香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依賴該等內容而引 致的任何損失承擔任何責任。 香港聯交所股票代號：1347 新聞稿 華虹半導體二零二三年第一季度業績公佈 所有貨幣以美元列帳，除非特別指明。 本合併財務報告系依香港財務報告準則編製。 中國香港 — 2023年5月11日 — 全球領先的特色工藝純晶圓代工廠華虹半導體有限公司（香港聯交所 股票代號：1347) (「本公司」)於今日公佈截至二零二三年三月三十一日止三個月的綜合經營業績。 二零二三年第一季度主要財務指標（未經審核）  銷售收入達6.308億美元，同比上升6.1%，環比持平。  毛利率32.1%，同比上升5.2個百分點，環比下降6.1個百分點。  期内溢利1.409億美元，同比上升38.0%，環比下降24.2%。 ...

Financial Performance - In 2022, Hua Hong Semiconductor achieved a record revenue of US$2,475.5 million, representing a 51.8% increase compared to the previous year[31]. - Profit for the year was US$406.6 million, reflecting a 76.0% increase year-on-year[32]. - The overall gross profit margin reached 34.1%, an increase of 6.4 percentage points from the previous year[32]. - Revenue reached an all-time high of US$2,475.5 million, representing a 51.8% increase from the previous year, driven by increased wafer shipments and improved average selling prices[141]. - Gross profit increased by 86.8% to US$843.7 million, primarily due to improved average selling prices and product mix, despite increased depreciation costs[143]. - Profit for the year rose to US$406.6 million, up from US$231.0 million in 2021, with a net profit margin of 16.4% compared to 14.2% in 2021[150]. - The company has maintained profitability for 48 consecutive quarters, driven by product mix optimization and capacity expansion[124]. Market Growth and Expansion - The company experienced over 100% year-on-year revenue growth in automotive electronics[32]. - Significant revenue growth was noted from regional markets including the United States, Europe, Japan, and China[32]. - North America was the fastest-growing market, with a revenue increase of 86.9% year-on-year, reaching US$297.7 million[127]. - The Industrial & Automotive Electronics market saw a revenue growth of 74.1%, reaching US$550.3 million[131]. - Revenue from semiconductor wafers accounted for 96.0% of total revenue, amounting to US$2,376.7 million, which is a 52.2% increase year-on-year[125]. Production Capacity and Technology - As of the end of 2022, Hua Hong Semiconductor's annual production capacity increased from 2.4852 million to 3.8627 million (CAGR of 24.67%) over the last three years[33]. - The existing 12-inch fab operated at a monthly production capacity of 65,000 wafers in 2022, with plans to increase this to 95,000 wafers in 2023[33]. - The company is focused on expanding its 12-inch production platform and enhancing its "8-inch + 12-inch" strategy to meet market demands[124]. - The company plans to expand its production capacity in Wuxi, with phase-I and phase-II construction to meet long-term semiconductor market demand[139]. - Hua Hong Semiconductor applied for 654 patents in 2022, with over 4,100 authorized invention patents granted[137]. Corporate Governance - The company has implemented corporate governance procedures that comply with the principles in the Corporate Governance Code[59]. - The Board of Directors consists of eight members, including two Executive Directors and three Independent Non-Executive Directors, ensuring a diverse governance structure[64]. - The company has established mechanisms to ensure independent views and input are available to the Board, including annual independence assessments for Independent Non-Executive Directors[68]. - The company recognizes the importance of sound corporate governance practices and continually updates its governance practices in response to regulatory changes[60]. - The company has a clear separation of roles between the Chairman and the President, enhancing the effectiveness of its governance structure[75]. Innovation and Strategy - The company continued to innovate in specialized process technologies, enhancing its core competitiveness[31]. - Hua Hong Semiconductor's dual-pronged strategy of "Specialty IC + Power Discrete" facilitated rapid penetration into emerging markets[31]. - Hua Hong Semiconductor aims to continuously innovate and optimize product structure in alignment with market trends for high-quality development[35]. - The management team is focused on identifying new opportunities and prospects in a changing environment[35]. - The company is committed to creating new products for customers worldwide through continuous innovation[35]. Financial Management - Administrative expenses increased by 34.1% to US$266.7 million due to decreased government grants and increased labor expenses[146]. - Finance costs surged by 204.9% to US$40.3 million, primarily due to increased bank borrowings[148]. - Total non-current assets increased by 4.4% to US$3,979.7 million, driven by an 8.1% rise in property, plant, and equipment[151]. - Cash and cash equivalents increased by 24.8% to US$2,008.8 million, attributed to improved operating cash flows[162]. - The company does not recommend payment of a dividend for the year ended December 31, 2022, to retain sufficient cash for investment activities[175]. Workforce and Diversity - The gender ratio of the Group's workforce as of December 31, 2022, was approximately 73% male to 27% female[97]. - The Company has one female Director, achieving compliance with gender diversity requirements[95]. - The Nomination Committee discussed measurable objectives for achieving diversity on the Board and recommended them for adoption[94]. Connected Transactions - The company reported semiconductor product sales to Huahong Group amounting to US$17,447,000 in 2022, with an annual cap of US$30,036,000[196]. - The company's purchases of wafers and chemicals from Huahong Group totaled US$19,247,000 in 2022, against an annual cap of US$25,920,000[196]. - The provision of foundry services and general supporting services by Huahong Group amounted to US$89,000 in 2022, with an annual cap of US$5,179,000[196].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 （於香港註冊成立之有限公司） （股份代號：1347） 截至二零二二年十二月三十一日止年度 全年業績公告 財務摘要 華虹半導體有限公司（「本公司」或「華虹半導體」，連同其子公司，統稱「本集 團」）董事會（「董事會」）欣然宣佈本公司截至二零二二年十二月三十一日止年度 的綜合業績。 與二零二一年比較數據之摘要如下： • 銷售收入創歷史新高，達24.755億美元，較上年度增長51.8%。 • 毛利率為34.1%，較二零二一年的27.7%，上升6.4個百分點，主要由於平均 銷售價格上漲以及產品組合優化，部分被折舊費用增加所抵銷。 • 淨利潤為4.066億美元，較二零二一年上升76.0%。 • 母公司擁有人應佔年內溢利為4.499億美元，較二零二一年上升72.1%。 ...

