Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 (Incorporated in Hong Kong with limited liability) Stock Code (01347) News Release Reports 2025 First Quarter Results All currency figures in this report are in US Dollars unless indicated otherwise. The consolidated financial statements are prepared in accordance with HKFRS. Hong Kong Special Administrative Region of the People’s Republic of China – May 8, 2025. Hua Hong Semiconductor Limited (SEHK: 01347; SSE STAR MARKET: 688347) (the “Company”), a global, leading pure-play foundry, today announced its consolidated operational results for the quarter ending March 31, 2025. First Quarter 2025 Highlights (Unaudited) Revenue was US$540.9 million, 17.6% over 1Q 2024 and 0.3% above 4Q 2024. Gross margin was 9.2%, 2.8 percentage points over 1Q 2024 and 2.2 percentage points lower than 4Q 2024. Net profit attributable to shareholders of the parent company was US$ 3.8 million, compared to US$31.8 million in 1Q 202 4 and net loss attributable to shareholders of the parent company of US$25.2 million in 4Q 2024. Second Quarter 2025 Guidance We expect revenue to be approximately US$550 million to US$570 million. We expect gross margin to be in the range of 7% to 9%.
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2 President’s Message Dr. Peng Bai, President and Executive Director of the Company, commented on the performance of the first quarter of 2025: "First quarter 2025 sales revenue for Hua Hong Semiconductor was 541 million US dollars, and gross margin reached 9.2%, both in line with guidance. Overall performance has continued the trend from 2024. Sales revenue maintained steady growth; the product portfolio has been continuously optimized; and the utilization rate has remained at full capacity. The capacity ramp-up of the second 12” production line is in line with our expectation, which has positive impl ications for subsequent revenue growth, product portfolio optimization and enhancement of the company’s core competitiveness. " President Bai continued, "From market perspective, customer demand and competitive landscape have essentially continued the tren d since the second half of 2024. However, due to recent changes in the global environment and related policies, the entire semiconductor industry will face greater uncertainties in terms of customer demand, procurement costs, and the supply chain landscape . In the face of such uncertainties, Hua Hong Semiconductor will adhere to its strategy of continuously accelerating effective capacity expansion, enhancing its R&D capabilities, actively exploring marketing opportunities, timely managing possible disturba nces from the supply side, intensively reduce cost and improve efficiency, to reduce risks while achieving better performance. "
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3 Webcast/Conference Call Announcement Date: Thursday, May 8, 2025 Time: 17:00 Hong Kong/Shanghai Time 05:00 EST Presenters: Dr. Peng Bai, President and Executive Director Mr. Daniel Wang, Executive Vice President and Chief Financial Officer Webcast: The call will be webcast live with audio and slides at: https://www.huahonggrace.com/html/ir_calendar.php or https://edge.media-server.com/mmc/p/gp3biy2m (Note: registration is required to access the webcast.) Dial-in Details: Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers and personal PIN. https://register-conf.media-server.com/register/BI51cfe11dc7f540f2af2ea9635eedb78c Important Note: Before the meeting starts, you will need the personal PIN to join the call. Please check and save the confirmation email after registering. For security reasons, please do not share your personal PIN with anyone else. Replay: A recording will be available for replay at the below website about 2 hours after the event and will be available for 12 months. https://www.huahonggrace.com/html/ir_calendar.php About the Company Hua Hong Semiconductor Limited (Stock Code: 688347.SH/ 01347.HK) (the “Company”) is a global leading pure-play foundry with specialty technologies which offers a diverse array of wafer foundry and supporting services to its customers, implementing “8 -inch + 12 -inch” and advanced “Specialty IC + Power Discrete” development strategies. The Company focuses on continuous innovation of specialty technologies, including embedded/standalo ne non-volatile memory (NVM), power discrete, analog & power management, and logic & RF, supporting applications in emerging areas, such as new energy vehicles, green energy, and the Internet of Things. Of special note is the Company’s outstanding quality control system that satisfies the strict requirements of automotive chip manufacturing. The Company is a member of the Hua Hong Group, which is an industrial group in China that owns mainstream "8 -inch + 12-inch" advanced IC manufacturing process technologies. The Company operates three 8 -inch wafer fabrication facilities in Shanghai Jinqiao and Shanghai Zhangjiang. In addition, the Company has built two global leading 12 -inch wafer fabrication facilities devoted to specialty processes in Wuxi National Hi -Tech District, one of which is the world’s first 12 - inch power semiconductor foundry. For more information, please visit: www.huahonggrace.com.
