Core Viewpoint - Hua Hong Semiconductor Limited reported a revenue increase of 18.0% year-on-year for the first half of 2025, driven by higher wafer shipments, despite facing a loss for the period of US$84.96 million, which is a 26.7% increase in loss compared to the same period in 2024 [4][6][25]. Financial Performance - Revenue reached US$1,107.0 million, up from US$938.5 million in the first half of 2024, marking an 18.0% increase [4][6]. - Cost of sales increased to US$995.4 million, a rise of 15.9% compared to US$858.8 million in the previous year [4][6]. - Gross profit was reported at US$111.6 million, reflecting a 40.0% increase from US$79.7 million in the first half of 2024 [4][6]. - Other income and gains decreased by 15.7% to US$59.9 million, primarily due to reduced interest income [4][6]. - Administrative expenses rose to US$190.2 million, an increase of 15.9% compared to US$164.1 million in the previous year [4][6]. - The loss before tax was US$81.1 million, a slight increase of 3.3% from US$78.5 million in the first half of 2024 [4][6]. Cash Flow Analysis - Net cash flows from operating activities increased by 59.8% to US$219.8 million, driven by higher receipts from customers [12][13]. - Net cash flows used in investing activities were US$879.8 million, primarily for capital investments [12][13]. - Cash and cash equivalents decreased from US$4,459.1 million to US$3,846.9 million, a decline of 13.7% [8][14]. Business Review - The global semiconductor market saw a year-on-year sales increase of approximately 16% in the first half of 2025, reaching US$366.7 billion [25][26]. - The company operated its 8-inch and 12-inch production lines at full capacity, with the Hua Hong Manufacturing Project achieving rapid capacity ramp-up [26][28]. - The Analog & Power Management platform showed significant revenue growth, benefiting from domestic supply chain localization and demand for AI servers [26][27]. Future Plans - The company is preparing for a potential acquisition of equity interests in Shanghai Huali Microelectronics Corporation, subject to board and regulatory approvals [30][32]. - The second-phase capacity deployment of the Hua Hong Manufacturing project is expected to begin ahead of schedule by the end of 2025 [28][29].