Profit attributable to shareholders of Huahong Hongli (01347) in the third quarter increased by 147.1% year-on-year, and sales revenue reached a record high

According to the Zhitong Finance App, Huahong Hongli (01347) announced its results for the third quarter of 2026. Sales revenue reached US$987.1 million, up 19.9% year on year and 9.9% month on month, mainly due to the increase in the number of wafers shipped and the increase in average sales price. The gross profit margin was 24.6%, up 7.6 percentage points year on year and 4.7 percentage points month on month, mainly due to higher average sales prices, partly offset by higher depreciation costs. Profit attributable to parent company owners was US$123.4 million, up 147.1% year on year and 77.7% month on month. Basic earnings per share were $0.066.

According to the announcement, in the past quarter, Huahong Hongli achieved sales revenue of 987.1 million US dollars, a year-on-year increase of 19.9% according to the comparable caliber after the restatement (after excluding Hualiwei, sales revenue was 803.4 million US dollars, higher than the upper limit of the range of 770 million to 780 million US dollars in the previous quarter guidelines). The gross margin was 24.6%, up 7.6 percentage points from the previous year (after excluding Hualiwei, the gross margin was 19.9%, higher than the upper limit of the 16% to 18% range of the previous quarter). Profit attributable to parent company owners reached $123.4 million this quarter. Sales revenue increased dramatically, reaching a record high, and key financial indicators improved significantly year over year and month over month. This quarter, the company's fab maintained a high capacity utilization rate, and shipments and average sales prices rose steadily, and continued to advance capacity expansion projects as planned. Hualimicro's integration has proven to bring financial benefits and operational synergy. Currently, the 12-inch business accounts for 70.7% of revenue.”

Mr. Bai continued, “Artificial intelligence-related products continue to drive demand in the global semiconductor market. The industrial and automotive markets are gradually improving. As a specialty process foundry with a broad technology portfolio, Huahong Hongli's demand for products such as microcontrollers, flash memory, power management and power devices is growing. Even as the company continues to expand production capacity, supply in some segments is tightening accordingly. We expect the sharp rise in volume and price to continue for some time. The company will continue to focus on operational excellence and create value for shareholders.”