Financial Performance - Sales revenue reached a record high of $629.9 million, an increase of 39.5% year-over-year and 1.5% quarter-over-quarter[2]. - Gross margin rose to 37.2%, up 10.1 percentage points year-over-year and 3.6 percentage points quarter-over-quarter[2]. - Net profit for the period was $65.4 million, an increase of 83.7% year-over-year and 22.9% quarter-over-quarter[2]. - Profit attributable to equity holders was $103.9 million, up 104.5% year-over-year and 23.8% quarter-over-quarter[2]. - Basic earnings per share increased to $0.08, a rise of 105.1% year-over-year and 25.0% quarter-over-quarter[2]. - Annualized return on equity was 14.4%, up 6.8 percentage points year-over-year and 2.9 percentage points quarter-over-quarter[2]. - Operating expenses were $73.6 million, a year-over-year increase of 1.8% and a quarter-over-quarter increase of 4.2%[7]. - Pre-tax profit was $102.6 million, representing a year-over-year increase of 78.7% and a quarter-over-quarter increase of 25.9%[7]. Revenue Expectations - The company expects sales revenue for the fourth quarter to be approximately $630 million[3]. - Projected gross margin for the fourth quarter is expected to be between 35% and 37%[3]. Market and Capacity Expansion - The company aims to expand its capacity for 12-inch wafers and focus on emerging markets such as industrial applications, automotive electronics, and new energy[4]. - The company operates three 8-inch wafer fabs with a monthly capacity of approximately 180,000 wafers and one 12-inch fab with a monthly capacity of 65,000 wafers[6]. - The company is advancing its 12-inch capacity expansion project to enhance core competitiveness and provide diverse product solutions[40]. Sales Breakdown - Sales revenue for Huahong 8-inch reached $384.2 million, a year-over-year increase of 22.1% and a quarter-over-quarter increase of 8.5%[9]. - Sales revenue for Huahong Wuxi was $245.7 million, a year-over-year increase of 79.7% but a quarter-over-quarter decrease of 7.9%[10]. - Revenue from China was $452.306 million, making up 71.8% of total sales, with a year-over-year growth of 36.5% driven by increased demand for MCU, power management, smart card chips, NOR flash, IGBT, and super junction products[13]. - Revenue from the United States reached $80.450 million, a 67.9% increase year-over-year, primarily due to demand for power management and MCU products[14]. - The consumer electronics segment was the largest end market, contributing $408.328 million, or 64.9% of total revenue, with a year-over-year increase of 45.5%[19]. - The industrial and automotive segment generated $148.889 million in revenue, accounting for 23.6% of total sales, with a year-over-year growth of 65.1%[19]. Product Sales Performance - Embedded non-volatile memory sales were $213.813 million, up 69.0% year-over-year, mainly due to increased demand for MCU and smart card chips[15]. - Standalone non-volatile memory sales were $43.473 million, showing a significant year-over-year increase of 118.6%, driven by NOR flash product demand[16]. - Sales from the 55nm and 65nm technology nodes reached $78.566 million, a 95.9% increase year-over-year, attributed to demand for NOR flash, logic, and MCU products[17]. - Communication product sales revenue was $54.1 million, a year-over-year decline of 18.5%, primarily due to decreased demand for CIS products, partially offset by increased demand for MCU and logic products[20]. - Computer product sales revenue was $18.6 million, a year-over-year increase of 30.9%, mainly due to higher demand for general MCU products[20]. Production and Capacity Utilization - Total wafer production capacity reached 324,000 8-inch equivalent wafers, with an overall capacity utilization rate of 110.8%[21]. - Wafer shipments totaled 1,003,000 wafers, a year-over-year increase of 10.6% but a quarter-over-quarter decrease of 3.2%[22]. Cash Flow and Financial Position - Net cash flow from operating activities was $158.6 million, a year-over-year increase of 4.5% but a quarter-over-quarter decrease of 25.3%[25]. - Capital expenditures for the quarter were $428.7 million, with $390.3 million allocated to Huahong Wuxi[28]. - Total assets increased to $6.66 billion, while total liabilities rose to $2.80 billion, resulting in a debt-to-asset ratio of 42.1%[27]. - Inventory increased from $473.9 million to $509.6 million, primarily due to an increase in finished goods and raw materials[31]. - The company’s net working capital at the end of the quarter was $1.52 billion, with a current ratio of 2.1[34]. Investment and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance production capabilities[37]. - The company reported a net cash outflow from investing activities of $399,962 thousand for the three months ended September 30, 2022, compared to $263,768 thousand for the same period in 2021, indicating a significant increase in investment expenditures[72].

