Hua Hong Semiconductor : Interim Report 2020

September 17, 2020 at 12:05 am EDT

HUA HONG SEMICONDUCTOR LIMITED

華虹半導體有限公司

(Incorporated in Hong Kong with limited liability)

（於香港註冊成立之有限公司）

(Stock Code: 1347)

（股份代號：1347）

DEFINITIONS

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 report and
	for geographical reference only, except where the context otherwise requires,
	references in this interim report to "China" and the "PRC" do not include Taiwan, the
	Macau Special Administrative Region and Hong Kong;
"Company" or "our Company"	Hua Hong Semiconductor Limited, a company incorporated in Hong Kong with
	limited liability on 21 January 2005 and, except where the context otherwise
	requires, all of its subsidiaries, or its present subsidiaries where the context refers
	to the time before it became the holding company of its present subsidiaries;
"Company Secretary"	the Company Secretary of the Company;
"Director(s)"	the Director(s) of the Company;
"EPS"	earnings per share;
"Executive Director(s)"	the Executive Director(s) of our Company;
"Group"	our Company and our subsidiaries or, where the context so requires, the
	businesses operated by our subsidiaries or their predecessors (as the case may
	be) with respect to the period before our Company became the holding company of
	our present subsidiaries (or became associated companies of our Company);
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong;
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC;
"HH-Wuxi"	Hua Hong Semiconductor (Wuxi) Limited, a company incorporated in the PRC on 10
	October 2017. Upon such incorporation, HH-Wuxi was 100% owned by HHGrace, a
	wholly-owned subsidiary of the Company. HH-Wuxi is currently owned 51.0% by the
	Group, of which 22.2% will be held directly by the Company and 28.8% will be held
	indirectly by the Company through HHGrace. China Integrated Circuit and Wuxi Xi
	Hong Lian Xin will hold 29.0% and 20.0% of HH-Wuxi, respectively;
"Independent Non-Executive	the independent Non-Executive Director(s) of our Company;
Director(s)"

INTERIM REPORT 2020

DEFINITIONS

"Listing Rules"	the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
	Limited, as amended or supplemented from time to time;
"Non-Executive Director(s)"	the Non-Executive Director(s) of our Company;
"QST"	QST Corporation (上海矽睿科技有限公司), a company incorporated in the PRC on
	13 September 2012 and a connected person;
"RMB"	Renminbi, the lawful currency of the PRC;
"SFO"	the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as
	amended or supplemented from time to time;
"Shanghai Huali"	Shanghai Huali Microelectronics Corporation (上海華力微電子有限公司), a company
	incorporated in the PRC on 18 January 2010 and a connected person;
"Stock Exchange"	The Stock Exchange of Hong Kong Limited;
"US$"	US dollars, the lawful currency of USA.

2 HUA HONG SEMICONDUCTOR LIMITED

Board of Directors

Executive Directors

Suxin Zhang (Chairman)

Junjun Tang (President)

Non-Executive Directors

Yang Du

Takayuki Morita

Jing Wang

Jun Ye

Independent Non-Executive Directors

Stephen Tso Tung Chang

Kwai Huen Wong, JP

Long Fei Ye

Company Secretary

Sui Har Lee

Authorized Representatives

Junjun Tang

Sui Har Lee

Audit Committee

Stephen Tso Tung Chang (Chairman)

Long Fei Ye

Jun Ye

Remuneration Committee

Kwai Huen Wong, JP (Chairman)

Long Fei Ye

Jing Wang

Nomination Committee

Suxin Zhang (Chairman)

Kwai Huen Wong, JP

Long Fei Ye

Website

www.huahonggrace.com

Auditor

Ernst & Young

Certified Public Accountants

22nd Floor, CITIC Tower

1 Tim Mei Avenue, Central

Hong Kong

CORPORATE INFORMATION

Legal Advisor

Herbert Smith Freehills

23/F, Gloucester Tower

15 Queen's Road Central

Hong Kong

Principal Banks

China Construction Bank Shanghai Branch

No. 900, Lujiazui Ring Road

Pudong New Area

Shanghai, PRC

China Development Bank Shanghai Branch

No. 68, Puming Road

Shanghai, PRC

China Construction Bank Corporation Hong Kong Branch 28/F, CCB Tower, 3 Connaught Road, Central

Hong Kong

Bank of Communications Co., Ltd. Hong Kong Branch

20 Pedder Street, Central

Hong Kong

China Development Bank Jiangsu Branch

No. 232, Middle Jiangdong Road

Nanjing, Jiangsu, PRC

Agricultural Bank of China Wuxi Xinwu Subbranch

No. 26, Hefeng Road

Xinwu District

Wuxi, Jiangsu, PRC

China Construction Bank Corporation Wuxi High-Tech

Industrial Development Zone Subbranch

No. 26, Hefeng Road

Xinwu District

Wuxi, Jiangsu, PRC

China CITIC Bank Corporation Wuxi New District

Subbranch

No. 26, Hefeng Road

Xinwu District

Wuxi, Jiangsu, PRC

INTERIM REPORT 2020

CORPORATE INFORMATION

Share Registrar

Tricor Investor Services Limited

Level 54, Hopewell Centre

183 Queen's Road East

Hong Kong

Registered Office

Room 2212, Bank of America Tower

12 Harcourt Road, Central

Hong Kong

Principal Places of Business

288 Halei Road

Zhangjiang Hi-Tech Park

Shanghai, PRC

Postcode: 201203

No. 30, Xinzhou Road

Xinwu District

Wuxi, Jiangsu, PRC

Postcode: 214000

Stock Code

1347

4 HUA HONG SEMICONDUCTOR LIMITED

Revenue

US$ million

500
450	440.0	450.8
	428.2

400
350
300
250
200
150
100
50
0
	1H 2018	1H 2019	1H 2020

Net Proﬁt

US$ million

120
100	96.5
86.1
80
60
40
20
		4.0
0
1H 2018	1H 2019	1H 2020

KEY FINANCIALS

Gross Proﬁt Margin

	%
35	32.9%
	31.6%

30
25			23.6%

20
15
10
5
0
	1H 2018	1H 2019	1H 2020

EPS

US$

0.100
0.083
0.080	0.071

0.060
0.040
		0.030
0.020
0
1H 2018	1H 2019	1H 2020

INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Performance

	1H 2020	1H 2019	Change
	US$' 000	US$' 000
	Unaudited	Unaudited
Revenue	428,204	450,790	(5.0)%
Cost of sales	(326,972)	(308,370)	6.0 %
Gross profit	101,232	142,420	(28.9)%
Other income and gains	25,406	31,807	(20.1)%
Selling and distribution expenses	(4,226)	(4,004)	5.5 %
Administrative expenses	(129,748)	(63,075)	105.7 %
Other expenses	(3)	(2,119)	(99.9)%
Finance costs	(618)	(625)	(1.1)%
Share of profits of an associate	7,258	1,010	618.6 %
(Loss)/profit before tax	(699)	105,414	(100.7)%
Income tax credit/(expense)	4,705	(8,879)	(153.0)%
Profit for the period	4,006	96,535	(95.9)%
Attributable to:
Owners of the parent	38,140	90,826	(58.0)%
Non-controlling interests	(34,134)	5,709	(697.9)%

Revenue

Revenue was US$428.2 million, a decrease of 5.0% compared to 1H 2019, primarily due to decreased average selling price and decreased demand for smart card ICs and super junction products, partially offset by increased demand for MCU and power management products.

Cost of sales

Cost of sales was US$327.0 million, an increase of 6.0% compared to 1H 2019, primarily due to increased wafer shipments, depreciation and labor expenses.

Gross prot

Gross profit was US$101.2 million, a decrease of 28.9% compared to 1H 2019, primarily due to decreased average selling price, increased depreciation and labor expenses.

Other income and gains

Other income and gains were US$25.4 million, a decrease of 20.1% compared to 1H 2019, primarily due to decreased fair value gains on financial assets at fair value through profit or loss and interest income, partially offset by increased government subsidies.

Selling and distribution expenses

Selling and distribution expenses were US$4.2 million, an increase of 5.5% compared to 1H 2019, primarily due to increased labor expenses.

