華 虹 半 導 體 有 限 公 司 (Incorporated in Hong Kong with limited liability) Incorporated on the 21st day of January 2005 ARTICLES OF ASSOCIATION OF HUA HONG SEMICONDUCTOR LIMITED (As adopted by Special Resolution passed on 20 September 2014, and amended by (i) Special Resolution passed on 27 June 2022 which took effect on the date when the Company's shares are listed on the STAR Market of the Shanghai Stock Exchange and (ii) Special Resolution passed on 8 May 2025) 1 THE COMPANIES ORDINANCE (CHAPTER 622) Public Co ...

Group 1 - Core viewpoint: The performance of major domestic foundries, SMIC and Hua Hong, shows contrasting trends in Q1 2025, with SMIC experiencing significant growth while Hua Hong faces a sharp decline in net profit [1][2] - SMIC reported Q1 2025 revenue of 16.301 billion, a year-on-year increase of 29.4%, and a net profit of 1.356 billion, up 166.5% [1] - SMIC's EBITDA for Q1 2025 was 9.245 billion, reflecting a growth of 46.9% year-on-year, with a capacity utilization rate of 89.6%, up from 80.8% in the same period last year [1] Group 2 - Hua Hong's Q1 2025 revenue was 3.913 billion, an increase of 18.66%, but its net profit fell to 22.763 million, a decrease of 89.73% [1] - Hua Hong's gross margin for Q1 2025 was 9.2%, significantly lower than SMIC's gross margin of 22.5% [1] - Hua Hong's president stated that the company is seeing steady revenue growth and optimizing its product structure, with capacity utilization remaining full [2]

Group 1: Company Performance - Semiconductor foundries SMIC and Hua Hong reported their Q1 2025 financial results, with SMIC achieving revenue of 16.301 billion yuan, a year-on-year increase of 29.4%, and a net profit of 1.356 billion yuan, up 166.5% [1] - Hua Hong's Q1 revenue was $540.9 million, reflecting a year-on-year growth of 17.6% and a slight quarter-on-quarter increase of 0.3%. However, net profit dropped to $3.8 million from $31.8 million in the same period last year [4][6] Group 2: Financial Metrics - SMIC's Q1 revenue guidance for 2025 indicates a sequential increase, with a projected revenue of $2.247 billion for January 2025, showing a year-on-year growth of 1% [2] - Hua Hong's gross margin for Q1 was 9.2%, which is a year-on-year increase of 2.8 percentage points but a quarter-on-quarter decrease of 2.2 percentage points [4][5] Group 3: Market Dynamics - The semiconductor industry is experiencing a shift in orders towards domestic foundries due to new tariff policies, which impose a 125% tariff on chips fabricated in the U.S. [8] - The global foundry market is expected to see a significant increase in demand for mature process nodes (28nm and above), with domestic foundries like SMIC well-positioned to capture this growth [9][12] Group 4: Capacity and Production - SMIC has established seven fabs with a monthly production capacity of approximately 670,000 8-inch equivalent wafers, with plans for additional capacity in 12-inch fabs [10][11] - Hua Hong operates three 8-inch and one 12-inch fab, with a monthly capacity of 178,000 wafers for 8-inch and ongoing enhancements for 12-inch production [15] Group 5: Competitive Landscape - The competition in the mature process foundry market is intensifying, with Chinese foundries like SMIC and Hua Hong lowering prices to secure orders, impacting Taiwanese competitors [19] - The semiconductor industry is expected to see a 20% revenue growth in 2025, driven by strong demand for AI applications, although mature process nodes may experience slower recovery due to inventory adjustments in the automotive sector [25][26]

Hua Hong Semiconductor (01347) Q1 2025 Earnings Call May 08, 2025 05:00 AM ET Company Participants Daniel Wang - EVP & CFOPeng Bai - President & Executive Director Conference Call Participants Huang Leping - Chief Analyst for Global Tech StrategyZi Yuan Wang - Equity AnalystTony Shen - Technology AnalystNone - AnalystJian Kuai - AnalystQingyuan Lin - Director - Senior Analyst Operator Ladies and gentlemen, thank you for standing by. Welcome to Huahong Semiconductor First Quarter twenty twenty five Earnings ...

