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）

2025中期報告

INTERIM REPORT

DEFINITIONS

INTERIM REPORT2025

In this interim report, unless the context otherwise requires, the following terms shall have the meanings set out below.“Board”the Board of Directors of the Company;“China”or“the PRC”the People’s Republic of China, but for the purpose of this interim reportand for geographical reference only, except where the context otherwiserequires, references in this interim report to“China”and the“PRC”do notinclude Taiwan, the Macau Special Administrative Region and Hong Kong;“Company”or“our Company”Hua Hong Semiconductor Limited, a company incorporated in Hong Kongwith limited liability on 21 January 2005;“Director(s)”the Director(s) of the Company;“Group”our Company and our subsidiaries;“HHGrace”Shanghai Huahong Grace Semiconductor Manufacturing Corporation* (

), a company incorporated in the PRC on 24January 2013 and a wholly-owned subsidiary of the Company;“Hua Hong Manufacturing”Hua Hong Semiconductor Manufacturing (Wuxi) Co., Ltd.* (()), a company incorporated in the PRC on 17 June 2022 andheld as to 51% by the Group;“Hong Kong Stock Exchange”The Stock Exchange of Hong Kong Limited;“Hong Kong Listing Rules”the Rules Governing the Listing of Securities on The Stock Exchange ofHong Kong Limited, as amended or supplemented from time to time;“Hong Kong Model Code”the Model Code for Securities Transactions by Directors of Listed Issuers asset out in Appendix C3 to the Hong Kong Listing Rules;“RMB Share(s)”or“A Share(s)”the ordinary share(s) of the Company which are listed on the STAR Marketand traded in RMB;“Hong Kong SFO”the Securities and Futures Ordinance (Chapter 571 of the Laws of HongKong), as amended or supplemented from time to time;“SSE”the Shanghai Stock Exchange;“SSE STAR Market”the Science and Technology Innovation Board of the Shanghai StockExchange;

CORPORATE INFORMATION

HUA HONG SEMICONDUCTOR LIMITED

Board of DirectorsExecutive DirectorsJunjun Tang(Chairman)Peng Bai(President)Non-Executive DirectorsJun YeGuodong SunBo ChenChengyan XiongIndependent Non-Executive DirectorsStephen Tso Tung ChangKwai Huen Wong, JPSonglin FengCompany SecretarySui Har LeeAuthorized RepresentativesJunjun TangSui Har LeeAudit CommitteeStephen Tso Tung Chang(Chairman)Chengyan XiongSonglin FengRemuneration CommitteeKwai Huen Wong, JP(Chairman)Jun YeSonglin FengNomination CommitteeJunjun Tang(Chairman)Kwai Huen Wong, JPSonglin FengWebsitewww.huahonggrace.comAuditorErnst & YoungCertified Public Accountants27/F, One Taikoo Place979 King’s Road, Quarry BayHong Kong, PRC

Hong Kong Legal AdvisorHerbert Smith Freehills Kramer23/F, Gloucester Tower15 Queen’s Road CentralHong Kong, PRCPrincipal BanksChina Construction Bank Shanghai BranchNo. 900 Lujiazui Ring RoadPudong New AreaShanghai, PRCChina Development Bank Shanghai BranchNo. 68 Puming RoadPudong New AreaShanghai, PRCChina Merchants Bank Co., Ltd. Shanghai BranchNo.1088 Lujiazui Ring RoadPudong New AreaShanghai, PRCChina Construction Bank Corporation Hong KongBranch28/F, CCB Tower, 3 Connaught Road, CentralHong Kong, PRCBank of Communications Co., Ltd. Hong Kong Branch20 Pedder Street, CentralHong Kong, PRCChina Development Bank Jiangsu BranchNo. 232 Middle Jiangdong RoadNanjing, Jiangsu, PRCAgricultural Bank of China Wuxi Xinwu SubbranchNo. 26 Hefeng Road, Xinwu DistrictWuxi, Jiangsu, PRCChina Construction Bank Wuxi High and NewTechnology Industrial Development Zone SubbranchNo. 26 Hefeng Road, Xinwu DistrictWuxi, Jiangsu, PRCChina CITIC Bank Wuxi New District SubbranchNo. 26 Hefeng Road, Xinwu DistrictWuxi, Jiangsu, PRCBank of China Wuxi High and New TechnologyIndustrial Development Zone SubbranchNo. 140 Wangzhuang Road, Xinwu DistrictWuxi, Jiangsu, PRCBank of Communications Co., Ltd. Wuxi BranchNo.8 2nd Financial Street, Binhu DistrictWuxi, Jiangsu, PRC

CORPORATE INFORMATION

Share Registrar

Hong Kong shares:

Tricor Investor Services Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong, PRCA shares:

China Securities Depository and Clearing CorporationLimited, Shanghai BranchNo. 188 South Yanggao RoadPudong New AreaShanghai, PRCRegistered OfficeRoom 2212, Bank of America Tower12 Harcourt Road, CentralHong Kong, PRC

Principal Places of BusinessNo. 288 Halei RoadZhangjiang Hi-Tech ParkShanghai, PRCPostcode: 201203No. 30 Xinzhou RoadXinwu DistrictWuxi, Jiangsu, PRCPostcode: 214028No. 30-1 Xinzhou RoadXinwu DistrictWuxi, Jiangsu, PRCPostcode: 214028Stock CodeHong Kong Stock Exchange: 01347Shanghai Stock Exchange: 688347

KEY FINANCIALS

HUA HONG SEMICONDUCTOR LIMITED

%RevenueGross pro?t margin

US$ millionUS$

Pro?t attributable to owners of the parentEarning per share

0.00

25.0%

30.0%

20.0%

15.0%

10.0%

5.0%

0.0%

1,2001,000

1,400

938.5

1,107.0

35.0%

29.9%

8.5%

10.1%

38.5

11.70.007

0.14

0.16

0.18

0.20

0.10

0.12

0.06

0.08

0.02

0.04

0.022

0.176

1,262.2

1H 20241H 20231H 20251H 20241H 20231H 2025

1H 20241H 20231H 20251H 20241H 20231H 2025

US$ million

230.8

MANAGEMENT DISCUSSION AND ANALYSIS

INTERIM REPORT2025

Financial Performance

1H 20251H 2024ChangeUS$’000US$’

UnauditedUnauditedRevenue1,107,002938,51018.0%Cost of sales(995,394)(858,815)15.9%Gross profit111,60879,69540.0%Other income and gains59,91671,095(15.7)%Selling and distribution expenses(4,844)(4,770)1.6%Administrative expenses(190,183)(164,078)15.9%Other expenses(17,300)(13,813)25.2%Finance costs(41,551)(49,432)(15.9)%Share of profits of associates1,2432,805(55.7)%Loss before tax(81,111)(78,498)3.3%Income tax (expense)/credit(3,852)11,464(133.6)%Loss for the period(84,963)(67,034)26.7%Attributable to:

Owners of the parent11,70238,491(69.6)% Non-controlling interests(96,665)(105,525)(8.4)%RevenueRevenue was US$1,107.0 million, an increase of 18.0% compared to 1H 2024, primarily driven by increased wafershipments.Cost of salesCost of sales was US$995.4 million, an increase of 15.9% compared to 1H 2024, primarily due to increased wafershipments and increased depreciation costs.Gross protGross profit was US$111.6 million, an increase of 40.0% compared to 1H 2024, primarily driven by improved capacityutilization, partially offset by increased depreciation costs.Other income and gainsOther income and gains were US$59.9 million, a decrease of 15.7% compared to 1H 2024, primarily due to decreasedinterest income, partially offset by increased government subsidies.

HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Administrative expensesAdministrative expenses were US$190.2 million, an increase of 15.9% compared to 1H 2024, primarily due toincreased engineering wafer costs.Other expensesOther expenses were US$17.3 million, an increase of 25.2% compared to 1H 2024, primarily due to increased foreignexchange losses.Finance costsFinance costs were US$41.6 million a decrease of 15.9% compared to 1H 2024, primarily due to decreased interestrate of bank borrowings.Share of prots of associatesShare of losses of associates were US$1.2 million, a decrease of 55.7% compared to 1H 2024, due to decreased profitrealized by the associates.Income tax (expense)/creditIncome tax expense was US$3.9 million, compared to income tax credit of US$11.5 million in 1H 2024, primarily due todecreased reversal of dividend withholding tax.Loss for the periodAs a result of the cumulative effect of the above factors, loss for the period was US$85.0 million, compared to US$67.0million in 1H 2024.

