Hua Hong Corporation's application for Huali Micro Injection has been accepted

Reprinted from China Securities Journal · China Securities Network

China Securities Journal · China Securities Network News (Reporter Wang Jinghan): On March 30, Huahong Company announced that its application materials for issuing shares to acquire assets and raise supporting funds, as well as the related-party transaction, have been accepted by the Shanghai Stock Exchange, and it has also updated the revised version of the restructuring report (draft) and the financial information as of December 31, 2025. According to the announcement, this transaction still needs to be reviewed by the SSE and be implemented only after obtaining the approval for registration from the China Securities Regulatory Commission.

The update and acceptance of the transaction application documents indicate that the asset injection process has entered the substantive review stage. It is expected that the subsequent procedures will be carried out in an orderly and steady manner. Previously, Huahong Company had publicly committed to injecting Huali Micro into the listed company within three years from the date of its listing.

Huahong Company stated that this restructuring is a substantive fulfillment of that commitment. By injecting Huali Micro, Huahong Semiconductor and other companies controlled by the controlling shareholder will substantially resolve the industry competition arising from overlapping process platforms of 65/55nm and 40nm, optimize the corporate governance structure and business independence, and meet regulatory requirements and expectations of the capital market.

The core target of this injection, Huali Micro, has accumulated more than 15 years of semiconductor manufacturing technology. It operates fully automated 12-inch integrated circuit foundry production lines, with designed monthly production capacity of 38,000 wafers. Its 65/55nm and 40nm processes have reached mainstream industry levels, building a solid competitive barrier in the mature process field. From the perspective of financial contribution, Huali Micro’s 2025 revenue is expected to exceed 5.1 billion yuan. After the transaction is completed, it is expected to increase the revenue scale of the listed company and cultivate new profit growth drivers.

Huahong Company stated that as the integration effects are gradually released, the company is expected to achieve higher-quality development along the specialty-process wafer foundry track. With a more comprehensive technological layout, more ample capacity reserves, and a more complete customer ecosystem, it will deeply participate in global competition in the semiconductor industry, enhance its share and profitability in the global wafer foundry market, and realize the business value of “1+1>2.”

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