香港交易及结算所有限公司、香港联合交易所有限公司及香港中央结算有限公司对本公告的内容概不负责，对其准 确性或完整性亦不发表任何声明，并明确表示，概不就因本公告全部或任何部分内容而产生或因依赖该等内容而引 致的任何损失承担任何责任。 HUA HONG SEMICONDUCTOR LIMITED 华 虹 半 导 体 有 限 公 司 （于香港注册成立之有限公司） （股份代号：01347） 新闻稿 二零二五年第一季度业绩公布 所有货币以美元列帐，除非特别指明。 本合并财务报告系依香港财务报告准则编制。 中国香港 — 2025 年 5 月 8 日 — 全球领先的特色工艺纯晶圆代工厂华虹半导体有限公司（香港联交所 股票代号：01347；上交所科创板证券代码：688347) ("本公司")于今日公布截至二零二五年三月三十一 日止三个月的综合经营业绩。 二零二五年第一季度主要财务指标（未经审核） 二零二五年第二季度指引 1 销售收入 5.409 亿美元，同比增长 17.6%，环比增长 0.3%。 毛利率 9.2%，同比上升 2.8 个百分点，环比下降 2.2 个百分点。 母公司拥有人应占溢利 380 万美元，上年同期为母公司 ...

Financial Data and Key Metrics Changes - Sales revenue for Q1 2025 was $541 million, a 17.6% increase year-over-year and a 0.3% increase quarter-over-quarter [5][8] - Gross margin was 9.2%, up 2.8 percentage points year-over-year but down 2.2 percentage points quarter-over-quarter [9] - Net loss for the period was $52.2 million, compared to a loss of $25.3 million in Q1 2024 and a loss of $96.3 million in Q4 2024 [11] - Basic earnings per share was $0.20, compared to $0.19 in Q1 2024 and a loss of $1.5 cents in Q4 2024 [11] Business Line Data and Key Metrics Changes - Revenue from embedded non-volatile memory was $130.3 million, a 9.3% increase year-over-year [13] - Revenue from standalone non-volatile memory was $42.9 million, a 38% increase year-over-year [13] - Revenue from Power Discrete was $162.8 million, a 13.5% increase year-over-year [13] - Revenue from analog and power management IC was $136.8 million, a 34.8% increase year-over-year [13] Market Data and Key Metrics Changes - Revenue from China was $442.5 million, contributing 81.8% of total revenue, a 21% increase year-over-year [12] - Revenue from North America was $56.4 million, a 22% increase year-over-year [12] - Revenue from Europe decreased by 30% year-over-year to $15.2 million [12] - Revenue from Japan decreased by 62.1% year-over-year to $1 million [12] Company Strategy and Development Direction - The company plans to accelerate effective capacity expansion, enhance R&D capabilities, and manage supply chain disturbances while reducing costs and improving efficiency [6][7] - The company aims to optimize its product portfolio and maintain full capacity utilization [6] Management Comments on Operating Environment and Future Outlook - Management noted that the semiconductor industry faces greater uncertainties due to recent global changes and policies affecting customer demand and procurement costs [6] - The company expects revenue for Q2 2025 to be in the range of $550 million to $570 million, with a projected gross margin of 7% to 9% [16] Other Important Information - Capital expenditures in Q1 2025 were $510.9 million, with significant investments in manufacturing [14] - Cash and cash equivalents decreased to $4.08 billion as of March 31, 2025, from $4.46 billion at the end of 2024 [15] Q&A Session Summary Question: Impact of new tariffs on customers - Management indicated that the recent tariffs have not had a meaningful impact on the business, as most customers are domestic design houses [20][22] Question: Growth in analog and PMIC sales - Management noted that the analog and PMIC platforms are growing due to competitive offerings and increasing domestic demand [24][28] Question: Price increase possibilities - Management stated that while there is pricing pressure on 8-inch wafers, 12-inch prices are gradually increasing, and customer acceptance of price increases is expected as demand exceeds supply [35][36] Question: Outlook for the second half of the year - Management expects a gradual recovery in demand, with consumer segments remaining weaker compared to industrial segments [49][50] Question: Competition and pricing strategies - Management acknowledged the competitive landscape but emphasized the company's technological advantages and ability to meet customer needs [58][60] Question: Equipment procurement and tariff impact - Management reported minimal impact from tariffs on equipment procurement, as most manufacturing occurs outside the U.S. [74][76] Question: Demand cycle for power devices - Management expressed confidence in the power device segment, citing strong competition but also a solid technological foundation [78][80] Question: Gross margin trends - Management indicated that gross margin pressures are expected due to new capacity ramp-up but remains optimistic about future improvements [96][102] Question: Embedded NOR flash platform performance - Management acknowledged the need for improved offerings in embedded NOR flash and expects growth as new technologies are introduced [104][106]