6 HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Administrative expenses

Administrative expenses were US$129.7 million, an increase of 105.7% compared to 1H 2019, primarily due to increased development, depreciation and labor expenses for Wuxi fab.

Other expenses

Other expenses were US$3,000, compared to US$2.1 million in 1H 2019, mainly due to a foreign exchange loss in the previous period.

Share of prots of an associate

Share of profit of an associate was US$7.3 million, an increase of 618.6% compared to 1H 2019, due to increased profit realized by the associate, Shanghai Huahong Technology Development Co., Ltd.

Income tax credit/(expense)

Income tax credit was US$4.7 million, compared to income tax expense of US$8.9 million in 1H 2019, primarily due to increased reversal of dividend withholding tax accrued for the prior year and decreased taxable profit.

Prot for the period

As a result of the cumulative effect of the above factors, profit for the period was US$4.0 million, a decrease of 95.9% compared to 1H 2019. Net profit margin was 0.9% compared to 21.4% in 1H 2019.

INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Status

	30 June	31 December
	2020	2019	Change
	US$' 000	US$' 000
	Unaudited	Audited
Non-current assets
Property, plant and equipment	1,790,860	1,558,283	14.9%
Investment property	166,154	168,615	(1.5)%
Right-of-use assets	75,810	74,526	1.7 %
Investment in an associate	79,335	73,142	8.5 %
Equity instruments designated at fair value through
other comprehensive income	204,658	207,689	(1.5)%
Other non-current assets	84,455	34,437	145.2 %
Total non-current assets	2,401,272	2,116,692	13.4 %
Current assets
Inventories	176,856	142,087	24.5 %
Trade and notes receivables	135,518	164,968	(17.9)%
Due from related parties	11,588	9,262	25.1 %
Prepayments, other receivables and other assets	66,174	113,453	(41.7)%
Financial assets at fair value through profit or loss	84,759	519,779	(83.7)%
Restricted and time deposits	766	70,776	(98.9)%
Cash and cash equivalents	698,957	476,286	46.8 %
Total current assets	1,174,618	1,496,611	(21.5)%
Current liabilities
Trade payables	92,607	86,119	7.5 %
Due to related parties	13,467	10,655	26.4 %
Other current liabilities	372,886	372,343	0.1 %
Lease liabilities	3,757	1,922	95.5 %
Interest-bearing bank borrowings	4,238	4,300	(1.4)%
Total current liabilities	486,955	475,339	2.4 %
Net current assets	687,663	1,021,272	(32.7)%
Non-current liabilities
Interest-bearing bank borrowings	19,069	21,502	(11.3)%
Lease liabilities	16,889	16,694	1.2 %
Deferred tax liabilities	3,194	17,176	(81.4)%
Total non-current liabilities	39,152	55,372	(29.3)%
Net assets	3,049,783	3,082,592	(1.1)%

Explanation of items with uctuation over 5% from 31 December 2019 to 30 June 2020

Property, plant and equipment

Property, plant and equipment increased from US$1,558.3 million to US$1,790.9 million, mainly as a result of the construction of the Hua Hong Wuxi.

Investment in an associate

Investment in an associate increased from US$73.1 million to US$79.3 million, primarily due to profit shared from the associate, Shanghai Huahong Technology Development Co., Ltd., in the period.

8 HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Other non-current assets

Other non-current assets increased from US$34.4 million to US$84.5 million, primarily due to increased prepayments for capital expenditures and increased intangible assets.

Inventories

Inventories increased from US$142.1 million to US$176.9 million, primarily due to increased raw materials and finished goods.

Trade and notes receivables

Trade and notes receivables decreased from US$165.0 million to US$135.5 million, primarily due to lower revenue compared to 2H 2019.

Due from related parties

Due from related parties increased from US$9.3 million to US$11.6 million, primarily due to increased receivables from certain of our related party.

Prepayments, other receivables and other assets

Prepayments, other receivables and other assets decreased from US$113.5 million to US$66.2 million, primarily due to receipts of tax return of VAT.

Financial assets at fair value through prot or loss

Financial assets at fair value through profit or loss decreased from US$519.8 million to US$84.8 million, primarily due to payout from investment in financial products.

Restricted and time deposits

Restricted and time deposits decreased from US$70.8 million to US$0.8 million, due to payout from investment in time deposits.

Cash and cash equivalents

Cash and cash equivalents increased from US$476.3 million to US$699.0 million, mainly due to the reasons stated in the cash flow analysis below.

Trade payables

Trade payables increased from US$86.1 million to US$92.6 million, primarily due to increased purchases of materials for Hua Hong Wuxi.

Due to related parties

Due to related parties increased from US$10.7 million to US$13.5 million, primarily due to a receipt of rental prepayment from one of our related parties.

Lease liabilities

Total lease liabilities increased from US$18.6 million to US$20.6 million, primarily due to renewed lease contracts.

Interest-bearing bank borrowings

Total interest-bearing bank borrowings decreased from US$25.8 million to US$23.3 million, due to a repayment of bank borrowing.

Deferred tax liabilities

Deferred tax liabilities decreased from US$17.2 million to US$3.2 million, primarily due to a reversal of dividend withholding tax accrued for 2019.

INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Cash Flow

	1H 2020	1H 2019	Change
	US$' 000	US$' 000
	Unaudited	Unaudited
Net cash flows generated from operating activities	95,208	99,518	(4.3)%
Net cash flows generated from/(used in) investing activities	132,861	(304,919)	(143.6)%
Net cash flows (used in)/generated from financing activities	(1,568)	264,710	(100.6)%
Net increase in cash and cash equivalents	226,501	59,309	281.9 %
Cash and cash equivalents at beginning of the period	476,286	777,000	(38.7)%
Effect of foreign exchange rate changes, net	(3,830)	(1,631)	134.8 %
Cash and cash equivalents at end of the period	698,957	834,678	(16.3)%

Net cash ows generated from operating activities

Net cash flows generated from operating activities decreased from US$99.5 million to US$95.2 million, primarily due to increased payments for materials and labor expenses, decreased receipts of government grants, partially offset by receipts of tax return of VAT.

Net cash ows generated from investing activities

Net cash flows generated from investing activities were US$132.9 million, primarily including (i) payout of US$1,173.8 million from investment in financial assets at fair value through profit or loss, (ii) payout of US$70.0 million in investment in time deposit, and (iii) US$5.8 million of interest income, partially offset by (i) US$738.1 million for investment in financial assets at fair value through profit or loss, and (ii) US$378.6 million for capital investments.

Net cash ows used in nancing activities

Net cash flows used in financing activities were US$1.6 million, attributed to (i) lease liabilities payments of US$2.7 million, (ii) a repayment of bank borrowing of US$2.1 million, and (iii) interest payments of US$0.6 million, partially offset by US$3.8 million proceeds from share option exercise.

10 HUA HONG SEMICONDUCTOR LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Business Review

In the first half of 2020, the global semiconductor market was hit by the impact of COVID-19. Despite the on-going impact, some regions, which experienced the pandemic earlier, are gradually recovering. Thanks to the joint efforts of our shareholders, customers, suppliers, and employees, our revenue rebounded steadily in the second quarter, up 11% on a QoQ basis.

The sharp increase in shipment volumes of pandemic prevention supplies has driven significant growth in revenue for MCU products in the first half of the year, posting a relatively good performance. In the second quarter, as a result of containment of COVID-19 in China, demand for smart card IC gradually recovered in the Chinese market. In the meantime, the Company actively developed its 90nm embedded flash memory process in its HH-Wuxi12-inch wafer fab, to keep abreast of development trends in the high-density memory industry. The fab commenced mass production of 90nm embedded flash memory technology in the first half of the year, playing a key role for the Company to seize future market opportunities. As an increasing number of products are certified and the 12-inch wafer capacity is continuously expanded, the Company expects to see further increases in revenue in the eNVM market segment.

Development of discrete devices remained stable. Despite the consequences of the pandemic, the Company achieved an outstanding double digit QoQ growth in shipment volume of power discrete devices in the second quarter, thanks to our diverse types of power device processes, quality assurance of excellent technologies, and wide range of customer base. Shipment volumes for both SGT-MOSFET and IGBT reached new record levels.

