Market Performance - The semiconductor industry index rose by 1.43% as of September 23, 2025, with notable gains from companies like Changchuan Technology (up 20.00%) and Huafeng Measurement Control (up 8.54%) [1] - The semiconductor industry ETF (159582) increased by 1.42%, reaching a price of 2.07 yuan, and has seen a cumulative increase of 9.79% over the past week [1] - The ChiNext chip index experienced a slight decline of 0.05%, with mixed performance among constituent stocks [3] - The new materials index on the ChiNext fell by 0.58%, with some stocks like Tonglian Precision gaining while others like Debang Technology declined [5] Investment Trends - Nvidia and OpenAI announced a partnership, with Nvidia planning to invest up to $100 billion in data centers, leading to a nearly 4% increase in Nvidia's stock price [6] - Domestic chip companies are making progress, with Moer Thread set to debut on the ChiNext and Muxi Co. entering the second round of inquiries for its IPO, focusing on high-performance GPU development [6] Technology Advancements - DeepSeek announced an upgrade to its model, enhancing language consistency and agent capabilities, while Yushu Technology showcased its humanoid robot's strong anti-interference abilities [7] - The continuous iteration of AI and robotics technology indicates ongoing optimization in AI application capabilities [8] ETF Insights - The semiconductor industry ETF has a recent scale of 255 million yuan, marking a six-month high, despite a net outflow of 602.22 million yuan recently [9] - The ChiNext chip ETF has seen a net outflow of 337.66 million yuan, with a total inflow of 334 million yuan over the past 21 trading days [10] - The new materials ETF has experienced a significant scale increase of 212 million yuan over the past year, ranking first among comparable funds [10]

Core Viewpoint - The semiconductor sector is experiencing significant growth, with various chip stocks rising over 10%, leading to a surge in related ETFs by more than 4% to 5% [1][2]. Group 1: Stock Performance - Chip stocks such as Zhongke Lanyun, Chip Origin, Jucheng, Haiguang Information, and Diaomicro have seen increases exceeding 10% [1]. - The Sci-Tech Innovation Chip Design ETF rose by 5.49%, while other related ETFs also reported gains ranging from 3.54% to 4.50% [2][3]. Group 2: Industry Developments - The semiconductor industry is witnessing an influx of domestic tech giants entering chip R&D, with Huawei announcing the timeline for its Ascend chip iteration [5]. - Companies like SMIC and Huahong Semiconductor are optimistic about future orders and market conditions [5]. - The upcoming IPO of Moore Threads, a leading domestic GPU company, is expected to enhance the domestic GPU landscape [5]. Group 3: Market Trends - According to Huatai Securities, global semiconductor equipment revenue is projected to grow by 14% year-on-year in 2025, reaching $148 billion [6]. - The Chinese semiconductor equipment market is experiencing a slight decline, with a 1% decrease in the first half of 2025, while the domestic equipment localization rate has increased by 6 percentage points to 21% [6][7]. - The overseas semiconductor equipment market is driven by AI demand, with a 40% year-on-year growth in the second quarter of 2025 [7][8]. Group 4: Future Outlook - The global semiconductor equipment revenue is expected to grow by 8% in 2026, with the Chinese market projected to remain stable [8]. - The focus on AI-related investments and the expansion of advanced logic in China are seen as structural opportunities for growth [8].

Market Overview - The A-share market showed mixed performance with the Shanghai Composite Index up 0.07%, Shenzhen Component Index up 0.17%, and ChiNext Index down 0.09% as of midday [1] - The total trading volume in the three major markets reached 13,556 billion yuan, a decrease of 1,552 billion yuan compared to the previous day [1] - Over 3,400 stocks in the market experienced declines [1] Sector Performance - The computing power concept stocks surged, with notable gains in companies like Haiguang Information up over 11% and several others hitting the 10% limit up [1] - The semiconductor sector saw strong performance, with stocks like Lixun Precision and Industrial Fulian reaching new highs [1] News and Developments - Major domestic tech companies such as Alibaba and Baidu are entering the chip development space, while Huawei announced a timeline for its Ascend chip iteration [1] - Semiconductor companies like SMIC and Huahong Semiconductor expressed optimistic outlooks for future orders, with reports indicating an increase in orders for Chipone Technology [1] - The domestic GPU leader, Moore Threads, is set to have its IPO on the Sci-Tech Innovation Board this week [1] - OpenAI has reportedly engaged with Lixun Precision and GoerTek for the production of smart devices [1] ETF Performance - The Sci-Tech Chip ETF (博时 588990) saw a rapid increase, rising over 5% with a trading volume of nearly 150 million yuan and a turnover rate exceeding 20% [2] - The Sci-Tech AI ETF (588790) experienced fluctuations, with an intraday increase of over 4% and a trading volume exceeding 700 million yuan [2] - The Semiconductor Industry ETF (159582) also rose nearly 3.5%, with a trading volume close to 50 million yuan [2] Investment Insights - Institutions emphasize that computing power and AI are key themes, with a focus on the sentiment boost from Moore Threads' IPO process [3] - The domestic chip penetration rate has been steadily increasing under strong policy support, making ETFs like the Sci-Tech AI ETF a viable option for investors looking to cover the entire AI hardware to application chain [3] - The Semiconductor Industry ETF closely tracks the semiconductor industry index, covering essential segments such as materials and equipment [3]

