Core Viewpoint - The article discusses the current state of the A-share market, highlighting the structural bull market and the recent strong export data, indicating potential investment opportunities despite individual losses in the market [1][2]. Group 1: Market Performance - The Shanghai Composite Index has not yet recovered from last year's peak of 3674 points, closing at 3639 points today, indicating a slow recovery in the market [1]. - The A-share market showed mixed performance today, with the Shanghai Composite Index up by 0.16%, while the Shenzhen Component Index and the ChiNext Index fell by 0.18% and 0.68%, respectively [11]. Group 2: Export and Import Data - July's export growth rate (in USD) was 7.2%, up 1.3 percentage points from the previous month, while imports grew by 4.1%, an increase of 3 percentage points from last month [1][2]. - The article notes a significant rebound in overall export growth despite a decline in exports to the US and ASEAN, suggesting that Chinese exporters are shifting focus to Europe and emerging markets [2]. Group 3: Sector Analysis - The semiconductor and rare earth sectors saw price increases, attributed to the logic of self-sufficiency and potential retaliatory measures against tariffs [1]. - The rare earth export volume in July increased by over 50% month-on-month, with June's exports reaching 7742 tons, reflecting strong demand [1][11]. Group 4: Tariff Implications - Recent announcements from the US regarding a potential 100% tariff on chips and semiconductors have raised concerns, but many foreign investors believe the impact will be limited due to exemptions for major companies like TSMC and Samsung [4][6]. - The implementation of Section 232 tariffs on semiconductors will be based on the "value added" principle, potentially allowing large companies that invest in the US to avoid these tariffs [7].

Group 1 - Xiaomi Group-W (01810) leads the southbound trading volume on both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, with transaction amounts of 62.12 billion and 42.66 billion respectively [1][1][1] - The top three companies by trading volume on Shanghai-Hong Kong Stock Connect are Xiaomi Group-W (01810), Yingfu Fund (02800), and Alibaba-W (09988) [1][1] - On Shenzhen-Hong Kong Stock Connect, the top three companies are Xiaomi Group-W (01810), SMIC (00981), and Alibaba-W (09988) [1][1] Group 2 - The net buying amount for Xiaomi Group-W (01810) on Shanghai-Hong Kong Stock Connect is +17.67 billion, while on Shenzhen-Hong Kong Stock Connect it is -45.59 million [1][1] - Alibaba-W (09988) has a net buying amount of +3.25 billion on Shanghai-Hong Kong Stock Connect and +1.68 billion on Shenzhen-Hong Kong Stock Connect [1][1] - SMIC (00981) shows a significant net buying amount of +5.26 billion on Shenzhen-Hong Kong Stock Connect, while it has a net buying amount of -25.94 million on Shanghai-Hong Kong Stock Connect [1][1]

Key Points - Multiple listed companies in the Shanghai and Shenzhen markets released announcements on August 7, highlighting significant developments for investors [1] Group 1: Major Events - Zhongma Transmission clarified that its electric vehicle reducers are exclusively for electric vehicles and do not involve robotics, following a stock price surge of over 20% [1] - Buchang Pharmaceutical's subsidiary Luzhou Buchang signed an exclusive supply agreement with GOODFELLOW for the registration and distribution of a new drug in the Philippines, with financial details kept confidential [2] - Dao Technology entered a strategic cooperation agreement with Gongji Technology and Chip Pei Sen to collaborate on atomic-level scientific computing capabilities [3] - Furi Electronics reported that its subsidiary provides JDM/OEM services for service robots, contributing less than 1% to the company's total revenue despite a stock price increase of 46.44% [4] Group 2: Performance Reports - Shangwei New Materials reported a 12.5% increase in revenue to 784 million yuan for the first half of 2025, but net profit fell by 32.91% to 29.9 million yuan [5] - SMIC disclosed Q2 2025 revenue of $2.209 billion, up from $1.901 billion year-on-year, with a gross margin of 20.4% [6] - China Mobile announced a 5% year-on-year increase in net profit to 84.24 billion yuan for the first half of 2025, with operating revenue of 543.77 billion yuan [7] - Huahong Semiconductor reported Q2 2025 sales revenue of $566.1 million, a year-on-year increase of 18.3% [8][9] - Rongzhi Rixin achieved a 2063.42% increase in net profit to 14.24 million yuan for the first half of 2025, with revenue growth of 16.55% [10]