Financial Performance - Revenue reached an all-time high of US$1,215.5 million, an increase of 86.7% compared to 1H 2021, primarily benefiting from increased wafer shipments and improved average selling price[19] - Gross profit was US$368.9 million, an increase of 133.7% compared to 1H 2021, driven by improved average selling price and product mix[21] - Profit for the period was US$155.4 million, an increase of 167.4% compared to 1H 2021, with a net profit margin of 12.8%, up 3.9 percentage points[24] - Sales reached US$1.215 billion in the first half of 2022, representing a year-on-year increase of 86.7%[39] - Net cash flows generated from operating activities increased from US$160.0 million to US$407.8 million, a growth of 155.0%[30] - The company reported a total comprehensive loss for the period of $54,700,000, compared to a comprehensive income of $91,702,000 in the same period of 2021[86] - Profit before tax reached $176,757,000, up from $71,438,000, reflecting a growth of 147% year-over-year[85] - Profit attributable to ordinary equity holders of the parent for the six months ended June 30, 2022, was $186,877,000, compared to $77,141,000 for the same period in 2021, representing an increase of 142.5%[115] Expenses and Liabilities - Selling and distribution expenses increased by 52.5% to US$7.0 million, primarily due to increased labor expenses[22] - Administrative expenses rose by 37.8% to US$138.9 million, mainly due to increased labor expenses and decreased government grants for research and development[23] - Financial expenses surged by 196.4% to $15 million, mainly due to increased bank borrowings[70] - Trade payables increased by 56.0% to US$303.3 million, reflecting higher operational activity[25] - Interest-bearing bank borrowings increased by 18.6% to US$231.3 million, indicating higher financing needs[25] - Total liabilities as of June 30, 2022, were $1,377,763,000, compared to $1,437,151,000 at the end of 2021, indicating a decrease[88] Assets and Cash Flow - Current assets increased by 9.7% to US$2,622.3 million, with cash and cash equivalents rising by 6.1% to US$1,707.7 million[25] - Non-current assets decreased by 5.1% to US$3,618.4 million, primarily due to depreciation[25] - Cash and cash equivalents at the end of the period were US$1.7077 billion, a 75.2% increase from US$974.5 million at the end of 2021[29] - Trade and notes receivables rose from US$181.0 million to US$242.0 million, primarily due to increased revenue[26] - Net cash flows used in investing activities were US$227.1 million, primarily for capital investments of US$236.4 million[31] Revenue Sources and Growth - The 12-inch platform accounted for over 40% of total revenue in the first half of 2022, becoming a key growth engine for the company[42] - Revenue from the power discrete device technology platform increased over 60% year-on-year, driven by automotive and industrial applications[41] - Sales of the eNVM platform grew by over 60% year-on-year, driven by strong demand in high-end consumer, industrial control, and automotive electronics applications[81] - The power discrete device process platform saw a year-on-year growth of over 60%, with IGBT sales continuing to grow at a triple-digit percentage rate[81] Taxation and Government Grants - Current income tax expense in the PRC was $32,740,000 for the six months ended June 30, 2022, compared to $18,012,000 in 2021[111] - Total income tax expense for the period was $21,407,000, an increase from $13,335,000 in the previous year[111] - The Group's subsidiary, HHGrace, is entitled to a preferential tax rate of 15% from 2021 to 2023 due to its qualification as a "High and New Technology Enterprise"[110] - The company received government grants for property, plant, and equipment amounting to $4,805 thousand during the period, while no such grants were received in the previous year[94] Shareholder Information and Equity - The total equity attributable to owners of the parent at June 30, 2022, was $3,631,866,000, compared to $3,354,121,000 at June 30, 2021[92] - The weighted average number of ordinary shares in issue during the period was 1,301,607,081, slightly up from 1,299,811,409 in the previous year[113] - The total number of issued shares of the Company as of June 30, 2022, was 1,301,812,904 shares[164] - Substantial shareholders include Shanghai Hua Hong International, holding 347,605,650 shares, representing approximately 26.70% of the issued share capital[163] Corporate Governance and Compliance - The Company is committed to high standards of corporate governance and has complied with the Corporate Governance Code during the six months ended June 30, 2022[181] - The Audit Committee has reviewed and approved the unaudited results of the Group for the six months ended June 30, 2022, discussing accounting principles and internal controls with management[183] - The Company has received confirmations from all Directors regarding compliance with the required standards for securities transactions throughout the six months ended June 30, 2022[182] Related Party Transactions - Sales of goods to related parties for the six months ended June 30, 2022, totaled $8,963,000, compared to $10,286,000 in the same period of 2021, representing a decrease of approximately 12.8%[127] - Purchases of goods from related parties amounted to $9,340,000 for the six months ended June 30, 2022, down from $10,685,000 in 2021, indicating a decline of about 12.6%[127] - The company reported a significant increase in sales to Huahong Zealcore, which rose to $4,202,000 in 2022 from $3,168,000 in 2021, a growth of approximately 32.6%[127] Employee Information - The Company had approximately 6,300 employees as of 30 June 2022, an increase from approximately 6,000 employees as of 30 June 2021[175] - The total compensation paid to key management personnel for the six months ended June 30, 2022, was US$1,868,000, an increase of 22% from US$1,530,000 in 2021[132]

