[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's H1 2025 unaudited consolidated results show revenue decreased by 3.5% to RMB 33.1 million, gross profit increased by 18.2% to RMB 3.2 million, and net loss widened to RMB 66.0 million Financial Highlights for the Six Months Ended June 30 | Metric | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33.1 | 34.3 | -3.5% | | Gross Profit | 3.2 | 2.7 | +18.2% | | Net Loss | (66.0) | (57.2) | +15.4% (Loss widened) | | Loss per Share (RMB cents) | (7.70) | (7.22) | +6.6% (Loss widened) | [Unaudited Condensed Consolidated Interim Results](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This chapter presents the Group's unaudited condensed consolidated financial statements for H1 2025, including statements of profit or loss, financial position, and changes in equity, reflecting performance and structural changes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For H1 2025, Group revenue decreased to RMB 33,061 thousand, and despite lower cost of sales, reduced other income and increased administrative expenses led to a widened loss of RMB 66,004 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 33,061 | 34,252 | | Cost of Sales | (29,847) | (31,534) | | Gross Profit | 3,214 | 2,718 | | Other Income and Gains | 351 | 6,785 | | Selling and Distribution Expenses | (1,437) | (1,595) | | Administrative and Other Expenses | (65,693) | (62,949) | | Provision for Expected Credit Losses | (176) | — | | Finance Costs | (2,263) | (2,164) | | Loss Before Income Tax Expense | (66,004) | (57,205) | | Income Tax Expense | — | — | | Loss for the Period | (66,004) | (57,205) | | Total Comprehensive Expense for the Period | (149,681) | (115,180) | Attribution of Loss and Total Comprehensive Expense for the Period (For the Six Months Ended June 30) | Attributable to | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Loss for the Period:** | | | | Owners of the Company | (59,293) | (54,246) | | Non-controlling Interests | (6,711) | (2,959) | | **Total Comprehensive Expense:** | | | | Owners of the Company | (142,970) | (112,025) | | Non-controlling Interests | (6,711) | (3,155) | Loss per Share (For the Six Months Ended June 30) | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and Diluted Loss per Share | (7.70) | (7.22) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total non-current assets decreased to RMB 301,140 thousand, while net current assets increased to RMB 236,861 thousand, mainly due to higher cash and cash equivalents Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 196,833 | 189,979 | | Intangible Assets | 338 | 448 | | Financial assets at fair value through other comprehensive income | 98,374 | 181,926 | | Prepayments and Deposits | 1,409 | 1,411 | | Deferred Tax Assets | 4,186 | 4,186 | | **Total Non-current Assets** | **301,140** | **377,950** | | **Current Assets** | | | | Inventories | 55,867 | 59,018 | | Trade and Bills Receivables | 75,690 | 67,242 | | Prepayments, Deposits and Other Receivables | 70,734 | 81,994 | | Financial assets at fair value through profit or loss | 32,124 | 34,631 | | Cash and Cash Equivalents | 45,782 | 8,779 | | **Total Current Assets** | **280,197** | **251,664** | | **Current Liabilities** | | | | Trade Payables | 15,088 | 19,347 | | Other Payables and Accruals | 15,147 | 15,824 | | Bank Borrowings | 10,000 | 10,000 | | Lease Liabilities | 3,101 | 3,036 | | **Total Current Liabilities** | **43,336** | **48,207** | | **Net Current Assets** | **236,861** | **203,457** | | **Non-current Liabilities** | | | | Lease Liabilities | 5,074 | 3,618 | | **Net Assets** | **532,927** | **577,789** | | **Total Equity** | **532,927** | **577,789** | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Equity attributable to owners decreased from RMB 540,837 thousand to RMB 502,686 thousand in H1 2025, primarily due to loss, fair value changes, and exchange differences, partially offset by new share proceeds Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Equity Item | January 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | Total Comprehensive Income (RMB thousand) | Placement of New Shares (RMB thousand) | Share-based Payment Expenses (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity attributable to Owners of the Company | 540,837 | (59,293) | (142,970) | 84,028 | 20,791 | 502,686 | | Non-controlling Interests | 36,952 | (6,711) | (6,711) | — | — | 30,241 | | **Total Equity** | **577,789** | **(66,004)** | **(149,681)** | **84,028** | **20,791** | **532,927** | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This chapter details the basis of preparation, accounting policies, and specific changes in financial statement items, offering supplementary information for understanding the Group's financial position and operating results [1. General Information, Basis of Preparation and Accounting Policies](index=7&type=section&id=1.%20General%20Information%2C%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Registered in the Cayman Islands and listed in Hong Kong, the Company primarily designs, develops, manufactures, and sells semiconductor products in China, with financial statements prepared under HKAS 34 and reviewed by the audit committee - The Company is incorporated in the Cayman Islands, with its shares listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 6908)[8](index=8&type=chunk) - The Group's principal business involves the design, development, manufacturing, subcontracting services, and sales of semiconductor products in China, including LED beads, GaN chips, GaN devices and related application products, and fast charging products[8](index=8&type=chunk) - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and comply with the applicable disclosure provisions of the Listing Rules[9](index=9&type=chunk) - The adoption of new and revised HKFRSs has no significant impact on the Group's results and financial position for the current or prior periods[9](index=9&type=chunk) - The condensed consolidated financial statements have not been audited by the Company's auditor but have been reviewed by the Company's audit committee[11](index=11&type=chunk) [2. Changes in Hong Kong Financial Reporting Standards](index=8&type=section&id=2.%20Changes%20in%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability," which had no significant impact on its interim condensed consolidated financial information - The Group has adopted HKAS 21 (Amendment) "Lack of Exchangeability"[12](index=12&type=chunk) - The new and revised standard has no significant impact on the Group's interim condensed consolidated financial information[13](index=13&type=chunk) [3. Segment Information](index=8&type=section&id=3.