Summary of the Conference Call for Huahong Company Industry and Company Overview - The conference call pertains to Huahong Company, which operates in the semiconductor industry, specifically focusing on 12-inch wafer manufacturing and related products [2][3][4]. Key Points and Arguments Capacity Expansion and Production - Huahong's 12-inch wafer factory has rapidly expanded capacity, with the first factory producing over 100,000 wafers, and another factory ramping up to a target of 83,000 wafers per month by 2026 [2][3]. - The company reported a 100% utilization rate across all platforms, with strong performance in industrial semiconductors, IGBT, and AI power management products [2][3]. Pricing Strategy and Gross Margin Improvement - The company has implemented a price increase strategy aiming for at least a 10% price hike in 2025, with a goal to achieve a gross margin of 40% by 2027 [2][5]. - The overall gross margin is expected to turn positive and gradually increase to 10% [5]. Market Demand and Stability - Demand in the consumer electronics sector is stable, while the industrial sector is recovering, and automotive electronics remain stable [6]. - The renewable energy sector, including wind and solar storage and electric vehicles, is stable but recovering slower than the industrial sector [7]. International Orders and Collaborations - Orders from overseas clients, particularly from Europe and the U.S., remain stable, with a notable collaboration with STMicroelectronics for 40nm MCU production expected to start mass production in Q4 2025 [8]. - The company is also in discussions with other large enterprises like IBM for potential collaborations [8]. Competitive Landscape - Huahong is aware of the rapid expansion of competitors like Chipone Integrated Circuit-U but remains focused on its development strategy, emphasizing technological advancement and efficiency [9][10]. - The company does not view Chipone's low-price strategy as a threat due to its technological superiority and plans to continue innovating in the information technology sector [10]. Acquisition and Future Plans - The acquisition of Huahong's fifth factory is progressing as planned, with expectations to complete it within a year [11]. - The company plans to invest $2 billion in equipment procurement in 2025 and an additional $1 billion in 2026 to complete the overall planning of the 12-inch wafer factory [4][14]. Product Pricing Trends - The price of 8-inch wafers has decreased, while the price of 12-inch wafers has increased, with a comprehensive price increase of approximately 10% planned for 2025 [15]. Future Product Development - The company is focusing on developing 28nm and 22nm technologies, with a strong emphasis on advancing its product offerings in the MCU segment [17]. - The 40nm MCU project, in collaboration with STMicroelectronics, is expected to enter mass production in Q4 2025, significantly enhancing revenue from the European market [17]. Market Demand for Specific Products - The demand for high-voltage IGBT is recovering well and is expected to continue growing [20]. - The analog and power management business has shown strong performance, particularly in the North American market, with expectations for sustained growth in the second quarter and the latter half of the year [18]. Additional Important Information - The company is not locking in any customers for new production capacity but has seen significant demand from new products and clients [13]. - The gross margin target for 8-inch products is also set to increase to 40%, primarily through price increases and product mix optimization [19].

