HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 (Incorporated in Hong Kong with limited liability) (Stock Code: 01347) （股份代號：01347） （於香港註冊成立之有限公司） 2024 中期報告 INTERIM REPORT DEFINITIONS In this interim report, unless the context otherwise requires, the following terms shall have the meanings set out below. | "Board" | the board of Directors of the Company; | | --- | --- | | "China" or "the PRC" | the People's Republic of China, but for the purpose of this interim report and | | | for geographical reference only, exc ...

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告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 （於香港註冊成立之有限公司） （股份代號：01347） 截至二零二四年六月三十日止六個月 中期業績公告 華虹半導體有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其子公司 截至二零二四年六月三十日止六個月的未經審核綜合業績。 本公告載列本公司二零二四年中期報告全文，並符合香港聯合交易所有限公司 （「香港聯交所」）證券上市規則有關中期業績初步公告附載資料之相關規定。 本公司二零二四年中期報告的印刷版本將於適當時候寄發予本公司股東，並可於 香港聯交所網站 www.hkexnews.hk 及本公司網站 www.huahonggrace.com 進行查 閱。 承董事會命 華虹半導體有限公司 董事長兼執行董事 張素心先生 中國上海，二零二四年八月二十九日 於本公告日期，本公司董事分別為： 執行董事： 張素心 （董事長） 唐 ...

国泰君安证券股份有限公司、海通证券股份有限公司 关于华虹半导体有限公司 2024年半年度持续督导跟踪报告 重大事项提示 2024年上半年，华虹半导体有限公司（以下简称"华虹公司"或"公司"） 营业收入673,215.88万元，较上年同期下降23.88%；归属于上市公司股东的净利 润26,491.63万元，归属于上市公司股东的扣除非经常性损益的净利润23,384.86万 元，分别较上年同期下降83.33%、83.46%。 受行业周期等影响，公司晶圆代工的平均销售价格下降、制造费用上升、研 发工程片开支增加，使得营业收入、归属于上市公司股东的扣除非经常性损益的 净利润均有所下降。2024年上半年，公司生产经营正常，不存在重大风险。 根据《证券发行上市保荐业务管理办法》《上海证券交易所科创板股票上市 规则》《上海证券交易所上市公司自律监管指引第11号——持续督导》等有关法 律法规的规定，国泰君安证券股份有限公司与海通证券股份有限公司（以下合称 "联席保荐人"）作为华虹公司持续督导工作的联席保荐人，负责华虹公司上市 后的持续督导工作，并出具本持续督导跟踪报告。 | 工作内容 | 持续督导情况 | | --- | -- ...