Group 1 - Southbound funds net bought Hong Kong stocks worth 661 million HKD today [1] - Notable net purchases include Xiaomi Group-W at 1.722 billion HKD, SMIC at 499 million HKD, Alibaba-W at 492 million HKD, and Tencent Holdings at 426 million HKD [1] - Southbound funds have net bought Tencent for 11 consecutive days, totaling 6.3707 billion HKD, and Alibaba for 4 consecutive days, totaling 2.60865 billion HKD [1] Group 2 - The net selling included the Tracker Fund of Hong Kong at 4.72 billion HKD and Pop Mart at 283 million HKD [1] - Xiaomi Group-W experienced a price drop of 4.0% with a net buy of 1.767 billion HKD [3] - The Tracker Fund of Hong Kong had a slight increase of 0.6% but saw a significant net sell of 4.72 billion HKD [3]

Financial Data and Key Metrics Changes - Sales revenue for Huahong Semiconductor reached $566 million, an increase of 18.3% year-over-year and 4.6% quarter-over-quarter, primarily driven by increased wafer shipments [4][7] - Gross margin stood at 10.9%, up 0.4 percentage points year-over-year and 1.7 percentage points quarter-over-quarter, driven by improved capacity utilization [4][8] - Net loss for the period was $32.8 million, compared to $41.7 million in Q2 2024 and $52.2 million in Q1 2025 [9] - Net profit attributable to shareholders was $8 million, a 19.2% increase year-over-year and 112.1% increase quarter-over-quarter [9] Business Line Data and Key Metrics Changes - Revenue from embedded and volatile memory was $141.2 million, a 2.9% increase year-over-year, driven by increased demand for MCU products [10] - Revenue from logic and power management IC was $161.2 million, a 59.3% increase year-over-year, mainly driven by increased demand for other power management IC products [11] - Revenue from power devices increased, with the company maintaining a large capacity in both 8-inch and 12-inch fabs [49] Market Data and Key Metrics Changes - Revenue from China was $469.7 million, contributing 83% of total revenue, an increase of 21.8% year-over-year [10] - Revenue from North America was $53 million, a 13.2% increase year-over-year, while revenue from Europe decreased by 14.2% [10] - The semiconductor market is expected to grow significantly, with projections indicating it could reach a $1 trillion industry within a few years [68] Company Strategy and Development Direction - The company is focusing on enhancing core competencies in products, processes, R&D, and supply chain management, with a strategy to diversify product portfolios [5] - Huahong Semiconductor aims to solidify its leading position in the semiconductor industry through strategic initiatives and partnerships [6] - The company plans to continue expanding capacity while improving efficiency and targeting technology areas with growth potential [42] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of demand, citing robust internal factors such as capacity utilization and cost reduction efforts [18][20] - The company anticipates a gross margin in the range of 10% to 12% for Q3 2025, with visibility for Q4 being less certain [21] - Management noted that the semiconductor industry is experiencing a shift towards more stability in capacity increases, which is expected to positively impact the market [32] Other Important Information - Net cash flow generated from operating activities was $169.6 million, a 75.1% increase year-over-year [12] - Capital expenditures were $407.7 million, with significant investments in manufacturing capacity [12] - The company is actively collaborating with European firms for their China for China strategy, while also exploring local partnerships [97] Q&A Session Summary Question: Sustainability of Demand in the Second Half - Management indicated that robust demand is expected to continue, driven by internal factors such as capacity utilization and cost reduction efforts [18][20] Question: Pricing Adjustments and ASP Outlook - Management expects small price movements in the second half, primarily focused on 12-inch and IC platforms, with adjustments reflecting in Q3 and Q4 [22][25] Question: Regional Demand Differentiation - Management acknowledged strong domestic demand while noting weaker overseas demand, emphasizing the complexity of end markets [36][39] Question: Semiconductor Cycle and Gross Margin Outlook - Management noted that the semiconductor industry has become less cyclical, with growth driven by various end markets, and expects gross margins to remain stable [66][73] Question: AI Server Market Opportunities - Management highlighted the significant growth potential in the AI server market, particularly for power management chips [90][92] Question: Local Foundry Collaborations - Management discussed ongoing collaborations with European companies and expressed openness to partnerships with other foundries, emphasizing a focus on existing strategic partners [97][99]

