Hua Hong Grace Shares Open Nearly 9% Lower as Q3 Consolidation of Huali Micro Delivers Net Profit Surge of Over 136%

Stock News11-06 09:32

Hong Kong stock movement: Hua Hong Grace (01347) opened nearly 9% lower. As of press time, the stock was down 8.62% at HK$61.50, with a turnover of HK$47.97 million.

On the news front, Hua Hong Grace announced that its third-quarter operating revenue reached RMB 6.706 billion, up 13.95% year-on-year, while net profit came in at RMB 835 million, up 136.14% year-on-year.

In the third quarter, Huali Micro was officially included in the consolidated financial statements. In its first quarter of consolidation, it already demonstrated significant financial gains and operational synergies. Excluding the impact of the Huali Micro consolidation, the sales revenue and gross margin of Hua Hong Grace's original business both exceeded the upper end of its previous quarterly guidance.

The integration of Huali Micro has proven capable of delivering financial gains and operational synergies. Currently, the revenue contribution from the 12-inch business has reached 70.7%.

For the fourth quarter, Hua Hong Grace expects sales revenue of approximately US$1.08 billion to US$1.09 billion, with a gross margin in the range of 25% to 26%.

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