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Status

30 June

2025

31 December

2024ChangeUS$’000US$’

UnauditedAuditedNon-current assetsProperty, plant and equipment6,101,9715,859,1174.1%Investment properties218,468164,15333.1%Investment in associates144,421139,7993.3%Equity investments designated at fair value through other comprehensive income290,515289,3110.4%Other non-current assets136,752130,2255.0%Total non-current assets6,892,1276,582,6054.7%Current assetsInventories513,434467,0609.9%Trade and notes receivables264,329270,461(2.3)%Due from related parties14,36018,324(21.6)%Other current assets674,174585,90215.1%Pledged deposits31,75631,6240.4%Cash and cash equivalents3,846,9004,459,132(13.7)%Total current assets5,344,9535,832,503(8.4)%Current liabilitiesTrade payables263,352298,372(11.7)%Interest-bearing bank borrowings341,313280,70421.6%Due to related parties8,5609,125(6.2)%Government grants59,04057,5632.6%Other current liabilities738,533916,474(19.4)%Total current liabilities1,410,7981,562,238(9.7)%Net current assets3,934,1554,270,265(7.9)%Non-current liabilitiesInterest-bearing bank borrowings1,933,9711,917,2350.9%Lease liabilities15,03518,068(16.8)%Deferred tax liabilities3,63310,948(66.8)%Total non-current liabilities1,952,6391,946,2510.3%Net assets8,873,6438,906,619(0.4)%

HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Explanation of items with uctuation over 10% from 31 December 2024 to 30 June 2025Investment propertiesInvestment properties increased from US$164.2 million to US$218.5 million, primarily due to increased investmentproperties.Due from related partiesDue from related parties decreased from US$18.3 million to US$14.4 million, primarily due to decreased tradereceivables from certain of our related customers.Other current assetsOther current assets increased from US$585.9 million to US$674.2 million, primarily due to increased value-added taxcredit.Cash and cash equivalentsCash and cash equivalents decreased from US$4,459.1 million to US$3,846.9 million, mainly due to reasons stated inthe cash flow analysis below.Trade payablesTrade payables decreased from US$298.4 million to US$263.4 million, mainly due to decreased payables to suppliers.Other current liabilitiesOther current liabilities decreased from US$916.5 million to US$738.5 million, mainly due to decreased payables forcapital expenditures.Interest-bearing bank borrowingsTotal interest-bearing bank borrowings increased by 3.5%, from US$2,197.9 million to US$2,275.3 million.Lease liabilitiesLease liabilities decreased from US$18.1 million to US$15.0 million, primarily due to payments of lease liabilities.Deferred tax liabilitiesDeferred tax liabilities decreased from US$10.9 million to US$3.6 million, primarily due to a reversal of dividendwithholding tax accrued for 2024.

MANAGEMENT DISCUSSION AND ANALYSIS

Cash Flow

1H 20251H 2024ChangeUS$’000US$’

UnauditedUnauditedNet cash flows generated from operating activities219,816137,55059.8%Net cash flows used in investing activities(879,847)(470,924)86.8%Net cash flows generated from financing activities33,9521,206,061(97.2)%Net (decrease)/increase in cash and cash equivalents(626,079)872,687(171.7)%Cash and cash equivalents at beginning of the period4,459,1325,585,181(20.2)%Effect of foreign exchange rate changes, net13,847(34,002)(140.7)%Cash and cash equivalents at end of the period3,846,9006,423,866(40.1)%Net cash ows generated from operating activitiesNet cash flows generated from operating activities increased from US$137.6 million to US$219.8 million, primarilydriven by increased receipts from customers.Net cash ows used in investing activitiesNet cash flows used in investing activities were US$879.8 million, primarily including US$918.6 million for capitalinvestments and US$2.8 million for investments in an associate, partially offset by US$36.0 million of interest incomeand US$5.6 million of government grants.Net cash ows generated from nancing activitiesNet cash flows generated from financing activities were US$34.0 million, including (i) US$999.1 million of proceedsfrom bank borrowings, and (ii) US$15.3 million from share option exercises, partially offset by (i) US$936.8 million ofrepayments of bank borrowings, (ii) US$41.9 million of interest payments, and (iii) US$1.7 million payment of principalportion of lease payments.

Financial ResourcesThe Group adopts a prudent approach to cash and financial management to ensure proper risk control and low costof funds. The Group finances its operations primarily with internally generated cash flow and bank loans. As at 30June 2025, the Group had cash and bank balances of approximately US$3,846.9 million (of which approximatelyUS$3,061.8 million were denominated in RMB and approximately US$759.3 million in US dollars), representing adecrease of US$612.2 million as compared to US$4,459.1 million at the end of 2024.

LiquidityTo meet liquidity requirements in the short and long term, our policy is to monitor regularly the current and expectedliquidity requirements to ensure that we maintain sufficient reserves of cash and adequate committed lines of fundingfrom major financial institutions.

HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Capital ManagementOur primary objectives of capital management are to safeguard our ability to continue as a going concern and tomaintain healthy capital ratios to support our business and maximize shareholders’value. We manage our capitalstructure and make adjustments in light of the changes in economic conditions. To do this, we may adjust the dividendpayment to shareholders, return capital to shareholders, or issue new shares. We are not subject to any externallyimposed capital requirements. No changes were made in the objectives, policies, or processes for managing capitalduring the six months ended 30 June 2025.Bank LoansThe particulars of bank loans of the Group as at 30 June 2025 are set out as below:

30 June 202531 December 2024US$’000US$’

CurrentCurrent portion of long term bank loans – secured327,998275,363Current portion of long term bank loans – unsecured13,3155,341

341,313280,704Non-currentSecured bank loans1,639,2881,696,011Unsecured bank loans294,683221,224

1,933,9711,917,2352,275,2842,197,939The Group is dedicated to improving financing practices. As at 30 June 2025, the Group had outstanding bankborrowings of US$2,275.3 million, compared to US$2,197.9 million as at the end of 2024. The bank borrowingsincluded secured interest-bearing borrowings of US$2,051.1 million and unsecured interest-bearing borrowings ofUS$224.2 million. Except for bank loans of US$666.7 million denominated in US$, all borrowings are dominated inRMB.

MANAGEMENT DISCUSSION AND ANALYSIS

Charges on Group AssetsAs at 30 June 2025 and 31 December 2024, certain of the Group’s bank loans were secured by pledges of theGroup’s assets with carrying values as follows:

30 June 202531 December 2024US$’000US$’

Property, plant and equipment2,303,4232,064,974Investment property53,203–Right-of-use assets38,00547,069Completed properties held for sale221,661–Properties under development–90,275

2,616,2922,202,318Exposure to Fluctuations in Exchange RatesWe have transactional currency exposures arising primarily from sales or purchases by our significant subsidiariesoperating in Mainland China in US$ rather than the subsidiary’s functional currency, which is RMB. During the sixmonths ended 30 June 2025, approximately 18% of our sales were denominated in currencies other than the functionalcurrency of the subsidiary making the sale, whilst 61% of costs of sales were denominated in the subsidiary’sfunctional currency.In addition, we have currency exposures from interest-bearing bank borrowings held by our subsidiary operating inMainland China. As at 30 June 2025, interest-bearing bank borrowings with a carrying amount of US$532.0 millionwere denominated in US$ instead of the subsidiary’s functional currency, which is RMB.As at 30 June 2025, if the US dollar had strengthened or weakened against the RMB by 5%, with all other variablesheld constant, our profit before tax for the period would have been approximately US$1.2 million lower or higher.For the six months ended 30 June 2025, the Group had not entered into any arrangement to hedge the aforementionedforeign currency risks. Nevertheless, the Company’s management will continue to monitor the foreign exchangeexposure position and will consider appropriate measures should the need arise.

HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Contingent LiabilitiesAs at 30 June 2025, the Group did not have any contingent liabilities.RMB Share IssueOn 7 August 2023, the Company was listed on the STAR Market of the Shanghai Stock Exchange, pursuant to which atotal of 407,750,000 ordinary shares of the Company were issued.The total proceeds raised in the RMB Share Issue amounted to RMB21,203 million. After deducting the issuanceexpenses, including underwriting, sponsorship fees, as well as other issuance expenses, the net proceeds amountedto RMB20,920.7 million. Upon receipt of the proceeds, the entire amount has been deposited into a dedicated accountfor the proceeds, which was approved by the Board. The proceeds raised will be utilized in accordance with thepreviously disclosed intended use of the proceeds, as set out below:

Unit: RMB’

Previously disclosed intendeduse of proceeds

Amount ofcommittedinvestments

Accumulatedunutilized proceeds

as at 30 June 2025

Expected timeframe

for usage ofunutilized proceedsHua Hong Manufacturing (Wuxi) Project12,500,000133,837By the end of 20258-Inch Factory Optimization and Upgrading Project

2,000,0001,713,418By the end of 2025Specialty Technological Innovation, Research and Development Project

2,500,0001,714,429By the end of 2026Replenishment of Working Capital1,000,0000N/AApart from the above, the surplus proceeds of RMB2,921 million, raised from the RMB Share Issue, will also be usedfor the Group’s business operations upon obtaining the necessary approvals, in accordance with relevant regulations.During the six months ended 30 June 2025, the proceeds from the RMB Share Issue were used and were proposedto be used, according to the intentions previously disclosed by the Company in the prospectus, and there was nomaterial change or delay in the use of proceeds.

