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 t o 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. H U A H O N G G R A C E S E M I C O N D U C T O R L I M I T E D 華 虹 宏 力 半 導 體 有 限 公 司 ( Incorporated in Hong Kong with limi ted liabi lity) Stock Code (01347) N e w s R e l e a s e R e p o r t s 2 0 2 6 T h i r d Q u a r t e r R e s u l t s All currency figures in this report are in US Dolla rs unless indicated otherwise. The consolidated financial statements are prepared in accordance with HKFRS. H ong K o ng S pecia l Ad ministra tiv e R egio n of the P eo p le’s R ep ublic of Chin a – Nov e mber 5, 20 26. H ua Hong Gr a ce Se miconducto r L i mited ( S E HK : 0 1347 ; SS E STAR M ARK E T: 688347 ) ( t h e “ Co mp a ny” ) , a glo ba l, le ading p ure-pla y f oun dry , t o day a nno unced its cons olida te d o pera ti ona l results for the qu a rter en ding Septe mber 30 , 20 26. Thir d Quar ter 2026 Highlights (Unaudited) R ev en ue a chiev e d US$ 9 8 7 .1 million, 19 .9 % ov er 3Q 20 25 a nd 9 .9 % a bo v e 2Q 20 26. R ev enue （ex cluding H u a li M icro 1 ）w a s US$80 3.4 million, co mpared to ou r guidance of US$7 7 0 million to US$7 80 million. Gross m a rgin wa s 24.6%, 7 .6 percenta ge p oints o v er 3Q 20 25 a nd 4.7 percent a ge poi nts a b ov e 2Q 20 26. Gross ma rgin （ ex cluding H u a li M icro） wa s 19 . 9 %, com pa re d to ou r guidance of 16% to 18%. Net profit a ttribut a ble to s ha reh olders of the p a re nt comp a ny w as US$123.4 million, 147 .1% ov er 3Q 20 25 a nd 7 7 .7% abo v e 2Q 20 26. Four th Quar ter 2026 Guidance We ex pect revenue t o be a ppr ox im a tely U S$1,0 80 mill ion to U S$1,0 9 0 million . We ex pect gro ss m a rgin t o be in th e range of 25% t o 26%. 1 Huali Micro represents Shanghai Huali Microelectron ics Corporation.
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2 Pr esident’s Message Dr. Peng Bai, Chairman and President of Hua Hong Gr ace, commented on the Company’s 2026 third-quarter performance as follows: “In the third quarter of 2026, the Company complete d acquisition of Huali Microelectronics, bringing the year-long effort to a successful close. As a re sult, all financial reports now include Huali Microelectronics, unless otherwise specified. In the quarter that just passed, Hua Hong Grace ach ieved revenue of US$987.1 million, representing a 19.9% year-on-year increase on a restated compara ble basis (excluding Huali Microelectronics, revenue was US$803.4 million, above the upper end o f last quarter guidance of US$770 million to US$780 million). Gross margin stood at 24.6%, up by 7.6 percentage points year-on-year (excluding Huali Microelectronics, gross margin was 19.9%, abo ve the upper end of last quarter guidance of 16% to 18%). Profit attributable to shareholders of the parent company was US$123.4 million. Revenue hit an all-time high by a large margin, and key fin ancial metrics delivered significant improvement year-on-year and quarter-on-quarter. During the qua rter, the company maintained a high fab utilization rate, witnessed a steadily upward trend in shipments and average selling prices, and continued to execute capacity expansion projects on schedule. Integration of Huali Microelectronics has been proved financially accretive and operation ally synergistic. The 12-inch business now accounts for 70.7% of total revenue for the company .” Dr. Bai continued: “Artificial intelligence related products continue to drive global semiconductor market demand. The industrial and automotive market s are gradually improving. As a specialty technology foundry with a broad technology portfoli o, Hua Hong Grace has seen increasingly higher demands for MCU, flash memory, power management, an d power discrete products, with corresponding tight supply in some segments, even a s we continue to expand capacity. We expect the pattern of rising volume and prices to continue for some time. The company will remain laser focused on operational excellence and delivering va lue for shareholders.”
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3 W ebcast /Confer ence Call A nnouncement D a t e : Thursday, November 5, 2026 T i me: 17:00 Hong Kong/Shanghai Time 04:00 EST P re se nters: Dr. Peng Bai, Chairman and President of the Company Mr. Daniel Wang, Executive Vice President and Chief Financial Officer We b cast: 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/amy9mj7q (Note: registration is required to access the webca st . ) For those without internet access, you may join the teleconference call. Te lec on ference Details: Please register in advance of the conference using the link provided below. Upon registering, you will be provided with partici pant dial-in numbers and personal PIN. https://register-conf.media- server.com/register/BI164ceba3f66d4e49b6565d87d913a ff0 I m p o r t a nt Not e : Before the meeting starts, you will need the perso nal PIN to join the call. Please check and save the confirmati on email after registering. For security reasons, please do not share your personal PIN with anyone else. Re pla y: A recording will be available for replay at the bel ow website about 2 hours after the event and will be available for 12 months. https://www.huahonggrace.com/html/ir_calendar.php A bout the Company Hua Hong Grace Semiconductor Limited ("HHGrace" or the "Company"; Stock Code: 688347.SH/01347.HK) is a global leading pure-play f oundry with specialty technologies which offers a diverse array of wafer foundry and supporting ser vices to its customers, implementing "8-inch + 12-inch" and advanced "Specialty IC + Power Discret e" development strategies. The Company focuses on continuous innovation of specialty techn ologies, including embedded/standalone non- volatile memory (NVM), analog & power management, l ogic & RF, and power discrete, supporting applications in emerging areas, such as AI and data centers, new energy vehicles, smart manufacturing, green energy, and the Internet of Th ings. Of special note is the Company’s outstanding quality control system that satisfies t he strict requirements of automotive chip manufacturing. The Company is a member of the Hua H ong Group, which owns mainstream advanced IC manufacturing process technologies in C hina. The Company operates three 8-inch and one 12-inch w afer fabrication facilities in Shanghai Jinqiao and Shanghai Zhangjiang. In addition, the Company h as built two global leading 12-inch wafer fabrication facilities devoted to specialty process es in Wuxi National Hi-Tech District, Jiangsu Province. Construction is now underway on its Wuxi III 12-inch production line. For more information, please visit: www.huahonggrace.com .
