Hua Hong Semiconductor plans to list on the Science and Technology Innovation Board

Hua Hong Semiconductor announced on the Hong Kong Stock Exchange that the board of directors approved the preliminary proposal to issue RMB shares and list these RMB shares on the Shanghai Stock Exchange’s Science and Technology Innovation Board. Issuance of Renminbi Shares The enlarged issued share capital of the Renminbi shares to be issued and allotted is 25%, and all of them will be issued by way of new shares.

Hua Hong Semiconductor said that the raised funds are currently intended to be used for the business development of the main business and general working capital. Meanwhile, the proposed issuance of RMB shares is subject to and depends on, among other things, the company's compliance with the relevant listing requirements of the STAR Market, market conditions, shareholders' approval at the company's general meeting, and obtaining necessary regulatory approvals.

This will be another Hong Kong-listed semiconductor company planning to issue A-shares after SMIC (00981. HK) returned to A. According to public information, Hua Hong Semiconductor was established in 2005 and is a subsidiary of Hua Hong Group. The company's products cover embedded non-volatile memory, power devices, analog and power management, logic and radiofrequency, and other differentiated process platforms. By the end of 2020, Hua Hong's 8-inch wafer production capacity is 178,000 wafers per month, accounting for about 3% of the world's total, making it the second-largest foundry in mainland China.

Benefiting from the shortage of global semiconductor production capacity and the rising price of wafer foundry, in the first three quarters of 2021, Hua Hong Semiconductor's revenue was 7.372 billion yuan, a year-on-year increase of 56.66%; net profit attributable to the parent was 830 million yuan, a year-on-year increase of 129.16%.

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