The HH-Wuxi12-inch wafer fab, which was put into operation in the fourth quarter of 2019, ran smoothly in the first half of 2020. For platform products, the 90nm eNVM, 65nm logic & RF platform, and discrete products entered into mass production. The technology roadmap, in accordance with the strategy of "IC+Power", has been successfully implemented, which ensures the Company's ability to continuously maintain high-level service and abundant product supply for its customers in the future.

Looking forward to the future, the Company's 8-inch wafer fab will work on continuous development of its power discrete device, embedded flash memory MCU, PMIC, and cellphone RF IC businesses, and the 12-inch wafer fab will continue to consistently implement the "IC+Power" strategy. We will continue to implement our "8-inch+12-inch" wafer technology development strategy to provide customers with better differentiated technology products.

INTERIM REPORT 2020

釋義

於本中期報告內，除非文義另有所指，否則下列詞彙具有下文所載涵義。

「董事會」	本公司董事會；
「中國」	中華人民共和國，但僅就本中報及作地理參考而言，除文義另有所指，否則，本中報對「中
	國」的提述不包括台灣、澳門特別行政區及香港；
「本公司」	華虹半導體有限公司，一家於二零零五年一月二十一日在香港註冊成立的有限公司，除非文
	義另有所指，否則包括其所有子公司，或如文義指其成為其現有子公司的控股公司之前期
	間，則指其現有子公司；
「公司秘書」	本公司公司秘書；
「董事」	本公司董事；
「EPS」	每股盈利；
「執行董事」	本公司執行董事；
「本集團」	本公司及我們的子公司，或如文義所指為本公司成為我們現有子公司的控股公司之前期間（或
	成為本公司的該等聯營公司），則指由該等子公司或其前身公司（視乎情況而定）所經營的業
	務；
「港元」	香港法定貨幣港元；
「香港」	中國香港特別行政區；
「華虹無錫」	華虹半導體（無錫）有限公司，一家於二零一七年十月十日在中國註冊成立的公司。華虹無錫
	於註冊成立時由本公司的全資子公司華虹宏力擁有100%的權益。華虹無錫現由本集團持有
	51.0%的權益，其中22.2%將由本公司直接持有及28.8%將由本公司透過華虹宏力間接持有，
	而國家集成電路及無錫錫虹聯芯將分別持有華虹無錫29.0%權益和20.0%權益；
「獨立非執行董事」	本公司獨立非執行董事；

12 華虹半導體有限公司

釋義

「上市規則」	《香港聯合交易所有限公司證券上市規則》（經不時修訂或補充）；
「非執行董事」	本公司非執行董事；
「矽睿科技」	上海矽睿科技有限公司，一家於二零一二年九月十三日在中國註冊成立的公司，為關連人士；
「人民幣」	中國法定貨幣人民幣；
「證券及期貨條例」	香港法例第571章《證券及期貨條例》（經不時修訂或補充）；
「上海華力」	上海華力微電子有限公司，一家於二零一零年一月十八日在中國註冊成立的公司，為關連人
	士；
「聯交所」	香港聯合交易所有限公司；
「美元」	美國法定貨幣美元。

2020年中期報告 13

公司資料

董事會	法律顧問
執行董事	史密夫‧斐爾律師事務所
張素心（主席）	香港
唐均君（總裁）	皇后大道中15號
非執行董事	告羅士打大廈23樓
主要往來銀行
杜洋
森田隆之
王靖	中國建設銀行上海市分行

葉峻	中國上海市

獨立非執行董事	浦東新區
陸家嘴環路900號
張祖同

王桂壎，太平紳士	國家開發銀行上海分行

葉龍蜚	中國上海市

公司秘書	浦明路68號

李瑞霞	中國建設銀行股份有限公司香港分行

授權代表	香港中環
干諾道中3號中國建設銀行大廈28樓
唐均君

李瑞霞	交通銀行股份有限公司香港分行

審核委員會	香港中環
畢打街20號
張祖同（主席）

葉龍蜚	國家開發銀行江蘇分行

葉峻	中國江蘇省南京市

薪酬委員會	江東中路232號

王桂壎，太平紳士（主席）葉龍蜚

王靖

提名委員會

張素心（主席）王桂壎，太平紳士葉龍蜚

網址

www.huahonggrace.com

核數師

安永會計師事務所

執業會計師

香港中環添美道1號中信大廈22樓

中國農業銀行股份有限公司無錫新吳支行中國江蘇省無錫市

新吳區和風路26號

中國建設銀行股份有限公司無錫高新技術產業開發區支行中國江蘇省無錫市

新吳區和風路26號

中信銀行股份有限公司無錫新區支行中國江蘇省無錫市

新吳區和風路26號

14 華虹半導體有限公司

公司資料

股份過戶登記處

卓佳證券登記有限公司香港

皇后大道東183號合和中心54樓

註冊辦事處

香港中環夏慤道12號

美國銀行中心2212室

主要營業地點

中國上海市

張江高科技園區哈雷路288號郵編：201203

中國江蘇省無錫市新吳區

新洲路30號郵編：214000

股份代號

1347

2020年中期報告 15

主要財務指標
銷售收入
	百萬美元
500
450	440.0	450.8
	428.2

400
350
300
250
200
150
100
50
0
	二零一八年上半年二零一九年上半年二零二零年上半年

淨利潤
	百萬美元
120
100	96.5
	86.1
80
60
40
20
	4.0
0
	二零一八年上半年二零一九年上半年二零二零年上半年

毛利率
	%
35	32.9%
	31.6%

30
25		23.6%
20
15
10
5
0
	二零一八年上半年二零一九年上半年二零二零年上半年

每股盈利
美元
0.100
0.083
0.080
0.071
0.060
0.040
0.030
0.020
0
二零一八年上半年二零一九年上半年二零二零年上半年

16 華虹半導體有限公司

管理層討論及分析

財務表現

	二零二零年	二零一九年
	上半年	上半年	變動
	千美元	千美元
	未經審核	未經審核
銷售收入	428,204	450,790	(5.0)%
銷售成本	(326,972)	(308,370)	6.0 %
毛利	101,232	142,420	(28.9)%
其他收入及收益	25,406	31,807	(20.1)%
銷售及分銷費用	(4,226)	(4,004)	5.5 %
管理費用	(129,748)	(63,075)	105.7 %
其他費用	(3)	(2,119)	(99.9)%
財務費用	(618)	(625)	(1.1)%
分佔一家聯營公司溢利	7,258	1,010	618.6 %
稅前（虧損）╱溢利	(699)	105,414	(100.7)%
所得稅抵免╱（開支）	4,705	(8,879)	(153.0)%
期內溢利	4,006	96,535	(95.9)%
以下各項應佔：
母公司擁有人	38,140	90,826	(58.0)%
非控股權益	(34,134)	5,709	(697.9)%

銷售收入

銷售收入為4.282億美元，較二零一九年上半年減少5.0%，主要由於平均銷售價格下降及智能卡芯片和超級結產品需求減少，部分被MCU與電源管理產品需求增加所抵銷。

銷售成本

銷售成本為3.270億美元，較二零一九年上半年增加6.0%，主要由於付運晶圓、折舊及人工費用增加所致。

毛利

毛利為1.012億美元，較二零一九年上半年減少28.9%，主要由於平均銷售價格下降、折舊及人工費用增加所致。

其他收入及收益

其他收入及收益為2,540萬美元，較二零一九年上半年減少20.1%，主要由於按公平值計入損益的金融資產取得公平值變動收益及利息收入減少，部分被增加的政府補貼抵銷。