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4 S u m m a r y o f O p e r a t i n g R e s u l t s ( A m o u n t s i n U S $ t h o u s a n d s , e x c e p t f o r E P S a n d o p e r a t i n g d a t a ) 3 Q 2 0 2 6 ( U n a u d i t e d an d e x c l u d i n g H u a l i M i c r o ) 2 3Q 2 0 2 6 ( U n au d i t e d ) 3 Q 2 0 2 5 ( U n au d i t e d an d r e s t a t ed ) 3 2 Q 2 0 2 6 ( U n au d i t e d an d r es t a t ed ) 3 Y o Y C h an g e Q o Q C h an g e R e v e nue 80 3,40 1 987, 133 823,0 78 898, 483 19.9 % 9.9 % G r o s s p r o f i t 1 5 9 , 9 6 4 2 4 2 , 6 43 1 4 0 , 3 1 3 1 7 9 , 2 2 7 7 2 . 9 % 3 5 . 4 % G r o ss m ar g i n 1 9 .9 % 2 4. 6 % 1 7. 0 % 19.9 % 7.6 4.7 Ope rat ing e x pe nse s (94,520 ) (10 0 ,533) (1 17,350 ) (1 16,40 8 ) (14.3) % (13.6) % Ot he r (loss) / income ne t (2,60 9) (8,666) 16,285 (4,69 9) (153.2) % 84.4 % P r o f i t b ef 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 % Income t ax e x pe nse (13,39 1) (13,39 1) (10 ,25 9) (7,632) 30 .5 % 75.5 % P r o f i t f o r t h e p er 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 pro fit margin 6.2 % 12.2 % 3. 5 % 5.6 % 8.7 6.6 At t ribut able t o: Owne rs of t he pare nt 68,831 123,435 49,950 69,480 147.1 % 77.7 % Non-cont rolling int e r e st s (19,3 87) (3,382) (20 ,96 1) (18 ,992 ) (83.9) % (82.2)% Earnings pe r share at t ribut a ble t o owne rs of t he pare nt Basic 0 .0 40 0 .0 66 0 .0 27 0 .0 37 144.4 % 78.4 % D ilut e d 0 .0 40 0 .0 66 0 .0 27 0 .0 37 144.4 % 78.4 % W afe rs shippe d (in t housands 8" equiv ale nt wafe rs) 1,61 8 1,9 11 1,7 14 1,837 11.5 % 4.0 % Capacity utilization 4 101.0 % 102.9 % 108.7 % 104.1 % (5.8) (1.2) ROE 5 4.0 % 6.8 % 3.2 % 4.0 % 3.6 2.8 2 This column presents results excluding the effect o f acquisition of share capital of Huali Micro. 3 Financial information of 2Q 2 026 and 3Q 2 025 has be en restated as a result of merger between the Compa ny and Huali Micro. 4 The capacity utilization is calculated based on ave rage monthly equiv alent w afers output divided by to tal estimated monthly capacity. 5 Profit attributable to ow ners of the parent / w eigh ted average net assets attributable to ow ners of th e parent. T h i r d Q u a r t er 2 0 2 6 Revenue achie v e d US$ 987. 1 million, 19. 9% ov e r 3Q 20 25 a nd 9.9 % abov e 2Q 20 26, primarily driv e n by incre ase d waf e r shipme nt and improv e d av e rage s e lling pr ice . Gross margin was 24.6% , 7.6 pe rce nt age point s ov e r 3Q 2 0 25 and 4.7 pe rce nt age point s abov e 2Q 20 26, primarily driv e n by improv ed av e rage se l ling price , part ially offse t by incre ased de pre ciat ion cost s. Operating expenses we r e US $10 0 .5 mil lion, 14.3% low e r t h an 3Q 20 25, mainly due t o d ecre ase d de pre ciat ion e x pe nse s and engine e ring wafe r cost s, and 1 3.6% be l ow 2Q 20 26, mainly due t o d e cre ased labor and e ngine e r ing wafe r cost s. Other loss net was US$8. 7 mil lion, compare d t o ot he r inco me ne t of U S$16.3 mill ion in 3 Q 20 25, primarily du e t o incre ase d finance cost s. It was 84.4% ov e r 2Q 20 26, mainly due t o US$6.2 mil lio n of share of loss of associat e s in 3Q 20 26. Income tax expenses was U S $13.4 mill ion, 30 .5 % ov e r 3Q 20 25 and 75.5% abov e 2Q 20 26. Profit for the period was US$ 1 20 .1 mill ion, 314 .1 % ov e r 3Q 2 0 25 and 137.8 % abov e 2Q 20 26. Net profit attributable to shareholders of the parent company was US$ 123.4 mil lion, 147. 1 % ov e r 3Q 20 25 and 77.7% abov e 2Q 20 26. Basic earnings per share was US$0 .0 66, 144.4 % ov e r 3Q 2 0 25 and 78.4 % abov e 2Q 20 2 6. ROE (annualized) was 6 .8%, 3 .6 pe rce nt age point s ov e r 3Q 20 25 and 2.8 pe rce nt age poi nt s abov e 2Q 20 26.
