Slides
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H UA H ONG GRACE SEMICONDUCTOR LIMITED 2026/11/5 3Q 2026 Results
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2 HHGr ace Pr oprietary 3Q 2 026 K e y F i na n c i a l s • Rev e nue ac hiev ed U S $987 NperiodGround 1 m illio n, 1 9 NperiodGround 9% o v er 3Q 20 25 a nd 9 NperiodGround 9% a bov e 2 Q 2026. Rev e nue （ex cluding H ua li M icr o ） w a s U S$803NperiodGround4 millio n, co m par ed t o o ur g uida nce o f U S$7 70 millio n t o U S $780 m illio n. • Gr o s s m ar gin w a s 24NperiodGround6 % , 7 NperiodGround6 pe rcent a g e po int s ov e r 3Q 2025 a nd 4 NperiodGround7 per ce nt ag e po int s a bov e 2Q 2026. Gr o s s m ar gin （ex cluding H ua li M icr o ） w a s 1 9 NperiodGround 9 % , co m pa r ed t o o ur guida nce o f 1 6 % t o 1 8% . • Net pro f it a t t r ibut a ble t o s ha re ho ld er s o f t he par e nt co m pa ny w as U S$ 1 23NperiodGround4 m illio n, 1 47 NperiodGround 1 % ov e r 3Q 202 5 a nd 7 7 NperiodGround7% ab ov e 2Q 202 6.
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3 HHGr ace Pr oprietary • Revenu e reached an all/hyphen≤lowtime high of US$987/period≤round1 million, 19/period≤round9% over 3Q 2025 and 9/period≤round9% above 2Q 2026, primarily dri ven by increased wafer shipment and improved averag e selling price. • G r o ss margin was 24/period≤round6%, 7/period≤round6 percentage points over 3Q 2025 and 4 /period≤round7 percentage points above 2Q 2026, primarily drive n by improved average selling price, partially offs et by increased depreciation costs. • O p erati ng e x pen ses were US$100/period≤round5 million, 14/period≤round3% lower than 3Q 2025, ma inly due to decreased depreciation expenses and eng ineering wafer costs, and 13/period≤round6% below 2Q 2026, main ly due to decreased labor and engineering wafer costs. • O ther lo s s ne t was US$8/period≤round7 million, compared to other income net of US$16/period≤round3 million in 3Q 2025 primarily due to increa sed finance costs. It was 84/period≤round4% over 2Q 2026, mainl y due to US$6/period≤round2 million of share of loss of associates in 3Q 2026. • P rof it fo r the perio d was US$120/period≤round1 million, 314/period≤round1% over 3Q 2025, and 137/period≤round 8% above 2Q 2026. • N e t pr o f it att ributable t o share holder s of t h e par e nt company was US$123/period≤round4 million, 147/period≤round1% over 3Q 2025 and 77/period≤round7% above 2Q 2026. • Basi c earn i ngs per share was US$0/period≤round066, 144/period≤round4% over 3Q 2025 and 78/period≤round4% above 2 Q 2026. • RO E ( ann ualiz ed ) was 6/period≤round8%, 3/period≤round6 percentage points over 3Q 2025 and 2/period≤round 8 percentage points above 2Q 2026. 