactions, quarterly results, and internal control systems[49] - The Chairman and President roles are separate, with the Chairman focusing on corporate strategy and the President managing day-to-day operations[57][58] Risk Management and Internal Controls - The company's risk management objective is to identify, assess, and manage risks to reduce their impact and maintain control[96] - The internal control system aims to evaluate the effectiveness of operating activities, reliability of financial reports, and compliance with laws[97] - The company has established a "three-line model" for risk management, covering business supervision, internal audit, and risk monitoring[99] Shareholder Communication and Investor Relations - The company's shareholders' communication policy ensures equal and timely access to information for shareholders[83] - The company organizes roadshows and on-site visits to promote investor understanding of its business[88] - The company's Board diversity policy considers talents, skills, regional experience, gender, age, and other qualities[76] Audit and Financial Reporting - The remuneration paid to auditors for audit services in 2023 was $0.75 million, and for non-audit related services was $0.01 million[71] - The Audit Committee held six meetings in 2023, reviewing financial statements, risk management, and internal control systems[74] - The company's Audit Committee is responsible for reviewing financial reporting systems and ensuring the independence of external auditors[73] Workforce and Gender Ratio - The gender ratio of the company's workforce as of 31 December 2023 was 73% male and 27% female[79] Cash Flow and Financial Position - Cash and cash equivalents surged by 178.0% to US$5,585.2 million, primarily due to increased cash inflows[137] - Net cash flows generated from operating activities decreased by 14.5% to US$641.7 million in 2023, primarily due to reduced customer receipts, partially offset by lower payments for materials, maintenance, and payrolls[141] - Net cash flows used in investing activities amounted to US$833.3 million, mainly driven by US$906.6 million in capital investments, offset by US$61.6 million in interest income and US$11.7 million in government grants[142] - Net cash flows generated from financing activities surged by 462.6% to US$3,781.7 million, including US$2,937.0 million from STAR Market share issuance and US$787.9 million from non-controlling interests[143] - Cash and cash equivalents increased by 178.0% to US$5,585.2 million at the end of 2023, up from US$2,008.8 million at the end of 2022[144] Foreign Exchange and Financial Risks - A 5% fluctuation in the USD/RMB exchange rate would impact the company's pre-tax profit by approximately US$47.6 million[149] - As of 31 December 2023, interest-bearing bank borrowings denominated in USD amounted to US$1,653.0 million, exposing the company to foreign currency risk[148] Dividends and Shareholder Distribution - The company proposed a final dividend of HK$0.165 per share, totaling approximately US$36.2 million for 2023, subject to shareholder approval[157][166] - As of 31 December 2023, the company had US$314.1 million in distributable reserves available for shareholder distribution[161] Property and Assets - The company's investment property in Shanghai covers 91,563.11 square meters, held under a land use right expiring in 2051[165] Share Options and Equity - The company's share option scheme expired on 1 September 2022, with 21,144,481 shares remaining available for issuance, representing 1.23% of total issued shares[168] - The company granted 30,250,000 share options on 4 September 2015 with an exercise price of HK$6.912 per share, representing a 0% premium over the higher of the closing price on the grant date, the average closing price for the five trading days preceding the grant, and the closing price the day before the grant[171] - On 24 December 2018, the company granted 34,500,000 share options with an exercise price of HK$18.400 per share, representing 0.03% of the issued shares as of 31 December 2023[172] - The company granted 500,000 share options on 29 March 2019 with an exercise price of HK$18.400 per share, representing the higher of the closing price on the grant date, the average closing price for the five business days preceding the grant, and the closing price the day before the grant[174] - On 23 December 2019, the company granted 2,482,000 share options with an exercise price of HK$17.952 per share, representing 0.14% of the issued shares as of 31 December 2023[175] - The company listed 407,750,000 ordinary shares on the STAR Market of the Shanghai Stock Exchange on 7 August 2023 at an issue price of RMB52.00 per share, raising a total of RMB21,203,000,000[180][183] - The net proceeds from the STAR Market listing amounted to RMB20,920,677,000 after deducting issuance expenses, with the funds allocated to projects such as Hua Hong Manufacturing (Wuxi) Project and 8-Inch Factory Optimisation and Upgrading Project[183][184] - The company's share options outstanding as of 31 December 2023 totaled 21,421,849, with exercise prices ranging from HK$6.912 to HK$18.400 per share[177] - The company's share options granted in 2015 and 2018 have vesting periods ranging from 4 September 2015 to 23 December 2025, with exercise periods from 4 September 2017 to 23 December 2025[177] - The company's share options granted in 2019 have a vesting period from 23 December 2019 to 22 December 2026, with an exercise period from 23 December 2021 to 22 December 2026[177] - The company's share options granted in 2019 include 500,000 options granted to directors, subject to their acceptance[176] Joint Ventures and Connected Transactions - The joint venture will manufacture and sell integrated circuits and 12-inch (300mm) wafers using 65/55 nm to 40 nm processes[185] - The Company sold semiconductor products to Huahong Group, its subsidiaries, and associates for US$20,578,000 in 2023, with an annual cap of US$21,100,000[190] - The Company purchased wafers and chemicals from Huahong Group, its subsidiaries, and associates for US$19,234,000 in 2023, with an annual cap of US$31,500,000[190] - The Company sold semiconductor products to SAIL, its subsidiaries, and associates for US$357,000 in 2023, with an annual cap of US$2,000,000[190] - HHGrace provided corporate services to Hua Hong Wuxi for RMB145,000,000 (approx. US$20,644,000) in 2023, with an annual cap of RMB145,000,000[191] - Huali Micro leased factory premises from the Company for RMB97,189,000 (approx. US$13,786,000) in 2023, with an annual cap of RMB99,000,000 (approx. US$14,095,000)[191] - The Company leased dormitory premises from Huahong Real Estate for RMB11,504,000 (approx. US$1,631,000) in 2023, with an annual cap of RMB12,700,000 (approx. US$1,808,000)[193] - The Company engaged Huajin Property Management for property management services for RMB3,993,000 (approx. US$567,000) in 2023, with an annual cap of RMB5,700,000 (approx. US$812,000)[193] - HHGrace leased additional dormitory premises from Huahong Real Estate for RMB6,285,000 (approx. US$891,000) in 2023, with an annual cap of RMB7,300,000 (approx. US$1,039,000)[193] - HHGrace entered into a Technology Development Agreement with Huali Micro for a non-exclusive license to use technological know-how for 12-inch wafers with 40 nm processes, with a consideration between RMB110 million and RMB180 million[198] - Huali Micro, 53.85% owned by Huahong Group, is a connected person of the company, making the Technology Development Agreement a connected transaction under Chapter 14A of the Listing Rules[199] - China IC Fund II agreed to subscribe for RMB Shares up to an aggregate subscription amount of RMB3,000,000,000 as part of the RMB Share Issue[200]