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5 Analysis of Re ven ue Revenue by service type 3 Q 2 0 2 6 U S $000 ( Unau dited ) 3 Q 20 26 % (Unaudited) 3 Q 20 2 5 US$000 ( Unaudited and restated ) 3 Q 20 25 % (Unaudited and restated ) YoY C han ge US$000 YoY Change % Wafers 960,615 97.3 % 794,927 96.6 % 165,688 20.8 % Others 26,518 2.7 % 28,151 3.4 % (1,633) (5.8)% Total revenue 9 8 7 , 133 100 .0 % 823,078 100.0 % 16 4,055 19.9 % Analysis of Revenue Revenue by wafer si ze 3 Q 20 26 US$000 ( Unaudited) 3 Q 20 26 % (Unaudited) 3 Q 20 25 US$000 ( Unaudited and restated) 3 Q 20 25 % (Unaudited and restated) YoY Change US$000 YoY Change % 8" wafers 289,227 29.3 % 258,805 31.4 % 30,422 11.8 % 12" wafers 697,906 70.7 % 564,273 68.6 % 133,633 23.7 % Total revenue 987,133 100.0 % 823,078 100.0 % 164,055 19.9 % 97.3% of total revenue was derived from the sale of semiconductor wafers in 3Q 2026. R ev en ues fro m 8" w a fer s a nd 12" wa fers were US$289.2 million and US$697.9 million, respectively, in 3Q 2026.
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6 Analysis of Revenue Revenue by geography 3 Q 20 26 US$000 ( Unaudited) 3 Q 20 26 % (Unaudited) 3 Q 20 25 US$000 ( Unaudited and restated) 3 Q 20 25 % (Unaudited and restated) YoY Change US$000 YoY Change % China 6 760,779 77.1 % 664,056 80.7 % 96,723 14.6 % North America 7 111,850 11.3 % 63,889 7.8 % 47,961 75.1 % Other Asia 8 76,863 7.8 % 76,708 9.3 % 155 0.2 % Europe 37,641 3.8 % 18,425 2.2 % 19,216 104.3 % Total revenue 987,133 100.0 % 823,078 100.0 % 164,055 19.9 % 6 Incl ude s Chinese Mainl an d and Hong Kong. 7 Incl ude s a major cust o mer in US t hat was a cquire d b y an Europe hea dquartered co mp any in 2020. 8 Incl ude s Taiwan, China and J a pan. R ev en ue from Chin a was US$760.8 million, contributing 77.1% of total revenue and an increase of 14.6% over 3Q 2025, mainly driven by increased d emand for MCU, flash, smart card IC, logic, and general MOSFET products, partially offset by de creased demand for analog products. R ev en ue fro m Nort h A mer ica was US$111.9 million, an increase of 75.1% over 3Q 2025, mainly driven by increased demand for PMIC and MCU product s. R ev en ue fro m Othe r Asia was US$76.9 million, flat with 3Q 2025. R ev en ue fro m E ur ope was US$37.6 million, an increase of 104.3% over 3Q 2025, mainly driven by increased demand for MCU products.
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7 Analysis of Revenue Revenue by technology platform 3 Q 20 26 US$000 ( Unaudited) 3 Q 20 26 % (Unaudited) 3 Q 20 25 US$000 ( Unaudited and restated) 3 Q 20 25 % (Unaudited and restated) YoY Change US$000 YoY Change % Embedded NVM 252,467 25.5 % 177,143 21.5 % 75,324 42.5 % Standalone NVM 147,599 15.0 % 115,113 14.0 % 32,486 28.2 % Power Discrete 202,024 20.5 % 169,036 20.5 % 32,988 19.5 % Logic & RF 185,160 18.8 % 185,703 22.6 % (543) (0.3)% Analog & PM 199,883 20.2 % 176,083 21.4 % 23,800 13.5 % Total revenue 987,133 100.0 % 823,078 100.0 % 164,055 19.9 % R ev en ue fro m embe dde d NV M was US$252.5 million, an increase of 42.5% over 3Q 2025 , mainly driven by increased demand for MCU and smart card ICs. R ev en ue fr om stand a lone NV M was US$147.6 million, an increase of 28.2% over 3Q 2025 , mainly driven by increased demand for flash product s. R ev en ue from pow er discrete was US$202.0 million, an increase of 19.5% over 3Q 2025 , mainly driven by increased demand for general MOSFET produ cts. R ev en ue fro m logic & R F was US$185.2 million, flat with 3Q 2025. R ev en ue fro m a n a log & p ow er m a n a geme nt was US$199.9 million, an increase of 13.5 % over 3Q 2025, mainly driven by increased demand for PMIC products.