MANAGEMENT DISCUSSION AND ANALYSIS

Business Review

In the first half of 2025, the global semiconductor market sustained its growth momentum observed since thebeginning of the year, driven by technological innovation and a recovery in demand in certain end markets. Accordingto statistics from third-party market research agencies, global semiconductor sales reached US$366,700 million in thefirst half of 2025, representing a year-on-year increase of approximately 16%. From an application perspective, thepenetration rate of new energy vehicles continued to rise, with automotive-grade microcontroller units (“MCUs”), imagesensors, power discrete devices, and power management chips entering a volume expansion cycle. In the consumerelectronics sector, as major electronic products such as mobile phones, PCs, and TVs remained in the final stages ofinventory destocking coupled with the influence of geopolitical factors, the market landscape for consumer electronicschips was quietly undergoing differentiation and reshaping.Despite the complex industry environment, leveraging its leading technology platforms, long-term customerrelationships, and business development focused on key end-market ecosystem construction, the Company operatedits 8-inch and 12-inch production lines at full capacity in the first half of the year. Notably, the Hua Hong ManufacturingProject (Fab 9), which commenced risk production at the end of 2024, achieved rapid capacity ramp-up in the firsthalf of 2025. Through continuous collaboration with customers and product introductions, Fab 9 reached volumeproduction and has already contributed to the Company’s sales to a certain extent. Both sales and shipments of theCompany for the first half of the year demonstrated year-on-year and quarter-on-quarter growth trends.In terms of process platform business development, benefiting from the trend of domestic supply chain localizationand sustained demand growth for AI servers and related applications, the Analog & Power Management platformdelivered the most outstanding performance, with double-digit year-on-year and quarter-on-quarter revenue growthin the first half of the year. The Embedded Non-Volatile Memory platform’s 55nm eFlash MCU products enteredvolume production, better serving customers with their high-speed and low-power standards to meet the demands ofapplications such as IoT, security, and automotive electronics. The Standalone Non-Volatile Memory platform’s 48nmNOR Flash products have also entered large-scale volume production. For power discrete devices, driven by demandgrowth in certain segments of the new energy and consumer electronics markets, the Deep-Trench Super-JunctionMOSFET platform achieved double-digit year-on-year and quarter-on-quarter revenue growth. Additionally, thedevelopment of the 12-inch platinum (Pt) diffusion process has been completed, significantly improving body diodeperformance and further enhancing the competitiveness of the Super-Junction platform, providing robust support forcustomer product upgrades. The insulated gate bipolar transistor (“IGBT”) platform has synergized R&D and massproduction, continuously introducing new processes such as Super IGBT technology, which offers performanceadvantages including higher frequency and current density, and has entered mass production promotion, deliveringstrong technical support for the competitiveness of industry customers’ products.In terms of ecological supply chain construction, in the first half of 2025 we continued to host multiple ecologicalsupply chain construction activities with end customers and design companies. We advanced further ecologicalcollaboration with end customers and Tier1 in the automotive, high-end home appliance, and new energy sectors.These efforts enhance market resilience and achieve value co-creation with ecological partners and the sustainabledevelopment of the entire industry.In terms of production capacity expansion, as of the end of June 2025, the Hua Hong Manufacturing project hascompleted move-in, installation, and qualification of the first batch of processes and measurement equipment requiredfor production capacity. With the smooth progress of process-product optimization and production capacity ramp-upin the first phase, the Company expects to initiate the second-phase capacity deployment ahead of schedule by theend of 2025. Concurrently, it will complete R&D technology alignment, product validation, and customer engagement,laying a solid foundation for future revenue growth.

HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Entering the second half of 2025, the global semiconductor market is expected to continue facing uncertainties inend-market recovery and demand volatility. Amid intensifying industry competition, the Company will strive to leverageits“8-inch + 12-inch”specialty process advantages, enhance R&D capabilities, accelerate capacity expansion,broaden its business platform, strengthen supply chain management, and improve operational efficiency. In terms ofcustomer expansion, the Company remains committed to serving domestic customers while advancing its“China forChina”strategy for overseas customers. Additionally, the Company is actively executing strategic initiatives to solidifyand elevate its competitive position in the wafer foundry industry, creating value for the Company, shareholders, andall stakeholders.Significant Investment

The Company did not hold any significant investment (with a value of 5% or more of the Company’s total assets) as of30 June 2025.Future Plans for Material Investments and Capital AssetsThe Company is preparing for the possible acquisition of equity interests in Shanghai Huali MicroelectronicsCorporation () (the“Transaction”) as mentioned in the Company’s announcements dated 17August 2025, 18 August 2025 and 24 August 2025. The Transaction is subject to review by the board of directors andthe general meeting of the Company, and approval, review or consent to registration from the competent regulatoryauthorities. Therefore, there is uncertainty as to whether the Transaction can be ultimately implemented. All relevantinformation shall be based on the announcements to be released by the Company in the designated informationdisclosure media in due course.Save as disclosed in this interim report, the Group did not have other concrete plans for material investments or capitalassets as of 30 June 2025.

2025

51%

C3A

www.huahonggrace.com

1088

2025

A

2212

201203

21402830-121402801347688347

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%銷售收入毛利率

百萬美元美元母公司擁有人應佔溢利每股盈利

0.00

25.0%

30.0%

20.0%

15.0%

10.0%

5.0%

0.0%

1,2001,000

1,400

938.5

1,107.0

35.0%

29.9%

8.5%

10.1%

38.5

11.70.007

0.14

0.16

0.18

0.20

0.10

0.12

0.06

0.08

0.02

0.04

0.022

0.176

1,262.2

二零二四年上半年二零二三年上半年二零二五年上半年

百萬美元

230.8

二零二四年上半年二零二三年上半年二零二五年上半年

二零二四年上半年二零二三年上半年二零二五年上半年二零二四年上半年二零二三年上半年二零二五年上半年

2025

1,107,002938,51018.0%(995,394)(858,815)15.9%111,60879,69540.0%59,91671,095(15.7)%(4,844)(4,770)1.6%(190,183)(164,078)15.9%(17,300)(13,813)25.2%(41,551)(49,432)(15.9)%1,2432,805(55.7)%(81,111)(78,498)3.3%(3,852)11,464(133.6)%(84,963)(67,034)26.7% 11,70238,491(69.6)% (96,665)(105,525)(8.4)%

11.07018.0%

9.95415.9%

1.11640.0%

5,99015.7%

1.90215.9%1,73025.2%4,16015.9%

12055.7%3901,150

8,5006,700

2025

6,101,9715,859,1174.1%218,468164,15333.1%144,421139,7993.3%290,515289,3110.4%136,752130,2255.0%6,892,1276,582,6054.7%

513,434467,0609.9%264,329270,461(2.3)%14,36018,324(21.6)%674,174585,90215.1%31,75631,6240.4%3,846,9004,459,132(13.7)%5,344,9535,832,503(8.4)%263,352298,372(11.7)%341,313280,70421.6%8,5609,125(6.2)%59,04057,5632.6%738,533916,474(19.4)%1,410,7981,562,238(9.7)%3,934,1554,270,265(7.9)%1,933,9711,917,2350.9%15,03518,068(16.8)%3,63310,948(66.8)%1,952,6391,946,2510.3%8,873,6438,906,619(0.4)%

10%

1.6422.185

1,8301,440

5.8596.742

44.59138.469

2.9842.634

9.1657.385

21.9793.5%22.753

1,8101,500

1,090360

2025

219,816137,55059.8%(879,847)(470,924)86.8%

33,9521,206,061(97.2)%(626,079)872,687(171.7)%4,459,1325,585,181(20.2)%

13,847(34,002)(140.7)%3,846,9006,423,866(40.1)%

1.3762.198

8.7989.1862803,600560

3,400(i)9.991(ii)1,530(i)9.368(ii)4,190(iii)170

38.46930.618

7.59344.5916.122

327,998275,363

13,3155,341341,313280,7041,639,2881,696,011294,683221,2241,933,9711,917,2352,275,2842,197,939

22.753

21.97920.5112.2426.667

2,303,4232,064,974

53,203–

38,00547,069221,661–

–90,2752,616,2922,202,318

2025

18%61%

5.320

5%

407,750,000

212.03

209.207

12,500,000133,83782,000,0001,713,418

2,500,0001,714,4291,000,0000

29.21

2025

20253,66716%MCUPCTV812(Fab 9)20242025Fab 9AI

55nm eFlash MCU48nm NOR FlashMOSFET12(Pt)IGBT

Super IGBT2025

Tier120256

20252025

8+12China for China

5%

REPORT ON REVIEW OF INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

2859

2410

To the board of directors of Hua Hong Semiconductor Limited

(Incorporated in Hong Kong with limited liability)IntroductionWe have reviewed the interim financial information set out on pages28 to 59 which comprises the condensed consolidated statementof financial position of Hua Hong Semiconductor Limited (the“Company”) and its subsidiaries (the“Group”) as at 30 June 2025and the related condensed consolidated statements of profit orloss, comprehensive income, changes in equity and cash flows forthe six-month period then ended, and explanatory notes. The RulesGoverning the Listing of Securities on The Stock Exchange of HongKong Limited require the preparation of a report on interim financialinformation to be in compliance with the relevant provisionsthereof and Hong Kong Accounting Standard 34Interim FinancialReporting (“HKAS 34”) as issued by the Hong Kong Institute ofCertified Public Accountants (“HKICPA”). The directors of theCompany are responsible for the preparation and presentation ofthis interim financial information in accordance with HKAS 34. Ourresponsibility is to express a conclusion on this interim financialinformation based on our review. Our report is made solely to you,as a body, in accordance with our agreed terms of engagement,and for no other purpose. We do not assume responsibility towardsor accept liability to any other person for the contents of this report.

Scope of ReviewWe conducted our review in accordance with Hong Kong Standardon Review Engagements 2410Review of Interim FinancialInformation Performed by the Independent Auditor of the Entity

as issued by the HKICPA. A review of interim financial informationconsists of making inquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and otherreview procedures. A review is substantially less in scope thanan audit conducted in accordance with Hong Kong Standards onAuditing and consequently does not enable us to obtain assurancethat we would become aware of all significant matters that mightbe identified in an audit. Accordingly, we do not express an auditopinion.

ConclusionBased on our review, nothing has come to our attention that causesus to believe that the interim financial information is not prepared, inall material respects, in accordance with HKAS 34.