Financial Performance - In Q1 2025, Hua Hong Semiconductor reported sales revenue of $541 million, with a gross margin of 9.2%, consistent with guidance[5]. - Year-on-year revenue increased by 18.66% to approximately ¥3.91 billion, while net profit attributable to shareholders decreased by 89.73% to ¥22.76 million[7]. - The company expects Q2 2025 revenue to be between $550 million and $570 million, with a gross margin of 7% to 9%[6]. - Total operating revenue for Q1 2025 reached ¥3,912,539,839.26, an increase of 18.6% compared to ¥3,297,290,706.10 in Q1 2024[22]. - Total operating costs for Q1 2025 were ¥4,091,413,303.52, up 19.6% from ¥3,421,518,255.02 in Q1 2024[22]. - Net loss for Q1 2025 was ¥378,407,855.01, compared to a net loss of ¥183,598,290.08 in Q1 2024, indicating a significant increase in losses[23]. - The company recorded a comprehensive loss of ¥383,269,121.78 for Q1 2025, compared to a comprehensive loss of ¥172,727,803.40 in Q1 2024[23]. - Basic and diluted earnings per share for Q1 2025 were both ¥0.01, down from ¥0.13 in Q1 2024[23]. Research and Development - R&D investment totaled ¥477 million, representing 12.19% of revenue, an increase of 1.64 percentage points compared to the previous year[7]. - Research and development expenses rose to ¥476,678,653.06 in Q1 2025, up 38.1% from ¥345,066,946.58 in Q1 2024[22]. - The company plans to accelerate effective capacity expansion and enhance R&D capabilities in response to market uncertainties[5]. Cash Flow and Investments - The cash flow from operating activities decreased by 18.57% to ¥361 million compared to the same period last year[7]. - In Q1 2025, the cash inflow from operating activities was CNY 4,248,064,923.56, an increase of 14.85% compared to CNY 3,699,864,220.09 in Q1 2024[25]. - The net cash flow from operating activities decreased to CNY 361,199,684.00 in Q1 2025 from CNY 443,549,494.96 in Q1 2024, representing a decline of 18.56%[25]. - The cash outflow for investing activities was CNY 3,664,238,868.66 in Q1 2025, up from CNY 2,282,467,996.60 in Q1 2024, indicating a significant increase of 60.58%[26]. - The net cash flow from investing activities was negative at CNY -3,545,424,314.19 in Q1 2025, compared to CNY -2,281,904,301.60 in Q1 2024[26]. - Cash inflow from financing activities totaled CNY 6,274,192,865.02 in Q1 2025, compared to CNY 5,630,584,975.53 in Q1 2024, marking an increase of 11.45%[26]. - The net cash flow from financing activities decreased significantly to CNY 424,505,323.03 in Q1 2025 from CNY 5,609,718,603.99 in Q1 2024, a drop of 92.43%[26]. - The ending cash and cash equivalents balance was CNY 29,286,591,307.43 at the end of Q1 2025, down from CNY 43,336,164,205.65 at the end of Q1 2024, a decrease of 32.4%[26]. - The company received CNY 118,760,569.47 in investment income in Q1 2025, while there was no such income reported in Q1 2024[25]. - The cash outflow for employee compensation was CNY 960,759,545.89 in Q1 2025, an increase from CNY 876,079,458.32 in Q1 2024, reflecting a rise of 9.63%[25]. - The cash inflow from sales of goods and services was CNY 4,230,680,165.91 in Q1 2025, compared to CNY 3,471,401,563.01 in Q1 2024, representing an increase of 21.9%[25]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥86.89 billion, a decrease of 1.19% from the previous year[7]. - As of March 31, 2025, the total current assets amounted to ¥39,593,169,875.67, a decrease from ¥41,926,361,510.10 as of December 31, 2024, reflecting a decline of approximately 5.56%[18]. - The company's cash and cash equivalents decreased to ¥29,720,961,129.09 from ¥32,494,785,434.49, representing a decline of about 8.67%[18]. - Accounts receivable increased to ¥1,740,111,204.01 from ¥1,661,798,449.47, showing a growth of approximately 4.73%[18]. - Total non-current assets rose to ¥47,295,864,738.11 from ¥46,008,869,965.47, indicating an increase of about 2.79%[19]. - The total assets of the company decreased to ¥86,889,034,613.78 from ¥87,935,231,475.57, reflecting a decline of approximately 1.19%[19]. - Accounts payable decreased to ¥1,905,536,431.47 from ¥2,191,483,910.32, a reduction of about 13.06%[19]. - The company's total liabilities decreased to ¥39,198,000,000.00, down from ¥40,000,000,000.00, indicating a decrease of approximately 2.01%[19]. - The company reported a total liability of ¥24,449,829,677.04 as of the latest reporting period, a decrease of 3.0% from ¥25,214,682,518.85[20]. - Total equity attributable to shareholders increased slightly to ¥43,722,159,439.38 from ¥43,602,332,245.07, reflecting a growth of 0.3%[20]. - The company’s long-term borrowings stood at ¥13,986,068,821.97, an increase from ¥13,781,850,630.90 in the previous year[20]. - The total assets amounted to ¥86,889,034,613.78, a decrease from ¥87,935,231,475.57, indicating a reduction in asset base[20]. Shareholder Activity - Hua Hong Semiconductor's indirect controlling shareholder increased its stake by acquiring 1,198,517 A-shares[13]. - The company has not reported any significant changes in shareholder structure or participation in margin trading activities during the reporting period[17].