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8 Analysis of Revenue Revenue by technology platform 3 Q 20 26 US$000 ( Unaudited) 3 Q 20 26 % (Unaudited) 3 Q 20 25 US$000 ( Unaudited and restated) 3 Q 20 25 % (Unaudited and restated) YoY Change US$000 YoY Change % ≤65nm 437,849 44.4 % 360,095 43.8 % 77,754 21.6 % 90nm & 95nm 173,842 17.6 % 144,396 17.5 % 29,446 20.4 % 0.11µm & 0.13µm 85,145 8.6 % 73,231 8.9 % 11,914 16.3 % 0.15µm & 0.18µm 41,523 4.2 % 36,492 4.4 % 5,031 13.8 % 0.25µm 2,745 0.3 % 3,163 0.4 % (418) (13.2)% ≥0.35µm 246,029 24.9 % 205,701 25.0 % 40,328 19.6 % Total revenue 987,133 100.0 % 823,078 100.0 % 164,055 19.9 % R ev en ue fro m 65nm a n d b elow technolo gy n odes was US$437.8 million, an increase of 21.6% over 3Q 2025, mainly driven by increased demand for PMIC, flash and MCU products. R ev en ue fr om the 90 nm & 9 5nm technol ogy no des was US$173.8 million, an increase of 20.4% over 3Q 2025, mainly driven by increased demand for MCU and smart card ICs. R ev en ue fro m t he 0 .11µm & 0 .13µm technol ogy node s was US$85.1 million, an increase of 16.3% over 3Q 2025, mainly driven by increased demand for MCU products. R ev en ue fro m t he 0 .15µm & 0 .18µm tech nolog y n o des was US$41.5 million, an increase of 13.8% over 3Q 2025, mainly driven by increased dema nd for PMICs. R ev en ue from the 0 .25µm technology no de was US$2.7 million, a decrease of 13.2% compared to 3Q 2025. R ev en ue fro m t he 0 .35µm a n d a bo v e tech nolog y n o des was US$246.0 million, an increase of 19.6% over 3Q 2025, mainly driven by increased dema nd for general MOSFET products.
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9 Analysis of Revenue Revenue by end mar ket distribution 3 Q 20 26 US$000 ( Unaudited) 3 Q 20 26 % (Unaudited) 3 Q 20 25 US$000 ( Unaudited and restated) 3 Q 20 25 % (Unaudited and restated) YoY Change US$000 YoY Change % Consumer electronics 688,210 69.7 % 544,384 66.2 % 143,826 26.4 % Industrial & automotive 194,525 19.7 % 140,000 17.0 % 54,525 38.9 % Communications 90,443 9.2 % 126,268 15.3 % (35,825) (28.4)% Computing 13,955 1.4 % 12,426 1.5 % 1,529 12.3 % Total revenue 987,133 100.0 % 823,078 100.0 % 164,055 19.9 % Capacity 9 and Capacity Utilization 3 Q 20 26 ( Unaudited ) 3 Q 20 25 ( Unaudited and restated ) 2 Q 20 26 ( Unaudited and restated ) Total capacity (in thousands 8" equivalent wafers) 636 543 593 Ov er a ll ca pa city utiliz a tion 10 2.9 % 10 8.7 % 10 4.1 % Wafer Shipment s in thousands 8 " e quivalent wafers 3 Q 20 26 (Unaudited) 3 Q 20 25 (Unaudited and restated ) 2 Q 20 26 (Unaudited and restated ) YoY Change QoQ Change Wafer shipments 1,911 1,714 1,837 11.5 % 4.0 % 9 Waf ers per mont h at t h e end o f t he p eriod, calcula t e d on a 30- da y ba sis fo r comp arison purpo ses. R ev en ue from cons umer e lectronics, our largest end market segment, contributed US$688 .2 million, reaching 69.7% of total revenue, an increa se of 26.4% over 3Q 2025, mainly driven by increased demand for MCU, flash, and PMICs. R ev en ue fr om indust ria l & a ut om otiv e was US$194.5 million, an increase of 38.9% over 3Q 2025, mainly driven by increased demand for PMICs. R ev en ue fr om com munications was US$90.4 million, a decrease of 28.4% compared to 3Q 2025, mainly due to decreased demand for CIS produc ts. R ev en ue from co mputi ng was US$14.0 million, an increase of 12.3% over 3Q 2025, mainly driven by increased demand for MCU products. Monthly capacity was 636,000 8-inch equivalent wafe rs at the end of 3Q 2026. Overall capacity utilization was 102.9% in 3Q 2026. Wa fer shipm ents were 1,911,000, an increase of 11.5% year over yea r, and 4.0% quarter over quarter.