%20Segment%20Information) The Group operates in LED and GaN semiconductor segments in China, with H1 2025 revenues of RMB 24,930 thousand for LED and RMB 8,131 thousand for GaN - The Group has two reportable operating segments: (i) LED products segment and (ii) GaN and other semiconductor products segment[14](index=14&type=chunk) Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Segment Revenue** | | | | LED Products | 24,930 | 33,220 | | GaN and Other Semiconductor Products | 8,131 | 1,032 | | **Total** | **33,061** | **34,252** | | **Segment Results** | | | | LED Products | (3,084) | (5,327) | | GaN and Other Semiconductor Products | (31,711) | (44,803) | | **Total** | **(34,795)** | **(50,130)** | | Other Unallocated (Loss before income tax) | (31,209) | (7,075) | | **Loss Before Income Tax** | **(66,004)** | **(57,205)** | [4. Revenue, Other Income and Gains](index=8&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Revenue primarily from LED and GaN products totaled RMB 33,061 thousand in H1 2025, with other income and gains significantly reduced to RMB 351 thousand due to lower government grants - The Group is principally engaged in the design, development, manufacturing, and sales of semiconductor products in China, including LED beads, GaN chips, GaN devices, and related application products[16](index=16&type=chunk) Analysis of Revenue, Other Income and Gains (For the Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Revenue:** | | | | Sales of LED beads | 24,930 | 33,220 | | Sales of GaN and fast charging products | 8,131 | 1,032 | | **Total Revenue** | **33,061** | **34,252** | | **Other Income and Gains:** | | | | Bank interest income | 8 | 23 | | Government grants | 263 | 4,310 | | Other income | 80 | 2,452 | | **Total Other Income and Gains** | **351** | **6,785** | - A significant decrease in government grants was the primary reason for the decline in other income and gains[18](index=18&type=chunk) [5. Finance Costs](index=9&type=section&id=5.%20Finance%20Costs) Finance costs for H1 2025 slightly increased, primarily consisting of interest on bank borrowings and lease liabilities Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 1,935 | 1,797 | | Interest on lease liabilities | 328 | 367 | | **Total Finance Costs** | **2,263** | **2,164** | [6. Income Tax Expense](index=9&type=section&id=6.%20Income%20Tax%20Expense) The Group incurred no income tax expense, with its Chinese subsidiary, Zhuhai Hongguang Semiconductor, benefiting from a 15% preferential corporate income tax rate - For the six months ended June 30, 2025, the Group's income tax expense was **zero**[20](index=20&type=chunk)[21](index=21&type=chunk) - Zhuhai Hongguang Semiconductor Co., Ltd., as a high-tech enterprise, enjoys a preferential corporate income tax rate of **15%** and can continue to pay corporate income tax at this preferential rate until the end of 2025[21](index=21&type=chunk)[22](index=22&type=chunk) [7. Dividends](index=10&type=section&id=7.%20Dividends) The Company neither paid nor declared any dividends for the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries paid or declared any dividends during the six months ended June 30, 2025[23](index=23&type=chunk) [8. Loss per Share](index=11&type=section&id=8.%20Loss%20per%20Share) Basic and diluted loss per share for H1 2025 was RMB 7.70 cents, an increase from RMB 7.22 cents, primarily due to the widened loss for the period Loss per Share Calculation (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand/share) | 2024 (RMB thousand/share) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (59,293) | (54,246) | | Weighted average number of ordinary shares for basic loss per share calculation | 769,727,418 | 751,054,785 | | Basic and diluted loss per share (RMB cents) | (7.70) | (7.22) | - Potential ordinary shares related to share options were not included in the calculation of loss per share as their inclusion would be anti-dilutive[24](index=24&type=chunk) [9. Property, Plant and Equipment](index=11&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, property, plant and equipment increased, mainly due to right-of-use assets and acquisitions of approximately **RMB 15.0 million** - As of June 30, 2025, the Group's right-of-use assets primarily comprise property leases for offices in Hong Kong and factories in Xuzhou and Zhuhai[25](index=25&type=chunk) - The cost of property, plant and equipment acquired during the period was approximately **RMB 15.0 million** (prior period: approximately RMB 9.3 million)[26](index=26&type=chunk) [10. Intangible Assets](index=12&type=section&id=10.%20Intangible%20Assets) Intangible assets, mainly patent sub-licenses and software, totaled approximately **RMB 0.3 million** as of June 30, 2025, with amortization expenses of approximately **RMB 0.2 million** - The Group's intangible assets include patent sub-licenses and computer software[27](index=27&type=chunk) - For the six months ended June 30, 2025, the Group did not acquire or dispose of any intangible assets, and amortization expenses were approximately **RMB 0.2 million**[27](index=27&type=chunk) Carrying Amount of Intangible Assets | Date | Carrying Amount (RMB million) | | :--- | :--- | | June 30, 2025 | 0.3 | | December 31, 2024 | 0.4 | [11. Trade and Bills Receivables](index=12&type=section&id=11.%20Trade%20and%20Bills%20Receivables) Trade and bills receivables totaled **RMB 75,690 thousand** as of June 30, 2025, with the 0-30 day category being the largest and impairment provisions slightly increasing Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 60,670 | 54,267 | | Bills receivables | 15,020 | 12,975 | | **Total** | **75,690** | **67,242** | Aging Analysis of Trade and Bills Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 40,919 | 34,573 | | 31 to 60 days | 7,044 | 8,858 | | 61 to 90 days | 11,983 | 6,719 | | 91 to 120 days | 5,461 | 4,945 | | 121 to 365 days | 8,022 | 7,264 | | Over 1 year | 17,824 | 20,270 | | **Gross amount** | **91,253** | **82,629** | | Less: Impairment | (15,563) | (15,387) | | **Net amount** | **75,690** | **67,242** | [12. Prepayments, Deposits and Other Receivables](index=13&type=section&id=12.%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) Prepayments, deposits, and other receivables totaled **RMB 72,143 thousand** as of June 30, 2025, mainly comprising raw material prepayments to third-party suppliers Prepayments, Deposits and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other receivables | 32,692 | 36,490 | | Prepayments and deposits | 39,451 | 46,915 | | **Total** | **72,143** | **83,405** | | Less: Non-current portion | (1,409) | (1,411) | | **Current portion** | **70,734** | **81,994** | - Prepayments primarily include prepayments for raw materials to independent third-party suppliers of approximately **RMB 36.4 million** (December 31, 2024: approximately RMB 42.8 million)[29](index=29&type=chunk) [13. Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=13.