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4 Summary of Operating Results (Amounts in US$ thousands, except for EPS and operating data) 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) YoY Change QoQ Change Revenue 540,937 459,986 539,177 17.6 % 0.3 % Gross profit 49,997 29,632 61,426 68.7 % (18.6)% Gross margin 9.2 % 6.4 % 11.4 % 2.8 (2.2) Operating expenses (97,110) (78,520) (110,626) 23.7 % (12.2)% Other (loss) / income net (8,294) 3,770 (40,468) (320.0)% (79.5)% Loss before tax (55,407) (45,118) (89,668) 22.8 % (38.2)% Income tax credit / (expense) 3,245 19,832 (6,596) (83.6)% (149.2)% Loss for the period (52,162) (25,286) (96,264) 106.3 % (45.8)% Net profit margin (9.6)% (5.5)% (17.9)% (4.1) 8.3 Attributable to: Owners of the parent 3,750 31,818 (25,199) (88.2)% (114.9)% Non-controlling interests (55,912) (57,104) (71,065) (2.1)% (21.3)% Earnings per share attributable to owners of the parent Basic 0.002 0.019 (0.015) (89.5)% (113.3)% Diluted 0.002 0.019 (0.015) (89.5)% (113.3)% Wafers shipped (in thousands 8” equivalent wafers) 1,231 1,026 1,213 20.0 % 1.5 % Capacity utilization1 102.7 % 91.7 % 103.2 % 11.0 (0.5) ROE2 0.4 % 2.0 % (1.6)% (1.6) 2.0 1The capacity utilization is calculated based on average monthly equivalent wafers output divided by total estimated monthly capacity. 2Profit attributable to owners of the parent / weighted average net assets attributable to owners of the parent. First Quarter 2025 Revenue was US$540.9 million, 1 7.6% over 1Q 202 4, primarily driven by increased wafer shipments, and 0.3% over 4Q 2024. Gross margin was 9.2%, 2.8 percentage points over 1Q 2024, primarily driven by improved capacity utilization, partially offset by increased depreciation costs, and 2.2 percentage points lower than 4Q 2024, primarily due to increased depreciation costs. Operating expenses were US$97.1 million, 23.7% over 1Q 2024, primarily due to increased engineering wafer costs , and 12.2% lower than 4Q 2024, primarily due to decreased labor expense, partially offset by increased engineering wafer costs. Other loss net was US$8.3 million, compared to other income net of US$3.8 million in 1Q 2024, primarily due to increased foreign exchange losses and decreased interest income, partially offset by increased government subsidies. The loss was 79.5% lower than 4Q 2024, primarily due to decreased foreign exchange losses and increased government subsidies. Income tax credit was US$3.2 million, compared to US$19.8 million in 1Q 2024, primarily due to decreased reversal of dividend withholding tax. Net loss for the period was US$52.2 million, compared to US$ 25.3 million in 1Q 2024 and US$96.3 million in 4Q 2024. Net profit attributable to shareholders of the parent company was US$3.8 million, compared to US$31.8 million in 1Q 2024 and net loss attributable to shareholders of the parent company of US$25.2 million in 4Q 2024. Basic earnings per share was US$0.002, compared to US$0.0 19 in 1Q 2024 and US$-0.015 in 4Q 2024. ROE (annualized) was 0.4%, compared to 2.0% in 1Q 2024 and -1.6% in 4Q 2024 respectively.