銷售及分銷費用

銷售及分銷費用為420萬美元，較二零一九年上半年增加5.5%，主要由於人工費用增加所致。

2020年中期報告 17

管理層討論及分析

管理費用

管理費用為1.297億美元，較二零一九年上半年增加105.7%，主要由於無錫工廠的研發、折舊及人工費用增加所致。

其他費用

其他費用為0.3萬美元，而二零一九年上半年為210萬美元，主要由於上年同期外匯匯兌虧損所致。

分佔一家聯營公司溢利

分佔一家聯營公司溢利為730萬美元，較二零一九年上半年增加618.6%，乃由於聯營公司上海華虹科技發展有限公司實現溢利增加所致。

所得稅抵免╱（開支）

所得稅抵免為470萬美元，而二零一九年上半年錄得所得稅開支890萬美元，主要由於轉回以前年度計提的代扣代繳稅金增加及應課稅溢利減少所致。

期內溢利

綜合考慮上述因素，期內溢利為400萬美元，較二零一九年上半年下降95.9%。淨利潤率為0.9%，而二零一九年上半年為 21.4%。

18 華虹半導體有限公司

管理層討論及分析

財務狀況

	二零二零年	二零一九年
	六月三十日	十二月三十一日	變動
	千美元	千美元
	未經審核	經審核
非流動資產
物業、廠房及設備	1,790,860	1,558,283	14.9%
投資物業	166,154	168,615	(1.5)%
使用權資產	75,810	74,526	1.7 %
於一家聯營公司的投資	79,335	73,142	8.5 %
指定按公平值計入其他全面收益的股本工具	204,658	207,689	(1.5)%
其他非流動資產	84,455	34,437	145.2 %
非流動資產總額	2,401,272	2,116,692	13.4 %
流動資產
存貨	176,856	142,087	24.5 %
貿易應收款項及應收票據	135,518	164,968	(17.9)%
應收關聯方款項	11,588	9,262	25.1 %
預付款項、其他應收款項及其他資產	66,174	113,453	(41.7)%
按公平值計入損益的金融資產	84,759	519,779	(83.7)%
已凍結及定期存款	766	70,776	(98.9)%
現金及現金等價物	698,957	476,286	46.8 %
流動資產總額	1,174,618	1,496,611	(21.5)%
流動負債
貿易應付款項	92,607	86,119	7.5 %
應付關聯方款項	13,467	10,655	26.4 %
其他流動負債	372,886	372,343	0.1 %
租賃負債	3,757	1,922	95.5 %
計息銀行借款	4,238	4,300	(1.4)%
流動負債總額	486,955	475,339	2.4 %
流動資產淨額	687,663	1,021,272	(32.7)%
非流動負債
計息銀行借款	19,069	21,502	(11.3)%
租賃負債	16,889	16,694	1.2 %
遞延稅項負債	3,194	17,176	(81.4)%
非流動負債總額	39,152	55,372	(29.3)%
資產淨額	3,049,783	3,082,592	(1.1)%

就二零一九年十二月三十一日至二零二零年六月三十日同比變動超過5%的項目的闡釋

物業、廠房及設備

物業、廠房及設備由15.583億美元增至17.909億美元，主要由於建設華虹無錫所致。

於一家聯營公司的投資

於一家聯營公司的投資由7,310萬美元增至7,930萬美元，主要由於分佔聯營公司上海華虹科技發展有限公司於期內的溢利所致。

2020年中期報告 19

管理層討論及分析

其他非流動資產

其他非流動資產由3,440萬美元增加至8,450萬美元，主要由於資本支出預付款項增加及無形資產增加所致。

存貨

存貨由1.421億美元增加至1.769億美元，主要由於原材料及產成品的增加所致。

貿易應收款項及應收票據

貿易應收款項及應收票據由1.650億美元減少至1.355億美元，主要由於銷售收入環比下降所致。

應收關聯方款項

應收關聯方款項由930萬美元增加至1,160萬美元，主要由於應收部分關聯方的款項增加。

預付款項、其他應收款項及其他資產

預付款項、其他應收款項及其他資產由1.135億美元減少至6,620萬美元，主要由於收到增值稅退稅款。

按公平值計入損益的金融資產

按公平值計入損益的金融資產由5.198億美元減少至8,480萬美元，主要由於收回理財產品投資所致。

已凍結及定期存款

已凍結及定期存款由7,080萬美元減少至80萬美元，由於收回定期存款投資所致。

現金及現金等價物

現金及現金等價物由4.763億美元增加至6.990億美元，主要参照現金流量分析所述之原因。

貿易應付款項

貿易應付款項由8,610萬美元增至9,260萬美元，主要由於華虹無錫採購物料增加所致。

應付關聯方款項

應付關聯方款項由1,070萬美元增加至1,350萬美元，主要由於收到一名關聯方的預付租金款。

租賃負債

租賃負債總額由1,860萬美元增加至2,060萬美元，主要由於續簽租賃合同。

計息銀行借款

計息銀行借款總額由2,580萬美元減少至2,330萬美元，乃由於償還銀行借款所致。

遞延稅項負債

遞延稅項負債由1,720萬美元減少至320萬美元，主要由於轉回二零一九年計提的代扣代繳稅金所致。

20 華虹半導體有限公司

管理層討論及分析

現金流量

	二零二零年	二零一九年
	上半年	上半年	變動
	千美元	千美元
	未經審核	未經審核

經營活動所得現金流量淨額	95,208	99,518	(4.3)%
投資活動所得╱（所用）現金流量淨額	132,861	(304,919)	(143.6)%
融資活動（所用）╱所得現金流量淨額	(1,568)	264,710	(100.6)%
現金及現金等價物增加淨額	226,501	59,309	281.9 %
期初現金及現金等價物	476,286	777,000	(38.7)%
外匯匯率變動影響，淨額	(3,830)	(1,631)	134.8 %
期末現金及現金等價物	698,957	834,678	(16.3)%

經營活動所得現金流量淨額

經營活動所得現金流量淨額由9,950萬美元減少至9,520萬美元，主要由於材料付款及人工費用增加以及收到的政府補助減少，部分被收到的增值稅退稅款所抵銷。

投資活動所得現金流量淨額

投資活動所得現金流量淨額為1.329億美元，主要包括(i)收回按公平值計入損益的金融資產投資11.738億美元；(ii)收回定期存款投資7,000萬美元，及(iii)利息收入580萬美元，部分被(i)按公平值計入損益的金融資產投資7.381億美元；及(ii)資本投資3.786億美元所抵銷。

融資活動所用現金流量淨額

融資活動所用現金流量淨額為160萬美元，用於(i)租賃負債付款270萬美元；(ii)償還銀行借款210萬美元；及(iii)利息開支 60萬美元，部分被因股票期權行權而增發股份收到的投資款380萬美元所抵銷。

2020年中期報告 21

管理層討論及分析

業務回顧

2020年上半年受全球性疫情影響，全球半導體市場經歷了不同程度的衝擊。影響雖然至今仍沒有結束，但部分較早經歷疫情的地區產業正逐步復蘇。在公司股東、顧客、供應商及全體員工的共同努力下，二季度業績已開始穩健回升，環比上漲

11%。

疫情背景下，防疫用品出貨量大漲，帶動公司MCU產品上半年出貨迅猛增長，創造了較好的業績。智能卡芯片方面，隨著國內疫情得到良好的控制，國內市場需求在第二季度逐漸恢復。同時，因產品的高容量存儲發展趨勢，我司於無錫12吋廠積極開發90納米嵌入式閃存工藝，在上半年已經進入量產，為掌握未來市場機會起到了關鍵作用。隨著較多產品陸續認證以及12吋產能持續擴充，公司將穩定並進一步擴大eNVM市場的營收能力。

分立器件繼續保持穩定發展，儘管受到疫情衝擊影響，但在公司豐富的功率器件工藝種類、優越的技術品質保障以及較廣泛的客戶群體條件下，二季度功率器件出貨量表現亮眼，實現了出貨量雙位數的環比增長。其中，SGT-MOSFET與IGBT 出貨量雙雙創出了歷史新高。

於2019年第四季度順利進入投產階段的華虹無錫12吋廠在2020年上半年運行進展一切順利。平台產品方面，90納米嵌入式閃存、65納米邏輯與射頻工藝平台、分立器件均已順利進入量產階段。IC+Power的產品線佈局與戰略得到順利實施，確保了公司在未來能夠持續保持高水準的服務與豐富的產品線供應。

展望未來，公司8吋晶圓廠功率分立器件、嵌入式閃存MCU、電源管理芯片及手機射頻IC的業務持續發展，12吋晶圓廠繼續堅定不移地執行IC+Power戰略。我們將繼續實施「8吋+12吋」晶圓差異化技術的企業發展策略，為客戶提供更優質的差異化技術服務。