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets at fair value through profit or loss, primarily unlisted fund investments, totaled approximately **RMB 32.1 million** as of June 30, 2025, with a fair value loss of approximately **RMB 1.6 million** recognized - Financial assets at fair value through profit or loss refer to investments in unlisted funds[30](index=30&type=chunk) Financial Assets at Fair Value Through Profit or Loss | Date | Fair Value (RMB million) | | :--- | :--- | | June 30, 2025 | 32.1 | | December 31, 2024 | 34.6 | - For the six months ended June 30, 2025, a fair value loss of approximately **RMB 1.6 million** was recognized[30](index=30&type=chunk) [14. Financial Assets at Fair Value Through Other Comprehensive Income ("FVOCI")](index=13&type=section&id=14.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income%20%28%22FVOCI%22%29) Financial assets at FVOCI, mainly unlisted equity, totaled approximately **RMB 98.4 million** as of June 30, 2025, with a **RMB 78.4 million** fair value loss recognized, primarily from the Vis IC investment Financial Assets at Fair Value Through Other Comprehensive Income | Date | Fair Value (RMB thousand) | | :--- | :--- | | June 30, 2025 | 98,374 | | December 31, 2024 | 181,926 | - The 10% ordinary share investment in a Chinese company (China Company Investment) had a fair value of **zero** as of June 30, 2025[32](index=32&type=chunk) - The investment in Israeli company Vis IC had a fair value of approximately **USD 13.7 million** (approximately **RMB 98.4 million**), a significant decrease from USD 24.9 million (approximately RMB 181.9 million) at the end of 2024[33](index=33&type=chunk) - For the six months ended June 30, 2025, a fair value loss of approximately **RMB 78.4 million** was recognized[34](index=34&type=chunk) [15. Cash and Cash Equivalents](index=14&type=section&id=15.%20Cash%20and%20Cash%20Equivalents) Cash and cash equivalents significantly increased to **RMB 45,782 thousand** as of June 30, 2025, primarily in RMB and HKD, with RMB balances subject to Chinese government exchange restrictions Cash and Cash Equivalents (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank balances and cash | 45,782 | 8,779 | | Denominated in RMB | 24,541 | 7,473 | | Denominated in HKD | 20,777 | 1,166 | | Denominated in USD | 464 | 141 | - Bank balances and cash denominated in RMB are not freely convertible, and the remittance of such funds out of China is subject to exchange restrictions imposed by the Chinese government[35](index=35&type=chunk) [16. Trade Payables](index=14&type=section&id=16.%20Trade%20Payables) Trade payables decreased to **RMB 15,088 thousand** as of June 30, 2025, with most amounts due within 90 days Trade Payables (As of June 30) | Date | Amount (RMB thousand) | | :--- | :--- | | June 30, 2025 | 15,088 | | December 31, 2024 | 19,347 | Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 5,139 | 7,364 | | 31 to 60 days | 3,332 | 4,273 | | 61 to 90 days | 2,677 | 2,852 | | 91 to 120 days | 1,604 | 1,283 | | 121 to 365 days | 1,340 | 1,718 | | Over 1 year | 996 | 1,857 | | **Total** | **15,088** | **19,347** | [17. Bank Borrowings](index=15&type=section&id=17.%20Bank%20Borrowings) Total bank borrowings were **RMB 10.0 million** as of June 30, 2025, comprising unsecured interest-bearing loans at an effective annual rate of **3.35%**, with no covenant breaches Bank Borrowings (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank loans—unsecured | 10,000 | 10,000 | - The effective interest rate for unsecured interest-bearing bank borrowings was **3.35%** per annum[37](index=37&type=chunk) - No breaches of covenants relating to the facilities drawn were noted at each reporting period end[37](index=37&type=chunk) [18. Related Party Transactions](index=16&type=section&id=18.%20Related%20Party%20Transactions) Related party transactions with Zhuhai Special Economic Zone Lijia Electronic Development Co., Ltd. totaled **RMB 875 thousand** for H1 2025, covering public utility and lease expenses Related Party Transactions (For the Six Months Ended June 30) | Related Party Name | Nature of Transaction | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Zhuhai Special Economic Zone Lijia Electronic Development Co., Ltd. | Public utility expenses | 689 | 813 | | Zhuhai Special Economic Zone Lijia Electronic Development Co., Ltd. | Lease expenses | 186 | 186 | | **Total** | **875** | **999** | - This related party is beneficially owned by Mr. Zhao Yiwen, a director of the Company[38](index=38&type=chunk) [19. Share-based Payment Transactions](index=16&type=section&id=19.%20Share-based%20Payment%20Transactions) The Group offers incentives via share option, share award, and employee share award schemes, recognizing approximately **RMB 20.8 million** in share-based payment expenses for H1 2025 [Share Option Scheme](index=16&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The share option scheme rewards contributors, with some 2021 and 2023 options unexercised and approximately **RMB 2.9 million** in related expenses recognized for the period - The Share Option Scheme aims to provide incentives and/or rewards to eligible participants for their services and/or contributions to the successful operation of the Group[39](index=39&type=chunk) - For the six months ended June 30, 2025, the Company recognized expenses of approximately **RMB 2.9 million** (prior period: approximately RMB 3.0 million) for services provided during the vesting period under the Share Option Scheme[43](index=43&type=chunk) Details of 2021 Share Option Movements (As of June 30, 2025) | Grant Date | Subscription Price (HKD) | Unexercised as of January 1, 2025 | Unexercised as of June 30, 2025 | Vested and Exercisable as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | June 17, 2021 | 7.50 | 9,037,500 | 6,537,500 | 3,537,500 | Details of 2023 Share Option Movements (As of June 30, 2025) | Grant Date | Subscription Price (HKD) | Unexercised as of January 1, 2025 | Unexercised as of June 30, 2025 | Vested and Exercisable as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | July 28, 2023 | 1.40 | 4,152,500 | 2,057,500 | 2,057,500 | [Share Award Scheme](index=18&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The Company adopted a share award scheme to recognize and retain employees, recognizing approximately **RMB 17.9 million** in expenses for H1 2025 from first and second tranches - The Share Award Scheme aims to recognize and reward the contributions of eligible participants and attract suitable talent[44](index=44&type=chunk) - For the six months ended June 30, 2025, the Company recognized expenses of approximately **RMB 0.3 million** (prior period: approximately RMB 2.0 million) under the first tranche of share awards[48](index=48&type=chunk) - For the six months ended