Financial Performance - Sales revenue reached a record high of $594.6 million, an increase of 95.1% year-over-year and 12.6% quarter-over-quarter[2] - Net profit for the period was $102.1 million, a year-over-year increase of 387.9% but a quarter-over-quarter decrease of 25.6%[2] - Gross margin was 26.9%, up 3.2 percentage points year-over-year but down 5.6 percentage points quarter-over-quarter[2] - Operating expenses increased to $75.264 million, a year-over-year rise of 26.5% and a significant quarter-over-quarter increase of 136.2%[13] - Pre-tax profit was $95.238 million, reflecting a year-over-year increase of 381.6% but a quarter-over-quarter decrease of 43.1%[13] - Basic earnings per share were $0.079, representing a year-over-year increase of 216.0% but a quarter-over-quarter decrease of 23.3%[13] - The company reported a net profit of $102.103 million for the quarter, compared to $20.925 million in the same period last year, marking a significant increase[38] Future Projections - The company expects sales revenue for the second quarter to be approximately $615 million[3] - The projected gross margin for the second quarter is expected to be between 28% and 29%[3] Sales Breakdown - The sales proportion of 12-inch wafers reached 44.1%, compared to 17.9% in the same period last year and 38.9% in the previous quarter[8] - Sales revenue for Huahong 8-inch reached $332.603 million, a year-over-year increase of 32.9% and a quarter-over-quarter increase of 3.1%[15] - Huahong Wuxi's sales revenue was $262.045 million, a year-over-year increase of 379.5% and a quarter-over-quarter increase of 27.4%[16] - 96.6% of sales revenue came from semiconductor wafer sales, with $574.651 million generated from this segment[17] - Sales revenue from 8-inch wafers was $332.603 million (55.9% of total), while 12-inch wafers contributed $262.045 million (44.1% of total)[18] - Sales revenue from China amounted to $451.638 million, representing 76.0% of total sales and a year-over-year growth of 105.5%[19] - Sales revenue from the United States was $58.064 million, showing a year-over-year increase of 105.1%[20] Product Segments - Embedded non-volatile memory sales reached $142.258 million, a 50.5% increase year-over-year[21] - Standalone non-volatile memory sales were $58.546 million, with a significant year-over-year growth of 406.1%[22] - Sales from 55nm and 65nm process technology nodes totaled $103.031 million, reflecting a year-over-year increase of 712.2%[23] - Sales from 90nm and 95nm process technology nodes reached $124.360 million, a year-over-year increase of 176.4%[24] - The consumer electronics segment generated $395.076 million in sales, accounting for 66.3% of total revenue, with a year-over-year growth of 109.0%[25] - Industrial and automotive products sales were $106.154 million, up 76.9% year-over-year, driven by increased demand for IGBT, MCU, and smart card chips[26] - Communication products sales reached $72.847 million, reflecting a 64.6% year-over-year increase, primarily due to demand for CIS, logic, and smart card chips[26] Capacity and Operations - The company achieved a total wafer capacity of 324,000 8-inch equivalent wafers, with an overall capacity utilization rate of 106.0%[27] - Wafer shipments totaled 1,057,000 units, representing a 58.0% year-over-year increase and a 3.4% quarter-over-quarter increase[28] - Total current assets increased to $2,574.550 million from $2,391.192 million year-over-year, reflecting a growth of 7.6%[35] - Cash and cash equivalents at the end of the quarter were $1,694.934 million, up from $961.506 million a year ago, showing a substantial increase of 76.3%[40] - Net operating working capital at the end of the quarter was $1,466.693 million, with a current ratio of 2.3x, indicating strong liquidity[36] - Trade receivables increased to $243.443 million from $181.042 million, primarily due to higher sales revenue[36] - Inventory turnover days improved to 92 days from 105 days, indicating better inventory management[36] Investment and R&D - The company plans to enhance R&D investment in its "specialty IC + Power Discrete" technology platform to meet growing market demand[8] - The company is advancing the capacity expansion of its 12-inch production line in Wuxi to satisfy increasing market needs[8] - The company remains committed to innovation and development in response to market challenges and opportunities[8] - The company is focusing on innovation and market expansion in the automotive electronics, industrial control, green energy, and IoT sectors[49] Financial Position - Total assets as of March 31, 2022, were $6.316 billion, with total liabilities of $2.532 billion, resulting in a debt-to-asset ratio of 40.1%[33] - The company’s total liabilities increased to $1,107.857 million from $1,080.401 million, reflecting a rise in trade payables and other liabilities[39] - Capital expenditures for Q1 2022 amounted to $124.080 million, with $107.500 million allocated to Huahong Wuxi[34] - The company’s investment in property, plant, and equipment for the quarter was $124.080 million, down from $167.357 million in the previous year[40] Cash Flow and Financing - Net cash flow from operating activities was $195.589 million, a significant increase of 221.5% year-over-year, attributed to sales revenue growth[31] - Cash inflow from bank loans amounted to 47,413,000, while the net cash flow from financing activities was 2,439,000[82] - The company raised 1,252,000 from issuing shares, contributing to a total cash and cash equivalents increase of 81,042,000[82] - The repayment of bank loans was recorded at (43,208,000), indicating a significant reduction in liabilities[82] - The net effect of foreign exchange rate changes on cash and cash equivalents was 3,752,000, reflecting currency fluctuations[82] - The beginning cash and cash equivalents stood at 1,610,140,000, providing a strong liquidity position[82]

