Transaction Overview - The company plans to acquire equity in Shanghai Huali Microelectronics Co., Ltd. through a combination of issuing shares and cash payment, which will result in Huali Micro becoming a subsidiary of the company [1] - This transaction is expected to be classified as a related party transaction but will not constitute a major asset restructuring or a restructuring listing [1] Progress of the Transaction - The company’s stock was suspended from trading starting August 18, 2025, with an expected suspension period of no more than 10 trading days [1] - On August 29, 2025, the company held its sixth board meeting of 2025, approving the transaction proposal and related resolutions [2] - The company’s stock resumed trading on September 1, 2025, following the approval of the restructuring proposal [2] - As of the announcement date, the company and related parties are actively advancing the transaction, with auditing and evaluation processes ongoing [3]

Group 1 - The company announces that Bai Peng will be appointed as the chairman of the board, nomination committee chairman, and authorized representative starting from October 31, 2025, while continuing as the president [2] - Tang Junjun will resign from his positions as executive director, chairman of the board, and nomination committee chairman, effective October 31, 2025 [3] - Bai Peng, aged 62, has over 30 years of experience in integrated circuits and has held significant positions at Intel, including global vice president, and has been the CEO of Rongxin Semiconductor since September 2022 [4] Group 2 - For the first half of 2025, the company reported revenue of 8.018 billion yuan and a net profit attributable to shareholders of 74.32 million yuan [5]

Market Overview - Amazon shares surged nearly 10% following strong earnings, boosting tech stocks, while major US indices closed higher. Apple opened high but closed slightly down. Meta fell 2.72%, marking a nearly 12% decline in October [3] - The 10-year US Treasury yield dipped by 0.4 basis points, with a weekly increase of 9.23 basis points. The dollar rose for three consecutive days, gaining 0.27% [3] - Bitcoin rebounded by 1.80%, testing $111,000, while Ethereum saw a rise of over 3.9% [3] - Spot gold decreased by 0.55%, trading at $4002, briefly falling below $4000. Oil prices fluctuated due to the situation in Venezuela [3] Key Economic Indicators - China's official manufacturing PMI fell to 49 in October, while the non-manufacturing index rose to 50.1, indicating expansion in three key sectors [22] - High-tech manufacturing, equipment manufacturing, and consumer goods sectors maintained expansion with PMIs of 50.5%, 50.2%, and 50.1% respectively [22] - The new orders index remained at 46.0%, indicating weak market demand in the non-manufacturing sector [22] AI Sector Developments - Nvidia reached a significant AI agreement with South Korean tech giants, deploying 260,000 Blackwell chips to create Asia's first "Industrial AI Cloud" [25] - The AI sector is witnessing a shift towards off-balance-sheet financing, with companies like Meta raising $30 billion through special purpose vehicles (SPVs) [26] Company Performance - The "hottest AI sector" saw mixed results, with "Yizhongtian" experiencing significant growth, while only Zhongji Xuchuang met high expectations with a steady increase in revenue and profit margins [23] - The lithium battery industry reported a notable recovery, with a 32.86% year-on-year increase in net profit for the first three quarters, driven by surging demand in energy storage [30] International Relations Impact - Xi Jinping emphasized the importance of open development and economic globalization during the APEC meeting, proposing five key suggestions to maintain trade stability and promote inclusive growth [20] - The meeting between Xi and Canadian Prime Minister Carney highlighted the need for mutual understanding and cooperation in various sectors, including trade and energy [20]

Core Points - The company announced changes in its board of directors, effective from October 31, 2025, including the appointment of a new chairman and the resignation of the current chairman [1][2] - Bai Peng, the current executive director and president, will be appointed as the chairman of the board, chairman of the nomination committee, and authorized representative [1] - Tang Junjun will resign from his positions as executive director, chairman of the board, and chairman of the nomination committee, and will no longer serve as the authorized representative [2] - Tang confirmed that there are no disagreements with the board and no other matters related to his resignation that need to be brought to the attention of shareholders [2] - The board expressed gratitude for Tang's valuable contributions during his tenure [3] Summary of Changes - Appointment of Bai Peng as chairman of the board, chairman of the nomination committee, and authorized representative, while continuing as president [1] - Resignation of Tang Junjun from his roles as executive director, chairman of the board, and chairman of the nomination committee, effective October 31, 2025 [2] - Confirmation of no disagreements or issues related to Tang's resignation [2] - Acknowledgment of Tang's contributions by the board [3]