Financial Data and Key Metrics Changes - Sales revenue for Q2 2025 reached $566 million, an increase of 18.3% year-over-year and 4.6% quarter-over-quarter, primarily driven by increased wafer shipments [5][7] - Gross margin stood at 10.9%, up 0.4 percentage points year-over-year and 1.7 percentage points quarter-over-quarter, mainly due to improved capacity utilization [8][10] - Net loss for the period was $32.8 million, an improvement from $41.7 million in Q2 2024 and $52.2 million in Q1 2025 [10] - Basic earnings per share was $0.5, up 25% year-over-year and 150% quarter-over-quarter [10] Business Line Data and Key Metrics Changes - Revenue from embedded and volatile memory was $141.2 million, a 2.9% increase year-over-year, driven by demand for MCU products [11] - Revenue from logic and power management ICs was $161.2 million, a significant increase of 59.3% year-over-year, mainly due to demand for power management IC products [12] - Revenue from power devices increased, with the company maintaining a large capacity in both 8-inch and 12-inch fabs [48] Market Data and Key Metrics Changes - Revenue from China was $469.7 million, contributing 83% of total revenue, an increase of 21.8% year-over-year [11] - Revenue from North America was $53 million, up 13.2% year-over-year, driven by demand for power management IC products [11] - Revenue from Europe decreased by 14.2% year-over-year, primarily due to reduced demand for general MOSFET products [11] Company Strategy and Development Direction - The company is focusing on enhancing core competencies in products, processes, R&D, and supply chain management to navigate global trade fluctuations [6] - A new 12-inch production line in Wuxin is expected to ramp up capacity, leading to comprehensive upgrades in capacity scale and technology capability [6] - The company aims to align with domestic and international strategic customers while expanding its global client base [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of demand, citing robust internal factors such as improved capacity utilization and cost reduction efforts [19][20] - The company anticipates gross margins to remain in the range of 10% to 12% for Q3 and Q4 2025, despite potential depreciation pressures from new capacity coming online [21][22] - Management noted that the semiconductor industry is expected to see more stability in capacity increases over the next few years, which could positively impact the market [33] Other Important Information - Net cash flow from operating activities was $169.6 million, a 75.1% increase year-over-year, primarily due to increased receipts from customers [13] - Capital expenditures were $407.7 million, with significant investments in manufacturing capacity [13] - The company expects revenue for Q3 2025 to be in the range of $620 million to $640 million, with a projected gross margin of 10% to 12% [15] Q&A Session Summary Question: Sustainability of Demand in the Second Half - Management indicated that robust demand is expected to continue, driven by internal factors such as capacity utilization and cost reduction efforts [19][20] Question: Pricing Trends in the Second Half - Management anticipates small price movements in the second half, primarily focused on 12-inch and IC platforms, with adjustments reflecting in Q3 and Q4 [23][25] Question: Impact of Anti-Internalization Policies - Management noted that while competition in the semiconductor industry is intense, market forces and policy directions may lead to more stability in capacity increases [33] Question: Regional Demand Differentiation - Management acknowledged strong domestic demand while noting weaker overseas demand, emphasizing the complexity of end markets [36][38] Question: AI Server Market Opportunities - Management highlighted the growth potential in the AI server market, particularly in power management chips, as a significant opportunity for the company [90][92] Question: Capacity Expansion Plans - Management confirmed that Fab Nine's capacity expansion is expected to be completed by mid-next year, with plans for future capacity increases beyond 2027 [76][78]

Core Viewpoint - The semiconductor sector in A-shares has experienced a significant rally, driven by a combination of policy changes and market sentiment, particularly following Trump's announcement of a 100% tariff on semiconductor imports, which has led to increased optimism for domestic alternatives [1][2][4]. Group 1: Market Performance - The semiconductor index rose by 2%, leading the market with a net inflow of 3.485 billion yuan, marking a cumulative increase of 5.24% over four consecutive days [1][2]. - Key stocks such as 富满微 (Fuman Micro), 东芯股份 (Dongxin), 阿石创 (Ashichuang), and 晶华微 (Jinghua Micro) hit the 20% daily limit, reflecting strong market interest [2][3]. Group 2: Policy Impact - Trump's tariff policy has heightened the urgency for domestic semiconductor supply chain independence, prompting capital to flow into local equipment, materials, and manufacturing companies [2][4]. - The announcement of a 100% tariff, while previously anticipated, has acted as a catalyst for investment in domestic semiconductor firms, particularly those involved in power management and storage chips [4][5]. Group 3: Company Insights - 富满微 (Fuman Micro) is positioned as a leader in power management chips, benefiting from increased demand for automotive-grade IGBT chips and AI server power chips [5]. - 东芯股份 (Dongxin) specializes in small-capacity storage chips and is expected to gain from the domestic storage chip localization trend [5]. - 阿石创 (Ashichuang) is one of the few companies with a complete sputtering target supply chain, focusing on semiconductor materials, which are critical for chip manufacturing [5]. Group 4: Industry Trends - The semiconductor industry is entering a recovery phase, with global silicon wafer shipments increasing by 9.6% year-over-year in Q2 2025, indicating a positive trend for the sector [9]. - AI chip demand is surging, with major players like TSMC raising revenue growth forecasts, reflecting strong market sentiment [10][13]. - The storage market is also showing signs of recovery, with NAND Flash prices expected to rise due to supply constraints and increasing demand from consumer electronics and AI applications [10][11]. Group 5: Future Outlook - The combination of external pressures and internal policy support is likely to sustain interest in the semiconductor sector, with a focus on AI chips and storage recovery as key investment themes [15]. - Companies are advised to monitor event-driven trading opportunities, particularly those with clear themes and good liquidity [15].