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5 Analysis of Revenue Revenue by service type 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % Wafers 515,574 95.3 % 437,060 95.0 % 78,514 18.0 % Others 25,363 4.7 % 22,926 5.0 % 2,437 10.6 % Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % Analysis of Revenue Revenue by wafer size 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % 8” wafers 231,086 42.7 % 239,950 52.2 % (8,864) (3.7)% 12” wafers 309,851 57.3 % 220,036 47.8 % 89,815 40.8 % Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % 95.3% of total revenue was derived from the sale of semiconductor wafers in 1Q 2025. Revenues from 8" wafers and 12" wafers were US$231.1 million and US$309.9 million, respectively, in 1Q 2025.
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6 Analysis of Revenue Revenue by geography 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % China3 442,458 81.8 % 365,695 79.5 % 76,763 21.0 % North America4 56,427 10.4 % 46,241 10.1 % 10,186 22.0 % Asia5 25,784 4.8 % 23,566 5.1 % 2,218 9.4 % Europe 15,228 2.8 % 21,739 4.7 % (6,511) (30.0)% Japan6 1,040 0.2 % 2,745 0.6 % (1,705) (62.1)% Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % 3Includes Chinese Mainland and Hong Kong. 4Includes a major customer in US that was acquired by a n Europe headquartered company in 2020. 5Excludes China and Japan. 6Includes a major customer in Japan that was acquired by a U.S. headquartered company in 2013. Revenue from China was US$442.5 million, contributing 81.8% of total revenue and an increase of 21.0% compared to 1Q 2024, mainly driven by increased demand for super junction , other PMIC, flash, general MOSFET, smart card IC and logic products. Revenue from North America was US$56.4 million, an increase of 22.0% compared to 1Q 2024, mainly driven by increased demand for other PMICs. Revenue from Asia was US$25.8 million, an increase of 9.4% compared to 1Q 202 4, mainly driven by increased demand for MCU products. Revenue from Europe was US$15.2 million, a decrease of 30.0% compared to 1Q 2024, mainly due to decreased demand for IGBT, smart card IC and general MOSFET products. Revenue from Japan was US$1.0 million, a decrease of 62.1% compared to 1Q 2024, primarily due to decreased demand for super junction products.
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7 Analysis of Revenue Revenue by technology platform 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % Embedded NVM 130,290 24.1 % 119,214 25.9 % 11,076 9.3 % Standalone NVM 42,875 7.9 % 31,072 6.8 % 11,803 38.0 % Power Discrete 162,751 30.1 % 143,344 31.1 % 19,407 13.5 % Logic & RF 66,787 12.3 % 64,213 14.0 % 2,574 4.0 % Analog & PM 136,784 25.3 % 101,495 22.1 % 35,289 34.8 % Others 1,450 0.3 % 648 0.1 % 802 123.8 % Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % Revenue from embedded NVM was US$130.3 million, an increase of 9.3% compared to 1Q 2024, mainly driven by increased demand for smart card IC and MCU products. Revenue from standalone NVM was US$42.9 million, an increase of 38.0% compared to 1Q 2024, mainly driven by increased demand for flash products. Revenue from power discrete was US$162.8 million, an increase of 13.5% compared to 1Q 2024, mainly driven by increased demand for super junction and general MOSFT products. Revenue from logic & RF was US$66.8 million, an increase of 4.0% over 1Q 2024, mainly driven by increased demand for logic products. Revenue from analog & power management was US$136.8 million, an increase of 34.8% over 1Q 2024, mainly driven by increased demand for other PMIC products.