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10 Operating E xpenses Analysis Amounts in US$ thousands 3 Q 20 26 (Unaudited) 3 Q 20 25 (Unaudited and restated ) 2 Q 20 26 (Unaudited and restated ) YoY Change QoQ Change Selling and distribution expenses 2,801 2,550 3,021 9.8 % (7.3)% Administrative expenses 10 97,509 118,230 114,617 (17.5)% (14.9)% Impairment losses on trade and notes receivables 223 (3,430) (1,230) (106.5)% (118.1)% Operating e xpenses 100,533 117,350 116,408 (14.3)% (13.6)% Other ( Loss) / Income Net Analysis Amounts in US$ thousands 3 Q 20 26 (Unaudited) 3 Q 20 25 (Unaudited and restated ) 2 Q 20 26 (Unaudited and restated ) YoY Change QoQ Change Interest income 14,741 15,096 15,223 (2.4)% (3.2)% Foreign exchange gains / (losses) 542 346 (5,859) 56.6 % (109.3)% Share of (loss) / profit of associates (6,191) 1,843 9,491 (435.9)% (165.2)% Finance costs (29,500) (18,042) (31,468) 63.5 % (6.3)% Government subsidies 11,939 16,199 6,043 (26.3)% 97.6 % Others (197) 843 1,871 (123.4)% (110.5)% Other (loss) / income n et (8,666) 16,285 (4,699) (153.2)% 84.4 % 10 Ad minist rat ive ex pens es incl u de g ove rnment grant s r ec ogniz ed a s an of fset it em. Opera ti ng ex pense s were $100.5 million, 14.3% lower than 3Q 2025, mai nly due to decreased depreciation expenses and engineering wafer costs, and 13.6% below 2Q 2026, mainly due to decreased labor and engineering wafer costs. Other loss net was US$8.7 million, compared to other income net of US$16.3 million in 3Q 2025, primarily due to increased finance costs. It was 84 .4% over 2Q 2026, mainly due to US$6.2 million of share of loss of associates in 3Q 2026.
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11 Cash Flow Analysis Amounts in US$ thousands 3 Q 20 26 (Unaudited) 3 Q 20 25 (Unaudited and restated ) 2 Q 20 26 (Unaudited and restated ) YoY C hange QoQ C hange Net cash flows generated from operating activities 377,277 279,004 419,870 35.2 % (10.1)% Net cash flows used in investing activities (549,993) (258,140) (330,367) 113.1 % 66.5 % Net cash flows generated from / (used in) financing activities 1,114,615 56,873 (422,727) 1,859.8 % (363.7)% Effect of exchange rate changes 44,138 25,328 65,000 74.3 % (32.1)% Net change in cash 986,037 103,065 (268,224) 856.7 % (467.6)% Capital Structure Amounts in US$ thousands 3 0 - S ep - 20 26 (Unaudited) 3 0 - J un - 20 26 (Unaudited and restated ) Total assets 17,727,129 16,019,042 Total liabilities 6,407,387 6,062,217 Total equity 11,319,742 9,956,825 Debt r a tio 11 36.1 % 37 .8 % Capital E xpenditures Amounts in US$ thousands 3 Q 2026 (Unaudited) 2 Q 2026 ( Unaudited and restated ) Hua Hong 8" 29,249 30,683 Hua Hong 12" 571,784 332,573 Total 601,033 363,256 11 Debt rat io is calculat e d ba se d on t ot a l l ia bil it ie s / t ot a l ass et s. Net ca sh flow s gen era te d f rom oper a ting a ctiv ities was US$377.3 million, 35.2% over 3Q 2025, mainly due to increased receipts from customers, an d 10.1% lower than 2Q 2026, primarily due to increased labor payments in 3Q 2026. Net ca sh flo w s us ed i n in vesting a ctiv ities was US$550.0 million, including US$601.0 million investment in fixed assets, partially offset by US$ 26.5 million interest income, US$24.5 million receipt of government grants for equipment. Net ca sh flow s gener a ted f rom fin a ncing a ctiv ities was US$1,114.6 million, including US$1,167.6 million capital contribution from non-controlling i nterests, US$74.2 million proceeds from bank borrowings, and US$0.1 million proceeds from s hare option exercises, partially offset by US$99.9 million of bank principal repayments, US$26 .4 million interest payments and US$1.0 million lease payments. Ca pit a l ex pe nditures were US$601.0 million in 3Q 2026, including US$571 .8 million for Hua Hong 12" and US$29.2 million for Hua Hong 8".
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12 Liquidity Amounts in US$ thousands 3 0 - Sep - 20 26 (Unaudited) 3 0 - Jun - 20 26 (Unaudited and restated ) Completed properties held for sale 224,908 222,405 Inventories 737,791 711,164 Trade and notes receivables 367,102 388,242 Prepayments, other receivables and other assets 747,453 703,329 Due from related parties 32,788 24,691 Restricted and time deposits 45,937 45,355 Cash and cash equivalent s 6,048,435 5,062,398 Total current assets 8,204,414 7,157,584 Trade payables 284,361 356,588 Other payables and accruals 1,282,472 905,397 Interest - bearing bank borrowings 1,942,232 1,985,982 Current portion of long - term payables - 7,331 Lease liabilities 1,758 2,006 Government grants 134,031 119,681 Due to related parties 3,363 4,310 Income tax payable 22,532 14,549 Total current liabilities 3,670,749 3,395,844 Net working capital 4,533,665 3,761,740 Quick ra tio 2.0 1.8 Current r a tio 2.2 2.1 Trade and notes receivables turnover days 3 4 41 Inventories turnover days 88 87 P lea se v isit Co mp a ny ’s w e bsite a t www.huahonggrace.com for further deta ils reg a rdin g recent a n nou ncements. Tra de p a ya bles decreased from US$356.6 million on 30 June 2026 to US$284.4 million on 30 September 2026, mainly due to increased payments to suppliers. Other p a ya bles a nd a ccru a ls increased from US$905.4 million on 30 June 2026 to US$1,282.5 million on 30 September 2026, mainly due to increas ed payables for capital expenditures. On 30 September 2026, net w ork ing capita l was US$4,533.7 million and the current ra tio was 2.2. Tra de a nd notes r eceiv ables turno v er d a y s were 34. Inv entories t urno v er da y s were 88.