Certified Public Accountants

Hong Kong28 August 2025

HUA HONG SEMICONDUCTOR LIMITED

INTERIM CONDENSED CONSOLIDATED STATEMENT OFPROFIT OR LOSS

FOR THE SIX MONTHS ENDED 30 JUNE 2025

For the six months ended

30 June20252024(Unaudited)(Unaudited)NotesUS$’000US$’

Revenue

1,107,002938,510Cost of sales(995,394)(858,815)

Gross profit111,60879,695Other income and gains

59,91671,095Selling and distribution expenses(4,844)(4,770)Administrative expenses(190,183)(164,078)Other expenses(17,300)(13,813)Finance costs(41,551)(49,432)Share of profits of associates1,2432,805

LOSS BEFORE TAX

(81,111)(78,498)Income tax (expense)/credit

(3,852)11,464

LOSS FOR THE PERIOD(84,963)(67,034)

Attributable to:

Owners of the parent 11,70238,491 Non-controlling interests (96,665)(105,525)

(84,963)(67,034)

EARNINGS PER SHAREATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT:

Basic – For profit for the period US$0.007US$0.022

0.0070.022

Diluted – For profit for the period US$0.007US$0.022

0.0070.022

INTERIM CONDENSED CONSOLIDATEDSTATEMENT OF COMPREHENSIVE INCOMEFOR THE SIX MONTHS ENDED 30 JUNE 2025

For the six months ended 30

June20252024(Unaudited)(Unaudited)US$’000US$’

LOSS FOR THE PERIOD(84,963)(67,034)

OTHER COMPREHENSIVE INCOME/(LOSS)Other comprehensive income/(loss) that may bereclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations35,116(49,338)

Net other comprehensive income/(loss) that maybe reclassified to profit or loss in subsequent periods35,116(49,338)

Other comprehensive loss that will not bereclassified to profit or loss in subsequent periods:

Equity investments designated at fair value through other comprehensive income:

Changes in fair value–(436)Income tax effect–65

Net other comprehensive loss that will not bereclassified to profit or loss in subsequent periods–(371)

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD, NET OF TAX

35,116(49,709)

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD(49,847)(116,743)

Attributable to:

Owners of the parent 36,0053,062 Non-controlling interests (85,852)(119,805)

(49,847)(116,743)

HUA HONG SEMICONDUCTOR LIMITED

INTERIM CONDENSED CONSOLIDATED STATEMENT OFFINANCIAL POSITION

30 JUNE 2025

30 June2025

31 December

2024(Unaudited)(Audited)NotesUS$’000US$’

NON-CURRENT ASSETS

Property, plant and equipment

6,101,9715,859,117Right-of-use assets66,00277,761Investment properties218,468164,153Intangible assets27,31331,456Investment in associates144,421139,799Equity investments designated at fair value through other comprehensive income

290,515289,311Long term prepayments42,67221,008Deferred tax assets765–

Total non-current assets6,892,1276,582,605

CURRENT ASSETS

Completed properties held for sale

221,661–Properties under development

–221,905Inventories513,434467,060Trade and notes receivables

264,329270,461Prepayments, other receivables and other assets452,513363,997Due from related parties

14,36018,324Pledged deposits31,75631,624Cash and cash equivalents3,846,9004,459,132

Total current assets5,344,9535,832,503

CURRENT LIABILITIES

Trade payables

263,352298,372Other payables and accruals716,648880,447Interest-bearing bank borrowings341,313280,704Lease liabilities5,8394,912Government grants59,04057,563Due to related parties

8,5609,125Income tax payable16,04631,115

Total current liabilities1,410,7981,562,238

NET CURRENT ASSETS3,934,1554,270,265

TOTAL ASSETS LESS CURRENT LIABILITIES10,826,28210,852,870

continued/

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL

POSITION30 JUNE 2025

30 June

2025

31 December

2024(Unaudited)(Audited)NotesUS$’000US$’

NON-CURRENT LIABILITIESInterest-bearing bank borrowings1,933,9711,917,235Lease liabilities15,03518,068Deferred tax liabilities3,63310,948

Total non-current liabilities1,952,6391,946,251

Net assets8,873,6438,906,619

EQUITYEquity attributable to owners of the parentShare capital

4,960,8554,938,457Reserves1,339,0471,308,569

Total equity attributable to owners of the parent6,299,9026,247,026Non-controlling interests2,573,7412,659,593

Total equity8,873,6438,906,619

Junjun TangJun Ye

DirectorDirector

HUA HONG SEMICONDUCTOR LIMITED

INTERIM CONDENSED CONSOLIDATED STATEMENT OFCHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2025

Attributable to owners of the parent

Share capitalMerger reserve

Share option

reserveShare of othercomprehensiveincome ofassociatesOther reserveand contributedsurplusFair value

reserve

Assetrevaluationreserve#Statutoryreserve fund

Exchangeuctuationreserve

RetainedprotsTotal

Non-controllinginterests

Totalequity#US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’000US$’

(note 12)

At 1 January 20254,938,457645,494*11,591*35,685*689*64,635*99,257*256,366*(145,901)*340,753*6,247,0262,659,5938,906,619Profit/(loss) for the period–––––––––11,70211,702(96,665)(84,963)Other comprehensive loss for the period:–––––––––––––Exchange differences ontranslation of foreignoperations––––––––24,303–24,30310,81335,116

Total comprehensiveincome/(loss) for the period

––––––––24,30311,70236,005(85,852)(49,847)Issue of shares for exercise of share options (note 13) 1322,398–(5,527)–––––––16,871–16,871Transfer from retainedprofits generated by a subsidiary

–––––––9,945–(9,945)–––

At 30 June 2025 (unaudited) 4,960,855645,494*6,064*35,685*689*64,635*99,257*266,311*(121,598)*342,510*6,299,9022,573,7418,873,643

At 1 January 20244,933,559645,49412,7941,35235,68558,43599,257233,042(60,233)341,6106,300,9951,713,5498,014,544Profit/(loss) for the period–––––––––38,49138,491(105,525)(67,034)Other comprehensive loss for the period:

Change in fair value ofequity investmentsdesignated at fairvalue through othercomprehensive income,net of tax

–––––(371)––––(371)–(371)

Exchange differences on

translation of foreignoperations

––––––––(35,058)–(35,058)(14,280)(49,338)

Total comprehensive (loss)/income for the period–––––(371)––(35,058)38,4913,062(119,805)(116,743)

Dividend declared

–––––––––(36,233)(36,233)–(36,233)Issue of shares for exercise of share options (note 13) 131,911–(474)–––––––1,437–1,437

Equity-settled share optionarrangements––8–––––––8311

Capital contribution from non-controlling interests–––––––––––1,181,8801,181,880Transfer from retainedprofits generated by a subsidiary

–––––––11,870–(11,870)–––

At 30 June 2024 (unaudited) 4,935,470645,49412,3281,35235,68558,06499,257244,912(95,291)331,9986,269,2692,775,6279,044,896* These reserve accounts comprise the consolidated reserves of

US$1,339,047,000 (31 December 2024: US$1,308,569,000) in theinterim condensed consolidated statement of financial position.

*

1,339,047,000

1,308,569,000

INTERIM CONDENSED CONSOLIDATED

STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED 30 JUNE 2025

For the six months ended

30 June20252024(Unaudited)(Unaudited)US$’000US$’

CASH FLOWS FROM OPERATING ACTIVITIES

Loss before tax(81,111)(78,498)Adjustments for:

Finance costs41,55149,432 Share of profits of associates(1,243)(2,805) Interest income(30,913)(54,808)Loss on disposal of items of property, plant and equipment

1242

Depreciation of property, plant and equipment344,036258,527 Amortisation of intangible assets4,7948,272 Depreciation of right-of-use assets2,9533,170Impairment/(reversal of impairment) of trade receivables

1,132(438) Equity-settled share option expense–11

281,211182,905

Increase in inventories(46,374)(12,814)Decrease/(increase) in properties under development and completed properties held for sale

244(28,323)Decrease in trade and notes receivables

4,9874,740Increase in prepayments, other receivables and other assets

(3,184)(32,387)Decrease/(increase) in amounts due from related parties

3,964(4,815)Increase in pledged deposits(132)(198)(Decrease)/increase in trade payables(35,020)10,796Increase in other payables and accruals

41,67575,872Increase in government grants564,582Decrease in amounts due to related parties(565)(5,536)

Cash generated from operations246,862194,822Income tax paid(27,046)(57,272)

Net cash ows generated from operating activities219,816137,550

continued/

HUA HONG SEMICONDUCTOR LIMITED

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2025

For the six months ended

30 June20252024(Unaudited)(Unaudited)US$’000US$’

CASH FLOWS FROM INVESTING ACTIVITIESInterest received35,91745,990Purchases of items of property, plant and equipment, prepaid lease payment and intangible assets

(918,579)(499,404)Acquisition of interests in an associate(2,794)–Purchase of an equity investment designated at fair value through other comprehensive income–(17,618)Receipt of government grants for property, plant and equipment5,590–Proceeds from disposal of items of property, plant and equipment19108

Net cash ows used in investing activities(879,847)(470,924)

CASH FLOWS FROM FINANCING ACTIVITIES

New bank loans999,081202,447Proceeds from issue of shares for exercise of share options 15,295693Capital contribution from non-controlling interests–1,181,880Repayment of bank loans(936,833)(87,530)Increase in pledged deposits–(7,369)Interest paid(41,875)(51,955)Principal portion of lease payments(1,716)(3,229)Dividends paid–(28,876)

Net cash ows generated from nancing activities33,9521,206,061

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS(626,079)872,687Cash and cash equivalents at beginning of period4,459,1325,585,181Effect of foreign exchange rate changes, net13,847(34,002)

CASH AND CASH EQUIVALENTS AT END OF PERIOD3,846,9006,423,866

NOTES TO THE INTERIM CONDENSEDCONSOLIDATED FINANCIAL INFORMATION

30 June 2025

1. CORPORATE INFORMATION

Hua Hong Semiconductor Limited (the“Company”) is a limitedliability company incorporated in Hong Kong on 21 January2005. The registered office of the Company is located at Room2212, Bank of America Tower, 12 Harcourt Road, Central,Hong Kong. The principal place of business is located at No.288, Halei Road, Zhangjiang Hi-Tech Park, Shanghai.The principal activity of the Company is investment holding.During the period, the Company’s subsidiaries (collectivelyrefer to as the“Group”) were principally engaged in themanufacture and trading of semiconductor products.In the opinion of the directors, the parent of the Company isShanghai Huahong (Group) Co., Ltd. (“Huahong Group”),which is a state-owned company established in the People’sRepublic of China (“PRC”) and supervised by the ShanghaiState-owned Assets Supervision and AdministrationCommission (“Shanghai SASAC”). The ultimate parent of theCompany is Shanghai SASAC.