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8 Analysis of Revenue Revenue by process technology node 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % ≤65nm 124,280 23.0 % 94,477 20.6 % 29,803 31.5 % 90nm & 95nm 128,864 23.8 % 88,516 19.2 % 40,348 45.6 % 0.11µ m & 0.13µ m 54,059 10.0 % 71,430 15.5 % (17,371) (24.3)% 0.15µ m & 0.18µ m 29,938 5.5 % 29,915 6.5 % 23 0.1 % 0.25µ m 3,517 0.7 % 7,617 1.7 % (4,100) (53.8)% ≥0.35µm 200,279 37.0 % 168,031 36.5 % 32,248 19.2 % Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % Revenue from 65nm and below technology nodes was US$124.3 million, an increase of 31.5% over 1Q 2024, mainly driven by increased demand for flash and logic products. Revenue from the 90nm & 95nm technology nodes was US$128.9 million, an increase of 45.6% over 1Q 2024, mainly driven by increased demand for other PMIC and MCU products. Revenue from the 0.11µ m & 0.13µ m technology nodes was US$54.1 million, a decrease of 24.3% compared to 1Q 2024, mainly due to decreased demand for smart card IC and MCU products. Revenue from the 0.15µ m & 0.18µ m technology nodes was US$29.9 million, an increase of 0.1% compared to 1Q 2024. Revenue from the 0.25µ m technology node was US$3.5 million, a decrease of 53.8% compared to 1Q 2024, mainly due to decreased demand for general MOSFET and RF products. Revenue from the 0.35µm and above technology nodes was US$200.3 million, a n increase of 19.2% compared to 1Q 202 4, mainly driven by increased demand for super junction, general MOSFET, and smart card ICs.
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9 Analysis of Revenue Revenue by end market distribution 1Q 2025 US$000 (Unaudited) 1Q 2025 % (Unaudited) 1Q 2024 US$000 (Unaudited) 1Q 2024 % (Unaudited) YoY Change US$000 YoY Change % Consumer electronics 348,100 64.3 % 287,863 62.6 % 60,237 20.9 % Industrial & automotive 119,878 22.2 % 102,723 22.3 % 17,155 16.7 % Communications 65,264 12.1 % 61,204 13.3 % 4,060 6.6 % Computing 7,695 1.4 % 8,196 1.8 % (501) (6.1)% Total revenue 540,937 100.0 % 459,986 100.0 % 80,951 17.6 % Capacity7 and Capacity Utilization 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) Total capacity (in thousands 8” equivalent wafers) 413 391 391 Overall capacity utilization 102.7% 91.7% 103.2% Wafer Shipments in thousands 8” equivalent wafers 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) YoY Change QoQ Change Wafer shipments 1,231 1,026 1,213 20.0 % 1.5 % 7 Wafers per month at the end of the period, calculated on a 30 -day basis for comparison purposes. Revenue from consumer electronics, our largest end market segment , contributed US$348.1 million, reaching 64.3% of total revenue, a n increase of 20.9% over 1Q 2024, mainly driven by increased demand for super junction, other PMIC, flash, general MOSFET and logic products. Revenue from industrial & automotive was US$119.9 million, an increase of 16.7% compared to 1Q 2024, mainly driven by increased demand for other PMICs. Revenue from communications was US$65.3 million, an increase of 6.6% compared to 1Q 2024, mainly driven by increased demand for analog products. Revenue from computing was US$7.7 million, a decrease of 6.1% compared to 1Q 2024. Monthly capacity was 413,000 8-inch equivalent wafers at the end of 1Q 2025. Overall capacity utilization was 102.7% in 1Q 2025, 0.5 percentage points lower than 4Q 2024. Wafer shipments were 1,231,000, a n increase of 20.0% year over year, and 1.5% quarter over quarter.