Financial Performance - Hua Hong Semiconductor achieved record annual revenue of US$1,630.8 million in 2021, representing a 69.6% increase compared to 2020[20] - The gross margin for the year was 27.7%, an increase of 3.3 percentage points from the previous year, despite rising raw material costs[20] - Profit attributable to owners of the parent reached US$261.5 million, marking a 162.9% increase year-on-year[20] - The return on equity improved to 9.7%, reflecting a year-on-year increase of 5.5 percentage points[20] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year 2021, representing a year-over-year growth of 25%[59] - Revenue reached an all-time high of US$1,630.8 million, representing a 69.6% increase year-over-year, driven by increased wafer shipments and improved average selling prices[141] - Gross profit increased to US$451.6 million, up 92.3% from 2020, primarily due to improved average selling prices, capacity utilization, and product mix[143] - Profit for the year increased significantly to US$231.0 million from US$33.3 million in 2020, resulting in a net profit margin of 14.2% compared to 3.5% in 2020[151] Production and Capacity - Hua Hong Wuxi's 12-inch production line maintained a utilization rate of over 100%, with wafer-starts exceeding 65,000 per month since October 2021[21] - The company is migrating its technology platforms from 8-inch to 12-inch, enhancing capabilities in Embedded Non-Volatile Memory and Power Device production[21] - The Company aims to expand its 12-inch production line capacity to over 90,000 wafers per month by the end of 2022[24] - The company accelerated capacity expansion for 300 mm production in 2021 to meet strong market demand[117] - The 12-inch production capacity at Hua Hong Wuxi is set to expand, supporting the company's strategy to meet increasing market demand[137] Market and Revenue Segmentation - Revenue from semiconductor wafers accounted for 95.8% of total revenue, amounting to US$1,561.8 million, which represents a 68.5% increase year-on-year[119] - Revenue from systems and fabless companies was US$1,496.8 million, making up 91.8% of total revenue, with an 83.8% year-on-year increase[120] - The largest market for the company was China, generating US$1,205.1 million in revenue, a 93.0% increase year-on-year[121] - eNVM technology revenue grew to US$459.1 million, representing a 37.2% increase year-on-year[122] - Revenue from Logic & RF technology platforms surged by 117.7%, primarily due to the mass production of 12-inch CMOS image sensor products[122] - The company’s revenue from the Consumer Electronics market was US$1,039.3 million, accounting for 63.7% of total revenue, with a year-over-year growth of 74.9%[125] Research and Development - Investment in R&D increased by 30% to $150 million, focusing on advancements in semiconductor technology and new product development[62] - The Company has applied for a total of 6,593 patents in China, obtaining 3,575 domestic and 147 international patents as of the end of 2021[22] - The Company launched the NORD-Flash memory cell, which significantly reduces cell area and won the "2021 Excellent (Technology) Solution Award for Highly Reliable Microcontrollers (MCU)"[23] - The company applied for 618 patents in 2021, bringing its total to over 3,800 granted patents, reflecting its commitment to innovation and technology development[134] Strategic Initiatives - The company is accelerating capacity expansion to address the global chip shortage and sustain growth into 2022[19] - The Company plans to enhance its "8 inch + 12 inch" strategy by increasing R&D investment and developing narrower technology nodes[24] - The Company is focused on creating leading "Advanced Power Discrete" capabilities through innovative device structures and establishing automotive grade processes[24] - A strategic acquisition of a smaller semiconductor firm was completed, valued at $200 million, aimed at enhancing technological capabilities and product offerings[64] - The company plans to expand its market presence in Europe and North America, targeting a 10% market share increase in these regions by 2023[63] Operational Efficiency - Wafer shipments (8-inch wafer equivalent) increased by 51.9% year-over-year, totaling 3,328 thousand wafers in 2021[128] - Capacity utilization for 8-inch wafer equivalent reached 107.5%, up from 92.7% in 2020, indicating strong operational efficiency[127] - Selling and distribution expenses rose by 30.7% to US$10.7 million, mainly due to increased labor expenses[145] - Administrative expenses decreased by 23.8% to US$198.9 million, largely due to reduced research and development expenses[146] Future Outlook - The Company anticipates that 2022 will be a year of accelerated growth and high-quality development[24] - The company provided a positive outlook for 2022, projecting a revenue growth of 20% to $1.44 