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13 R e s t a t e d S u m m a r y o f O p e r a t i n g R e s u l t s o f p r i o r p e r i o d ( A m o u n t s i n U S $ t h o u s a n d s , e x c e p t f o r E P S a n d o p e r a t i n g d a t a ) In September 2026, the Company completed the acquis ition of share capital of Huali Micro. The transact ion was accounted for as a business combination und er common control in accordance with relevant accounti ng standards and accordingly, the comparative figur es for the corresponding period were restated. 3 Q 2 0 2 5 4 Q 2 0 2 5 1 Q 2 0 2 6 2 Q 2 0 2 6 3 Q 2 0 2 5 4 Q 20 2 5 1 Q 2 0 2 6 2Q 2 0 2 6 ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) ( U n a u d i t e d ) R ev en u e 6 3 5 , 180 65 9, 882 66 0,92 5 717,53 7 82 3 , 078 840,696 8 2 4 ,473 898,4 8 3 G r o s s p r o f i t 8 5 , 8 5 4 8 5 , 4 6 4 8 6 , 0 5 9 1 1 8 , 4 0 4 1 4 0 , 3 1 3 1 25 , 4 4 2 1 28 , 5 5 2 1 7 9 , 2 2 7 G r o ss m ar g i n 1 3 . 5 % 13. 0 % 13.0 % 1 6.5 % 1 7.0 % 1 4. 9 % 15.6 % 19.9 % Op erat ing e xpen ses (100, 4 3 3) (130,16 5 ) (105,6 13 ) (109, 083 ) (117, 3 5 0 ) (14 1, 5 06 ) (112 , 5 74 ) (116 , 4 08) Ot h er in co m e/ (l o ss) n et 17, 75 2 3 4 ,110 (2 , 4 4 8) 2 , 18 9 16 , 2 85 2 6 ,900 (5 , 4 89) (4 , 6 99) P r o f i t / ( L o s s ) b e f or e t a x 3 , 1 7 3 ( 1 0 , 5 9 1 ) ( 2 2 , 0 0 2 ) 1 1 , 5 1 0 3 9 , 2 4 8 1 0 , 8 3 6 1 0 , 4 8 9 5 8 , 1 2 0 In co m e t ax cred it / (ex p ense) (10, 3 6 3) (8, 06 9) 4 ,73 5 (7, 6 3 2 ) (10, 2 5 9) (8, 008) 4 ,735 (7, 6 3 2 ) ( Lo s s ) / p r o f i t f o r t h e p e r i o d ( 7 , 1 9 0 ) ( 1 8 , 6 6 0 ) ( 1 7 , 2 6 7 ) 3 , 8 7 8 28 , 9 8 9 2 , 8 2 8 1 5 , 2 2 4 5 0 , 4 8 8 N e t pro fit marg in (1.1 )% ( 2. 8)% (2.6)% 0.5 % 3.5 % 0.3 % 1.8 % 5.6 % At t rib u t ab l e t o : Own e rs o f t h e p aren t 2 5 , 72 5 17,45 4 2 0,92 9 38,6 3 9 49,95 0 35 ,35 9 4 2 ,52 4 6 9,4 8 0 N o n -co n t ro ll ing in t erest s (3 2 ,915) (3 6 , 114 ) (3 8 ,196 ) (34 ,761) (2 0,961) (32 ,5 31) (2 7, 3 00) (18, 992 ) Earnin gs p e r sh are at t ribu t ab l e t o o wners o f t h e p aren t Basic 0.015 0.010 0.012 0.02 2 0.02 7 0.019 0.0 2 3 0.0 3 7 Dil u t ed 0.015 0.010 0.012 0.02 2 0.02 7 0.019 0.0 2 3 0.0 3 7 W af ers ship ped (in t h o u san d s 8” eq u iv alent w afers) 1,400 1,44 8 1,45 3 1,53 8 1,714 1,74 5 1,736 1,8 3 7 C ap ac i t y u t i l i z at i o n 109.5 % 103 .8 % 99.7 % 102 .8 % 108.7 % 104 .2 % 10 1. 1 % 104 .1 % R OE (an n u a l iz e d ) 1.6 % 1.2 % 1.2 % 2 .4 % 3 .2 % 2 .0 % 2 .4 % 4 .0 % R e s t a t e d A s p r e v i o u s l y r e p o r t e d
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14 H u a H o n g G r a c e S e m i c o n d u c t o r L i m i t e d C o n d e n s e d C o n s o l i d a t e d S t a t e m e n t s o f P r o f i t o r L o s s ( I n U S $ T h o u s a n d s E x c e p t S h a r e D a t a ) F o r t h e T h r ee M o n th s E n d ed 3 0 - Se p - 2 0 2 6 ( U n a ud i t e d ) 3 0 - Se p - 2 0 2 5 ( U na ud i t e d a nd r es t a te d ) 3 0 - J u n - 2 0 2 6 ( U na ud i t e d a nd r es t a te d ) Revenue 987,133 823,078 898,483 Cost of sales (744,490) (682,765) (719,256) Gro s s p r o f i t 2 4 2 , 6 4 3 1 4 0 , 3 1 3 1 7 9 , 2 2 7 Other income and gains 27,044 32,687 23,137 Selling and distribution expenses (2,801) (2,550) (3,021) Administrative expenses (97,509) (118,230) (114,617) Impairment losses on trade and notes receivables (2 23) 3,430 1,230 Other expenses (19) (203) (5,859) Finance costs (29,500) (18,042) (31,468) Share