Core Viewpoint - The management of Huahong Semiconductor has undergone significant changes, with Tang Junjun resigning as the chairman and being replaced by Bai Peng, who brings extensive experience in the semiconductor industry [5][6][7]. Management Changes - Tang Junjun has resigned from his positions as executive director, chairman of the board, and chairman of the nomination committee due to work needs, with no disagreements reported with the board [5][7]. - Bai Peng, previously the executive director and president, has been appointed as the new chairman of the board, chairman of the nomination committee, and authorized representative [6][7]. - Bai Peng has over 30 years of experience in the integrated circuit manufacturing field and previously served as CEO of Rongxin Semiconductor [7]. Market and Industry Outlook - The power and analog semiconductor market is experiencing a recovery, accompanied by intense competition, driven by AI development and localization efforts by overseas semiconductor companies [8]. - Huahong Semiconductor's new chairman, Bai Peng, indicated that the company will rely on existing capacity in the short term while focusing on enhancing process capabilities and expanding capacity in the long term, particularly in promising process nodes and platforms [8]. Financial Performance - In the first half of the year, Huahong Semiconductor reported revenue of 8.018 billion yuan, a year-on-year increase of 19.09%, and a net profit attributable to shareholders of 74.31 million yuan [9]. - The company is in the process of acquiring equity in Huali Microelectronics through a combination of share issuance and cash payment, which will make Huali Microelectronics a controlling subsidiary of the listed company [9][10]. Strategic Developments - The acquisition of Huali Microelectronics, which operates the first fully automated 12-inch integrated circuit chip manufacturing line in mainland China, is expected to resolve competition issues in the same industry and enhance the asset scale and profitability of the listed company [10][11]. - Huali Microelectronics reported total assets of 7.58 billion yuan, a year-on-year increase of approximately 20%, with revenue of 2.466 billion yuan and a net profit of 344 million yuan for the same period [11].

Group 1 - The company announced a leadership change, with Bai Peng appointed as the new chairman of the board, replacing Tang Junjun, effective from October 31, 2025 [1][2] - Zhang Suxin will resign from the positions of chairman, executive director, and nomination committee chairman due to work commitments, effective December 31, 2024 [1][2] - Bai Peng has over 30 years of experience in the integrated circuit manufacturing field, having held various senior positions at Intel [2] Group 2 - The company is actively progressing with an associated transaction to acquire shares of Shanghai Huali Microelectronics Co., Ltd., which will become a subsidiary upon completion [3] - In the first half of the year, the company reported revenue of approximately 8 billion yuan, a year-on-year increase of about 20%, while net profit attributable to shareholders decreased by approximately 70% to nearly 74.32 million yuan [3] - The company's 8-inch and 12-inch production lines are fully loaded, with the FAB9 project expected to begin risk production by the end of 2024 and ramp up capacity in the first half of 2025 [3] Group 3 - Since the third quarter, the company's stock price has seen a significant increase, with a cumulative rise of approximately 128% [4]

Group 1 - Southbound funds net bought Hong Kong stocks worth 8.719 billion HKD on October 31 [1] - Notable net purchases included Xiaomi Group at 646 million HKD and Meituan at 464 million HKD [2] - Significant net sales included Tencent Holdings at 1.219 billion HKD and SMIC at 711 million HKD [2] Group 2 - Southbound funds have net bought Xiaomi for three consecutive days, totaling 883.69 million HKD, and Meituan for three consecutive days, totaling 1.43718 billion HKD [4] - Southbound funds have net sold ZTE for three consecutive days, totaling 717.69 million HKD, and Tencent for three consecutive days, totaling 1.8394 billion HKD [4] Group 3 - Hua Hong Semiconductor announced progress on an asset acquisition and fundraising transaction, with audit and evaluation work ongoing [5] - Meituan upgraded its "Smart Store Manager" AI phone reception capabilities, resulting in a 44% month-on-month increase in AI reception volume for restaurants [5] - SMIC's registered capital increased from 5.25 billion USD to 5.95 billion USD, a growth of approximately 13% [5] - Pop Mart's new "Vacation Mode" series of the popular IP CRYBABY sold out immediately, with a significant price increase for the hidden variant [5]

