华虹半导体2025年年度报告

HUA HONG SEMICONDUCTOR LIMITED華虹半導體有限公司 (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 Financials5Letter to Shareholders6Corporate Information7Directors and Senior Management Team10Corporate Governance Report22Directors’ Report342025 Environmental, Social and Governance Report65Independent Auditor’s Report301Consolidated Statement of Profit or Loss310Consolidated Statement of Comprehensive Income311Consolidated Statement of Financial Position312Consolidated Statement of Changes in Equity314Consolidated Statement of Cash Flows316Notes to Financial Statements318Five Year Financial Summary432 DEFINITIONS In this annual report, unless otherwise required by the context, the following terms shall have the meanings set outbelow. Shanghai Huahong (Group) Co., Ltd. (（）), a companyincorporated in the PRC in April 1996, and a substantial shareholder of ourCompany; the framework agreement dated 30 December 2024 entered into between theCompany and Huahong Group to regulate the sales and purchase transactionsand provision of services between the Group and Huahong Group, its subsidiariesor associates (as defined under Chapter 14A of the Listing Rules) for the yearending 31 December 2025; Shanghai Huahong Real Estate Co., Ltd. (), a companyincorporated in the PRC in October 2011 and a wholly-owned subsidiary ofHuahong Technology Development; Shanghai Huahong Technology Development Co., Limited (), a company incorporated in the PRC in May 2010, and a company 50%held by and consolidated with Huahong Group and 50% held by HHGrace, and aconnected person of the Company; HHGraceSemiconductor(Wuxi)Limited(（）),alimited liability company established in the PRC in October 2025, and a wholly-owned subsidiary of the Company as of the date of this announcement; the Rules Governing the Listing of Securities on The Stock Exchange of Hong KongLimited, as amended or supplemented from time to time; DEFINITIONS KEY FINANCIALS LETTER TO SHAREHOLDERS Dear Shareholders, 2025 was a momentous year for Hua Hong Semiconductor. Amidst rapidly changing landscape and marketdivergences of the semiconductor industry in China and globally, Hua Hong Semiconductor had begun a new journeyof transformation through excellence in technology and management and implementation of capacity growth plan. Thecompany overcame challenges, made significant strides, and achieved remarkable results. A number of market factors contributed to our 2025 financial results: the rapid rise of artificial intelligence and itsperipheral applications accelerating the advancement of the global semiconductor market and bringing a steadyrecovery to the mature-node chip market. China’s macroeconomic policy of seeking progress while maintainingstability laid a solid foundation and injected momentum into industrial development. Focusing on its core “specialtytechnologies” strategy, Hua Hong Semiconductor achieved sales revenue of US$2,402.1 million for the year, with agross margin of 11.8%, both achieving year-on-year growth, delivering a satisfactory annual performance. Adhering to our dedicated craftsmanship and focusing on integrity and innovation, this year benefited from robustdemand in artificial intelligence and its peripheral fields, alongside a steady recovery in downstream markets suchas consumer electronics and automotive electronics. The Company’s five major platforms of specialty technologiesadvanced simultaneously, consistently achieving outstanding results. We persist in continuous technology iteration andrelentless R&D innovation, striving to build a world-class specialty technology platform and steadily progress towardsa more comprehensive and leading position in the industry. Focusing on solid execution, we fortified our operational foundation. Behind the steady revenue growth and continuousstructural optimization lay our persistent efforts in capacity building and operational efficiency enhancement. In 2025,the average capacity utilization rates for both our 8-inch and 12-inch fabs remained consistently above 100%. ThePhase II project of HHGrace Semiconductor (Wuxi) (FAB9) ramped up production rapidly, fully addressing the strongdemands of the market and customers. On the operational front, we deepened cost optimization efforts, ensuredsupply chain security, and advanced digital upgrades, thereby consolidating the foundation for the Company’s long-term development. Anchoring on long-term goals, we bravely stand at the forefront of the era. Looking ahead to 2026, the globalsemiconductor market is expected to continue its growth. As a core hub for global technological innovation andindustrial aggregation, China is poised to unleash sustained and vibrant energy. Facing new opportunities, we willcontinuously strengthen our two core competitiveness pillars – technology capabilities and production capacity – bypersisting in R&D investment, deeply cultivating market expansion, deepe