3Q 2 026 I n c o m e S t a t e m e n t 3 Q 2 02 6 3Q 2026 3Q 2026 3Q 202 5 2Q 2026 ( U S $ ’ 0 0 0 ) ( U n a u d i t e d a n d e x c l u d i n g H u a l i M i c r o ) ( G u i d a n c e e x c l u d i n g H u a l i M i c r o ) ( U n a u d i t e d ) ( U n a u d i t e d a n d r e s t a t e d ) ( U n a u d i t e d a n d r e s t a t e d ) Y o Y Q o Q R e v e n u e 8 0 3 , 4 0 1 7 7 0 , 0 0 0 ~ 7 8 0 , 0 0 0 9 8 7 , 1 3 3 8 2 3 , 0 7 8 8 9 8 , 4 8 3 1 9 . 9 % 9 . 9 % G r o s s p r o f i t 1 5 9 , 9 6 4 2 4 2 , 6 4 3 1 4 0 , 3 1 3 1 7 9 , 2 2 7 7 2 . 9 % 3 5 . 4 % G r o s s m a r g in 19 .9 % 1 6 % ~ 18 % 2 4 . 6 % 1 7 .0 % 1 9 .9 % 7 .6 4 .7 O p e r a t i n g e x p e n s e s ( 9 4 , 5 2 0 ) ( 1 0 0 , 5 3 3 ) ( 1 1 7 , 3 5 0 ) ( 1 1 6 , 4 0 8 ) ( 1 4 . 3 ) % ( 1 3 . 6 ) % O t h e r ( l o s s ) / i n c o m e n e t ( 2 , 6 0 9 ) ( 8 , 6 6 6 ) 1 6 , 2 8 5 ( 4 , 6 9 9 ) ( 1 5 3 . 2 ) % 8 4 . 4 % P r o f i t b e f o r e t a x 6 2 , 8 3 5 1 3 3 , 4 4 4 3 9 , 2 4 8 5 8 , 1 2 0 2 4 0 . 0 % 1 2 9 . 6 % Incom e t a x e xpense ( 13,391) (13,391) (10 ,2 59) (7,632 ) 30.5 % 7 5.5 % P r o f i t f o r t h e p e r i o d 4 9 , 4 4 4 1 2 0 , 0 5 3 2 8 , 9 8 9 5 0 , 4 8 8 3 1 4 . 1 % 1 3 7 . 8 % N e t pr ofit m a r gin 6.2 % 12 . 2 % 3 . 5 % 5 .6 % 8 .7 6.6 A t t r i b u t a b l e t o : Ow ne r s of t he pa r ent 68 ,8 31 12 3,435 49,950 69,48 0 147 .1 % 77 .7 % N on- cont r olling int e r es t s ( 19,38 7 ) ( 3,38 2) (2 0,961) (18 ,99 2 ) (8 3.9)% ( 8 2 .2 )% Ea r nings per sha r e a t t r ibut a ble to ow ne r s of t he pa r ent Ba s ic ($) 0.0 40 0 .0 66 0 .0 27 0 .0 37 144.4 % 7 8 .4 % D ilut e d ( $) 0.0 40 0 .0 66 0 .0 27 0 .0 37 144.4 % 7 8 .4 % R O E ( A n nu a l iz e d ) 4.0 % 6 . 8 % 3 . 2 % 4 .0 % 3 .6 2 .8
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4 HHGr ace Pr oprietary 3Q 2 026 Ca s h F l ow s 3 Q 2 0 2 6 3 Q 2 0 2 5 2 Q 2 0 2 6 ( U S $ ’ 0 0 0 ) ( U n a u d i t e d ) ( U n a u d i t e d a n d r e s t a t e d ) ( U n a u d i t e d a n d r e s t a t e d ) Cash an d cash equ iv al en t s, b e g in n in g o f p erio d 5 , 06 2 , 3 98 4 , 2 53 ,985 5 , 3 3 0, 6 2 2 N e t c a s h g e n e r a t e d f r o m o p e r a t i n g a c t i v i t i e s 3 7 7 , 2 7 7 2 7 9 , 0 0 4 4 1 9 , 8 7 0 C a p E x ( 6 0 1 , 0 3 3 ) ( 2 7 5 , 3 4 7 ) ( 3 6 3 , 2 5 6 ) O t h e r n e t c a s h g e n e r a t e d f r o m i n v e s t i n g a c t i v i t i e s 5 1 , 0 4 0 1 7 , 2 0 7 3 2 , 8 8 9 N e t c a s h g e n e r a t e d f r o m / ( u s e d i n ) f i n a n c i n g a c t i v i t i e s 1 , 1 1 4 , 6 1 5 5 6 , 8 7 3 ( 4 2 2 , 7 2 7 ) N et in crease/ (decrease) in cash an d cash equ iv al en t s 941, 899 77,73 7 (3 3 3 , 2 2 4) E f f ect s o f e x ch an g e rat e ch an g e s o n t h e b alan ce o f cash h e ld in f o reig n cu rre n cies 44 , 13 8 2 5,32 8 6 5 , 000 Cash an d cash equ iv al en t s, e n d in g o f p erio d 6 , 04 8, 4 3 5 4 , 3 57,0 5 0 5 , 06 2 , 3 98