Group 1 - The core viewpoint of the article highlights that Huahong Semiconductor reported a first-quarter sales revenue of $540.9 million, representing a year-on-year increase of 17.6% [1] - The net profit attributable to the parent company was $3.8 million, a decrease from $31.8 million in the same period last year, and an improvement from a loss of $25.2 million in the previous quarter [1] - The company expects sales revenue for the second quarter of 2025 to be approximately between $550 million and $570 million, with a gross margin projected to be around 7% to 9% [1]

金十数据5月8日讯，华虹半导体(01347.HK)公告，2025年第一季度销售收入5.41亿美元，同比增长 17.6%，环比增长0.3%。毛利率9.2%，同比上升2.8个百分点，环比下降2.2个百分点。母公司拥有人应 占溢利380万美元，上年同期为3180万美元，上季度为亏损2520万美元。预计2025年第二季度销售收入 约5.5亿至5.7亿美元，毛利率约7%至9%。 华虹半导体：2025年第一季度净利润380万美元 ...

Core Viewpoint - Hua Hong's first-quarter net profit fell short of expectations, indicating potential challenges in financial performance [1] Financial Performance - The company's first-quarter net profit was $3.75 million, significantly below the forecast of $25 million [1] - First-quarter revenue reached $540.9 million, slightly below the expected $547.6 million [1] - Capital expenditures for the first quarter amounted to $510.9 million, also falling short of the anticipated $574 million [1]