Financial Performance - The company reported a revenue of 1.2 billion RMB for the first half of 2024, representing a 15% increase compared to the same period in 2023[12]. - The company's operating revenue for the first half of 2024 was ¥6,732,158,761.10, a decrease of 23.88% compared to the same period last year[16]. - The net profit attributable to shareholders for the first half of 2024 was ¥264,916,278.85, down 83.33% year-on-year[16]. - The net cash flow from operating activities was ¥1,328,909,045.07, representing a decline of 40.72% compared to the previous year[16]. - Basic earnings per share for the first half of 2024 were ¥0.15, a decrease of 87.60% from ¥1.21 in the same period last year[17]. - The gross margin for the first half of 2024 was reported at 35%, a slight improvement from 33% in the previous year[12]. - The company reported a total of ¥31,067,663.58 in non-recurring gains and losses for the period[23]. - The company achieved operating revenue of RMB 6.732 billion in the first half of 2024, a decrease of 23.88% compared to RMB 8.844 billion in the same period last year[63]. - The net profit attributable to shareholders was RMB 265 million, reflecting a significant decline due to lower average selling prices[63]. - The comprehensive income for the first half of 2024 was a loss of approximately $458.56 million, compared to a gain of $894.55 million in the same period of 2023[162]. Research and Development - Research and development expenses increased by 25% year-over-year, focusing on advanced semiconductor technologies[12]. - Research and development expenses accounted for 11.50% of operating revenue, an increase of 3.91 percentage points year-on-year[17]. - The company reported a total R&D investment of ¥774,466,472.45, representing a 15.35% increase compared to ¥671,406,155.41 in the same period last year[33]. - The company has established a comprehensive R&D system and project management process to enhance innovation and upgrade various process platforms[25]. - The company is focused on expanding its specialty process technology and providing diversified wafer foundry services[24]. - The company has increased its R&D personnel to 1,298, representing 18.56% of the total workforce, up from 1,177 and 17.42% in the previous year[36]. - The company has filed 478 new invention patents during the reporting period, with 184 patents granted, bringing the total to 9,404 applications and 4,573 granted[32]. Market Expansion and Strategy - The company expects a revenue growth guidance of 10-15% for the second half of 2024, driven by new product launches and market expansion strategies[12]. - The company is exploring new markets in Southeast Asia, aiming for a 5% market share by the end of 2025[12]. - A strategic acquisition of a smaller semiconductor firm was completed, enhancing the company's technology portfolio and market position[12]. - The semiconductor foundry industry is experiencing rapid growth in China, driven by increasing demand from domestic chip design companies[28]. - The company continues to innovate in wafer manufacturing processes to meet diverse market demands, particularly in power devices and analog/power management[28]. Financial Position and Assets - The company's total assets increased by 11.49% to ¥84,986,190,575.20 compared to the end of the previous year[16]. - The company reported a total of 13,132.34 million RMB in related sales transactions, accounting for 2.08% of similar business[124]. - The company incurred 12,614.41 million RMB in related procurement transactions, representing 1.64% of similar business[125]. - The total amount of raised funds planned for investment is CNY 2,092,067.70 million, with CNY 238,719.53 million invested in the current year, representing 11.41% of the total planned investment[133]. - The total number of shares increased to 1,717,328,145, with a significant reduction in restricted shares by 97,340,348[139]. Environmental and Compliance - The company has completed environmental impact assessments for all key pollutant discharge projects and obtained necessary environmental protection permits[88]. - The company has established a comprehensive environmental protection internal control management system in its domestic subsidiaries, certified by ISO 14001[92]. - The company has implemented carbon reduction measures, including high-efficiency freezer renovations and heat recovery systems, to control carbon emissions[93]. - The company adheres to the relevant pollutant discharge standards, ensuring compliance with environmental regulations[86]. - There were no administrative penalties received due to environmental issues during the reporting period[90]. Governance and Shareholder Commitments - The company emphasizes the need for continuous technological upgrades and R&D investments to maintain competitive advantages in the rapidly evolving semiconductor industry[44]. - The company will ensure that profit distribution policies align with operational performance and development plans to enhance shareholder returns[106]. - The company commits to stabilizing its A-share stock price according to the "Stabilization Plan" approved by the shareholders' meeting[103]. - The company will take responsibility for any failure to fulfill commitments regarding share repurchase and stabilization measures[105]. - The company has confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[169].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's operational data has significantly improved, with a focus on expanding production capacity for long-term growth [2] - The second quarter of 2024 saw a year-on-year revenue decrease of 24.2% but a quarter-on-quarter increase of 4.0%, aligning with the company's guidance [2] - The gross profit margin improved to 10.5%, exceeding the previous quarter's guidance [2] Summary by Relevant Sections Revenue and Profitability - The company reported a total revenue of 478.5 million USD in Q2 2024, with a gross profit margin of 10.5% [2] - The net profit attributable to the parent company was 6.7 million USD, reflecting a 79.0% quarter-on-quarter increase [2] - Revenue guidance for Q3 2024 is set between 500-520 million USD, indicating a quarter-on-quarter growth of 4.5%-8.7% [2] Production and Capacity - The overall utilization rate for Q2 2024 was 97.9%, with 8-inch wafers at 107.6% and 12-inch wafers at 89.3% [2] - The company delivered 1,106K wafers, showing a year-on-year increase of 3% and a quarter-on-quarter increase of 7.8% [2] Product Performance - The embedded non-volatile memory segment saw a quarter-on-quarter increase of 15%, while power management products increased by 6% [2] - The 55/65nm process node achieved a year-on-year growth of 16.1%, with revenue contribution exceeding 20% [2] Financial Adjustments - The forecast for net profit attributable to the parent company has been adjusted to 733 million USD for 2024, 1.287 billion USD for 2025, and 1.999 billion USD for 2026 [2][3] - The price-to-earnings ratio is projected at 69X for 2024, 39X for 2025, and 25X for 2026 [2]