22 華虹半導體有限公司

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料的審閱報告

To the board of directors of Hua Hong Semiconductor Limited	致華虹半導體有限公司的董事會
(Incorporated in Hong Kong with limited liability)	（於香港註冊成立之有限公司）
Introduction	引言
We have reviewed the interim financial information set out on	吾等已審閱載於第24頁至第52頁的中期財務
pages 24 to 52 which comprises the condensed consolidated	資料，其中包括華虹半導體有限公司（「貴公
statement of financial position of Hua Hong Semiconductor Limited	司」）及其子公司（統稱「貴集團」）於二零二零
(the "Company") and its subsidiaries (collectively referred to	年六月三十日的簡明綜合財務狀況表及截至
as the "Group") as at 30 June 2020 and the related condensed	該日止六個月期間的相關簡明綜合損益表、
consolidated statements of profit or loss, comprehensive income,	全面收益表、權益變動表及現金流量表以及
changes in equity and cash flows for the six-month period then	其他解釋附註。香港聯合交易所有限公司證
ended, and other explanatory notes. The Rules Governing the	券上市規則規定，須按照當中訂明的相關規
Listing of Securities on The Stock Exchange of Hong Kong Limited	定及香港會計師公會（「香港會計師公會」）頒
require the preparation of a report on interim financial information	佈的香港會計準則第34號中期財務報告（「香
to be in compliance with the relevant provisions thereof and	港會計準則第34號」）的規定就中期財務資料
Hong Kong Accounting Standard 34 Interim Financial Reporting	編製報告。貴公司的董事須負責根據香港會
("HKAS 34") issued by the Hong Kong Institute of Certified Public	計準則第34號編製及列報本中期財務資料。
Accountants ("HKICPA"). The directors of the Company are	吾等的責任是根據吾等的審閱對本中期財務
responsible for the preparation and presentation of this interim	資料作出結論，並按照吾等雙方協定的委聘
financial information in accordance with HKAS 34. Our responsibility	條款，僅向全體董事會報告。除此以外，吾
is to express a conclusion on this interim financial information	等的報告不可用作其他用途。吾等概不會就
based on our review. Our report is made solely to you, as a body,	本報告的內容向任何其他人士負責或承擔責
in accordance with our agreed terms of engagement, and for no	任。
other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report.
Scope of Review	審閱範圍
We conducted our review in accordance with Hong Kong Standard	吾等已根據香港會計師公會頒佈的香港審閱
on Review Engagements 2410 Review of Interim Financial	委聘準則第2410號由實體的獨立核數師執行
Information Performed by the Independent Auditor of the Entity	中期財務資料審閱進行審閱。審閱中期財務
issued by the HKICPA. A review of interim financial information	資料包括主要向負責財務和會計事務的人員
consists of making inquiries, primarily of persons responsible for	作出查詢，及應用分析性和其他審閱程序。
financial and accounting matters, and applying analytical and other	審閱的範圍遠較根據香港審計準則進行審核
review procedures. A review is substantially less in scope than	的範圍為小，故不能令吾等保證吾等將知悉
an audit conducted in accordance with Hong Kong Standards on	在審核中可能發現的所有重大事項。因此，
Auditing and consequently does not enable us to obtain assurance	吾等不會發表審核意見。
that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion	結論
Based on our review, nothing has come to our attention that causes	按照吾等的審閱，吾等並無發現任何事項，
us to believe that the interim financial information is not prepared, in	令吾等相信中期財務資料在各重大方面未有
all material respects, in accordance with HKAS 34.	根據香港會計準則第34號編製。
Ernst & Young	安永會計師事務所
Certified Public Accountants	執業會計師
Hong Kong	香港
11 August 2020	二零二零年八月十一日

2020年中期報告 Interim Report 2020 23

FOR THE SIX MONTHS ENDED 30 JUNE 2020 截至二零二零年六月三十日止六個月

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

中期簡明綜合損益表

			FOR THE SIX MONTHS ENDED
			30 JUNE
			截至六月三十日止六個月
				2019
			2020
			二零二零年	二零一九年
			(Unaudited)	(Unaudited)
			（未經審核）	（未經審核）
		Notes	(US$'000)	(US$'000)
		附註	（千美元）	（千美元）
Revenue	銷售收入	4	428,204	450,790
Cost of sales	銷售成本		(326,972)	(308,370)
Gross profit	毛利		101,232	142,420
Other income and gains	其他收入及收益	4	25,406	31,807
Selling and distribution expenses	銷售及分銷費用		(4,226)	(4,004)
Administrative expenses	管理費用		(129,748)	(63,075)
Other expenses	其他費用		(3)	(2,119)
Finance costs	財務費用		(618)	(625)
Share of profit of an associate	分佔一家聯營公司溢利		7,258	1,010
(LOSS)/PROFIT BEFORE TAX	稅前（虧損）╱溢利	5	(699)	105,414
Income tax credit/(expense)	所得稅抵免╱（開支）	6	4,705	(8,879)
PROFIT FOR THE PERIOD	期內溢利		4,006	96,535
Attributable to:	以下各項應佔：
Owners of the parent	母公司擁有人		38,140	90,826
Non-controlling interests	非控股權益		(34,134)	5,709
			4,006	96,535
EARNINGS PER SHARE ATTRIBUTABLE	母公司普通股權持有人
TO ORDINARY EQUITY HOLDERS	應佔每股盈利：
OF THE PARENT:		7
Basic	基本
- For profit for the period	－期內溢利		US$0.030	US$0.071
			0.030美元	0.071美元
Diluted	攤薄
- For profit for the period	－期內溢利		US$0.029	US$0.070
			0.029美元	0.070美元

24 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2020 中期簡明綜合全面收益表截至二零二零年六月三十日止六個月

		FOR THE SIX MONTHS ENDED
		30 JUNE
		截至六月三十日止六個月
			2019
		2020
		二零二零年	二零一九年
		(Unaudited)	(Unaudited)
		（未經審核）	（未經審核）
		(US$'000)	(US$'000)
		（千美元）	（千美元）
PROFIT FOR THE PERIOD	期內溢利	4,006	96,535
OTHER COMPREHENSIVE LOSS	其他全面虧損
Exchange differences on translation	換算海外業務產生的外匯差額
of foreign operations		(44,791)	(11,486)
OTHER COMPREHENSIVE LOSS	期內其他全面虧損，扣除稅項
FOR THE PERIOD, NET OF TAX		(44,791)	(11,486)
TOTAL COMPREHENSIVE (LOSS)/INCOME	期內全面（虧損）╱收益總額
FOR THE PERIOD		(40,785)	85,049
Attributable to:	以下各項應佔：
Owners of the parent	母公司擁有人	5,380	87,301
Non-controlling interests	非控股權益	(46,165)	(2,252)
		(40,785)	85,049

2020年中期報告 Interim Report 2020 25

30 JUNE 2020

二零二零年六月三十日

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

中期簡明綜合財務狀況表

			30 June	31 December
			2020	2019
			二零二零年	二零一九年
			六月三十日	十二月三十一日
			(Unaudited)	(Audited)
			（未經審核）	（經審核）
		Notes	(US$'000)	(US$'000)
		附註	（千美元）	（千美元）
NON-CURRENT ASSETS	非流動資產
Property, plant and equipment	物業、廠房及設備	9	1,790,860	1,558,283
Right-of-use assets	使用權資產		75,810	74,526
Investment property	投資物業		166,154	168,615
Intangible assets	無形資產		32,201	13,322
Investment in an associate	於一家聯營公司的投資		79,335	73,142
Equity investments designated	指定按公平值計入其他
at fair value through other	全面收益的股權投資
comprehensive income			204,658	207,689
Long term prepayments to third parties	應付第三方之
	長期預付款項		42,100	6,740
Long term prepayments to related parties	向關聯方長期預付款項		1,994	6,808
Deferred tax assets	遞延稅項資產		8,160	7,567
Total non-current assets	非流動資產總額		2,401,272	2,116,692
CURRENT ASSETS	流動資產
Inventories	存貨		176,856	142,087
Trade and notes receivables	貿易應收款項及應收票據	10	135,518	164,968
Prepayments, other receivables	預付款項、其他應收
and other assets	款項及其他資產		66,174	113,453
Due from related parties	應收關聯方款項		11,588	9,262
Financial assets at fair value	按公平值計入損益的
through profit or loss	金融資產		84,759	519,779
Restricted and time deposits	已凍結及定期存款		766	70,776
Cash and cash equivalents	現金及現金等價物		698,957	476,286
Total current assets	流動資產總額		1,174,618	1,496,611
CURRENT LIABILITIES	流動負債
Trade payables	貿易應付款項	11	92,607	86,119
Other payables and accruals	其他應付款項及暫估費用		318,489	303,614
Interest-bearing bank borrowings	計息銀行借款		4,238	4,300
Lease liabilities	租賃負債		3,757	1,922
Government grants	政府補助		40,105	40,641
Due to related parties	應付關聯方款項		13,467	10,655
Income tax payable	應付所得稅		14,292	28,088
Total current liabilities	流動負債總額		486,955	475,339
NET CURRENT ASSETS	流動資產淨額		687,663	1,021,272
TOTAL ASSETS LESS CURRENT	資產總值減流動負債
LIABILITIES			3,088,935	3,137,964

continued/...