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5 HHGr ace Pr oprietary 3Q 2 026 B a l a n c e S h e e t (1) Debt ratio is calculated based on total liabili ties/total assets. 3 0 - S e p - 2 6 3 0 - J u n - 2 6 ( U S $ ’ 0 0 0 ) ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) C a s h a nd c a s h e quiva le nt s 6,0 48 ,4 35 5 ,0 6 2,3 98 R e s t r ic t e d a nd t im e d e p os it s 45 ,93 7 4 5,35 5 T r a d e a nd not e s r e c e iva b le s 36 7 ,10 2 3 8 8 ,2 4 2 Inve nt or ie s 7 3 7 ,7 91 7 11,16 4 O t he r c ur r e nt a s s e t s 1,0 0 5 ,149 95 0 ,425 T o t a l C u rr e n t A s s e t s 8 , 2 0 4 , 4 1 4 7 , 1 5 7 , 5 8 4 P P & E 8 ,16 6 ,9 92 7 ,520 ,45 4 Eq uit y ins t r um e nt s d e s igna t e d a t fa ir v a lue t hr oug h ot he r c om p r e he nsive inc om e 7 48 ,292 7 6 3 ,190 Inve s t m e nt in a s s oc ia t e s 16 7 ,10 6 18 3 ,0 7 2 O t he r non- c ur r e nt a s s e t s 4 40,3 2 5 39 4 ,7 4 2 T o t a l N o n - c u r re n t A s s e t s 9 , 5 2 2 , 7 1 5 8 , 8 6 1 , 4 5 8 T o t a l A s s e t s 1 7 , 7 2 7 , 1 2 9 1 6 , 0 1 9 , 0 4 2 Shor t - t e r m int e r e s t - b e a r ing ba nk bor r ow ing s 1,94 2,23 2 1,9 8 5 ,9 8 2 L ong - t e r m int e r e s t - be a r ing b a nk b or r ow ings 2 ,0 66 ,65 8 1,99 9 ,8 24 T o t a l B a n k B o rr o w i n g s 4 , 0 0 8 , 8 9 0 3 , 9 8 5 , 8 0 6 T o t a l L i a b i l i t i e s 6 , 4 0 7 , 3 8 7 6 , 0 6 2 , 2 1 7 T o t a l E q u i t y 1 1 , 3 1 9 , 7 4 2 9 , 9 5 6 , 8 2 5 D e b t r at i o ( 1 ) 3 6 . 1 % 3 7. 8 %
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6 HHGr ace Pr oprietary Ca p a ci t y, U t i l i z a t i o n a n d S h i p m e n t 5 4 3 5 6 7 57 1 5 93 636 1 0 8 /period.round7 % 104/period.round 2% 101/period.round1% 104/period.round1% 102/period.round9% 0% 20% 40% 60% 80% 100% 120% 0 100 200 300 400 500 600 700 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Capacity Capacity Utilization Capacity Utilization % M onthly Capacity (K 8” equivalent wafers) K w a f e r s 3 Q 2 02 5 4Q 2025 1Q 202 6 2Q 2026 3Q 2026 M o n t h l y C a p a c i t y ( 8 ” e q u i v a l e n t w a f e r s ) 5 4 3 5 6 7 5 7 1 5 9 3 6 3 6 Wafer Shipments (8” equivalent wafers) 1,714 1,745 1,736 1,837 1,911 Overall capacity utilization 108.7% 104.2% 101.1% 104.1 % 102.9%
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7 HHGr ace Pr oprietary R e v e n u e by W a f e r S i z e 3 1 /period.round4 % 3 0/period.round1% 2 9/period.round9% 30/period.round3% 29/period.round3% 6 8/period.round6% 69/period.round9% 70/period.round1% 69/period.round7% 70/period.round7% 3Q 2025 (Unaudited and restated) 4Q 2025 (Unaudited and restated) 1Q 2026 (Unaudited and restated) 2Q 2026 (Unaudited and restated) 3Q 2026 (Unaudited) 8'' wafers 12'' wafers U S $ m i l l i o n % U S $ m i l l i o n % U S $ m i l l i o n % 8'' wafers 289.2 29.3% 258.8 31.4% 30.4 11.8 % 12'' wafers 697.9 70.7% 564.3 68.6% 133.6 23.7 % T o t a l 9 8 7 . 1 1 0 0 . 0 % 8 2 3 . 1 1 0 0 . 0 % 1 6 4 . 1 1 9 . 9 % 3 Q 2 0 2 6 3 Q 2 0 2 5 ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) Y o Y C h a n g e