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。 华虹半导体有限公司 关于高级管理人员暨核心技术人员调整的公告 重要内容提示： | A 股代码：688347 | A 股简称：华虹公司 | 公告编号：2024-023 | | --- | --- | --- | | 港股代码：01347 | 港股简称：华虹半导体 | | 公司董事会于 2024 年 8 月 20 日作出决议，同意孔先生不再担任公司的执行 副总裁；同时，孔先生将不再作为公司的核心技术人员。孔先生在担任高级管理 人员及核心技术人员期间恪尽职守、勤勉尽责，为公司发展发挥了积极作用，公 司及董事会对此表示衷心感谢。 （一） 孔先生的基本情况 孔先生，1963年出生，美国国籍，应用物理专业博士学位。孔先生先后任职 于北京理工大学、美国 Schlumberger ATE 公司、美国 ISSI 公司、美国 LSI Logic 公司、美国 Sun Micro System 公司、上海宏力半导体制造有限公司、公司及其子 公司（上海华虹宏力半导体制造有限公司、华虹半导体（无锡）有限 ...

国泰君安证券股份有限公司、海通证券股份有限公司 公司董事会于2024年8月20日作出决议，同意Weiran Kong（孔蔚然）先生（ 以下简称"孔先生"）不再担任公司的执行副总裁；同时，孔先生将不再作为公 司的核心技术人员。 关于华虹半导体有限公司 高级管理人员暨核心技术人员调整的核查意见 国泰君安证券股份有限公司与海通证券股份有限公司（以下合称"联席保荐 人"）作为华虹半导体有限公司（以下简称"华虹公司"或"公司"）首次公开 发行人民币普通股（A股）股票并在科创板上市的联席保荐人，根据《证券发行上 市保荐业务管理办法》《上海证券交易所科创板股票上市规则》《上海证券交易 所上市公司自律监管指引第11号——持续督导》《上海证券交易所科创板上市公 司自律监管指引第1号——规范运作》等有关规定，对华虹公司高级管理人员暨核 心技术人员调整的事项进行了审慎核查，具体情况如下： 一、委任高级管理人员及核心技术人员的情况 经公司董事会于2024年8月20日作出书面决议，同意委任Guangping Hua（华 光平）先生（以下简称"华先生"）担任公司的执行副总裁；同时，公司将认定 华先生为公司的核心技术人员。华先生简历如下： ...

於本公告日期，本公司董事分別為： 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告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 （於香港註冊成立之有限公司） （股份代號：01347） 董事會會議日期通知 華虹半導體有限公司（「本公司」）特此通知，本公司謹訂於二零二四年八月二十九 日（星期四）上午十時三十分舉行董事會會議，以商討下列事項： 承董事會命 華虹半導體有限公司 董事長兼執行董事 張素心先生 中國上海，二零二四年八月十五日 執行董事 張素心 （董事長） 唐均君 （總裁） 非執行董事 葉峻 孫國棟 周利民 熊承艷 獨立非執行董事 張祖同 王桂壎太平紳士 封松林 1. 考慮及批准刊發本公司及其附屬公司截至二零二四年六月三十日止未經審核 中期業績；及 2. 商議任何其他事項。 ...