1.

2212

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATEDFINANCIAL INFORMATION

30 June 2025

1. CORPORATE INFORMATION (CONTINUED)

Information about subsidiariesParticulars of the Company’s subsidiaries are as follows:

Name

Place of incorporation/registration and business

Issued ordinary/registered share capital (’000)

Percentage of equityattributable to the CompanyPrincipal activitiesDirectIndirectGrace Semiconductor Manufacturing Corporation (“Grace Cayman”)

Cayman IslandsUS$0.001100%–Investment holdingGrace Semiconductor Manufacturing Corporation (Grace Cayman)

0.001100%–Shanghai Huahong Grace Semiconductor Manufacturing Corporation (“HHGrace”)*

PRC/Mainland ChinaRMB20,460,928100%–Manufacture and sale of

semiconductor products*20,460,928100%–Huahong Semiconductor (Wuxi) Co., Ltd. (“Hua Hong Wuxi”)**

PRC/Mainland ChinaUS$2,536,85222.2%28.8%Manufacture and sale of

semiconductor products**2,536,85222.2%28.8%Shanghai Huahong Real Estate (Wuxi) Co., Ltd. (“Huahong Real Estate Wuxi”)***

PRC/Mainland ChinaRMB30,00022.2%28.8%Real estate development***30,00022.2%28.8%Huahong Semiconductor Manufacturing (Wuxi) Co., Ltd. (“Hua Hong Manufacturing Wuxi”)**

PRC/Mainland ChinaUS$4,020,00021.9%29.1%Manufacture and sale of

semiconductor products**4,020,00021.9%29.1%Global Synergy Technology Limited (“GST”)PRC/Hong KongHK$10100%–Trading

10100%–HHGrace Semiconductor USA, Inc.USA–100%–Sales officeHHGrace Semiconductor USA, Inc.–100%–HHGrace Semiconductor Japan Co., Ltd.JapanJPY10,000100%–Sales officeHHGrace Semiconductor Japan Co., Ltd.10,000100%–* HHGrace is registered as a wholly-foreign-owned companyunder PRC law.** Hua Hong Wuxi and Hua Hong Manufacturing Wuxi are

registered as Sino-foreign joint companies under PRC law.*** Huahong Real Estate Wuxi is registered as a domestic companyunder PRC law.

1.

******

NOTES TO THE INTERIM CONDENSEDCONSOLIDATED FINANCIAL INFORMATION

30 June 2025

2.1 BASIS OF PREPARATION

The interim condensed consolidated financial information forthe six months ended 30 June 2025 has been prepared inaccordance with HKAS 34Interim Financial Reporting. Theinterim condensed consolidated financial information doesnot include all the information and disclosures required in theannual financial statements, and should be read in conjunctionwith the Group’s annual consolidated financial statements forthe year ended 31 December 2024.The financial information relating to the year ended 31December 2024 that is included in the interim condensedconsolidated statement of financial position as comparativeinformation does not constitute the Company’s statutory annualconsolidated financial statements for that year but is derivedfrom those financial statements. Further information relating tothose statutory financial statements required to be disclosedin accordance with section 436 of the Hong Kong CompaniesOrdinance is as follows:

2.1

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

2.1 BASIS OF PREPARATION (CONTINUED)

The Company has delivered the financial statements for theyear ended 31 December 2024 to the Registrar of Companiesas required by section 662(3) of, and Part 3 of Schedule 6 to,the Hong Kong Companies Ordinance. The Company’s auditorhas reported on the financial statements for the year ended 31December 2024. The auditor’s report was unqualified; did notinclude a reference to any matters to which the auditor drewattention by way of emphasis without qualifying its report; anddid not contain a statement under sections 406(2), 407(2) or407(3) of the Hong Kong Companies Ordinance.

2.2 CHANGES IN ACCOUNTING POLICIES AND

DISCLOSURESThe accounting policies adopted in the preparation ofthe interim condensed consolidated financial informationare consistent with those applied in the preparation of theGroup’s annual consolidated financial statements for the yearended 31 December 2024, except for the adoption of thefollowing amended Hong Kong Financial Reporting StandardsAccounting Standard for the first time for the current period’sfinancial information.Amendments to HKAS 21Lack of Exchangeability

The adoption of above revised standards has no significantfinancial effect to the Group’s interim condensed consolidatedfinancial information.

2.1

662(3)

406(2)407(2)407(3)

2.2

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

3. OPERATING SEGMENT INFORMATION

For management purposes, the Group is organised into onesingle business unit that includes primarily the manufactureand sale of semiconductor products. Management reviews theconsolidated results when making decisions about allocatingresources and assessing the performance of the Group.Accordingly, no segment analysis is presented.The principal assets employed by the Group are located inthe PRC. Therefore, no segment information based on thegeographical location of assets is presented for the period.Revenues regarding geographical segments based on thelocation of customers for the period are presented as follows:

3.

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

China (including Hong Kong)912,132751,214North America109,43493,070Asia (excluding China)55,47155,314Europe29,96538,912

Total1,107,002938,510

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

The disaggregation of the Group’s revenue based on thegeographical region for the six months ended 30 June 2025 isincluded in note 3.

4. REVENUE AND OTHER INCOME AND GAINS

An analysis of revenue and other income and gains is asfollows:

4.

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

Revenue from contracts with customersSale of goods1,107,002938,510

Type of goodsSales of semiconductor products and total revenue from contracts with customers 1,107,002938,510

Timing of revenue recognitionGoods transferred at a point in time and total revenue from contracts with customers 1,107,002938,510

Other income and gainsRental income from investment propertyoperating leases:

Fixed lease payments6,9737,118Interest income30,91354,808Government subsidies21,0968,577Others934592

59,91671,095

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION

30 June 2025

5.

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

Cost of inventories sold995,394858,815Write-down/(reversal of write-down) of inventories to net realisable value 5,098(8,237)Impairment/(reversal of impairment) of trade receivables 1,132(438)Exchange differences, net(17,263)13,770

5. LOSS BEFORE TAX

The Group’s loss before tax is arrived at after charging/(crediting):

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

6. INCOME TAX

Profits arising in Hong Kong were subject to profits tax at therate of 16.5% during the period (six months ended 30 June2024: 16.5%). No provision for Hong Kong profits tax has beenmade as the Company and a subsidiary incorporated in HongKong had no assessable income during the period (six monthsended 30 June 2024: Nil).The Company’s subsidiary incorporated in the Cayman Islandsis not subject to corporate income tax (“CIT”) as it does nothave a place of business (other than a registered office) orcarry on any business in the Cayman Islands.All of the Group’s subsidiaries registered in the PRC and haveoperations in Mainland China are subject to PRC enterpriseincome tax on the taxable income as reported in their PRCstatutory accounts adjusted in accordance with relevant PRCincome tax laws based on a statutory rate of 25%.Pursuant to the relevant laws and regulations in the PRC andwith approval from the tax authorities in charge, the Group’ssubsidiaries, HHGrace and Hua Hong Wuxi, are qualified as“High and New Technology Enterprises”and are thereforeentitled to a preferential tax rate of 15% from 2023 to 2025.Pursuant to the relevant laws and regulations in the PRCand with the approval from the tax authorities in charge,the Group’s subsidiaries, Hua Hong Wuxi and Hua HongManufacturing Wuxi, are entitled to an exemption from CIT forfive years, commencing from the first year that Hua Hong Wuxiand Hua Hong Manufacturing Wuxi generate taxable profits,and a deduction of 50% on the CIT rate for the following fiveyears. Hua Hong Wuxi and Hua Hong Manufacturing Wuxiwere in accumulated tax loss positions as at 30 June 2025 andthe tax holiday has not yet begun.The Company’s subsidiary incorporated and operating inJapan was subject to corporation tax at a rate of 33.58% (sixmonths ended 30 June 2024: 33.58%).The Company’s subsidiary incorporated and operating in theUnited States was subject to federal corporation income taxat a rate of 21% during the period (six months ended 30 June2024: 21%), as well as a California state tax at 8.84% (sixmonths ended 30 June 2024: 8.84%).

6.

16.5%

16.5%

25%

15%

50%

33.58%

33.58%

21%21%

8.84%

8.84%

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION

30 June 2025

6. INCOME TAX (CONTINUED)

The major components of income tax expense/(credit) of theGroup are as follows:

6.

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

Current income tax expense – PRC11,91115,035Current income tax expense – elsewhere212Deferred tax(8,080)(26,501)

Total income tax expense/(credit)3,852(11,464)

Pillar Two income taxesThe Group is within the scope of the Pillar Two model rules.The Group has applied the temporary exception to recognisingand disclosing information about deferred tax assets andliabilities arising from Pillar Two income taxes, and will accountfor the Pillar Two income taxes as current tax when incurred.Pillar Two legislation has been enacted or substantivelyenacted in certain jurisdictions in which some subsidiaries ofGroup operate.The Group has performed an assessment of its potentialexposure to Pillar Two income taxes based on the sixmonths ended 30 June 2025 financial information for theconstituent entities in the Group. As such, it may not beentirely representative of future circumstances. Based on theassessment, the Group should benefit from the TransitionalCbCR Safe Harbour relief for the jurisdictions where Pillar Twolegislation has been enacted and the Group operates.The Group continues to follow Pillar Two legislativedevelopments, as more countries enact the Pillar Two modelrules, to evaluate the potential future impact on its financialstatements.

