华虹半导体2024年度报告

(Incorporated in Hong Kong with limited liability)(Stock Code: 01347)（股份代號：01347）（於香港註冊成立之有限公司） CONTENTS Definitions2 Key Financials6 Letter to Shareholders7 Corporate Information9 Directors and Senior Management Team12 Corporate Governance Report22 Directors’ Report34 2024 Environmental, Social and Governance Report66 Independent Auditor’s Report293 Consolidated Statement of Profit or Loss302 Consolidated Statement of Comprehensive Income303 Consolidated Statement of Financial Position304 Consolidated Statement of Changes in Equity306 Consolidated Statement of Cash Flows308 Notes to Financial Statements310 Five Year Financial Summary412 DEFINITIONS Hua Hong Semiconductor Limited, a company incorporated in Hong Kong withlimited liability on 21 January 2005 and, except where otherwise required by thecontext, all of its subsidiaries, or its present subsidiaries where the context refers tothe time before it became the holding company of its present subsidiaries; the Director(s) of the Company; DEFINITIONS ShanghaiHuahong(Group)Co.,Ltd.(（）),a companyincorporated in the PRC on 9 April 1996 as Shanghai Hua Hong MicroelectronicsCo., Ltd. and renamed as Shanghai Huahong (Group) Co., Ltd. in 1998, and asubstantial shareholder of our Company; Hua Hong Semiconductor (Wuxi) Limited, a company incorporated in the PRC on10 October 2017 and a non-wholly owned subsidiary of the Company held as toapproximately 22.22%, 28.78%,20.00%, 20.58% and 8.42% by the Company,HHGrace, Wuxi Xi Hong Guo Xin, China IC Fund and China IC Fund II, respectively; Hua Hong Semiconductor Manufacturing (Wuxi) Co., Ltd.* (（）), a company incorporated in the PRC on 17 June 2022 and a non-wholly owned subsidiary of the Company held as to approximately 21.90%, 29.10%,20.00% and 29.00% by the Company, HHGrace, Wuxi Xi Hong Lian Xin and ChinaIC Fund II, respectively; KEY FINANCIALS LETTER TO SHAREHOLDERS Dear Shareholders, For Hua Hong Semiconductor, 2024 was a year of significant challenges as well as relentless progress anddetermination. After enduring a period of weak demand and the pressure of high inventory, the global semiconductorindustry is now witnessing a moderate recovery. Despite uncertainties in demand outside of the AI and consumerelectronics market sectors, as well as intense competition and pricing pressures stemming from an increase in thesupply of mature-node chips, Hua Hong Semiconductor has maintained steady development in a complex andchangeable environment by leveraging its deep-rooted expertise in specialty technologies and strong customersupport. The Company achieved sales revenue of US$2,004 million for the year, with near-full average capacityutilization and steady quarter-on-quarter improvement in overall financial performance. In the fourth quarter of 2024, the second 12-inch production line located in Wuxi (the Hua Hong Manufacturing Project)was successfully put into operation, marking another significant milestone in the Company’s “8-inch + 12-inch” strategy.Following an eighteen-month period encompassing facility construction, cleanroom delivery, equipment installation,debugging and verification, the Hua Hong Manufacturing Project was completed and commenced production aheadof schedule. Various specialty process platforms have been successfully integrated and are expected to drive steadyrevenue growth starting in 2025, laying a solid foundation for future performance improvement. As a technology enterprise that prioritizes high-quality productivity, innovation remains the sole key to maintainingleadership. The Company continues to increase its R&D investment in process technology – Our core competitiveedge. By the end of 2024, the Company had accumulated a total of 4,644 authorized patents, both domesticallyand internationally. Through continuous iteration and advancement of its process platforms, the Company providescustomers and ecosystem partners with an enhanced product portfolio, while laying a solid foundation for the nextphase of development. With steadily advancing business expansion and capacity growth, the Company has beenfocusing on further improvements in operational efficiency during the industry’s trough. By implementing cost-reductionand efficiency-enhancement measures across sales and marketing, procurement and supply chain, productionand manufacturing, as well as operational support, the Company has strengthened cost control and solidified itscompetitive advantages. LETTER TO SHAREHOLDERS Looking ahead in 2025, the global semiconductor market is expected to continue its moderate recovery. Thepenetration of AI applications is set to accelerate demand for upgrades in sectors such as smartphones, computer,and automotive intelligence, while demand in industrial and new energy fields is also anticipated to gradually rebound.In the new year, Hua Hong Semiconductor will steadfastly enhance its production capacity expansion, ensuring the HuaHong Manufacturing Project ramps up produc