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10 Operating Expenses Analysis Amounts in US$ thousands 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) YoY Change QoQ Change Selling and distribution expenses 2,214 1,985 2,617 11.5 % (15.4)% Administrative expenses8 94,896 76,535 108,009 24.0 % (12.1)% Operating expenses 97,110 78,520 110,626 23.7 % (12.2)% Other (Loss) / Income Net Analysis Amounts in US$ thousands 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) YoY Change QoQ Change Rental income 3,513 3,560 3,481 (1.3)% 0.9 % Interest income 15,619 25,020 20,450 (37.6)% (23.6)% Foreign exchange losses (16,199) (5,850) (48,664) 176.9 % (66.7)% Share of profit / (loss) of associates 652 1,411 (433) (53.8)% (250.6)% Finance costs (23,301) (24,585) (20,406) (5.2)% 14.2 % Government subsidies 11,231 3,799 4,705 195.6 % 138.7 % Others 191 415 399 (54.0)% (52.1)% Other (loss) / income net (8,294) 3,770 (40,468) (320.0)% (79.5)% 8Administrative expenses include government grants recognized as an offset item . Operating expenses were US$97.1 million, 23.7% over 1Q 2024, primarily due to increased engineering wafer costs, and 12.2% lower than 4Q 2024, primarily due to decreased labor expense, partially offset by increased engineering wafer costs. Other loss net was US$8.3 million, compared to other income net of US$3.8 million in 1Q 2024, primarily due to increased foreign exchange losses and decreased interest income, partially offset by increased government subsidies. The loss was 79.5% lower tha n 4Q 2024, primarily due to decreased foreign exchange losses and increased government subsidies.
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11 Cash Flow Analysis Amounts in US$ thousands 1Q 2025 (Unaudited) 1Q 2024 (Unaudited) 4Q 2024 (Unaudited) YoY Change QoQ Change Net cash flows generated from operating activities 50,186 40,660 308,108 23.4 % (83.7)% Net cash flows used in investing activities (494,291) (298,951) (1,444,013) 65.3 % (65.8)% Net cash flows generated from / (used in) financing activities 59,137 789,913 (50,929) (92.5)% (216.1)% Effect of exchange rate changes 5,771 (8,817) (120,783) (165.5)% (104.8)% Net change in cash (379,197) 522,805 (1,307,617) (172.5)% (71.0)% Capital Structure Amounts in US$ thousands 31-Mar-2025 (Unaudited) 31-Dec-2024 (Audited) Total assets 12,286,786 12,415,108 Total liabilities 3,406,124 3,508,489 Total equity 8,880,662 8,906,619 Debt ratio9 27.7% 28.3% Capital Expenditures Amounts in US$ thousands 1Q 2025 (Unaudited) 4Q 2024 (Unaudited) Hua Hong 8” 14,264 21,159 Hua Hong Wuxi 18,402 43,833 Hua Hong Manufacturing 478,185 1,440,717 Total 510,851 1,505,709 9 Debt ratio is calculated based on total liabilities / total assets. Net cash flow s generated from operating activities was US$50.2 million, 23.4% over 1Q 2024, primarily due to increased receipts from customers, and 83.7% lower than 4Q 2024, primarily due to decreased receipts of government grants and increased payments of materials and income tax. Net cash flow s used in investing activities was US$ 494.3 million, including US$510.9 million investment in fixed assets, partially offset by US$16.6 million interest income. Net cash flow s generated from financing activities was US$ 59.1 million, including US$861.0 million p roceeds from bank borrowings and US$13.1 million proceeds from share option exercises, partially offset by US$811.2 million of bank principal repayments, US$ 3.3 million interest payments and US$0.5 million lease payments. Capital expenditures were US$510.9 million in 1Q 2025, including US$478.2 million for Hua Hong Manufacturing, US$18.4 million for Hua Hong Wuxi, and US$14.3 million for Hua Hong 8”.