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

7. DIVIDENDS7.

For the six months ended

30 June20252024US$’000US$’

Final declared and paid–28,876Final declared and unpaid (included in pledged deposits) –7,357

Total–36,233

8.

1,724,087,447

1,716,776,029

8. EARNINGS PER SHARE ATTRIBUTABLE

TO ORDINARY EQUITY HOLDERS OF THEPARENTThe calculation of the basic earnings per share amounts isbased on the profit for the period attributable to ordinaryequity holders of the parent and the weighted average numberof ordinary shares of 1,724,087,447 outstanding during theperiod (six months ended 30 June 2024: 1,716,776,029).The calculation of the diluted earnings per share amountis based on the profit for the period attributable to ordinaryequity holders of the parent. The weighted average numberof ordinary shares used in the calculation is the number ofordinary shares outstanding during the period, as used inthe basic earnings per share calculation, and the weightedaverage number of ordinary shares assumed to have beenissued at no consideration on the deemed exercise orconversion of all dilutive potential ordinary shares into ordinaryshares.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

8. EARNINGS PER SHARE ATTRIBUTABLE

TO ORDINARY EQUITY HOLDERS OF THEPARENT (CONTINUED)The calculations of basic and diluted earnings per share arebased on:

8.

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

EarningsProfit attributable to ordinary equity holders ofthe parent, used in the basic earnings per share calculation

11,70238,491

Number of shares

For the six months ended

30 June20252024

SharesWeighted average number of ordinary sharesoutstanding during the period used in the basic earnings per share calculation

1,724,087,4471,716,776,029Effect of dilution-weighted average number ofordinary shares:

Share options 5,439,8562,674,676

Total1,729,527,3031,719,450,705

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

9. PROPERTY, PLANT AND EQUIPMENT

During the six months ended 30 June 2025, the major changesin property, plant and equipment include:

? The Group acquired items of property, plant andequipment with a cost of US$611,216,000 (six monthsended 30 June 2024: US$511,788,000).? Depreciation for items of property, plant and equipment

was US$344,036,000 during the period (six months ended30 June 2024: US$258,527,000).? Assets with a net book value of US$18,000 were disposed

of by the Group during the six months ended 30 June2025 (six months ended 30 June 2024: US$56,000).

10. COMPLETED PROPERTIES HELD

FOR SALE AND PROPERTIES UNDERDEVELOPMENT

During the six months ended 30 June 2025, properties with acost of US$221,661,000 was transferred from properties underdevelopment to completed properties held for sale due to thecompletion and being granted a sales permission (six monthsended 30 June 2024: Nil).

11. TRADE AND NOTES RECEIVABLES

9.

?

611,216,000511,788,000?

344,036,000258,527,000?18,000

56,000

10.

221,661,000

11.

30 June2025

31 December

2024US$’000US$’

(Unaudited)(Audited)

Trade receivables212,572225,682Notes receivable55,65847,535

268,230273,217

Impairment of trade receivables(3,901)(2,756)

Total264,329270,461

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

11.

30 June

2025

31 December

2024US$’000US$’

(Unaudited)(Audited)

Not past due yet252,740248,527Less than 3 months past due38,38219,5713 to 6 months past due363,2072,363

Total264,329270,461

12.

30 June2025

31 December

2024

US$’000US$’

(Unaudited)(Audited)

Within 1 month1135,476151,190Over 1 but within 3 months1333,64370,474Over 3 but within 6 months3663,08916,758Over 6 but within 12 months61217,81522,776Over 12 months1213,32937,174

Total263,352298,372

3060

11. TRADE AND NOTES RECEIVABLES

(CONTINUED)

An ageing analysis of the trade and note receivables, basedon the due date and net of provisions, is as follows:

12. TRADE PAYABLES

An ageing analysis of the trade payables of the Group as atthe end of the reporting period, based on the invoice date, isas follows:

The trade payables are unsecured, non-interest-bearing andare normally settled on terms of 30 to 60 days.

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

14. COMMITMENTS

The Group had the following contractual commitments at theend of the reporting period:

13. SHARE CAPITAL13.

Number ofshares inissue

Amount ofshare capital

US$’

1 January 20251,718,468,8154,938,457Issue of shares for exercise of share options8,610,78322,398

30 June 2025 (unaudited)

1,727,079,5984,960,855

1 January 20241,716,588,6944,933,559Issue of shares for exercise of share options739,4511,91130 June 2024 (unaudited)

1,717,328,1454,935,470

14.

30 June2025

31 December

2024

US$’000US$’

(Unaudited)(Audited)

Contracted, but not provided for:

Property, plant and equipment 376,8261,187,570

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION

30 June 2025

15. RELATED PARTY TRANSACTIONS

(a) Name and relationship

15.(a)

Name of related partyRelationship with the Group

Huahong Group and its subsidiaries– Hua Hong International Inc. (“Huahong International”)20.13% Shareholder of the

Company and subsidiary of Huahong Group

20.13%

– Shanghai Huahong Zealcore Electronics Co., Ltd. (“Huahong Zealcore”)

Subsidiary of Huahong Group– ZealCore Electronics Shanghai Co., Ltd. (“Zealcore Shanghai”)Subsidiary of Huahong Group– Shanghai Hongri International Electronics Co., Ltd. (“Hongri”)Subsidiary of Huahong Group– Shanghai Hua Hong Jitong Smart System Co., Ltd. (“Jitong”)Subsidiary of Huahong Group– Shanghai Huali Microelectronics Co., Ltd. (“Shanghai Huali”)Subsidiary of Huahong Group

Shanghai Huahong Technology Development Co., Ltd. (“Huahong Technology Development”)

Associate of the Group and

subsidiary of Huahong Group– Shanghai Huahong Real Estate Co., Ltd. (“Huahong Real Estate”)Subsidiary of Huahong

Technology Development– Shanghai Huajin Property Management Co., Ltd. (“Huajin”)Subsidiary of Huahong

Technology Development

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

15. RELATED PARTY TRANSACTIONS

(CONTINUED)(b) Related party transactionsIn addition to the transactions disclosed elsewhere inthis financial information, the Group had the followingtransactions with related parties during the period:

15.(b)

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

Sales of goods to related parties (note (i)) (i) Huahong Zealcore 7719,110 Hongri 89395

Purchases of goods from related parties (note (ii)) (ii) Hongri 22,92416,699 Huahong Zealcore 162364 Zealcore Shanghai 11– Jitong –8

Rental income from a related party (note (iii)) (iii) Shanghai Huali 6,9797,016

Service fee charged by a related party (note (iv)) (iv) Huajin 287288

Interest expense charged by a relatedparty under lease arrangement as a lessee (note (v))

(v) Huahong Real Estate 404445

Expense paid on behalf of a related party (note (vi)) (vi) Shanghai Huali 13,17013,585

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

15. RELATED PARTY TRANSACTIONS

(CONTINUED)(b) Related party transactions (Continued)In addition to the transactions disclosed elsewhere inthis financial information, the Group had the followingtransactions with related parties during the period:

(Continued)Note (i) The sales of goods to related parties were made

according to the prices and terms agreed betweenthe related parties.(ii) The purchases of goods and intangible assets fromrelated parties were made according to the pricesand terms offered by the related parties.(iii) The rental income received from a related party wasbased on the prices and terms agreed between therelated parties.(iv) The service fees and interest expense charged byrelated parties were based on the prices and termsagreed between the related parties.(v) The Group entered into leases in respect of certaindormitory properties from Huahong Real Estate.The amount of rent payable by the Group under theleases is US$2,520,000 per year. As at 30 June 2025,the balances of those right-of-use assets and leaseliabilities were US$15,164,000 (31 December 2024:

US$16,035,000) and US$18,013,000 (31 December2024: US$18,848,000), respectively.

(vi) The expense paid on behalf of the related party is

interest-free and repayable on demand.

15.(b)

(i)(ii)(iii)(iv)(v)

2,520,000

15,164,00016,035,00018,013,00018,848,000(vi)

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

15. RELATED PARTY TRANSACTIONS

(CONTINUED)(c) Outstanding balances with related partiesThe Group had the following significant balances with itsmajor related parties during the reporting period. Thesebalances are unsecured, interest-free and have no fixedterms of repayment.

15.

(c)

30 June2025

31 December

2024

US$’000US$’

(Unaudited)(Audited)

Amounts due from related parties Shanghai Huali 12,55610,074 Huahong Zealcore 1,8048,250

Total14,36018,324

Amounts due to related parties Hongri 5,9636,455 Shanghai Huali 2,3482,445 Huahong Zealcore 147196 Huajin 10011 Jitong 218

Total8,5609,125

(d)

For the six months ended

30 June20252024US$’000US$’

(Unaudited)(Unaudited)

Short term employee benefits2,1642,282Pension scheme contributions96101Equity-settled share option expense–11

Total compensation paid to key management personnel 2,2602,394

(d) Compensation of key management personnel of the

Group

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

16. FAIR VALUE AND FAIR VALUE HIERARCHY

OF FINANCIAL INSTRUMENTSThe carrying amounts and fair values of the Group’s financialinstruments, other than those with carrying amounts thatreasonably approximate to fair values, are as follows:

16.