billion, driven by new product launches and market expansion efforts[61] - The company anticipates a robust performance in 2022, driven by strong global demand for semiconductor components despite expected supply constraints[136] Corporate Governance - The Company held five Board meetings during the year ended 31 December 2021, with all members present at the Audit Committee meetings[90] - The remuneration paid to auditors for audit services was US$0.68 million, and for non-audit services, it was US$0.08 million[87] - The Nomination Committee achieved measurable objectives for board diversity to a large extent, focusing on cultural and educational backgrounds, professional experience, and skills[94] - All Independent Non-Executive Directors confirmed their independence in accordance with the Listing Rules[71] - The Company maintains a website with updates on business developments, corporate governance practices, and shareholder rights[97] - The Board is satisfied that each Director spends sufficient time performing their responsibilities[76] - The Company encourages Shareholders to attend general meetings to enhance accountability and communication regarding strategy and goals[101]

Revenue and Profitability - Revenue reached a record high of US$651.0 million, an increase of 52.0% compared to 1H 2020, primarily due to increased wafer shipments and improved average selling price[13]. - Gross profit was US$157.8 million, an increase of 55.9% compared to 1H 2020, driven by improved average selling price and capacity utilization[15]. - Profit for the period was US$58.1 million, an increase of 1,350.4% compared to US$4.0 million in 1H 2020, with a net profit margin of 8.9%[19]. - Revenue increased by 52% year-on-year in the first half of 2021, driven by long-term semiconductor demand and increased production capacity[28]. - Sales revenue reached $650.9 million, a 52.0% increase compared to $428.2 million in the same period last year[40]. - Gross profit amounted to $157.8 million, reflecting a 55.9% growth from $101.2 million year-on-year[41]. - Net profit surged to $58.1 million, up 1,350.4% from $4.0 million in the previous year[44]. - The company reported a net profit margin of 8.9%, compared to 0.9% in the same period last year[44]. Expenses and Costs - Administrative expenses decreased by 22.3% to US$100.8 million compared to 1H 2020, primarily due to decreased development costs and increased government grants for research and development[18]. - Selling and distribution expenses increased by 9.0% to US$4.6 million compared to 1H 2020, mainly due to increased labor expenses[17]. - Financial expenses increased significantly to $5.1 million, up 717.8% from $0.6 million, attributed to higher bank borrowings[44]. - Other income and gains decreased by 16.4% to US$21.2 million compared to 1H 2020, primarily due to decreased fair value gains on financial assets[16]. Assets and Liabilities - Current assets increased by 14.8% to US$1,614.7 million as of 30 June 2021, driven by a 57.1% increase in inventories[20]. - Total non-current assets increased by 6.8% to US$3,376.3 million as of 30 June 2021, reflecting growth in property, plant, and equipment[20]. - Other current liabilities increased from US$469.4 million to US$589.9 million, primarily due to increased advances from customers[22]. - Current liabilities grew by 34.8% to $896.3 million, reflecting increased financial obligations[45]. - Total non-current liabilities rose to US$643,108,000, up from US$549,417,000, indicating an increase of about 16.9%[66]. Cash Flow - Net cash flows generated from operating activities increased by 68.0% to US$159.96 million, primarily due to improved collection of trade receivables[24][25]. - Net cash flows used in investing activities amounted to US$302.2 million, mainly for capital investments[26]. - Net cash flow from financing activities was $187.51 million, including bank borrowings of $190.8 million[53]. - Cash and cash equivalents at the end of the period increased by 39.4% to US$974.52 million[24]. Inventory and Trade Receivables - Inventories rose from US$226.5 million to US$355.9 million, reflecting increased customer demand[21]. - Trade receivables decreased from $121 million to $108.4 million, benefiting from improved customer credit management[47]. - The impairment of trade receivables was US$109,790,000 as of June 30, 2021, down from US$122,571,000 as of December 31, 2020, showing a reduction of 10.4%[115]. Share Capital and Equity - The company reported a profit of US$77,141,000 for the period, contributing to a total comprehensive income of US$102,498,000[69]. - Equity attributable to owners of the parent reached US$1,984,207,000, a slight increase from US$1,979,033,000, showing a growth of approximately 0.3%[66]. - The Group's share capital increased to US$1,984,207,000 as of June 30, 2021, up from US$1,971,748,000 as of June 30, 2020[120]. - The total equity increased to US$3,451,574,000 as of June 30, 2021, compared to US$3,354,121,000 at the end of 2020, marking an increase of approximately 2.9%[66]. Market Performance - The shipment volume of IGBT increased by 121% year-on-year, contributing to a 40% revenue increase in discrete devices[30]. - Revenue from China (including Hong Kong) reached $474,953,000, up 81% from $262,093,000 in 2020[86]. - The Group's revenue from Asia (excluding China and Japan) increased to $74,409,000 from $57,866,000 in 2020, marking a 29% growth[86]. - The Group's revenue from Europe was $31,118,000, down from $35,298,000 in 2020, indicating a decline in this market[86]. Corporate