Group 1 - Huahong Semiconductor (01347) saw a nearly 8% increase in early trading, reaching a new high of 71.4 HKD, and is currently trading at 69.9 HKD with a transaction volume of 1.641 billion HKD [1] - The company recently announced a restructuring with Huahong Microelectronics to address IPO commitments related to competition in the same industry, enhancing its 12-inch wafer foundry capacity [1] - The restructuring will leverage both companies' strengths in process technology, allowing for a broader range of applications and more comprehensive technical specifications in wafer foundry and supporting services [1] Group 2 - Goldman Sachs reported that since Q1 2023, the average selling price of Huahong's products has been declining due to increased capacity in mature processes and a slowdown in end-market growth [1] - However, with capacity utilization expected to exceed 100% from Q3 2024 to Q2 2025, Huahong has begun price negotiations with clients, which is anticipated to positively impact Q3 2025 performance [1] - Although short-term price increases may be limited, this trend is seen as a positive signal for supply-demand improvement, with expectations of gradual and sustainable price increases in the future as major end markets complete inventory adjustments [1]