June 30, 2025, the Company recognized expenses of approximately **RMB 17.6 million** (prior period: nil) under the second tranche of share awards[50](index=50&type=chunk) Details of First Tranche Share Awards (As of June 30, 2025) | Grant Date | Unexercised as of January 1, 2025 | Unexercised as of June 30, 2025 | Vested and Exercisable as of June 30, 2025 | | :--- | :--- | :--- | :--- | | January 31, 2024 | 7,330,000 | 6,360,000 | 6,360,000 | Details of Second Tranche Share Awards (As of June 30, 2025) | Grant Date | Unexercised as of January 1, 2025 | Unexercised as of June 30, 2025 | Vested and Exercisable as of June 30, 2025 | | :--- | :--- | :--- | :--- | | December 4, 2024 | 66,815,478 | 66,780,000 | — | [Employee Share Award Scheme](index=20&type=section&id=%E5%83%B1%E5%93%A1%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The employee share award scheme allows indirect investment in Jiangsu GaN Semiconductor, but no expenses were recognized for H1 2025 - The Employee Share Award Scheme aims to provide grantees with opportunities to indirectly invest in Jiangsu GaN Semiconductor Co., Ltd. and share in its future growth and achievements[51](index=51&type=chunk) - As of June 30, 2024, the fair value of approximately **19.10%** equity interest in Shenzhen GaN Semiconductor Co., Ltd. held by the employee shareholding platform was approximately **RMB 50.3 million**[51](index=51&type=chunk) - For the six months ended June 30, 2025, the Company recognized **nil** expenses under the Employee Share Award Scheme (prior period: RMB 24.8 million)[52](index=52&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This chapter outlines the Group's H1 2025 business development, industry environment, and strategic outlook, focusing on its transition to GaN products and IDM enterprise goals to capture new market opportunities [Introduction](index=21&type=section&id=%E7%B7%92%E8%A8%80) The Company primarily designs, develops, manufactures, and sells semiconductor products in China, transitioning to third-generation GaN products with the goal of becoming a full-产业链 IDM enterprise - The Group is principally engaged in the design, development, manufacturing, subcontracting, and sales of semiconductor products in China, including LED beads, new generation gallium nitride (GaN) chips, and GaN device-related application products[53](index=53&type=chunk) - The Group has been committed in recent years to developing applications for third-generation GaN semiconductor products and gradually achieving business transformation[53](index=53&type=chunk) - The goal is to become a full-产业链 semiconductor Integrated Device Manufacturer (IDM) enterprise covering R&D, manufacturing, packaging and testing, and sales, with a particular focus on semiconductor design and manufacturing[53](index=53&type=chunk) [Industry Review](index=21&type=section&id=%E8%A1%8C%E6%A5%AD%E5%9B%9E%E9%A1%A7) H1 2025 saw challenges in LED lighting but strong growth in semiconductors, particularly in China, driven by government support and demand from new energy, automotive electronics, and AI, with GaN showing robust demand - In H1 2025, the LED lighting industry faced continuous negative impacts, primarily due to a sluggish real estate market, weak consumer electronics spending, and intensified industry competition[54](index=54&type=chunk) - China is the world's second-largest semiconductor market, with demand showing strong growth momentum in areas such as technological innovation, power devices, automotive electronics, artificial intelligence, and the Internet of Things[54](index=54&type=chunk) - WSTS forecasts the global semiconductor market to grow by **11.2%** to **USD 700.9 billion** in 2025, with the H1 2025 global semiconductor market reaching **USD 346.0 billion**, a year-on-year increase of **18.9%**[55](index=55&type=chunk) - The US-China tech war and export control measures have prompted China to increase investment in semiconductor R&D, accelerating domestic substitution and independent innovation, thereby driving rapid industrial development[56](index=56&type=chunk) - GaN, as a third-generation semiconductor, is experiencing surging demand in the new energy and new energy vehicle sectors, with China's new energy vehicle market developing rapidly and maintaining strong demand for third-generation semiconductor power devices[57](index=57&type=chunk) - The Chinese government advocates accelerating the industrialization of new materials and technologies for third-generation semiconductors in the "14th Five-Year Plan and Long-Range Objectives Through 2035"[58](index=58&type=chunk) [Business Review](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group advanced its GaN semiconductor strategy, completing key equipment installations; despite a **3.5%** revenue decrease to **RMB 33.1 million**, gross profit increased by **18.2%** to **RMB 3.2 million**, with GaN revenue reaching **25%** of total - While maintaining its LED bead business, the Group continued to fully develop the third-generation semiconductor industry chain, completing the production debugging of GaN epitaxy equipment and the procurement and installation of core equipment for the chip production line[59](index=59&type=chunk) - Revenue for the period was approximately **RMB 33.1 million**, a decrease of approximately **3.5%** from the prior period (prior period: approximately RMB 34.3 million), but gross profit increased by approximately **18.2%** to approximately **RMB 3.2 million**[59](index=59&type=chunk) - Revenue for the period comprised **75%** from LED bead business and **25%** from GaN business, indicating a significant increase in the proportion of GaN business[59](index=59&type=chunk) - Loss for the period attributable to owners of the Company was approximately **RMB 59.3 million**[59](index=59&type=chunk) [Outlook](index=23&type=section&id=%E5%B1%95%E6%9C%9B) The Group anticipates high growth in the GaN power device market, driven by new energy and green energy, and will invest in R&D, capacity, and partnerships to become a full-产业链 GaN IDM enterprise - The GaN power device market is projected to grow from **USD 46 million** in 2020 to **USD 1.1 billion** in 2026, with a CAGR of **70%**, primarily driven by green energy generation, electric vehicles, charging piles, and energy storage demand[60](index=60&type=chunk) - New energy vehicles are the main driver of growth in the GaN power product market, with local Chinese brands accounting for over **80%** of the electric vehicle market share[61](index=61&type=chunk) - The Group will continue to intensify efforts to improve the third-generation GaN semiconductor industry chain, accelerate R&D and expand applications for GaN-related products, and actively seek strategic partners[61](index=61&type=chunk) - The goal is to become a full-产业链 GaN IDM enterprise