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12 Liquidity Amounts in US$ thousands 31-Mar-2025 (Unaudited) 31-Dec-2024 (Audited) Properties under development 221,061 221,905 Inventories 468,597 467,060 Trade and notes receivables 286,763 270,461 Prepayments, other receivables and other assets 411,207 363,997 Due from related parties 16,520 18,324 Restricted and time deposits 31,669 31,624 Cash and cash equivalents 4,079,935 4,459,132 Total current assets 5,515,752 5,832,503 Trade payables 255,321 298,372 Other payables and accruals 759,177 880,447 Interest-bearing bank borrowings 329,972 280,704 Lease liabilities 7,543 4,912 Government grants 57,700 57,563 Due to related parties 12,724 9,125 Income tax payable 18,620 31,115 Total current liabilities 1,441,057 1,562,238 Net working capital 4,074,695 4,270,265 Quick ratio 3.3x 3.3x Current ratio 3.8x 3.7x Trade and notes receivables turnover days 46 45 Inventories turnover days 86 90 Please visit Company’s website at www.huahonggrace.com for further details regarding recent announcements. Prepayments, other receivables and other assets increased from US$364.0 million on 3 1 December 2024 to US$411.2 million on 31 March 2025, mainly due to increased value-added tax credit. Trade payables decreased from US$298.4 million on 31 December 2024 to US$255.3 million on 31 March 2025, primarily due to payments for materials in the period. Other payables and accruals decreased from US$880.4 million on 31 December 2024 to US$759.2 million on 31 March 2025, mainly due to payments for capital expenditures. Interest-bearing bank borrowings increased from US$280.7 million on 31 December 2024 to US$330.0 million, mainly due to increased long term bank borrowings within one year. Income tax payable decreased from US$31.1 million on 31 December 2024 to US$18.6 million on 31 March 2025, mainly due to a payment of income tax. On 31 March 2025, net working capital was US$4,074.7 million and the current ratio was 3.8. Trade and notes receivables turnover days were 46. Inventories turnover days were 86.
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13 Hua Hong Semiconductor Limited Condensed Consolidated Statements of Profit or Loss (In US$ Thousands Except Share Data) For the Three Months Ended 31-Mar-2025 (Unaudited) 31-Mar-2024 (Unaudited) 31-Dec-2024 (Unaudited) Revenue 540,937 459,986 539,177 Cost of sales (490,940) (430,354) (477,751) Gross profit 49,997 29,632 61,426 Other income and gains 30,563 32,851 29,155 Fair value loss on an investment property - - (39) Selling and distribution expenses (2,214) (1,985) (2,617) Administrative expenses (94,896) (76,535) (108,009) Other expenses (16,208) (5,907) (48,745) Finance costs (23,301) (24,585) (20,406) Share of profit / (loss) of associates 652 1,411 (433) Loss before tax (55,407) (45,118) (89,668) Income tax credit / (expense) 3,245 19,832 (6,596) Loss for the period (52,162) (25,286) (96,264) Attributable to: Owners of the parent 3,750 31,818 (25,199) Non-controlling interests (55,912) (57,104) (71,065) Earnings per share attributable to owners of parent Basic 0.002 0.019 (0.015) Diluted 0.002 0.019 (0.015) Shares used in calculating basic earnings per share attributable to owners of parent 1,721,931,435 1,716,634,650 1,718,222,223 Shares used in calculating diluted earnings per share attributable to owners of parent 1,728,142,630 1,718,334,991 1,724,086,667