Core Insights - The Bluetooth chip market is experiencing significant growth, with global shipments increasing from 4.2 billion units in 2018 to 5.3 billion units in 2022, representing a compound annual growth rate (CAGR) of 5.99%. It is projected to reach approximately 5.9 billion units by 2024 [1][14]. - The market is characterized by a strong international presence, with Nordic, Dialog, and Texas Instruments holding a combined 61% share of the global BLE chip market. Chinese companies are emerging through differentiated strategies, focusing on low-power Bluetooth chips and specific application scenarios [1][14]. - The Bluetooth chip industry is expected to penetrate various applications, including smart industrial devices, automotive equipment, smart city solutions, and smart home technologies, driving rapid growth in the Chinese Bluetooth chip sector [1][14]. Industry Overview - Bluetooth chips are integrated circuits that enable short-range wireless communication, applicable in audio transmission, data transfer, and location services. They can be categorized into classic Bluetooth chips and BLE (low-energy) chips [4][15]. - The industry has evolved since the 1990s, with significant advancements driven by the rise of IoT, autonomous driving, and 5G technologies, leading to a high growth phase starting in 2017 [6][15]. Market Dynamics - The Bluetooth chip industry value chain consists of upstream resource providers, midstream chip manufacturers, and downstream users. Upstream includes design tool suppliers and wafer manufacturers, while midstream focuses on Bluetooth chip manufacturers providing various products [8][15]. - The Chinese Bluetooth chip industry is still in its early stages but holds substantial growth potential, especially with the advent of the metaverse era [1][14]. Key Players - Notable companies in the Bluetooth chip sector include: - **Yuchip Technology**: Focuses on low-power AIoT chip design, with significant revenue from smart audio SoC chips [29]. - **Hengxuan Technology**: Specializes in low-power wireless computing SoC chips, with a strong presence in smart wearable and home markets [31]. - **Zhongke Blue Communication**: Engages in wireless audio SoC chip development, covering various product lines [28][31]. - **Tai Ling Microelectronics**: Recently went public, focusing on low-power Bluetooth and Zigbee technology chips [28]. - **Jieli Technology**: Concentrates on system-level chips for audio and wearable devices [28]. Future Trends - The industry is expected to see technological innovations that enhance performance, including higher bandwidth and lower latency, driven by the adoption of Bluetooth 5.4 and subsequent versions [33]. - Application scenarios are diversifying beyond traditional consumer electronics into smart homes, wearables, and automotive electronics, with increasing demand for reliable solutions in B2B markets [34]. - Domestic Bluetooth chip companies are strengthening collaborations across the supply chain, aiming for a complete ecosystem from design to application, with a noticeable trend towards domestic substitution in the face of international competition [35].

Group 1 - The Hang Seng Index opened up 0.12%, reaching 24,191.32 points, while the Hang Seng Tech Index increased by 0.22% [1] - NIO saw a nearly 3% increase, while Alibaba and NetEase both rose over 1% [1] - Li Auto and Hua Hong Semiconductor experienced declines of over 1% [1]

Group 1: Company News - Greenland Hong Kong Holdings Limited (00337.HK) reported contract sales of approximately RMB 1.407 billion for the first five months of 2025, a year-on-year decrease of 59.27% [1] - Tencent Music (01698.HK) plans to acquire Ximalaya for USD 1.26 billion [2] - CIFI Holdings Group (00884.HK) recorded monthly contract sales of RMB 1.68 billion, a year-on-year decrease of 50% [2] - Yuzhou Group (01628.HK) reported contract sales of RMB 621 million in May, down from RMB 703 million in the same period last year [2] - HSBC Holdings (00005.HK) repurchased 520,900 shares on June 9, costing HKD 4.6 million [2] Group 2: Market Movements - The National Integrated Circuit Industry Investment Fund Co., Ltd. reduced its stake in Hua Hong Semiconductor (01347.HK) [2] - JPMorgan increased its short position in Bilibili (09626.HK) from 7.75% to 8.27% [2] - Haitian Flavoring and Food Company plans to issue 263 million shares at a price range of HKD 35 to HKD 36.3 per share [1]

Core Points - The announcement details a change in the equity stake of a major shareholder, Xinxin (Hong Kong) Investment Co., Ltd., in Huahong Semiconductor Co., Ltd. [1] - Xinxin Hong Kong reduced its holdings from 124.767092 million shares to 102.535601 million shares, representing a decrease from 7.26% to 5.94% of the total share capital [1][2] - The reduction in shareholding occurred between December 16, 2024, and June 9, 2025, through block trading on the Hong Kong Stock Exchange [1] Summary of Equity Change - The equity change is significant as it touches the 1% threshold, which is relevant under the new regulations issued by the China Securities Regulatory Commission [2] - As of January 10, 2025, Xinxin Hong Kong held 118.495939 million shares, accounting for 6.90% of the total share capital [2] Additional Information - This equity change does not trigger a mandatory takeover offer and will not result in a change of control for the company [3] - The company will fulfill its disclosure obligations based on any future changes in shareholder holdings [3]

| 股代码：688347 | A | A 股简称：华虹公司 | 公告编号：2025-016 | | --- | --- | --- | --- | | 港股代码：01347 | | 港股简称：华虹半导体 | | 华虹半导体有限公司 关于持股 5%以上股东权益变动触及 1%刻度 的提示性公告 投资者鑫芯（香港）投资有限公司保证向本公司提供的信息真实、准确、 完整，没有虚假记载、误导性陈述或重大遗漏。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： | 权益变动方向 | 比例增加□ | 比例减少√ | | --- | --- | --- | | 权益变动前合计比 | 7.26% | | | 例 | | | | 权益变动后合计比 | 5.94% | | | 例 | | | | 本次变动是否违反 | | | | 已作出的承诺、意 | 是□ | 否√ | | 向、计划 | | | | 是否触发强制要约 | 是□ | 否√ | | 收购义务 | | | 一、信息披露义务人及其一致行动人的基本信息 | 信息披露义务 | ...