integrating R&D, manufacturing, packaging, testing, and sales[61](index=61&type=chunk) - The Chinese government has elevated self-reliance and control in the chip industry to a key national strategic level, providing long-term and strong support for the semiconductor sector[62](index=62&type=chunk) [Financial Performance Analysis](index=25&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) This chapter analyzes the Group's H1 2025 financial performance, covering revenue, costs, margins, other income, and expenses, and identifies key reasons for the widened loss [Revenue](index=25&type=section&id=%E6%94%B6%E7%9B%8A) Total revenue for the period was **RMB 33.1 million**, a **3.5%** decrease, mainly due to lower LED sales, while GaN product revenue significantly increased to **RMB 8.1 million**, reaching **24.6%** of total revenue - Total revenue for the period was approximately **RMB 33.1 million**, a decrease of approximately **3.5%** from the prior period (prior period: approximately RMB 34.3 million), primarily due to reduced sales revenue from LED products[63](index=63&type=chunk) Revenue Breakdown by Segment (For the Six Months Ended June 30) | Segment | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | LED Products | 24,930 | 75.4 | 33,220 | 97.0 | | GaN and Other Semiconductor Products | 8,131 | 24.6 | 1,032 | 3.0 | | **Total** | **33,061** | **100.0** | **34,252** | **100.0** | - Revenue from GaN and other semiconductor products was approximately **RMB 8.1 million** (prior period: approximately RMB 1.0 million), accounting for approximately **24.6%** of total revenue (prior period: approximately 3.0%)[64](index=64&type=chunk) [Cost of Sales](index=25&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by **5.4%** to **RMB 29.8 million**, primarily due to lower material costs resulting from reduced LED product sales volume - Cost of sales decreased by approximately **5.4%** from approximately **RMB 31.5 million** in the prior period to approximately **RMB 29.8 million** in the current period[65](index=65&type=chunk) - The decrease was mainly due to a reduction in LED product sales volume, leading to lower material costs incurred[65](index=65&type=chunk) [Gross Profit and Gross Profit Margin](index=26&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased from **RMB 2.7 million** to **RMB 3.2 million**, with gross profit margin rising from **7.9%** to **9.7%**, driven by significant improvement in GaN product margins despite a slight decline in LED margins - Gross profit increased from approximately **RMB 2.7 million** in the prior period to approximately **RMB 3.2 million** in the current period, with the gross profit margin rising from approximately **7.9%** to approximately **9.7%**[66](index=66&type=chunk) Gross Profit and Gross Profit Margin Breakdown by Segment (For the Six Months Ended June 30) | Segment | 2025 Gross Profit (RMB thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | LED Products | 2,359 | 9.7 | 3,495 | 10.5 | | GaN and Other Semiconductor Products | 855 | 10.5 | (777) | -75.3 | | **Total Gross Profit/Gross Profit Margin** | **3,214** | **9.7** | **2,718** | **7.9** | - The gross profit margin for LED beads decreased from approximately **10.5%** in the prior period to approximately **9.7%** in the current period, mainly due to a decrease in the average selling price of LED beads[66](index=66&type=chunk) [Other Income and Gains](index=26&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains significantly decreased by **94.1%** to **RMB 0.4 million**, primarily due to reduced government grants from the Chinese government - Other income and gains decreased by approximately **94.1%** from approximately **RMB 6.8 million** in the prior period to approximately **RMB 0.4 million** in the current period[67](index=67&type=chunk) - The decrease was mainly due to a reduction in government grants from the Chinese government during the current period[67](index=67&type=chunk) [Selling and Distribution Expenses](index=26&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased by **12.5%** to **RMB 1.4 million**, mainly due to reduced staff, travel, and entertainment costs - Selling and distribution expenses decreased by approximately **12.5%** from approximately **RMB 1.6 million** in the prior period to approximately **RMB 1.4 million** in the current period[68](index=68&type=chunk) - The decrease was mainly due to a reduction in staff costs for sales and marketing, travel expenses, and entertainment expenses[68](index=68&type=chunk) [Administrative and Other Expenses](index=26&type=section&id=%E8%A1%8C%E6%94%BF%E5%8F%8A%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) Administrative and other expenses increased by **4.5%** to **RMB 65.7 million**, primarily driven by a significant increase in research and development costs - Administrative and other expenses increased by approximately **4.5%** from approximately **RMB 62.9 million** in the prior period to approximately **RMB 65.7 million** in the current period[69](index=69&type=chunk) - The increase in administrative and other expenses was mainly due to an increase in research and development costs[69](index=69&type=chunk) - During the current period, the Group's research and development costs were approximately **RMB 23.5 million** (prior period: approximately RMB 11.4 million)[70](index=70&type=chunk) [Finance Costs](index=27&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the period were approximately **RMB 2.3 million**, a slight increase from **RMB 2.2 million** in the prior period Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Finance Costs | 2.3 | 2.2 | [Income Tax Expense](index=27&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The Group's income tax expense for the current period remained **zero**, consistent with the prior period - For the current period, the Group's income tax expense was **nil** (prior period: nil)[72](index=72&type=chunk) [Loss for the Period](index=27&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E8%99%A7%E6%90%8D) Loss for the period increased to approximately **RMB 66.0 million** from **RMB 57.2 million**, mainly due to higher administrative and other expenses Loss for the Period (For the Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Loss for the Period | 66.0 | 57.2 | - The increase in loss for the period was mainly due to an increase in administrative and other expenses during the current period[73](index=73&type=chunk) [Net Profit Margin](index=27&type=section&id=%E7%B4%94%E5%88%A9%E7%8E%87) The Group recorded a negative net profit margin of approximately **199.6%**, up from **167.0%** in the prior period, primarily due to widened loss from increased administrative expenses Net Profit Margin (For the Six Months Ended June 30) | Item | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Negative