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14 Hua Hong Semiconductor Limited Condensed Consolidated Statements of Financial Position (In US$ Thousands) As of 31-Mar-2025 (Unaudited) 31-Dec-2024 (Audited) 31-Mar-2024 (Unaudited) ASSETS NON-CURRENT ASSETS Property, plant and equipment 5,967,555 5,859,117 3,587,363 Investment property 209,257 164,153 166,354 Right-of-use assets 76,359 77,761 79,347 Intangible assets 29,122 31,456 46,526 Investment in associates 140,650 139,799 140,270 Equity instruments designated at fair value through other comprehensive income 289,722 289,311 287,089 Long term prepayment 57,989 21,008 200,074 Deferred tax assets 380 - 501 Total non-current assets 6,771,034 6,582,605 4,507,524 CURRENT ASSETS Properties under development 221,061 221,905 194,181 Inventories 468,597 467,060 431,206 Trade and notes receivables 286,763 270,461 306,151 Prepayments, other receivables and other assets 411,207 363,997 53,242 Due from related parties 16,520 18,324 15,688 Restricted and time deposits 31,669 31,624 32,032 Cash and cash equivalents 4,079,935 4,459,132 6,107,986 Total current assets 5,515,752 5,832,503 7,140,486 CURRENT LIABILITIES Trade payables 255,321 298,372 239,261 Other payables and accruals 759,177 880,447 379,133 Interest-bearing bank borrowings 329,972 280,704 232,201 Lease liabilities 7,543 4,912 6,257 Government grants 57,700 57,563 41,643 Due to related parties 12,724 9,125 9,704 Income tax payable 18,620 31,115 59,018 Total current liabilities 1,441,057 1,562,238 967,217 NET CURRENT ASSETS 4,074,695 4,270,265 6,173,269 TOTAL ASSETS LESS CURRENT LIABILITIES 10,845,729 10,852,870 10,680,793 Non-current liabilities Interest-bearing bank borrowings 1,948,409 1,917,235 1,993,525 Lease liabilities 15,160 18,068 17,714 Deferred tax liabilities 1,498 10,948 2,345 Total non-current liabilities 1,965,067 1,946,251 2,013,584 Net assets 8,880,662 8,906,619 8,667,209 Equity and liabilities capital and reserves Share capital 4,957,182 4,938,457 4,934,028 Reserves 1,315,995 1,308,569 1,389,777 Equity attributable to the owners of the company 6,273,177 6,247,026 6,323,805 Non-controlling interests 2,607,485 2,659,593 2,343,404 Total equity 8,880,662 8,906,619 8,667,209
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15 Hua Hong Semiconductor Limited Condensed Consolidated Statement of Cash Flows (In US$ Thousands) For the Three Months Ended 31-Mar-2025 (Unaudited) 31-Mar-2024 (Unaudited) 31-Dec-2024 (Unaudited) Cash flows from operating activities: Loss before tax (55,407) (45,118) (89,668) Depreciation and amortization 172,126 133,088 142,306 Share of (profit) / loss of associates (652) (1,411) 433 Changes in working capital and others (65,881) (45,899) 255,037 Net cash flows generated from operating activities 50,168 40,660 308,108 Cash flows from investing activities: Payments for property, plant and equipment and intangible assets (510,851) (302,574) (1,505,709) Receipt of government grants of equipment - - 41,149 Other cash flow generated from investing activities 16,560 3,623 20,547 Net cash flows used in investing activities (494,291) (298,951) (1,444,013) Cash flows from financing activities: New bank loans 860,985 103,405 84,551 Proceeds from issue of shares 13,077 114 1,478 Capital contribution from non-controlling interests - 689,430 - Repayment of bank borrowings (811,156) - (91,518) Interest paid (3,252) (2,155) (50,498) Payment of lease liabilities (517) (881) (401) Receipt of government grants for interest expenses - - 5,459 Net cash flows generated from / (used in) financing activities 59,137 789,913 (50,929) Net (decrease) / increase in cash and cash equivalents (384,968) 531,622 (1,186,834) Cash and cash equivalents, beginning of period 4,459,132 5,585,181 5,766,749 Effects of exchange rate changes 5,771 (8,817) (120,783) Cash and cash equivalents, ending of period 4,079,935 6,107,986 4,459,132 As of the date of this announcement, the directors of the Company are: Executive Directors Junjun Tang (Chairman) Peng Bai (President) Non-Executive Directors Jun Ye Guodong Sun Bo Chen Chengyan Xiong Independent Non-Executive Directors Stephen Tso Tung Chang Kwai Huen Wong, JP Songlin Feng By order of the Board Hua Hong Semiconductor Limited Mr. Junjun Tang Chairman and Executive Director Hong Kong SAR, PRC May 8, 2025