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8 HHGr ace Pr oprietary R e v e n u e by Ge o g r a p h y 80/period.round7% 79/period.round 5% 78/period.round4% 77/period.round6% 77/period.round1% 7/period.round8% 8/period.round7% 10/period.round5% 10/period.round7% 11/period.round3% 9/period.round3% 9/period.round5% 8/period.round5% 8/period.round6% 7/period.round8% 2/period.round2% 2/period.round3% 2/period.round6% 3/period.round1% 3/period.round8% 3Q 2025 (Unaudited and restated) 4Q 2025 (Unaudited and restated) 1Q 2026 (Unaudited and restated) 2Q 2026 (Unaudited and restated) 3Q 2026 (Unaudited) China North America Other Asia Europe U S $ m i l l i o n % U S $ m i l l i o n % U S $ m i l l i o n % C h in a 7 60 .8 7 7 .1 % 6 64 . 1 8 0 . 7 % 9 6.7 1 4 . 6 % N or t h Am e r ic a 11 1. 9 11 .3% 63 . 9 7 . 8 % 48 .0 7 5 . 1 % As i a 7 6 . 9 7 . 8 % 7 6.7 9 .3% 0 . 2 0 . 2 % Eur o p e 3 7 . 6 3 . 8 % 18 . 4 2 .2 % 1 9 . 2 10 4 . 3 % T o t a l 9 8 7 . 1 1 0 0 . 0 % 8 2 3 . 1 1 0 0 . 0 % 1 6 4 . 1 1 9 . 9 % 3 Q 2 0 2 6 3 Q 2 0 2 5 ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) Y o Y C h a n g e
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9 HHGr ace Pr oprietary R e v e n u e by T e c h n o l o g y P l a t f o r m 21/period.round5% 23/period.round8% 25/period.round5% 25/period.round0% 25/period.round5% 14/period.round0% 12/period.round0% 13/period.round9% 13/period.round5% 15/period.round0% 20/period.round5% 20/period.round1% 20/period.round7% 20/period.round3% 20/period.round5% 22/period.round6% 22/period.round3% 18/period.round2% 20/period.round3% 18/period.round8% 21/period.round4% 21/period.round8% 21/period.round7% 20/period.round9% 20/period.round2% 3Q 2025 (Unaudited and restated) 4Q 2025 (Unaudited and restated) 1Q 2026 (Unaudited and restated) 2Q 2026 (Unaudited and restated) 3Q 2026 (Unaudited) Embedded NVM Standalone NVM Power discrete Logic & RF Analog & PM U S $ m i l l i o n % U S $ m i l l i o n % U S $ m i l l i o n % Em be dde d N VM 252.5 25.5% 17 7 .1 21.5% 7 5.3 42.5 % Sta nda lone NVM 147 .6 15.0 % 115.1 14.0 % 32.5 28 .2 % P ow e r dis c r e te 20 2 .0 2 0 .5% 169.0 2 0 .5% 33.0 19 .5 % L ogic & R F 18 5.2 18 .8 % 18 5.7 22 .6% ( 0 .5) ( 0 .3) % Ana log & P M 199 .9 2 0 .2 % 17 6.1 21.4% 23.8 13.5 % T o t a l 9 8 7 . 1 1 0 0 . 0 % 8 2 3 . 1 1 0 0 . 0 % 1 6 4 . 1 1 9 . 9 % 3 Q 2 0 2 6 3 Q 2 0 2 5 ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) Y o Y C h a n g e