of (loss) / profit of associates (6,191) 1,843 9,491 P r o f i t b e f or e ta x 1 3 3 , 4 4 4 39 , 2 4 8 5 8 , 1 2 0 Income tax expense (13,391) (10,259) (7,632) P r o f i t fo r th e pe r i od 1 2 0 , 0 5 3 2 8 ,9 8 9 5 0 , 4 8 8 Attributable to: Owners of the parent 123,435 49,950 69,480 Non-controlling interests (3,382) (20,961) (18,992) Earnings per share attributable to owners of parent Basic 0.066 0.027 0.037 Diluted 0.066 0.027 0.037 Sha r e s u s e d i n c a l c u la t i n g ba s i c ea r n in g s p e r sh a re a tt r i b u ta b l e t o o wn e r s o f p a re n t 1 , 8 7 3 , 0 3 6 ,9 69 1 , 8 5 5 , 7 9 4 ,0 0 6 1 , 8 6 1 , 9 6 4 , 2 4 6 Sha r e s u s e d i n c a l c u la t i n g d i lu t e d e a r n i n gs p e r sh a re a t t r ib u ta b l e to ow n e r s o f p a re n t 1 , 8 7 3 , 0 9 4 ,9 8 3 1 , 8 5 7 , 3 4 6 , 4 1 8 1 , 8 6 2 , 0 2 2 , 0 9 9
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15 H u a H o n g G r a c e S e m i c o n d u c t o r L i m i t e d C o n d e n s e d C o n s o l i d a t e d S t a t e m e n t s o f F i n a n c i a l P o s i t i o n ( I n U S $ T h o u s a n d s ) A s o f 3 0 - Se p - 2 0 2 6 ( U na ud i t e d ) 3 0 - J u n - 2 0 2 6 ( U na ud i t e d a nd r e s ta t ed ) 3 0 - Se p - 2 0 2 5 ( U na ud i t e d a nd r e s ta t ed ) AS SE T S N ON - CU R R E NT AS SE T S Property, plant and equipment 8,166,992 7,520,454 6,415,117 Investment property 54,451 53,845 54,154 Right-of-use assets 58,078 57,906 65,850 Intangible assets 33,777 37,068 42,629 Investment in associates 167,106 183,072 147,349 Equity instruments designated at fair value through other comprehensive income 748,292 763,190 368,411 Financial asset at fair value through profit or los s 8,909 8,809 - Long term prepayment 276,598 228,796 42,432 Due from related parties 8,512 8,318 8,970 Deferred tax assets - - 9,119 T ot a l n o n - c u r r en t a s s e t s 9 , 5 2 2 , 7 1 5 8 , 8 6 1 , 4 5 8 7 , 1 5 4 , 0 3 1 CUR R E NT A SS E TS Completed properties held for sale 224,908 222,405 223,302 Inventories 737,791 711,164 718,385 Trade and notes receivables 367,102 388,242 323,867 Prepayments, other receivables and other assets 747 ,453 703,329 494,794 Due from related parties 32,788 24,691 21,050 Restricted and time deposits 45,937 45,355 32,135 Cash and cash equivalents 6,048,435 5,062,398 4,357,050 T ot a l c u rr e n t a s se t s 8 , 2 0 4 , 4 1 4 7 , 1 5 7 , 5 8 4 6 , 1 7 0 , 5 8 3 CUR R E NT L I A B I L I T IE S Trade payables 284,361 356,588 368,483 Other payables and accruals 1,282,472 905,397 734,529 Interest-bearing bank borrowings 1,942,232 1,985,982 457,803 Current portion of long - term payables - 7,331 - Lease liabilities 1,758 2,006 3,598 Government grants 134,031 119,681 68,790 Due to related parties 3,363 4,310 21,602 Income tax payable 22,532 14,549 14,341 T ot a l c u rr e n t l ia b i l i t i e s 3 , 6 7 0 , 7 4 9 3 , 39 5 , 8 4 4 1 , 6 6 9 , 1 4 6 NE T CU R R E NT AS SE T S 4 , 5 3 3 , 6 6 5 3 , 7 6 1 , 7 40 4 , 5 0 1 , 4 3 7 T OT AL AS SE T S L E SS C UR R E NT L I A B IL I T I E S 1 4 , 0 5 6 , 3 8 0 1 2 , 6 2 3 , 1 9 8 1 1 , 6 5 5 , 4 6 8