Carrying amountsFair values30 June2025

31 December

2024

30 June2025

31 December

2024

US$’000US$’000US$’000US$’

(Unaudited)(Audited)(Unaudited)(Audited)

Financial assetsEquity investments designated at fairvalue through other comprehensive income

290,515289,311290,515289,311

Financial liabilities

Interest-bearing bank borrowings1,933,9711,917,2351,866,4451,910,907

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

16. FAIR VALUE AND FAIR VALUE

HIERARCHY OF FINANCIAL INSTRUMENTS(CONTINUED)The Group’s finance department headed by the financemanager is responsible for determining the policies andprocedures for the fair value measurement of financialinstruments. The finance department reports directly to thechief financial officer. At each reporting date, the financedepartment analyses the movements in the values of financialinstruments and determines the major inputs applied in thevaluation. The valuation is reviewed and approved by the chieffinancial officer.The fair values of the financial assets and liabilities areincluded at the amount at which the instrument could beexchanged in a current transaction between willing parties,other than in a forced or liquidation sale. The followingmethods and assumptions were used to estimate the fairvalues of those financial assets and liabilities measured at fairvalue:

The fair values of unlisted equity investments designated atfair value through other comprehensive income have beenestimated using a market-based valuation technique basedon assumptions that are not supported by observable marketprices or rates. If there is a recent deal regarding the unlistedinvestments, the fair values are estimated based on thedealing price. If there is no such deal to be referenced, thedirectors will determine comparable public companies (peers)based on industry, size, leverage and strategy, and calculatesan appropriate price multiple, such as price to book value (“P/B”) multiple and price to sales value (“P/S”) multiple, for eachcomparable company identified. The multiple is calculatedby dividing the enterprise value of the comparable companyby net assets. The trading multiple is then discounted forconsiderations such as illiquidity based on company-specificfacts and circumstances. The discounted multiple is applied tothe corresponding net assets of the unlisted equity investmentsto measure the fair value. The directors believe that theestimated fair values resulting from the valuation technique,which are recorded in the consolidated statement of financialposition, and the related changes in fair values, which arerecorded in other comprehensive income, are reasonable,and that they were the most appropriate values at the endof the reporting period. Management assessed the fair valuechanges during the six months ended 30 June 2025, whichwere considered to be insignificant.

16.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

16. FAIR VALUE AND FAIR VALUE

HIERARCHY OF FINANCIAL INSTRUMENTS(CONTINUED)Fair value hierarchyThe following tables illustrate the fair value measurementhierarchy of the Group’s financial instruments:

Financial assets measured at fair value

As at 30 June 2025

16.

Fair value measurement using

Quoted pricesin activemarkets

Signicantobservableinputs

Signicantunobservable

inputs(Level 1)(Level 2)(Level 3)Total

US$’000US$’000US$’000US$’

(Unaudited)(Unaudited)(Unaudited)(Unaudited)

Equity investments designatedat fair value through other comprehensive income

–17,462273,053290,515

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

During the period, there were no transfers of fair valuemeasurements between Level 1 and Level 2 and no transfersinto or out of Level 3 for both financial assets and financialliabilities (six months ended 30 June 2024: Nil).

16. FAIR VALUE AND FAIR VALUE

HIERARCHY OF FINANCIAL INSTRUMENTS(CONTINUED)Fair value hierarchy (Continued)Financial assets measured at fair value (Continued)

As at 31 December 2024

16.

Fair value measurement usingQuoted prices

in activemarkets

Significantobservableinputs

Significantunobservableinputs(Level 1)(Level 2)(Level 3)Total

US$’000US$’000US$’000US$’

(Audited)(Audited)(Audited)(Audited)Equity investments designatedat fair value through other comprehensive income

–17,390271,921289,311

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

16. FAIR VALUE AND FAIR VALUE

HIERARCHY OF FINANCIAL INSTRUMENTS(CONTINUED)

Fair value hierarchy (Continued)The recurring fair value measurement for the Group’sequity investments designated at fair value through othercomprehensive income and financial assets at fair valuethrough profit or loss, was made using significant unobservableinputs (Level 3) as at 30 June 2025. Below is a summary of thevaluation techniques used and the key inputs to the valuation:

16.

Valuationtechnique

Signicantunobservable inputRange

Sensitivity of fair value to

the input

Unlisted equity investmentValuation

multiples

Average P/B multiple of peers

30 June 2025: 0.7x-2.8x

31 December 2024:

0.7x-3.0x

5% (31 December 2024: 5%)

increase/decrease would

result in increase/decrease

in fair value by 5%

(31 December 2024: 5%)

0.7x-2.8x

0.7x-3.0x

5%

5%

5%

5%–Discount for illiquidity2025: 20%

2024: 20%

5% (31 December 2024: 5%)

increase/decrease would

result in decrease/increase

in fair value by 5%

(31 December 2024: 5%)–20%

20%

5%

5%

5%

5%

HUA HONG SEMICONDUCTOR LIMITED

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIALINFORMATION

30 June 2025

The movements in fair value measurements within Level 3during the period are as follows:

16. FAIR VALUE AND FAIR VALUE

HIERARCHY OF FINANCIAL INSTRUMENTS(CONTINUED)Fair value hierarchy (Continued)

16.

Valuationtechnique

Signicantunobservable inputRange

Sensitivity of fair value tothe input

Unlisted equity investmentValuation

multiples

Average P/S multiple of peers

30 June 2025: 4.2x-7.8x31 December 2024:

3.9x-7.4x

5% (31 December 2024: 5%)increase/decrease wouldresult in increase/decreasein fair value by 5% (31 December 2024: 5%)

4.2x-7.8x

3.9x-7.4x

5% 5% 5%

5%–Discount for illiquidity2025: 30%

2024: 30%

5% (31 December 2024: 5%)

increase/decrease would

result in decrease/increase

in fair value by 5%

(31 December 2024: 5%)–30%

30%

5%

5%

5%

5%

20252024US$’000US$’

(Unaudited)(Unaudited)

Equity investments at fair valuethrough other comprehensive income – unlisted:

At 1 January271,9212,949Exchange realignment1,132(18)

At 30 June273,0532,931

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION30 June 2025

17. SHARE OPTION SCHEME

The Company operates a share option scheme (the“Scheme”)for the purpose of providing incentives and rewards to eligibleparticipants who contribute to the success of the Group’soperations.The following share options were outstanding during theperiod:

17.

Number of options

20252024

At 1 January19,337,30221,421,849Exercised during the period(8,610,783)(739,451)Forfeited during the period(4,250)(204,426)

At 30 June10,722,26920,477,972

18.

19.

18. EVENT AFTER THE REPORTING PERIOD

To the date of approval of the interim condensed consolidatedfinancial information, there is no material subsequent eventundertaken by the Group.

19. APPROVAL OF THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

The interim condensed consolidated financial information wasapproved and authorised for issue by the board of directors on28 August 2025.

HUA HONG SEMICONDUCTOR LIMITED

OTHER DISCLOSURES

30 JUNE 2025

10,722,269

0.62%

SHARE OPTION SCHEMEThe Company adopted a share option scheme on1 September 2015, which became effective on 4September 2015. The share option scheme shall bevalid and effective for a period of 7 years commencingon the date of adoption. It has therefore expiredon 1 September 2022. No further options could begranted, and none has been granted, under the ShareOption Scheme from that date. As of 30 June 2025,the Company had options for 10,722,269 sharesoutstanding under the share option scheme, whichrepresented approximately 0.62% of the Company’sissued shares as of that date. The table below setsout details of outstanding options granted to Directorsand other grantees under the share option schemeand transactions during the six months ended 30 June2025:

OTHER DISCLOSURES30 JUNE 2025

Number of share optionsName or category of participants

DirectorsMr. Junjun TangFormer directorsOther employeesIn aggregate

Granted on 4 September 2015

–988,000–29,262,000––30,250,000Granted on 24 December 2018

––680,000–33,820,000–34,500,000Granted on 29 March 2019

500,000–––––500,000Granted on 23 December 2019

–––––2,482,0002,482,000Cancelled/lapsed during the year 2015

–––-130,000––-130,000Cancelled/lapsed during the year 2016

–––-1,458,000––-1,458,000Cancelled/lapsed during the year 2017

–––-1,353,399––-1,353,399Cancelled/lapsed during the year 2018

–––-754,595––-754,595Cancelled/lapsed during the year 2019

––-600,000-58,000-1,035,000-36,000-1,729,000Cancelled/lapsed during the year 2020

–-119,000-80,000–-993,904-84,000-1,276,904Cancelled/lapsed during the year 2021

-62,500–––-5,751,868-592,993-6,407,361Cancelled/lapsed during the year 2022

––––-543,728-73,983-617,711Cancelled/lapsed during the year 2023

––––-8,168-6,900-15,068Cancelled/lapsed during the year 2024

––––-87,758-116,668-204,426Exercised during the period

––––8,069,948540,8358,610,783Cancelled during the period

–––––––Lapsed during the period

––––-4,250–-4,250Outstanding as at 1 January 2025

437,500–––17,640,2971,259,50519,337,302Outstanding as at 30 June 2025

437,500–––9,566,099718,67010,722,269Vesting period of share optionsNote 1Note 2Note 3Note 2Note 3Note 4

123234Exercise period of share optionsNote 5Note 6Note 7Note 6Note 7Note 8

567678Exercise price of share optionsHK$18.400HK$6.912HK$15.056HK$6.912HK$15.056HK$17.952

18.4006.91215.0566.91215.05617.952Weighted average closing price of theshares immediately before the dateson which the share options were exercisedHK$32.66HK$31.67 32.6631.67

SHARE OPTION SCHEME (CONTINUED)

HUA HONG SEMICONDUCTOR LIMITED

OTHER DISCLOSURES

30 JUNE 2025

SHARE OPTION SCHEME (CONTINUED)Notes:

1 Subject to conditions as set out in the grant notice, onefourth of the options shall vest on each of 23 December2021, 12 August 2022, 11 August 2023 and 9 August20242 Subject to conditions as set out in the grant notices, onethird of the options shall vest on each of 4 September2017, 4 September 2018 and 4 September 20193 Subject to conditions as set out in the grant notices, foremployees at or above the level of the vice president,one fourth of the options shall vest on each of 24December 2020, 24 December 2021, 24 December 2022and 24 December 2023; for the other employees, onethird of the options shall vest on each of 24 December2020, 24 December 2021 and 24 December 20224 Subject to conditions as set out in the grant notices, foremployees at or above the level of the vice president,one fourth of the options shall vest on each of 23December 2021, 23 December 2022, 23 December 2023and 23 December 2024; for the other employees, onethird of the options shall vest on each of 23 December2021, 23 December 2022 and 23 December 20235 The exercise period of share options is from 29 March2021 to 28 March 20266 The exercise period of share options is from 4 September2017 to 3 September 20227 The exercise period of share options is from 24December 2020 to 23 December 20258 The exercise period of share options is from 23December 2021 to 22 December 2026Please refer to note 16 of the Notes to the InterimCondensed Consolidated Financial Information forfurther details.