Core Viewpoint - The consumer electronics and semiconductor sectors are experiencing significant growth, with key stocks like Chipone Technology nearing a 20% limit-up, and Donghua Software hitting the limit-up as well, driving the Information Technology ETF (512330) up by 2.66% [1] Group 1: Market Performance - The Information Technology ETF (512330) has increased by 16.94% from September 5 to the present, outperforming the ChiNext Index by 5% [1] - Year-to-date, the ETF has expanded its gains to 48.85% [1] Group 2: Industry Developments - Major domestic tech giants such as Alibaba and Baidu are entering the chip development space, while Huawei has announced a timeline for the iteration of its Ascend chips [1] - Semiconductor companies like SMIC and Huahong Semiconductor are optimistic about future orders and market conditions, with reports indicating that Chipone Technology's order volume is expected to continue growing [1] - The leading domestic GPU company, Moore Threads, is set to have its IPO on the Sci-Tech Innovation Board on September 26 [1] - OpenAI has reportedly engaged with Luxshare Precision and GoerTek for the production of smart devices [1] Group 3: ETF Composition - The Information Technology ETF (512330) exclusively tracks the CSI 500 Information Index, covering sectors such as semiconductors (38.5%), components (14.6%), software development (10.3%), and consumer electronics (9.4%) [1] - The ETF aligns closely with national technology strategies and reflects the performance of technology growth stocks [1] - The top ten holdings include industry leaders such as Shenghong Technology (PCB leader), Huagong Technology (optical modules), and Chipone Technology (domestic IP) [1]

Company Overview - Huahong Semiconductor Co., Ltd. is primarily engaged in specialty process wafer foundry services, providing diverse platforms including embedded/non-volatile memory, power devices, analog and power management, logic, and RF [2] - The company was established on January 21, 2005, and went public on August 7, 2023 [2] - Main business revenue composition: integrated circuit wafer foundry 94.60%, others 4.78%, rental income 0.62% [2] Financial Performance - For the first half of 2025, Huahong achieved operating revenue of 8.018 billion yuan, a year-on-year increase of 19.09% [2] - The net profit attributable to the parent company was 74.3154 million yuan, a year-on-year decrease of 71.95% [2] - Cumulative cash distribution since A-share listing amounts to 258 million yuan [3] Stock Performance - As of September 22, the stock price of Huahong was 81.33 yuan per share, with a market capitalization of 140.995 billion yuan [1] - Year-to-date stock price increase is 75.02%, with a 5-day increase of 5.82%, 20-day increase of 29.80%, and 60-day increase of 71.44% [1] - The stock experienced a net outflow of 45.9452 million yuan in principal funds, with significant buying and selling activity [1] Shareholder Information - As of June 30, 2025, the number of shareholders was 37,400, a decrease of 20.53% from the previous period [2] - The average circulating shares per person were 10,478 shares, unchanged from the previous period [2] - The eighth largest circulating shareholder is the Harvest SSE STAR Chip ETF, holding 9.6866 million shares, an increase of 2.6691 million shares from the previous period [3]