Net Profit Margin | 199.6 | 167.0 | - The increase in negative net profit margin during the current period was mainly due to an increase in administrative and other expenses[74](index=74&type=chunk) [Dividends](index=27&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the current period, aligning with the Group's future business development - To align with the Group's future business development, the Directors do not recommend the payment of an interim dividend for the current period (prior period: nil)[75](index=75&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June 30, 2025, net current assets and current ratio increased due to higher bank balances from the 2024 rights issue, while total bank facilities remained stable and the gearing ratio slightly rose Liquidity and Financial Resources (As of June 30) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Net Current Assets | 236.9 | 203.5 | | Current Ratio | 6.5 | 5.2 | | Total Cash and Bank Balances | 45.8 | 8.8 | | Total Available Bank Facilities | 10.0 | 10.0 | | Total Bank Facilities Utilized | 10.0 | 10.0 | | Equity Attributable to Owners of the Company | 502.7 | 540.8 | - The increase in current ratio was mainly due to an increase in bank balances[76](index=76&type=chunk) - The increase in total cash and bank balances was mainly due to the proceeds received from the Company's rights issue in February 2025[76](index=76&type=chunk) Gearing Ratio (As of June 30) | Date | Gearing Ratio (%) | | :--- | :--- | | June 30, 2025 | 1.9 | | December 31, 2024 | 1.7 | [Material Investments, Significant Investments and Future Plans for Capital Assets](index=28&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) The Group holds material investments in Vis IC, Beijing Hongzhi, and HighTec SP2 Fund; Vis IC, a strategic investment, and HighTec SP2 Fund both recognized fair value losses, though the latter has promising prospects [Vis IC Technologies Limited](index=28&type=section&id=Vis%20IC%20Technologies%20Limited) In 2021, the Group acquired Vis IC Series E preferred shares for approximately **USD 25 million**; as of June 30, 2025, its fair value was approximately **RMB 98.4 million**, with a fair value loss of approximately **RMB 78.3 million** recognized - Fast Semi Holding Limited, a wholly-owned subsidiary of the Company, acquired 1,749,961 Series E preferred shares of Vis IC in 2021 for approximately **USD 25 million**, representing approximately **12.87%** of its enlarged issued share capital[79](index=79&type=chunk) Fair Value of Vis IC Investment | Date | Fair Value (RMB million) | | :--- | :--- | | June 30, 2025 | 98.4 | | December 31, 2024 | 181.9 | - A fair value loss of approximately **RMB 78.3 million** was recognized through other comprehensive income during the current period[79](index=79&type=chunk) - The Group plans to hold its stake in Vis IC as a long-term investment, as it is one of the leading enterprises in the third-generation GaN device sector[79](index=79&type=chunk) [Beijing Hongzhi Diantong Technology Co., Ltd.](index=28&type=section&id=%E5%8C%97%E4%BA%AC%E9%B4%BB%E6%99%BA%E9%9B%BB%E9%80%9A%E7%A7%91%E6%8A%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8) In 2021, the Group invested **RMB 15 million** for a **10%** ordinary share stake in Beijing Hongzhi, whose fair value was **zero** as of June 30, 2025 - Xuzhou Jinshajiang Semiconductor Co., Ltd., a wholly-owned subsidiary of the Company, invested **RMB 15 million** in 2021 for a **10%** ordinary share stake in Beijing Hongzhi[80](index=80&type=chunk) - The fair value of this investment was **zero** as of June 30, 2025[80](index=80&type=chunk) [HighTec SP2 Fund](index=29&type=section&id=HighTec%20SP2%20Fund) The Group subscribed for approximately **USD 5 million** in HighTec SP2 Fund shares in 2021-2022; as of June 30, 2025, its fair value was approximately **RMB 32.1 million**, with a **RMB 1.6 million** fair value loss recognized - Fast Semi collectively subscribed for approximately **USD 5 million** in shares of HighTec SP2 Fund in December 2021 and January 2022[81](index=81&type=chunk)[82](index=82&type=chunk) - The fund's investment strategy primarily involves investing directly or through other investment vehicles in equity securities of world-leading semiconductor design and manufacturing companies[81](index=81&type=chunk) Fair Value of HighTec SP2 Fund Investment | Date | Fair Value (RMB million) | | :--- | :--- | | June 30, 2025 | 32.1 | - During the current period, a fair value loss of approximately **RMB 1.6 million** was recognized through profit or loss[82](index=82&type=chunk) [Material Acquisitions and Disposals](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) This chapter discloses the termination of a capital increase agreement for Shenzhen GaN Semiconductor due to an investor's failure to pay, leading to an adjustment of registered capital [Termination of Capital Increase Agreement](index=29&type=section&id=%E7%B5%82%E6%AD%A2%E5%A2%9E%E8%B3%87%E5%8D%94%E8%AD%B0) The capital increase agreement for Shenzhen GaN Semiconductor was terminated on January 1, 2025, as an investor failed to pay the **RMB 45 million** second installment, leading to registered capital adjustment based on the **RMB 55 million** initial payment - The investor (Taizhou Huirong Jianeng Youchuang Equity Investment Partnership (Limited Partnership)) failed to complete the payment of the second capital contribution of **RMB 45 million** to Shenzhen GaN Semiconductor Co., Ltd. within the extended period[85](index=85&type=chunk) - The capital increase agreement, together with its appendices and extension memorandum, was terminated on **January 1, 2025**, and the investor is no longer required to pay the second capital contribution[86](index=86&type=chunk) - Shenzhen GaN's registered capital after the capital increase will be calculated and adjusted based on the actual amount paid by the investor (first capital contribution of **RMB 55 million**)[87](index=87&type=chunk) [Other Significant Information](index=31&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BF%A1%E6%81%AF) This chapter covers capital commitments, pledged assets, contingent liabilities, exchange risk, employee policies, listed securities transactions, 2024 rights issue, directors' dealings, and corporate governance [Capital Commitments](index=31&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, contracted capital commitments for property, plant and equipment acquisitions totaled approximately **RMB 14.4 million** Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Capital commitments for acquisition of property, plant and equipment | 14.4 | 18.0 | [Pledged Assets of the Group](index=31&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The Group had **no pledged assets** as of June 30, 2025, and December 31, 2024 - As of June 30, 2025, and December 31, 2024, the Group had **no pledged assets**[89](index=89&type=chunk) [Contingent Liabilities](index=31&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group had **no material contingent liabilities** as of June 30, 2025 - As of June 30, 2025, the Group had **no material contingent liabilities**[90](index=90&type=chunk) [Exchange Rate Risk](index=31&type=section&id=%E5%BD%99%E5%85%8C%E9%A2%A8%E9%9A%AA) Operating primarily in China with RMB-settled transactions, the Group's exchange rate risk is considered immaterial, and no hedging occurred during the period - The Group primarily operates in China, with most of its transactions settled in RMB[91](index=91&type=chunk) - The Directors consider the exchange rate risk faced by the Group to be immaterial. During the current period, the Group did not hedge any exchange rate risk[91](index=91&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed **158** staff, with employee costs of approximately **RMB 37.1 million**, including **RMB 20.8 million** in share-based payments, aligning remuneration with industry and performance Number of Employees and Costs | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 158 | 161 | | Employee Costs (RMB million) | 37.1 | 44.2 | | Of which: Share-based Payment Expenses (RMB million) | 20.8 | 29.8 | - Employee remuneration levels are aligned with industry practices and prevailing market conditions, and determined based on the Company's performance and employee contributions[92](index=92&type=chunk) [Acquisition, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=%E6%94%B6%E8%B3%BC%E3%80%81%E9%8A%B7%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries acquired, sold, or redeemed any of the Company's listed securities during the period - During the current period, neither the Company nor any of its subsidiaries acquired, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk) [2024 Rights Issue](index=32&type=section&id=2024%20Rights%20Issue) The 2024 rights issue, completed in February 2025, raised approximately **HKD 87.8 million** net, primarily for R&D and working capital, with **HKD 59.5 million** utilized by June 30, 2025 - The Company completed its 2024 rights issue in February 2025, involving the issue and allotment of a total of **187,763,696** new ordinary shares, generating net proceeds of approximately **HKD 87.8 million**[94](index=94&type=chunk) - The purpose of the rights issue was to strengthen the Group's R&D capabilities and provide general working capital to meet its business development plans[94](index=94&type=chunk) Use of Proceeds from 2024 Rights Issue (As of June 30, 2025) | Purpose | Net Proceeds (HKD million) | Utilized (HKD million) | Unutilized (HKD million) | Expected Timeline for Utilization of Unutilized Proceeds | | :--- | :--- | :--- | :--- | :--- | | Enhance R&D capabilities | 52.7 | 24.4 | 28.3 | On or before December 31, 2025 | | Provide general working capital | 35.1 | 35.1 | — | — | | **Total** | **87.8** | **59.5** | **28.3** | | [Directors' Securities Dealings](index=32&type=section&id=Directors%27%20Securities%20Dealings) The Company adopted the Model Code for Directors' Securities Transactions and confirms **no breaches** during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[95](index=95&type=chunk) - The Company is not aware of any non-compliance with the required standards for directors' securities dealings during the current period[95](index=95&type=chunk) [Corporate Governance and Compliance with the Corporate Governance Code](index=33&type=section&id=Corporate%20Governance%20and%20Compliance%20with%20the%20Corporate%20Governance%20Code) The Company adopted and complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the period - The Company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its own corporate governance code[96](index=96&type=chunk) - The Board is satisfied that the Company has complied with the Corporate Governance Code during the current period[96](index=96&type=chunk) [Audit Committee and Review of Accounts](index=33&type=section&id=Audit%20Committee%20and%20Review%20of%20Accounts) The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the period, deeming them compliant, and is chaired by Mr. Zou Haiyan, comprising three independent non-executive directors - The Company's Audit Committee has discussed and reviewed the Group's unaudited condensed consolidated financial statements for the current period with the Group's management[97](index=97&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Zou Haiyan (Chairman), Mr. Xiao Miaowen, and Ms. Liu Wanwen[97](index=97&type=chunk)

Group 1 - Semiconductor stocks in Hong Kong showed strong performance, with notable gains in several companies [1] - Shun Tai Holdings surged over 18%, while SMIC and Shanghai Fudan both increased by over 8% [1][2] - Other companies like Jingmen Semiconductor, Huahong Semiconductor, and Hongguang Semiconductor also experienced significant increases, ranging from 3% to 6% [1][2] Group 2 - Shun Tai Holdings (code: 01335) rose by 18.32% to a price of 0.155, with a total market capitalization of 3.77 billion [2] - SMIC (code: 00981) increased by 8.98% to 61.300, with a market cap of 4895.62 billion [2] - Shanghai Fudan (code: 01385) saw an 8.77% rise to 37.960, with a market value of 311.81 billion [2] - Jingmen Semiconductor (code: 02878) gained 6.00% to 0.530, with a market cap of 13.24 billion [2] - Huahong Semiconductor (code: 01347) increased by 5.78% to 55.800, with a total market value of 965.05 billion [2] - Hongguang Semiconductor (code: 06908) rose by 3.33% to 0.620, with a market cap of 5.82 billion [2]

Group 1 - Semiconductor stocks in Hong Kong continued their recent momentum, with Shanghai Fudan rising by 7.68%, SMIC by 7.02%, Hua Hong Semiconductor by 4.27%, and Jingmen Semiconductor by 4% [1][2] - According to TrendForce, the proportion of imported chips in China's AI server market is expected to decrease from 63% in 2024 to 42% by 2025, while domestic chip suppliers' share is projected to rise to 40%, indicating a trend towards domestic substitution [2] - The Chinese government recently issued opinions on the implementation of the "Artificial Intelligence +" initiative, emphasizing the integration of AI-driven technology research and development, which is expected to benefit the semiconductor and domestic computing sectors [3] Group 2 - Shanghai Fudan reported a revenue of 1.839 billion yuan for the first half of 2025, a year-on-year increase of 2.49%, but net profit fell by 44.38% to 194 million yuan [4] - Despite the decline in profit, Shanghai Fudan's stock price surged, reaching an intraday increase of nearly 11% [4]

格隆汇8月21日丨宏光半导体(06908.HK)公告，公司董事会会议将于2025年8月29日(星期五)举行，藉以 考虑及批准(其中包括)公司及其附属公司截至2025年6月30日止6个月未经审核中期业绩及发布该业绩公 告，及建议派发中期股息(如有)。 ...