Core Viewpoint - The semiconductor sector is experiencing a significant rally, driven by a combination of policy changes, market sentiment, and strong performance from key companies in the industry [2][3]. Group 1: Market Performance - The semiconductor index rose by 2%, leading the A-share market, with a net inflow of 3.485 billion yuan in main funds, significantly outperforming other sectors [2]. - The semiconductor index has recorded four consecutive days of gains this week, with a cumulative increase of 5.24% [2]. - Key stocks such as 富满微 (Fuman Micro), 东芯股份 (Dongxin), 阿石创 (Ashichuang), and 晶华微 (Jinghua Micro) hit the 20%涨停 (limit up) mark, indicating strong investor interest [3][5]. Group 2: Policy Impact - Trump's announcement of a 100% tariff on semiconductor imports, while offering exemptions for companies that commit to building factories in the U.S., has heightened the urgency for domestic semiconductor self-sufficiency [3][6]. - The market interpreted this policy as a catalyst for accelerating the domestic semiconductor supply chain adjustments, leading to increased investments in local equipment, materials, and manufacturing companies [3][6]. Group 3: Company Insights - 富满微 (Fuman Micro) is a leader in power management chips, benefiting from the urgency for domestic alternatives due to tariff policies and increasing orders for AI server power chips [8]. - 东芯股份 (Dongxin) specializes in small-capacity storage chips and is expected to benefit from the domestic storage chip localization process and a recovering niche storage price trend [8]. - 阿石创 (Ashichuang) is one of the few companies with a complete sputtering target supply chain, focusing on semiconductor materials, which are critical for chip manufacturing [8]. Group 4: Financial Performance and Expectations - 华虹半导体 (Huahong Semiconductor) reported a Q2 2025 revenue of 566 million USD, a year-on-year increase of 18.3%, with a strong Q3 guidance of 620 to 640 million USD [9][11]. - The semiconductor industry is entering a recovery phase, with global silicon wafer shipments reaching 3.327 billion square inches in Q2 2025, marking a year-on-year increase of 9.6% [14]. - The demand for AI chips is surging, with companies like TSMC raising their revenue growth forecasts, reflecting strong market sentiment [14][18]. Group 5: Future Outlook - The combination of external pressures and internal policy support is expected to sustain interest in the semiconductor sector, with a focus on domestic alternatives [13][19]. - The upcoming peak season for Apple’s product inventory in August and September is likely to boost related semiconductor companies' performance [11].

| (25,704) | (33,380) | (55,407) | | --- | --- | --- | | (591) | (1,394) | (652) | | (407,728) | (196,830) | (510,851) | | (2,794) | - | - | | (385,556) | (171,973) | (494,291) | | (125,677) | (87,530) | (811,156) | | (38,623) | (49,800) | (3,252) | | (1,199) | (2,348) | (517) | | - | 492,450 | - | | - | (36,245) | - | | (25,185) | 416,148 | 59,137 | | (241,111) | 341,065 | (384,968) | | | | | HUA | HONG | | SEMICONDUCTOR | | LIMITED | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

HUA HONG SEMICONDUCTOR LIMITED 华虹半导体有限公司 01347 — 2025 8 7 — 01347 688347) (" ") 5.66 10.9% 12 2 PIN https://register-conf.media-server.com/register/BI1686ec5f75fa43e1a37307d2e98221ed 1 5.661 18.3% 4.6% 10.9% 0.4 1.7 800 19.2% 112.1% 6.2 6.4 10% 12% PIN PIN 2 12 https://www.huahonggrace.com/c/ir_calendar.php A : 688347 01347 8 + 12 IC + Power Discrete / 8 + 12 8 12 12 www.huahonggrace.com 3 2025 8 7 17:00 / 05:00 https://www.huahonggrace.com/c/ir_calendar.php https://edge.media-server.com/mmc/p/pemdk6h6 | | ...