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10 HHGr ace Pr oprietary R e v e n u e by T e c h n o l o g y No d e 25/period.round0% 24/period.round3% 25/period.round2% 24/period.round4% 24/period.round9% 0/period.round4% 0/period.round2% 0/period.round2% 0/period.round2% 0/period.round3% 4/period.round4% 4/period.round0% 4/period.round1% 4/period.round2% 4/period.round2% 8/period.round9% 8/period.round3% 8/period.round6% 8/period.round7% 8/period.round6% 17/period.round5% 19/period.round5% 20/period.round3% 19/period.round4% 17/period.round6% 43/period.round8% 43/period.round7% 41/period.round6% 43/period.round1% 44/period.round4% 3Q 2025 (Unaudited and restated) 4Q 2025 (Unaudited and restated) 1Q 2026 (Unaudited and restated) 2Q 2026 (Unaudited and restated) 3Q 2026 (Unaudited) ≥0/period≤round35µm 0.25µm 0.15µm & 0.18µm 0.11µm & 0.13µm 90nm & 95nm ≤65nm U S $ m i l l i o n % U S $ m i l l i o n % U S $ m i l l i o n % ≤65nm 437.8 44.4% 360.1 4 3.8% 77.8 21.6 % 90nm & 95nm 173.8 17.6% 144.4 17.5% 29.4 20.4 % 0.11µm & 0.13µm 85.1 8.6% 73.2 8.9% 11.9 16.3 % 0.15µm & 0.18µm 41.5 4.2% 36.5 4.4% 5.0 13.8 % 0.25µm 2.7 0.3% 3.2 0.4% (0.4) (13.2)% ≥0.35µm 246.0 24.9% 205.7 25.0% 40.3 19.6 % T o t a l 9 8 7 . 1 1 0 0 . 0 % 8 2 3 . 1 1 0 0 . 0 % 1 6 4 . 1 1 9 . 9 % 3 Q 2 0 2 6 3 Q 2 0 2 5 ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) Y o Y C h a n g e
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11 HHGr ace Pr oprietary R e v e n u e by E n d M a r k e t D i s t r i b u t i o n 66/period.round2% 65/period.round1% 70/period.round4% 69/period.round6% 69/period.round7% 17/period.round0% 17/period.round7% 17/period.round6% 18/period.round3% 19/period.round7% 15/period.round3% 16/period.round0% 10/period.round6% 10/period.round5% 9/period.round2% 1/period.round5% 1/period.round2% 1/period.round4% 1/period.round6% 1/period.round4% 3Q 2025 (Unaudited and restated) 4Q 2025 (Unaudited and restated) 1Q 2026 (Unaudited and restated) 2Q 2026 (Unaudited and restated) 3Q 2026 (Unaudited) Consumer Electronics Industrial & Automotive Communications Computing U S $ m i l l i o n % U S $ m i l l i o n % U S $ m i l l i o n % C o ns u m e r E le c t r on ic s 6 8 8 . 2 69 . 7 % 5 44 . 4 6 6.2 % 1 4 3.8 2 6 . 4 % I ndus t r ia l & Au t o m o t ive 19 4 . 5 1 9 . 7 % 14 0 .0 17 . 0 % 54 . 5 3 8 . 9 % C o m m uni c a t io ns 9 0 . 4 9 .2 % 12 6 . 3 15.3% ( 35 . 8 ) ( 2 8 .4) % C o m put in g 14.0 1 .4% 1 2 . 4 1 .5% 1. 5 1 2 . 3 % T o t a l 9 8 7 . 1 1 0 0 . 0 % 8 2 3 . 1 1 0 0 . 0 % 1 6 4 . 1 1 9 . 9 % 3 Q 2 0 2 6 3 Q 2 0 2 5 ( U n a u d i t e d ) ( U n a u d i t e d a n d re s t a t e d ) Y o Y C h a n g e
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12 HHGr ace Pr oprietary 4 Q 2026 Gu i d a n c e • We ex pect revenue t o be approx imat ely US$1 ,080 mill ion t o US$1 ,090 million. • We ex pect gross margin t o be in t he range of 25% t o 26% .
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13 HHGr ace Pr oprietary http://w w w.huahonggrace.com ir@hhgrace.com