Summary of Hua Hong (1347.HK) Conference Call Company Overview - **Company**: Hua Hong - **Industry**: Semiconductor foundry focusing on specialty technologies Key Points and Arguments Capacity Expansion - Hua Hong is actively expanding its capacity, particularly with the ramp-up of Fab 9, which is expected to reach full capacity by mid-2026. The designed capacity for Fab 9 is 83,000 wafers per month, with half already operational [2][19] - A new fab is planned to start contributing capacities in 2027, focusing on 28nm technology [2] - The acquisition of 12'' Fab 5 from its sister company is expected to enhance Hua Hong's capabilities and reduce internal competition [2] Financial Projections - Revenue is projected to grow by 22% year-over-year, reaching approximately US$2.4 billion in 2025 [1] - Gross margin is expected to recover from 9.2% in 1Q25 to 12.0% in 4Q25, with net income projected to increase to US$82 million in 2025, up from US$58 million in 2024 [1][3] - Earnings estimates for 2027-2029 have been revised upwards by 1% to 4% due to a more positive outlook on long-term growth opportunities [3] Valuation and Price Target - The target price for Hua Hong is set at HK$77.0, based on a 2028E target P/E of 45.7x, reflecting a 13% increase from previous estimates [8][17] - The valuation is supported by a correlation between peers' P/E ratios and earnings growth, with Hua Hong's average EPS growth projected at 31% for 2028-2029 [8][17] Risks - Key risks include weaker-than-expected end-market demand, slower ramp-up of the 12" fab, and uncertainties surrounding US-China trade relations [18] Investment Thesis - Hua Hong is well-positioned due to its diversified specialty technologies and improvements in product mix, shifting towards more advanced nodes (28nm/40nm) [20] - The company is expected to benefit from increasing domestic demand and improved average selling prices (ASP) [20] Financial Metrics - Projected revenues and net income for 2025E are US$2.444 billion and US$82 million, respectively [8][14] - Gross margin is expected to improve to 10.9% in 2025E, with operating income projected to recover to US$50 million [8][14] Additional Important Information - The company is focusing on various end-markets, including consumer electronics, communication, computing, industrial, and automotive sectors [20] - The ongoing capacity expansions are seen as a strategic move to prepare for future technology and product growth, despite potential short-term impacts on profitability [1][2] This summary encapsulates the key insights from the conference call regarding Hua Hong's strategic initiatives, financial outlook, and market positioning.

Group 1 - The company Huahong Semiconductor (01347) has appointed Chuangsheng Financing Limited as an independent financial advisor in Hong Kong [1] - The advisor will provide opinions on the fairness and reasonableness of the proposed acquisition matters to the independent board committee, independent shareholders under the takeover code, and the independent shareholders under the listing rules [1] - The independent board committee has approved the appointment of Chuangsheng Financing Limited as the independent financial advisor according to the takeover code Article 2.1 [1]

Core Viewpoint - Huahong Semiconductor (01347.HK) has appointed Chuangsheng Financing Limited as an independent financial advisor in Hong Kong to provide opinions on the fairness and reasonableness of the proposed acquisition matters and related authorizations [1] Group 1 - The independent board committee has approved the appointment of Chuangsheng Financing Limited as the independent financial advisor [1] - The advisor will provide recommendations for voting at the shareholders' special meeting regarding the proposed acquisition matters [1] - The appointment is in accordance with the provisions of the Takeovers Code, specifically Article 2.1 [1]

Core Viewpoint - Huahong Semiconductor (01347) has appointed Chuangsheng Financing Limited as an independent financial advisor in Hong Kong to provide opinions on the fairness and reasonableness of the proposed acquisition matters and related authorizations [1] Group 1 - The appointment of Chuangsheng Financing Limited is in accordance with the Securities and Futures Ordinance, which regulates activities related to securities trading and corporate finance advisory [1] - The independent board committee has approved the appointment of Chuangsheng Financing Limited as the independent financial advisor [1] - The advisor will provide recommendations for voting at the shareholders' special meeting regarding the proposed acquisition matters [1]

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。 本公告僅供參考，並不構成收購、購買或認購本公司任何證券的邀請或要約。 （於香港註冊成立的有限公司） HUA HONG SEMICONDUCTOR LIMITED （股份代號：01347） 華虹半導體有限公司 委任香港獨立財務顧問 獨立董事委員會、 收購守則獨立股東及建議收購事項上市規則獨立股東 之香港獨立財務顧問 茲提述華虹半導體有限公司（「本公司」）日期為二零二五年八月三十一日的公告 （「該公告」），內容有關（其中包括）建議收購事項、建議收購事項特別授權及清洗 豁免。除文義另有所指外，本公告所用詞彙與該公告所界定者具有相同涵義。 董事會謹此宣佈，創陞融資有限公司（根據證券及期貨條例從事第1類（證券交易） 及第6類（就企業融資提供意見）受規管活動的持牌法團）已獲本公司委任為香港獨 立財務顧問，以就建議收購事項、建議收購事項特別授權及清洗豁免是否屬公平 合理向獨立董事委員會、收購守則獨立股東及建議收購事項 ...