Group 1 - Vanke A announced the sale of 22 million A-share treasury stocks for a total of 146 million yuan, representing 0.18% of the company's total share capital, aimed at supplementing liquidity without impacting current profits [1] - Tencent Music plans to acquire 100% of Himalaya for a total consideration of $1.26 billion, which includes cash and shares, to expand its audio content ecosystem [1] - Dongfang Electric Heat signed a strategic cooperation agreement with Xiaomi's subsidiary to develop robotic electronic skin, focusing on flexible fabric pressure sensing applications [3] Group 2 - Chengdu Huamei launched a 4-channel, 12-bit, 16G high-precision RF direct sampling ADC chip, marking a significant breakthrough in high-speed data conversion technology [4] - Jinshi Technology clarified that it has not engaged in any business related to stablecoins, despite recent market interest, and noted a significant stock price increase of 76.51% over six trading days [5] - Xiantan Co. reported a 14.22% year-on-year increase in chicken product sales revenue for May, amounting to 469 million yuan [7]

重要内容提示： | 权益变动方向 | 比例增加□ | 比例减少√ | | --- | --- | --- | | 权益变动前合计比 | 7.26% | | | 例 | | | | 权益变动后合计比 | 5.94% | | | 例 | | | | 本次变动是否违反 | | | | 已作出的承诺、意 | 是□ | 否√ | | 向、计划 | | | | 是否触发强制要约 | 是□ | 否√ | | 收购义务 | | | | 股代码：688347 | A | A 股简称：华虹公司 | 公告编号：2025-016 | | --- | --- | --- | --- | | 港股代码：01347 | | 港股简称：华虹半导体 | | 华虹半导体有限公司 关于持股 5%以上股东权益变动触及 1%刻度 的提示性公告 投资者鑫芯（香港）投资有限公司保证向本公司提供的信息真实、准确、 完整，没有虚假记载、误导性陈述或重大遗漏。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 本公司于近日收到投资者鑫芯（香港）投资有限公司（以下简称"鑫芯香港 ...

Group 1 - The National Integrated Circuit Industry Investment Fund Co., Ltd. reduced its stake in Hua Hong Semiconductor from 6.16% to 5.94% as of June 9, 2025, with an average share price of 32.4276 HKD [1] - The total number of issued shares for Hua Hong Semiconductor is 1,726,211,687 [2] - The number of shares held by the National Integrated Circuit Industry Investment Fund before the transaction was 106,330,601, representing 6.16% [2] - After the transaction, the number of shares held decreased to 102,535,601, representing 5.94% [2]

Core Insights - The global wafer foundry industry experienced a 5.4% quarter-over-quarter decline in total revenue for Q1 2025, amounting to $36.403 billion, but showed a significant year-over-year growth of 24.8% [1] - The traditional seasonal slowdown in the wafer foundry industry was somewhat mitigated this year due to uncertainties in international conditions prompting downstream customers to stock up inventory and China's ongoing trade-in policy [1] Industry Performance - Despite facing seasonal challenges, the wafer foundry industry demonstrated resilience, with expectations for revenue growth in Q2 2025 driven by the launch of new smartphone models and stable demand from AI and HPC sectors [4] - The top ten global wafer foundries accounted for 97% of the market share in Q1 2025, with a total revenue of $36.403 billion [2] Company Rankings - TSMC led the market with a revenue of $25.517 billion in Q1 2025, despite a 5.0% decline from Q4 2024, maintaining a market share of 67.6% [2] - Samsung's revenue fell by 11.3% to $2.893 billion, resulting in a market share of 7.7% [2] - SMIC reported a slight revenue increase of 1.8% to $2.247 billion, raising its market share to 6.0% [2] - Vanguard's capacity utilization was above average due to customer stockpiling, while Tower Semiconductor faced significant seasonal impacts and did not benefit from China's subsidy policies [4]