Governance and Compliance - The company continues to adhere to HKAS 34 in preparing its interim financial information, ensuring compliance with relevant accounting standards[59]. - The Group's financial information is unaudited as of June 30, 2021, indicating a need for caution in interpreting the results[121]. - The Group did not declare any interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[110]. Employee and Management - The company had approximately 6,000 employees as of June 30, 2021, up from approximately 5,500 a year earlier[199]. - Total compensation paid to key management personnel for the six months ended June 30, 2021, was $1,530,000, slightly down from $1,588,000 in 2020, a decrease of 3.7%[137]. Related Party Transactions - The Group's related party transactions include dealings with Huahong Group and its subsidiaries, which are significant shareholders[128]. - Sales of goods to related parties for the six months ended June 30, 2021, amounted to $5,565,000, an increase from $5,219,000 in 2020, representing a growth of 6.6%[133]. - Purchases of goods from related parties totaled $10,685,000 for the same period, significantly up from $5,443,000 in 2020, indicating a year-over-year increase of 96.5%[133]. Financial Assets and Investments - The fair value of equity investments designated at fair value through other comprehensive income as of June 30, 2021, is $232.575 million, with $2.533 million categorized under Level 2 and $230.042 million under Level 3[150]. - The total fair value of financial assets measured at fair value as of December 31, 2020, was $230.265 million[151]. - The company confirms compliance with accounting policies for investments and financial assets as per HKFRS 9[197].

Financial Performance - In 2020, Hua Hong Semiconductor achieved a record revenue of US$961.3 million, representing a year-on-year increase of 3.1%[23] - The gross margin for the year was 24.4%, with a net profit attributable to the parent company of US$99.4 million and basic earnings per share (EPS) of US$0.077[23] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[30] - The company reported a net profit margin of 12% for 2020, up from 10% in the previous year, indicating improved operational efficiency[51] - Profit for the year was US$33.3 million, a significant decline of 78.5% compared to US$155.0 million in 2019, resulting in a net profit margin of 3.5%[149] Operational Efficiency - Net operating cash flow increased by 65.2% year-on-year, reaching US$269.1 million[23] - The gross margin improved to 35%, up from 30% in the previous year, due to operational efficiencies[30] - The company has been profitable for 40 consecutive quarters, demonstrating consistent operational success[22] - The company has set a target to achieve a 30% reduction in production costs by 2023 through process optimization and automation[52] Production and Capacity Expansion - The 12-inch wafer production line began mass production on several new platforms, contributing to over 20,000 monthly wafer starts, setting a new industry record[24] - Hua Hong Semiconductor plans to accelerate capacity expansion for 300mm wafer production in 2021 to meet strong market demand[119] - The semiconductor production capacity increased by 20% in 2020, with the company operating at an average utilization rate of 85% across its fabs[52] - The company plans to expand its 12-inch wafer production capacity and introduce automotive products in 2021, supporting the automobile industry[138] Market Strategy and Growth - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[30] - The company plans to expand its market presence in North America and Europe, targeting a 25% increase in sales in these regions by 2022[56] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on advanced semiconductor technologies[30] - User data showed a 20% increase in active users, reaching 5 million by the end of the fiscal year[30] Research and Development - The company invested $150 million in new technology development, focusing on next-generation semiconductor manufacturing processes[30] - The company is investing $300 million in R&D for new technologies, focusing on advanced semiconductor manufacturing processes and products[49] - Hua Hong Semiconductor applied for 576 patents in 2020, bringing its total to over 3,600 granted patents[135] - The company developed key 650V-1200V IGBT manufacturing technology, winning the "14th China Semiconductor Award for Innovative Products and Technologies"[25] Corporate Governance and Compliance - The company has maintained compliance with all corporate governance codes and regulations, ensuring transparency and accountability in its operations[60] - The Audit Committee held five meetings during the year ended 31 December 2020, focusing on reviewing financial statements and the effectiveness of internal controls[90] - The Company aims to maintain a diverse Board, considering various factors such as skills, experience, and gender, to enhance its competitive advantage[92] - The Company encourages Shareholder participation in general meetings to ensure accountability and transparency regarding its strategy and goals[97] Financial Position and Assets - Cash and cash equivalents rose from US$476.3 million to US$922.8 million, reflecting a 93.7% increase driven by improved cash flow management[160] - Property, plant and equipment increased from US$1,558.3 million to US$2,510.4 million, a growth of 61.1% due to capacity expansion[153] - Total current liabilities increased by 39.9% from US$475.3 million to US$665.0 million, primarily due to higher trade payables and other current liabilities[160] - The company’s net assets increased by 8.8% from US$3,082.6 million to US$3,354.1 million, indicating overall financial growth[160] Shareholder Information - The total number of shares available for issue under the Share Option Scheme is 36,898,062 shares, representing approximately 2.8% of the total shares in issue[185] - The company will not pay dividends for the year ended 31 December 2020, maintaining cash reserves for future investments[170] - The total number of options granted on 23 December 2019 is 2,482,000, representing 0.19% of the issued shares as of 31 December 2020[199]