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16 A s o f 3 0 - Se p - 2 0 2 6 ( U na ud i t e d ) 3 0 - J u n - 2 0 2 6 ( U na ud i t e d a nd r e s ta t ed ) 3 0 - Se p - 2 0 2 5 ( U na ud i t e d a nd r e s ta t ed ) NON - CU R R E NT L I A B I IL I T I E S Interest-bearing bank borrowings 2,066,658 1,999,824 2,464,562 Lease liabilities 7,652 7,938 15,329 Deferred tax liabilities 41,819 45,008 7,123 Other long-term payables 620,509 613,603 - T ot a l n o n - c u r r en t l i a b i l i t i e s 2 , 7 3 6 , 6 3 8 2 , 6 6 6 , 3 7 3 2 , 4 8 7 , 0 1 4 Ne t a s s et s 1 1 , 3 1 9 , 7 4 2 9 , 9 5 6 , 8 2 5 9 , 1 6 8 , 4 5 4 E qu i t y a n d l i a b i l i t i e s c a p i ta l a nd r e s er v e s Share capital 5,709,809 4,987,827 4,982,556 Reserves 1,253,134 2,269,969 1,521,497 E qu i t y a t t r i bu t a b l e to t h e ow n e rs o f th e c o mpa ny 6 ,9 6 2 , 9 4 3 7 , 2 5 7 , 7 9 6 6 , 5 0 4 , 0 5 3 Non-controlling interests 4,356,799 2,699,029 2,664,401 T ot a l eq u i t y 1 1 , 3 1 9 , 7 4 2 9 , 9 5 6 , 8 2 5 9 , 1 6 8 , 4 5 4
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17 H u a H o n g G r a c e S e m i c o n d u c t o r L i m i t e d C o n d e n s e d C o n s o l i d a t e d S t a t e m e n t o f C a s h F l o w s ( I n U S $ T h o u s a n d s ) F o r t h e Th r e e Mo n t h s E n de d 3 0 - Se p - 2 0 2 6 ( U na ud i t e d ) 3 0 - Se p - 2 0 2 5 ( U na ud i t e d a nd r e s ta t ed ) 3 0 - J u n - 2 0 2 6 ( U na ud i t e d a nd r e s ta t ed ) Ca sh f l o w s f r om o p e ra t i ng a c t i v i t i e s : Profit before tax 133,444 39,248 58,120 Depreciation and amortization 265,839 202,848 244,736 Share of loss / (profit) of associates 6,191 (1,843) (9,491) Changes in working capital and others (28,197) 38,751 126,505 Ne t ca s h f lo w s ge n e ra t ed f ro m o p er a t in g a c t i v i t i e s 37 7 , 2 7 7 2 7 9 , 0 0 4 4 19 , 8 7 0 Ca sh f l o w s f r om i nv e s t in g a ct i v i t i e s : Payments for property, plant and equipment and intangible assets (601,033) (275,347) (363,256) Purchase of an equity investment designated at fair value through other comprehensive income - (14,030) (7,286) Purchase of a financial assets at fair value throug h profit or loss - - (8,809) Receipt of government grants of equipment 24,484 7,000 28,283 Other cash flow generated from investing activities 26,556 24,237 20,701 Ne t ca s h f lo w s u s e d i n i nv e s t in g a c t i v i t i e s ( 5 49 , 9 9 3 ) ( 2 5 8 , 1 4 0 ) ( 3 30 , 3 6 7 ) Ca sh f l o w s f r om f i na n c i n g a ct i v i t i e s : New bank loans 74,238 99,923 201,506 Proceeds from issue of shares 110 14,376 106 Capital contribution from non-controlling interests 1,167,600 - - Repayment of bank borrowings (99,903) (47,865) (583,667) Interest paid (26,452) (7,572) (39,689) Payment of lease liabilities (978) (1,989) (983) Ne t ca s h f lo w s ge n e ra t ed f ro m / ( u s ed i n ) f in a n c i n g a ct 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 ) Net increase / (decrease) in cash and cash equivale nts 941,899 77,737 (333,224) Cash and cash equivalents, beginning of period 5,0 62,398 4,253,985 5,330,622 Effects of exchange rate changes 44,138 25,328 65,000 Ca sh a n d c a s h e qu i v a l e n t s , en d i ng o f p e r io d 6 , 0 4 8 , 4 3 5 4 , 3 5 7 ,0 5 0 5 , 0 6 2 , 39 8
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18 As of the date of this announcement, the directors of the Company are: E x e c u t iv e Di r e c t o r s Peng Bai (Chairman and President) Non - E x e c u t iv e Di r e c t o rs Jun Ye Guodong Sun Yimin Chen Chengyan Xiong I nd e p en d en t Non - E x e c u t iv e Di r e c to r s Stephen Tso Tung Chang Kwai Huen Wong, JP Songlin Feng By order of the Board Hua Ho n g Gr a c e S emi c o n du c t o r L imi t e d Peng Bai Chairman and Executive Director Hong Kong SAR, PRC November 5, 2026