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佈的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公佈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。 HG SEMICONDUCTOR LIMITED 宏 光 半 導 體 有 限 公 司 （ 於開曼群島註冊成立的有限公司） 承董事會命 宏光半導體有限公司 主席兼執行董事 徐志宏 香港，二零二五年八月二十一日 （股份代號：6908） 於本通告日期，執行董事為徐志宏博士、趙奕文先生及李陽先生；及獨立非執行董事為鄒海燕先生、蕭妙文 先生，MH及劉皖文女士。 董事會會議通告 宏 光半 導 體 有限 公 司（「本 公 司」， 之 董事（「 董 事」）會（「 董 事會」）欣 然宣 佈 ，本 公 司董 事 會 會議將於二零二五年八月二十九日（ 星期五 ）舉行，藉以考慮及批准（ 其中包括 ）本公司及其 附屬公司截至二零二五年六月三十日止六個月之未經審核中期業績及發佈該業績公告，及 建議派發中期股息（ 如有）。 本公佈中英文版本如有任何歧義，概以英文版本為準。 ...

Group 1 - Semiconductor stocks experienced a collective surge, with notable increases in shares of companies such as SMIC (3.5% increase), Hua Hong Semiconductor (3.09% increase), and others [1] - Hua Hong Semiconductor announced plans to acquire a controlling stake in Huali Micro through a combination of share issuance and cash payment, focusing on a portion of Huali Micro's mature process business [1] - This acquisition is part of a broader trend of mergers and acquisitions within the domestic semiconductor industry, aimed at strengthening Hua Hong's strategic focus on mature processes and specialty technologies, particularly in automotive, industrial, and consumer electronics markets [1] Group 2 - On August 6, former President Trump announced a 100% tariff on semiconductor imports to the United States, which is expected to significantly increase production costs and raise electronic product prices, thereby suppressing demand in the short term [1] - Following the tariff announcement, companies with investment plans in the U.S. showed positive stock market performance [1] - The long-term implications of tariffs may lead to a restructuring of the semiconductor supply chain, with production locations becoming more influenced by quantifiable tariff metrics rather than intangible factors [1]

Group 1 - Semiconductor stocks experienced a collective surge, with notable increases in shares of companies such as SMIC (3.5% increase), Hua Hong Semiconductor (3.09% increase), and others [1] - Hua Hong Semiconductor announced plans to acquire a controlling stake in Hua Li Micro through a combination of share issuance and cash payment, focusing on a portion of Hua Li Micro's mature process business [1] - This acquisition is part of a broader trend of mergers and acquisitions in the domestic semiconductor industry, aimed at strengthening Hua Hong's strategic focus on mature processes and specialty technologies, enhancing its competitive edge in automotive, industrial, and consumer electronics markets [1] Group 2 - On August 6, former President Trump announced a 100% tariff on semiconductor imports to the United States, which is expected to significantly increase production costs and raise electronic product prices, potentially suppressing demand [1] - Following the tariff announcement, companies with investment plans in the U.S. showed positive stock market performance [1] - The long-term implications of tariffs may lead to a restructuring of the semiconductor supply chain, with production locations becoming more influenced by tariff-related factors rather than intangible elements [1]

Group 1 - Semiconductor stocks showed significant gains in early trading, with Hongguang Semiconductor rising by 7.14% to HKD 0.6, Huahong Semiconductor up by 4.78% to HKD 49.58, Jingmen Semiconductor increasing by 3.16% to HKD 0.49, and SMIC rising by 2.88% to HKD 53.55 [1] - The National Internet Information Office of China has raised concerns regarding security risks associated with backdoor vulnerabilities in NVIDIA's computing chips, following reports of the U.S. embedding tracking devices in AI-related chips to monitor their transfer to China [1] - According to a report from Founder Securities, there is a strong outlook for two key directions in the semiconductor industry: self-controllability and edge AI. The report emphasizes that self-controllability is the main focus, with the domestic supply chain strengthening across AI computing, manufacturing, and packaging [1] Group 2 - Despite the current state of domestic AI computing chips being in a catch-up phase, the continuous iteration of products and the gradual enhancement of supply chain capabilities are expected to lead to an increase in market share [1]

（文章来源：每日经济新闻） 每经AI快讯，8月14日，港股半导体股拉升走高，华虹半导体、晶门半导体涨超5%，中芯国际、宏光半 导体涨近4%，上海复旦涨超2%。 ...

截至发稿，华虹半导体(01347.HK)涨6.13%、宏光半导体(06908.HK)涨5.77%、中芯国际(00981.HK)涨 5.13%。 ...