Financial Performance - Revenue for 1H 2020 was US$428.2 million, a decrease of 5.0% compared to 1H 2019[11] - Gross profit for 1H 2020 was US$101.2 million, down 28.9% from 1H 2019[13] - Profit for the period was US$4.0 million, a significant decrease of 95.9% compared to 1H 2019, resulting in a net profit margin of 0.9%[20] - Other income and gains were US$25.4 million, a decrease of 20.1% compared to 1H 2019[14] - Cost of sales rose to US$327.0 million, an increase of 6.0% compared to 1H 2019[12] - The gross margin for the first half of 2020 was approximately 23.6%, down from 31.6% in the first half of 2019[43] - The company reported a net profit of $4.0 million for the first half of 2020, a decline of 95.9% compared to $96.5 million in the same period of 2019[51] - Profit attributable to ordinary equity holders of the parent for the six months ended June 30, 2020, was US$38,140,000, a decrease of 58.1% compared to US$90,826,000 for the same period in 2019[107] Expenses and Costs - Administrative expenses increased by 105.7% to US$129.7 million in 1H 2020, primarily due to higher development and labor costs[16] - Selling and distribution expenses were US$4.2 million, up 5.5% from 1H 2019[15] - The cost of inventories sold was $326,972,000, an increase from $308,370,000 in 2019[95] Cash Flow and Liquidity - Cash and cash equivalents rose from US$476.3 million to US$699.0 million, reflecting a 46.8% increase primarily from operational cash flow[27] - Net cash flows generated from operating activities decreased by 4.3% from US$99.5 million to US$95.2 million due to increased payments for materials and labor[28] - Net cash flows generated from investing activities were US$132.9 million, primarily due to significant payouts from financial assets[29] - The company reported a net increase in cash and cash equivalents of 281.9% from $59,309 thousand to $226,501 thousand[57] Assets and Liabilities - Property, plant and equipment increased from US$1,558.3 million to US$1,790.9 million, a growth of 14.9% due to the construction of Hua Hong Wuxi[22] - Non-current assets increased by 13.4% from $2,116,692 thousand to $2,401,272 thousand, primarily due to the construction of Huahong Wuxi[52] - Current liabilities increased by 2.4% from $475,339 thousand to $486,955 thousand, with trade payables rising by 7.5%[52] - Deferred tax liabilities decreased from US$17.2 million to US$3.2 million, a reduction of 81.4% due to a reversal of dividend withholding tax accrued for 2019[26] Market and Sales Performance - The decrease in revenue was primarily due to lower average selling prices and decreased demand for smart card ICs and super junction products[11] - The company achieved an 11% quarter-over-quarter revenue rebound in Q2 2020 despite the ongoing impact of COVID-19[31] - Revenue from China (including Hong Kong) was $262,093,000, representing an increase of 7.4% from $243,904,000 in 2019[88] - Revenue from the United States decreased by 29% to $59,121,000 from $83,136,000 in 2019[88] - Revenue from Asia (excluding China and Japan) increased by 9.5% to $57,866,000 compared to $53,059,000 in 2019[88] - Revenue from Europe decreased slightly to $35,298,000 from $36,706,000 in 2019[88] - Revenue from Japan saw a significant decline of 59.3%, dropping to $13,826,000 from $33,985,000 in 2019[88] Strategic Developments - The 12-inch wafer fab commenced mass production of 90nm embedded flash memory technology, positioning the company for future market opportunities[32] - The company plans to continue developing its power discrete device and embedded flash memory businesses in both 8-inch and 12-inch wafer fabs[34] - Future business development will emphasize power discrete devices, embedded flash MCU, power management chips, and mobile RF ICs[61] Shareholder and Equity Information - Basic earnings per share for the period were calculated based on a weighted average of 1,291,026,256 shares[105] - The total number of issued shares of the Company as of June 30, 2020, was 1,293,234,591 shares, which is the basis for calculating ownership percentages[178] - The total outstanding options as of June 30, 2020, were 45,022,996 after accounting for cancellations and exercises[166] - The Group's gearing ratio as of June 30, 2020, was -9.92%, indicating a decrease from -2.14% as of December 31, 2019[178] Corporate Governance - The Company has maintained high standards of corporate governance, complying with the Corporate Governance Code during the reporting period[190] - The Audit Committee has reviewed and approved the unaudited results for the six months ended June 30, 2020, discussing accounting principles, internal controls, and financial reporting matters with management[196] - The interim report for the six months ended June 30, 2020, will be published on the Stock Exchange and the company's websites in due course, containing information required by Appendix 16 of the Listing Rules[197]