HUA HONG SEMI(SH:688347) Di Yi Cai Jing·2025-08-17 22:29Core Viewpoint - The company is planning to acquire the controlling stake of Shanghai Huali Microelectronics Co., Ltd. to resolve competition issues related to its IPO commitments, through a combination of issuing shares and cash payments [1][7]. Group 1: Transaction Details - The target assets for the acquisition are the equity corresponding to the competitive assets in 65/55nm and 40nm processes operated by Shanghai Huali Microelectronics Co., Ltd. (Huahong's Fifth Factory), which is currently in the separation phase [1][7]. - The company has initiated a trading suspension starting from August 18, 2025, with an expected duration of no more than 10 trading days [4][6]. - The company is currently in the planning stage of the transaction and is in discussions with potential counterparties, which include Shanghai Huahong (Group) Co., Ltd., Shanghai Integrated Circuit Industry Investment Fund Co., Ltd., National Integrated Circuit Industry Investment Fund Phase II Co., Ltd., and Shanghai Guotou Xian Dao Integrated Circuit Private Investment Fund Partnership (Limited Partnership) [1][7]. Group 2: Transaction Methodology - The company intends to acquire the controlling stake in the target company through a combination of issuing shares and cash payments, while also raising matching funds [8][9]. - The specific transaction methods, plans, and pricing will be determined through negotiations among the parties involved and will be disclosed in subsequent restructuring proposals and announcements [8][9]. Group 3: Market Performance - As of August 15, the company's stock closed at 78.50 CNY per share, with a total market capitalization of 937 billion CNY, reflecting a year-to-date increase of 68.93% [11].