OTHER DISCLOSURES30 JUNE 2025

Note:

(1) Including (i) long position in 437,500 underlying shares

of the Company under share options granted pursuantto the Share Option Scheme and (ii) 11,000 A sharesof the Company as disclosed in the announcementregarding the plan for additional acquisition of A Sharesof the Company by certain senior management dated 5January 2024. Please refer to page 61 for particulars ofoutstanding options as of 1 January 2025 and 30 June2025 respectively.

XV

Name of DirectorCapacity

Number of underlyingshares held in long

position

(1)

Approximatepercentage of

interests

(1)

Mr. Junjun TangBeneficial owner

448,5000.03%

(1) (i)437,500

(ii)A11,000A

DIRECTORS’ AND CHIEF EXECUTIVE’SINTERESTS IN SHARES ANDUNDERLYING SHARES OF THECOMPANY

As of 30 June 2025, except as disclosed below, noneof the Directors nor the Chief Executive of the Companyhad any interests and short positions in the shares,underlying shares or debentures of the Company or anyassociated corporation (within the meaning of Part XVof SFO), as recorded in the register kept under section352 of the SFO, or as otherwise notified to the Companyand the Hong Kong Stock Exchange pursuant to theModel Code.

HUA HONG SEMICONDUCTOR LIMITED

OTHER DISCLOSURES

30 JUNE 2025

5%

Substantial shareholders

Capacity and nature ofownership

Number ofshares held

Approximatepercentageof aggregateownership inissued sharecapital *

*

Shanghai Hua Hong International, Inc. (Hua Hong International)

(2)

Legal and beneficial owner347,605,650

(1)

20.13%

(2)Shanghai Huahong (Group) Co., Ltd. (Huahong Group)

(2)

Interest in a controlled corporation

347,605,650

(1)

20.13%

(2)

Legal and beneficial owner1,198,517

(3)

0.07%

Sino-Alliance International, Ltd. (Sino-Alliance International)

Legal and beneficial owner160,545,541

(1)(4)

9.30%

Sino-Alliance International, Ltd. (Sino-Alliance International)

Interest in a controlled corporation

28,415,606

(1)

1.65%

Shanghai Alliance Investment Ltd. (SAIL)

Interest in a controlled corporation

188,961,147

(1)(5)

10.95%

SUBSTANTIAL SHAREHOLDERS’

AND OTHER PERSONS’OWNERSHIPIN THE SHARES AND UNDERLYINGSHARES OF THE COMPANY

As of 30 June 2025, persons other than a Director orChief Executive of the Company, having ownershipof 5% or more or short positions in the shares andunderlying shares of the Group, were as follows:

OTHER DISCLOSURES30 JUNE 2025

SUBSTANTIAL SHAREHOLDERS’

AND OTHER PERSONS’OWNERSHIPIN THE SHARES AND UNDERLYINGSHARES OF THE COMPANY(CONTINUED)Notes:

(1) Long positions in the shares of the Company.

(2) Hua Hong International is a wholly-owned subsidiary of

Huahong Group.

(3) Huahong Group directly held a total of 1,198,517 A

shares.

(4) Including 3,084 shares held in escrow by Sino-Alliance

International pursuant to an escrow arrangement.

(5) SAIL indirectly held interests in the Company through

two wholly-owned subsidiaries, including Sino-AllianceInternational.* The percentages are calculated based on the totalnumber of issued shares of the Company as of 30 June2025, i.e., 1,727,079,598 shares.

Except as disclosed above, so far as is known to any ofthe Directors and Chief Executive of the Company, as of30 June 2025, no other person or corporation other thana Director or Chief Executive of the Company had anyinterests or short positions in any shares or underlyingshares of the Company which was recorded in theregister required to be kept by the Company pursuantto section 336 of the SFO.PURCHASE, SALE OR REDEMPTIONOF SECURITIESNeither the Company nor any of its subsidiariespurchased, sold or redeemed any of the Company’slisted securities during the six months ended 30 June2025.

(1)(2)

(3) 1,198,517A

(4) Sino-Alliance International

3,084

(5) Sino-Alliance

International*

1,727,079,598

HUA HONG SEMICONDUCTOR LIMITED

OTHER DISCLOSURES

30 JUNE 2025

-8.32%-14.94%

7,4006,700

GEARING RATIOThe Group monitors capital using a gearing ratio,which is net debt divided by total equity plus net debt.The Group includes, within net debt, trade payables,other payables and accruals, interest-bearing bankborrowings, lease liabilities and amounts due to relatedparties, less cash and cash equivalents. The Group’sgearing ratio as at 30 June 2025 was -8.32% (31December 2024: -14.94%).EMPLOYEES AND REMUNERATIONPOLICIESAs at 30 June 2025, the Company had approximately7,400 employees in the PRC and overseas (30June 2024: approximately 6,700). The Company’sremuneration policy is reviewed periodically anddetermined by reference to the analysis on marketcompetitiveness, company performance, and individualqualifications and performance. Staff benefits includemedical schemes, mandatory social insurance andprovident fund etc.

COMPLIANCE WITH THE DEED OFNON-COMPETITION AND DEED OFRIGHT OF FIRST REFUSAL

Huahong Group, SAIL and INESA, being controllingshareholders of the Company at the time, enteredinto a deed of non-competition (the“Deed ofNon-competition”) dated 23 September 2014, detailsof which have been set out in the paragraph headed“Non-competition Undertaking”in the section headed“Relationship with Controlling Shareholders”of theCompany’s prospectus dated 3 October 2014 (the“Prospectus”). In addition, Huahong Group andSAIL entered into a deed of right of first refusal (the“Deed of Right of First Refusal”) dated 10 June 2014,details of which have been set out in the paragraphheaded“Right of First Refusal”in the section headed“Relationship with Controlling Shareholders”of theProspectus.

OTHER DISCLOSURES

30 JUNE 2025

C1

COMPLIANCE WITH THE DEED OF NON-COMPETITION AND DEED OF RIGHT OFFIRST REFUSAL (CONTINUED)

As of 30 June 2025, the Company has reviewed thewritten declaration from each of Huahong Group, SAILand INESA on their compliance with their commitmentsunder the Deed of Non-competition and the Deedof Right of First Refusal (as the case may be). TheIndependent Non-Executive Directors have reviewedthe status of compliance and confirmed that all thecommitments under the Deed of Non-competition andthe Deed of Right of First Refusal (as the case may be)have been complied with by the relevant parties.

CORPORATE GOVERNANCEThe Company is committed to maintaining a highstandard of corporate governance with a view tosafeguarding the interests of its shareholders andenhancing corporate value and accountability.The Board is of the view that the Company hascomplied with the code provisions set out in theCorporate Governance Code as contained in AppendixC1 of the Listing Rules during the six-month periodended 30 June 2025.CODE OF CONDUCT FOR SECURITIESTRANSACTIONS BY DIRECTORSThe Company has adopted a code of conductregarding the Directors’securities transactions on termsno less exacting than the required standard set out inthe Model Code. Having made specific enquiries of allDirectors, the Company has received their confirmationthat they have complied with the required standard asset forth in the Model Code during the six-month periodended 30 June 2025.

SUFFICIENCY OF PUBLIC FLOATBased on the information that is publicly available to theCompany and within the knowledge of the directors asat the date of this report, the Company has maintainedthe prescribed amount of public float as required underthe Listing Rules.

HUA HONG SEMICONDUCTOR LIMITED

OTHER DISCLOSURES

30 JUNE 2025

D2

( www.hkexnews.hk )( www.huahonggrace.com )

AUDIT COMMITTEEThe Audit Committee, comprising one Non-executiveDirector and two Independent Non-executive Directorsof the Company, has reviewed and approved theunaudited results of the Group for the six months ended30 June 2025 and has discussed with management theaccounting principles and practices adopted by theGroup, internal controls and financial reporting matters.

PUBLICATION OF INTERIM REPORTON THE WEBSITES OF THE HONGKONG STOCK EXCHANGE AND THECOMPANYThe interim report for the six months ended 30 June2025 containing information required by Appendix D2of the Listing Rules will be dispatched to shareholdersand published on the websites of the Hong KongStock Exchange (www.hkexnews.hk) and the Company(www.huahonggrace.com) in due course.

By Order of the BoardHua Hong Semiconductor LimitedMr. Junjun TangChairman and Executive Director

www.huahonggrace.com