續╱...

26 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

二零二零年六月三十日

30 JUNE 2020 中期簡明綜合財務狀況表

			30 June	31 December
			2020	2019
			二零二零年	二零一九年
			六月三十日	十二月三十一日
			(Unaudited)	(Audited)
			（未經審核）	（經審核）
		Note	(US$'000)	(US$'000)
		附註	（千美元）	（千美元）
NON-CURRENT LIABILITIES	非流動負債
Interest-bearing bank borrowings	計息銀行借款		19,069	21,502
Lease liabilities	租賃負債		16,889	16,694
Deferred tax liabilities	遞延稅項負債		3,194	17,176
Total non-current liabilities	非流動負債總額		39,152	55,372
Net assets	資產淨額		3,049,783	3,082,592
EQUITY	權益
Equity attributable to owners	母公司擁有人應佔權益
of the parent
Share capital	股本	12	1,971,748	1,966,095
Reserves	儲備		286,489	279,146
			2,258,237	2,245,241
Non-controlling interests	非控股權益		791,546	837,351
Total equity	權益總額		3,049,783	3,082,592

Suxin Zhang	Jun Ye
張素心	葉峻
Director	Director
董事	董事

2020年中期報告 Interim Report 2020 27

FOR THE SIX MONTHS ENDED 30 JUNE 2020 截至二零二零年六月三十日止六個月

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

中期簡明綜合權益變動表

Attributable to owners of the parent

母公司擁有人應佔

					Other
				Share	reserve and	Fair	Asset	Statutory	Exchange			Non-
		Share	Merger	option	contributed	value	revaluation	reserve	uctuation	Accumulated		controlling	Total
		capital	reserve	reserve	surplus	reserve	reserve#	fund	reserve	losses	Total	interests	equity
					其他儲備及		資產	法定	匯兌
		股本	合併儲備購股權儲備	供款盈餘	公平值儲備	重估儲備#	儲備基金	波動儲備	累計虧損	合計	非控股權益	權益總額
		US$'000	US$'000 US$'000	US$'000	US$'000 US$'000	US$'000	US$'000	US$'000 US$'000	US$'000 US$'000
		千美元	千美元	千美元	千美元	千美元	千美元	千美元	千美元	千美元	千美元	千美元	千美元
		(note 12)
		（附註12）

At 1 January 2020	於二零二零年
	一月一日	1,966,095	645,494*	12,481*	35,685*	4,847*	99,257*	89,186*	(462)*	(607,342)*	2,245,241	837,351	3,082,592
Profit/(loss) for the period	期內溢利╱（虧損）	-	-	-	-	-	-	-	-	38,140	38,140	(34,134)	4,006
Exchange differences	換算海外業務產生的
on translation of foreign	外匯差額
operations		-	-	-	-	-	-	-	(32,760)	-	(32,760)	(12,031)	(44,791)

Total comprehensive loss	期內全面虧損總額
for the period		-	-	-	-	-	-	-	(32,760)	38,140	5,380	(46,165)	(40,785)
Issue of shares	發行股份	5,653	-	(1,721)	-	-	-	-	-	-	3,932	-	3,932
Equity-settled share	以權益結算的
option arrangements	購股權安排	-	-	3,684	-	-	-	-	-	-	3,684	360	4,044
Transfer from retained profits	轉撥自一間子公司
generated by a subsidiary	產生的留存溢利	-	-	-	-	-	-	5,998	-	(5,998)	-	-	-

At 30 June 2020 (unaudited)	於二零二零年
	六月三十日
	（未經審核）	1,971,748	645,494*	14,444*	35,685*	4,847*	99,257*	95,184*	(33,222)*	(575,200)*	2,258,237	791,546	3,049,783

At 1 January 2019	於二零一九年一月一日 1,960,159	645,494	6,607	34,590	2,545	99,257	71,595	34,655	(702,786)	2,152,116	549,076	2,701,192
Profit for the period	期內溢利	-	-	-	-	-	-	-	-	90,826	90,826	5,709	96,535
Exchange differences	換算海外業務產生的
on translation of foreign	外匯差額
operations		-	-	-	-	-	-	-	(3,525)	-	(3,525)	(7,961)	(11,486)

Total comprehensive	期內全面收益總額
income for the period		-	-	-	-	-	-	-	(3,525)	90,826	87,301	(2,252)	85,049
Capital contribution from	非控股權益注資
non-controlling interests		-	-	-	975	-	-	-	-	-	975	316,025	317,000
Issue of shares	發行股份	1,583	-	(308)	-	-	-	-	-	-	1,275	-	1,275
Equity-settled share option	以權益結算的
arrangements	購股權安排	-	-	4,040	-	-	-	-	-	-	4,040	-	4,040
Final 2018 dividend declared	最終宣派二零一八年	-	-	-	-	-	-	-	-	(50,772)	(50,772)	-	(50,772)
Transfer from retained profits	股息
轉撥自一間子公司
generated by a subsidiary	產生的留存溢利	-	-	-	-	-	-	8,084	-	(8,084)	-	-	-

At 30 June 2019 (unaudited)	於二零一九
	年六月三十日
	（未經審核）	1,961,742	645,494	10,339	35,565	2,545	99,257	79,679	31,130	(670,816)	2,194,935	862,849	3,057,784

The asset revaluation reserve arose from a change in use from an owner-occupied property to an investment property carried at fair value.

These reserve accounts comprise the consolidated reserves of US$286,489,000 (31 December 2019: US$279,146,000) in the interim condensed consolidated statement of financial position.

28 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

資產重估儲備源自將自用物業用途更改為按公平值列賬之投資物業。

該等儲備賬構成於中期簡明綜合財務狀況表內之綜合儲備286,489,000美元（二零一九年十二月三十一日：279,146,000美元）。

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2020 中期簡明綜合現金流量表截至二零二零年六月三十日止六個月