Group 1: Company Overview - Huahong Semiconductor is a leading foundry specializing in 8-inch and 12-inch wafer manufacturing, focusing on embedded/non-volatile memory, power devices, and logic/RF applications [1] - The company operates three 8-inch wafer fabs in Shanghai with a monthly capacity of approximately 180,000 wafers and one 12-inch fab in Wuxi with a monthly capacity of 94,500 wafers [2] Group 2: Financial Performance - In Q2 2024, the company reported sales revenue of $478.5 million, a decrease from $631.4 million in the same period last year and an increase from $460 million in the previous quarter [2] - The gross margin for Q2 2024 was 10.5%, down from 27.7% year-on-year and up from 6.4% quarter-on-quarter [2] - Net profit attributable to shareholders was $6.7 million, compared to $78.5 million in the same period last year and $31.8 million in the previous quarter [2] Group 3: Market Outlook - The company expects Q3 2024 sales revenue to be between $500 million and $520 million, with a gross margin forecast of 10% to 12% [3] - The semiconductor market is showing signs of slow recovery, particularly in consumer electronics, with capacity utilization rates nearing full capacity [3][4] Group 4: Production Capacity and Expansion - The second 12-inch production line is under construction and is expected to begin trial production by the end of 2024, which will enhance the company's capacity and capabilities [2][4] - The company maintains an optimistic outlook for capacity utilization rates above 95% for the second half of 2024 and into 2025 [4] Group 5: Pricing Strategy and Market Position - The company has adjusted prices recently, aiming for a 5-10% increase in overall pricing due to improved capacity utilization and product mix optimization [4] - The company aims to maintain a revenue distribution of 70% from mainland China and 30% from overseas markets, with expectations for overseas revenue to gradually recover [3][4]

Investment Rating - Buy rating maintained for the company [1] Core Views - The company is a global leader in specialty process wafer foundry, with a comprehensive portfolio of technology platforms including embedded/standalone non-volatile memory, power devices, analog and power management, and logic and RF [3] - The company has optimized its 8-inch product structure and is strengthening its advanced "specialty IC + power device" strategy with a new 12-inch production line [3] - The company's 12-inch production line in Wuxi has fully released its 9.45k wafers/month capacity, and the new 12-inch production line with 8.3k wafers/month capacity is expected to start production in 2025 [3] - The company's revenue from 8-inch wafers has grown due to product mix optimization, while 12-inch wafer revenue has rapidly increased due to capacity ramp-up and process stabilization [11] Financial Performance - The company's revenue is expected to reach 17.5/19.1/21.1 billion yuan in 2024/2025/2026, with net profit attributable to the parent company of 0.7/2.0/2.5 billion yuan [5] - The company's EBITDA is expected to be 5.18/7.82/11.91/13.60 billion yuan in 2024/2025/2026, with a PE ratio of 83/28/23 and a PB ratio of 1.32/1.27/1.19 [6] - The company's 8-inch wafer revenue is expected to continue to grow with product mix optimization, while the new 12-inch production line will open up further growth space [8] Technology and Market Position - The company is the largest smart card IC foundry globally and the largest MCU foundry in China, with leading power device foundry capabilities [3] - The company's power device portfolio is industry-leading, with advanced deep-trench super-junction MOSFET and IGBT technologies [3] - The company's 12-inch production line in Wuxi is the world's first 12-inch power device foundry line, covering IC process nodes from 90nm to 65/55nm [3] - The company's 8-inch wafer revenue grew due to product mix optimization, while 12-inch wafer revenue increased rapidly due to capacity ramp-up and process stabilization [11] Industry Outlook - China's mature process wafer foundry capacity share is expected to increase from 29% in 2022 to 33% in 2027 [4] - The global foundry market is expected to grow to $125.1 billion for pure-play foundries and $26.1 billion for IDM foundries by 2025 [4] - China's wafer foundry market share is expected to increase from 24% in 2022 to 28% in 2027, with mature process capacity share rising to 33% [4] Customer and Supplier Base - The company has a diverse and global customer base, with over one-third of the top 50 global chip design companies as clients [58] - The company's top five suppliers accounted for 32.17% of total procurement in 2023, with no single supplier exceeding 50% of total procurement [60]