Hua Hong Grace Semiconductor Limited (688347.SH) announced its first-quarter results, reporting revenue of $660.9 million, a 22.2% increase year-over-year. The gross margin for the quarter was 13.0%, representing a rise of 3.8 percentage points compared to the same period last year. Both metrics were in line with the company's prior guidance. The profit attributable to the parent company's shareholders reached $20.9 million, showing substantial growth year-over-year. While rapidly scaling up production capacity, the company maintained high capacity utilization, with all process technology platforms performing robustly. Notably, products based on MCU, standalone flash memory, and BCD processes showed the most significant growth. In the first quarter, the ramp-up of 12-inch production capacity progressed steadily, with its contribution to total revenue increasing to 62.7%. The 8-inch production lines continued to demonstrate strong profitability. Concurrently, the proposed acquisition of HLMC has been accepted by the Shanghai Stock Exchange and has entered the substantive review stage, proceeding according to the established plan and expected to be completed in the second half of this year. Furthermore, the company provided guidance for the second quarter of 2026, anticipating revenue to be in the range of approximately $690 million to $700 million. The projected gross margin for the period is estimated to be between 14% and 16%.
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