		FOR THE SIX MONTHS ENDED
		30 JUNE
		截至六月三十日止六個月
			2019
		2020
		二零二零年	二零一九年
		(Unaudited)	(Unaudited)
		（未經審核）	（未經審核）
		(US$'000)	(US$'000)
		（千美元）	（千美元）
CASH FLOWS FROM OPERATING ACTIVITIES	經營活動所得現金流量
(Loss)/profit before tax	稅前（虧損）╱溢利	(699)	105,414
Adjustments for:	就以下各項作出的調整：
Finance costs	財務費用	618	625
Share of profit of an associate	分佔一家聯營公司溢利	(7,258)	(1,010)
Interest income	利息收入	(5,670)	(11,299)
Fair value gains on financial assets at fair value	按公平值計入損益的
through profit or loss	金融資產公平值收益	(5,112)	(13,500)
Loss on disposal of items of property, plant	出售物業、廠房及
and equipment	設備項目的虧損	-	16
Depreciation of property, plant and equipment	物業、廠房及設備折舊	88,425	60,328
Provision of impairment of trade receivables	貿易應收款項減值撥備	-	47
Write-down of inventories to net realisable value	撇減存貨至可變現淨值	239	1,020
Amortisation of intangible assets	無形資產攤銷	1,958	1,687
Depreciation of right-of-use assets	使用權資產折舊	2,812	1,128
Equity-settled share option expense	以權益結算的購股權開支	4,044	4,040
		79,357	148,496
Increase in inventories	存貨增加	(34,838)	(10,504)
Decrease in trade and notes receivables	貿易應收款項及應收票據減少	29,470	28,979
Decrease/(increase) in prepayments,	預付款項、其他應收款項及
other receivables and other assets	其他資產減少╱（增加）	46,318	(61,697)
(Increase)/decrease in amounts due from	應收關聯方款項（增加）╱減少
related parties		(2,326)	6,434
Increase in restricted and time deposits	已凍結及定期存款增加	(1)	(458)
Increase/(decrease) in trade payables	貿易應付款項增加╱（減少）	6,488	(2,504)
(Decrease)/increase in other payables	其他應付款項及
and accruals	暫估費用（減少）╱增加	(8,807)	66
Increase in government grants	政府補助增加	56	14,629
Increase in amounts due to related parties	應付關聯方款項增加	2,812	6,850
Cash generated from operations	經營活動產生的現金	118,529	130,291
Income tax paid	已付所得稅	(23,321)	(30,773)
Net cash ows from operating activities	經營活動所得現金流量淨額	95,208	99,518

continued/...

續╱...

2020年中期報告 INTERIM REPORT 2020 29

FOR THE SIX MONTHS ENDED 30 JUNE 2020 截至二零二零年六月三十日止六個月

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

中期簡明綜合現金流量表

		FOR THE SIX MONTHS ENDED
		30 JUNE
		截至六月三十日止六個月
			2019
		2020
		二零二零年	二零一九年
		(Unaudited)	(Unaudited)
		（未經審核）	（未經審核）
		(US$'000)	(US$'000)
		（千美元）	（千美元）
CASH FLOWS FROM INVESTING ACTIVITIES	投資活動所得現金流量
Interest received	已收利息	5,835	11,917
Purchases of items of property,	購買物業、廠房及設備項目
plant and equipment		(364,258)	(332,012)
Purchases of items of intangible assets	購買無形資產項目	(14,365)	(1,258)
Proceeds from disposal of items of property,	出售物業、廠房及
plant and equipment	設備項目所得款項	-	2
Decrease in restricted and time deposits	已凍結及定期存款減少	70,000	-
Purchase of financial assets at fair value	購買按公平值計入損益的
through profit or loss	金融資產	(738,163)	(1,518,918)
Proceeds from disposals of financial assets	出售按公平值計入損益的
at fair value through profit or loss	金融資產所得款項	1,173,812	1,535,350
Net cash ows generated from/(used in)	投資活動所得╱（所用）
investing activities	現金流量淨額	132,861	(304,919)
CASH FLOWS FROM FINANCING ACTIVITIES	融資活動所得現金流量
Proceeds from issue of shares	發行股份所得款項	3,834	1,316
Capital contribution from non-controlling interests	非控股權益注資	-	317,000
Dividends paid	已付股息	-	(37,042)
Repayment of bank loans	償還銀行貸款	(2,119)	(2,182)
Increase in restricted and time deposits	已凍結及定期存款增加	-	(13,943)
Interest paid	已付利息	(618)	(190)
Principal portion of lease payments	支付租賃本金部份	(2,665)	(249)
Net cash ows (used in)/generated	融資活動（所用）╱所得
from nancing activities	現金流量淨額	(1,568)	264,710
NET INCREASE IN CASH	現金及現金等價物增加淨額
AND CASH EQUIVALENTS		226,501	59,309
Cash and cash equivalents at beginning of period	期初現金及現金等價物	476,286	777,000
Effect of foreign exchange rate changes, net	外匯匯率變動影響，淨額	(3,830)	(1,631)
CASH AND CASH EQUIVALENTS AT END	期末現金及現金等價物
OF PERIOD		698,957	834,678

30 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

1. Corporate Information	1. 公司資料
Hua Hong Semiconductor Limited (the "Company") is a limited	華虹半導體有限公司（「本公司」）為一家
liability company incorporated in Hong Kong on 21 January	於二零零五年一月二十一日在香港註冊
2005. The registered office of the Company is located at Room	成立的有限公司。本公司的註冊辦事處
2212, Bank of America Tower, 12 Harcourt Road, Central,	為香港中環夏愨道12 號美國銀行中心
Hong Kong.	2212室。
The principal activity of the Company is investment holding.	本公司的主要活動為投資控股。於期
During the period, the Company's subsidiaries (collectively	內，本公司的子公司（統稱為「本集團」）
referred to as the "Group") were principally engaged in the	主要從事半導體產品的生產及貿易。
manufacture and trading of semiconductor products.
	董事認為，本公司的母公司及最終母公
In the opinion of the directors, the parent and the ultimate	司分別為上海聯和投資有限公司（「上海
parent of the Company are Shanghai Alliance Investment Ltd.	聯和」）及上海儀電（集團）有限公司（「儀
("SAIL") and INESA (Group) Co., Ltd. ("INESA"), which are	電集團」），上海聯和及儀電集團均為於
state-owned companies established in the People's Republic	中華人民共和國（「中國」）成立並由國有
of China ("PRC"), supervised by the State-owned Assets	資產監督管理委員會（「國資委」）監管的
Supervision and Administration Commission ("SASAC").	國有公司。
2.1 Basis of Preparation	2.1 編製基準
The interim condensed consolidated financial information for	截至二零二零年六月三十日止六個月的
the six months ended 30 June 2020 has been prepared in	中期簡明綜合財務資料已根據香港會計
accordance with HKAS 34 Interim Financial Reporting. The	準則第34號中期財務報告編製。中期簡
interim condensed consolidated financial information does	明綜合財務資料並不包括年度財務報表
not include all the information and disclosures required in the	規定的所有資料及披露事項，並應與本
annual financial statements and should be read in conjunction	集團截至二零一九年十二月三十一日止
with the Group's annual consolidated financial statements for	年度的年度綜合財務報表一併閱讀。
the year ended 31 December 2019.
The financial information relating to the year ended 31	中期簡明綜合財務狀況表所載有關截至
December 2019 that is included in the interim condensed	二零一九年十二月三十一日止年度的財
consolidated statement of financial position as comparative	務資料（作為比較資料），並不構成本公
information does not constitute the Company's statutory annual	司該年度之法定年度綜合財務報表，惟
consolidated financial statements for that year but is derived	摘錄自該等財務報表。根據香港公司條
from those financial statements. Further information relating to	例第436條披露的有關該等法定財務報
those statutory financial statements required to be disclosed	表的進一步資料載列如下：
in accordance with section 436 of the Hong Kong Companies
Ordinance is as follows:

2020年中期報告 INTERIM REPORT 2020 31

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

2.1 Basis of Preparation (continued)	2.1 編製基準（續）
The Company has delivered the financial statements for the	本公司已按香港公司條例第662(3)條及
year ended 31 December 2019 to the Registrar of Companies	附表6第3部的規定，將截至二零一九年
as required by section 662(3) of, and Part 3 of Schedule 6	十二月三十一日止年度的財務報表送呈
to, the Hong Kong Companies Ordinance. The Company's	公司註冊處處長。本公司的核數師已就
auditors have reported on the financial statements for the	截至二零一九年十二月三十一日止年度
year ended 31 December 2019. The auditor's report was	財務報表提交報告。該核數師報告中並
unqualified; and did not contain a statement under sections	無保留意見；亦未載有按香港公司條例
406(2), 407(2) or 407(3) of the Hong Kong Companies	第406(2)、407(2)或407(3)條所指的陳
Ordinance.	述。
2.2 Changes in Accounting Policies and	2.2 會計政策的變動及披露
Disclosures

The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2019, except for the adoption of the following revised Hong Kong Financial Reporting Standards ("HKFRSs") for the first time for the current period's financial information.

Amendments to HKFRS	3	Definition of a Business
Amendments to HKFRS	9,	Interest Rate Benchmark
HKAS 39 and HKFRS 7	Reform
Amendments to HKAS 1		Definition of Material
and HKAS 8
Amendments to HKFRS 16	Covid-19-Related Rent
		Concessions
		（early adopted）

Several amendments apply for the first time in 2020, but do not have an impact on the interim condensed consolidated financial statements of the Group.