Core Insights - On October 31, 2025, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) ranked as the top three companies by trading volume in the southbound trading of the Stock Connect, with trading volumes of 58.52 billion, 43.31 billion, and 30.98 billion respectively [1][2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) also held the top three positions, with trading volumes of 43.07 billion, 28.25 billion, and 26.32 billion respectively [1][2] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 58.52 billion, net buy of -4.81 billion [2] - SMIC (00981): Trading amount of 43.31 billion, net buy of -78.06 million [2] - Tencent Holdings (00700): Trading amount of 30.98 billion, net buy of -1.72 billion [2] - Xiaomi Group-W (01810): Trading amount of 19.39 billion, net buy of +5.56 billion [2] - Huahong Semiconductor (01347): Trading amount of 18.61 billion, net buy of -1.67 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 43.07 billion, net buy of +1.15 billion [2] - SMIC (00981): Trading amount of 28.25 billion, net buy of -6.34 billion [2] - Tencent Holdings (00700): Trading amount of 26.32 billion, net buy of -10.47 billion [2] - Huahong Semiconductor (01347): Trading amount of 11.90 billion, net buy of -3.07 billion [2] - Xiaomi Group-W (01810): Trading amount of 11.13 billion, net buy of +904.39 million [2]

Core Insights - The Hong Kong stock market saw a net inflow of 87.19 billion HKD from northbound trading on October 31, with 57.72 billion HKD from the Shanghai Stock Connect and 29.47 billion HKD from the Shenzhen Stock Connect [1] Group 1: Net Inflows and Outflows - The most bought stocks included Xiaomi Group-W (01810), Meituan-W (03690), and Sanofi Pharmaceutical (01530) [1] - The most sold stocks included Tencent (00700), SMIC (00981), and Hua Hong Semiconductor (01347) [1] Group 2: Stock Performance Details - Xiaomi Group-W (01810) had a net inflow of 6.46 billion HKD, supported by optimistic forecasts for its smartphone and electric vehicle businesses [5] - Meituan-W (03690) received a net inflow of 4.64 billion HKD, with news of its international food delivery brand Keeta launching operations in Brazil [5] - Sanofi Pharmaceutical (01530) saw a net inflow of 754.6 million HKD, following the registration of a new cancer treatment in clinical trials [5] Group 3: Notable Sell-offs - Tencent (00700) experienced a net outflow of 12.19 billion HKD, amid increased short-selling activities in the market [7] - SMIC (00981) faced a net outflow of 7.11 billion HKD, as the semiconductor sector reacted to potential changes in AI chip export policies [8] - Hua Hong Semiconductor (01347) had a net outflow of 4.73 billion HKD, reflecting broader trends in the chip industry [8]

HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 董事名單與其角色和職能 華虹半導體有限公司董事會（「董事會」）成員載列如下： 執行董事： 白鵬 （董事會主席及總裁） 獨立非執行董事： 張祖同 王桂壎太平紳士 封松林 董事會設立三個委員會。下表提供各董事會成員在該等委員會中所擔任的職位： | | | 委員會成員 | | | --- | --- | --- | --- | | 董事 | 提名 | 薪酬 | 審核 | | 白鵬 | C | | | | 葉峻 | | M | | | 孫國棟 | | | | | 陳博 | | | | | 熊承艷 | | | M | | 張祖同 | | | C | | 王桂壎太平紳士 | M | C | | | 封松林 | M | M | M | 附註： C 有關董事委員會主席 M 有關董事委員會成員 二零二五年十月三十一日 非執行董事： 葉峻 孫國棟 陳博 熊承艷 ...