編製中期簡明綜合財務資料所採納的會計政策與編製本集團截至二零一九年十二月三十一日止年度的年度綜合財務報表所採用者一致，惟於本財務資料期間首次採納下列經修訂香港財務報告準則（「香港財務報告準則」）除外。

香港財務報告準則	業務的定義
第3號（修訂本）
香港財務報告準則第9號、利率基準改革
香港會計準則第39號
及香港財務報告準則
第7號（修訂本）
香港會計準則第1號及	重大的定義
香港會計準則第8號
（修訂本）
香港財務報告準則	新冠病毒疫情相關
第16號（修訂本）	租金減免
	（提早採納）

若干修訂本於二零二零年首次應用，惟並無對本集團的中期簡明綜合財務報表產生影響。

32 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

3. Operating Segment Information	3.	經營分部資料
	For management purposes, the Group is organised into one		出於管理需要，本集團僅構組一個業務
	single business unit that includes primarily the manufacture		單元，主要包括製造及銷售半導體產
	and sale of semiconductor products. Management reviews the		品。管理層在作出分配資源的相關決策
	consolidated results when making decisions about allocating		及評估本集團表現時審核綜合業績。因
	resources and assessing the performance of the Group.		此，並無呈列分部分析。
	Accordingly, no segment analysis is presented.
	The principal assets employed by the Group are located in		本集團使用的主要資產位於中國，故並
	the PRC. Therefore, no segment information based on the		無按資產的地理位置於期內呈列分部資
	geographical location of assets is presented for the period.		料。
	Revenues are attributed to geographic areas based on the		地理區域應佔收入乃按客戶所在地劃
	location of customers. Revenues regarding geographical		分。期內按客戶所在地劃分的地區分部
	segments based on the location of customers for the period		有關收入呈列如下：
	are presented as follows:

					For the six months
					ended 30 June
					截至六月三十日止六個月
						2019
					2020
					二零二零年		二零一九年
					(Unaudited)		(Unaudited)
					（未經審核）		（未經審核）
					(US$'000)		(US$'000)
					（千美元）		（千美元）
	China (including Hong Kong)	中國（包括香港）			262,093		243,904
	United States of America	美利堅合眾國			59,121		83,136
	Asia (excluding China and Japan)	亞洲（不包括中國及日本）		57,866		53,059
	Europe	歐洲			35,298		36,706
	Japan	日本			13,826		33,985
					428,204		450,790

2020年中期報告 INTERIM REPORT 2020 33

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

4. Revenue and Other Income and Gains	4.	收入、其他收入及收益
	An analysis of revenue and other income and gains is as		對收入、其他收入及收益的分析如下：
	follows:

					For the six months
					ended 30 June
					截至六月三十日止六個月
					2019
					2020
					二零二零年	二零一九年
					(Unaudited)	(Unaudited)
					（未經審核）	（未經審核）
					(US$'000)	(US$'000)
					（千美元）	（千美元）
	Revenue from contracts with customers	客戶合約收益
	Sale of goods	銷售貨品			428,204	450,790
	Other income	其他收入
	Rental income	租金收入			6,169	6,409
	Interest income	利息收入			5,670	11,299
	Government subsidies	政府補貼			7,060	311
	Others	其他			404	288
					19,303	18,307
	Other gains, net	其他收益淨額
	Fair value gains on financial assets	按公平值計入損益的
	at fair value through profit or loss	金融資產公平值收益		5,112	13,500
	Exchange gains, net	外匯收益淨額			991	-
					6,103	13,500
					25,406	31,807
	Type of goods or service	貨品或服務的分類
	Sales of semiconductor products	銷售半導體產品及
	and total revenue from contracts	客戶合約收益總額
	with customers				428,204	450,790
	Timing of revenue recognition	收益確認時間
	Goods transferred at a point in time and	於指定時間轉移貨品及
	total revenue from contracts with customer	客戶合約收益總額			428,204	450,790
	The disaggregation of the Group's revenue based on the		截至二零二零年六月三十日止六個月，
	geographical region for the six months ended 30 June 2020 is		本集團收入按地區的分類載於附註3。
	included in note 3.

34 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

5.	(Loss)/Prot before Tax	5.	稅前（虧損）╱溢利
		The Group's (loss)/profit before tax is arrived at after charging/		本集團的稅前（虧損）╱溢利乃於扣除╱
		(crediting):			（計入）下列各項後達致：

						For the six months ended
						30 June
						截至六月三十日止六個月
							2019
						2020
						二零二零年		二零一九年
						(Unaudited)		(Unaudited)
						（未經審核）		（未經審核）
						(US$'000)		(US$'000)
						（千美元）		（千美元）
		Cost of inventories sold	已售存貨成本			326,972		308,370
		Write-down of inventories	存貨撇減至可變現淨值
		to net realisable value				239		1,020
		Impairment of trade receivables	貿易應收款項減值			-		47
		Exchange differences, net	外匯差額淨額			(991)		2,102

6.	Income Tax	6.	所得稅
		Hong Kong profits were subject to profits tax at the rate of		於期內的香港溢利須按16.5%（截至二零
		16.5% during the period (six months ended 30 June 2019:		一九年六月三十日止六個月：16.5%）的
		16.5%). No provision for Hong Kong profits tax has been		稅率繳納利得稅。由於本公司及一家在
		made as the Company and a subsidiary incorporated in Hong		香港註冊成立的子公司於期內並無取得
		Kong had no assessable income during the period (six months		應評稅收入，故並無就香港利得稅作出
		ended 30 June 2019: nil).			撥備（截至二零一九年六月三十日止六個
					月：無）。
		The Company's subsidiary incorporated in the Cayman Islands		由於本公司在開曼群島註冊成立的子公
		is not subject to corporate income tax as it does not have a		司在開曼群島並無擁有營業地點（註冊辦
		place of business (other than a registered office) or carry on		事處除外）或經營任何業務，故有關子公
		any business in the Cayman Islands.			司毋須繳納企業所得稅。
		All of the Group's subsidiaries registered in the PRC and have		所有本集團在中國註冊且在中國內地營
		operations in Mainland China are subject to PRC enterprise		運的子公司，應就其根據相關中國所得
		income tax on the taxable income as reported in their PRC		稅法調整的中國法定賬目所呈報應課稅
		statutory accounts adjusted in accordance with relevant PRC		收入按25%的法定稅率繳納中國企業所
		income tax laws based on a statutory rate of 25%.		得稅。
		Pursuant to relevant laws and regulations in the PRC and with		根據中國相關法律及法規及獲稅務主管
		approval from the tax authorities in charge, one of the Group's		機關批准，本集團一家子公司上海華虹
		subsidiaries, Shanghai Huahong Grace Semiconductor		宏力半導體製造有限公司（「華虹宏力」）
		Manufacturing Corporation ("HHGrace"), is qualified as a high		符合資格成為高新技術企業，故有權於
		and new technology enterprise and thus was entitled to a		二零一八年至二零二零年期間按15%的
		preferential tax rate of 15% from 2018 to 2020.		優惠稅率繳稅。

2020年中期報告 INTERIM REPORT 2020 35

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

6. Income Tax (continued)		6. 所得稅（續）
	Pursuant to the relevant laws and regulations in the PRC and	根據中國相關法律及法規及獲稅務主管
	with approval from the tax authorities in charge, one of the	機關批准，本集團一家子公司華虹半導
	Group's subsidiaries, Huahong Semiconductor (Wuxi) Co.,	體（無錫）有限公司（「華虹無錫」）有權自
	Ltd. ("HH-Wuxi"), is entitled to an exemption from CIT for five	獲得應課稅溢利第一年起五年獲豁免繳
	years, commencing from the first year that HH-Wuxi generates	納企業所得稅，及隨後五年減免50%。
	taxable profit, and a deduction of 50% on the CIT rate for the
	following five years.
	The major components of income tax credit/(expense) of the	本集團所得稅抵免╱（開支）的主要組成
	Group are as follows:		部份如下：

				For the six months ended
				30 June
				截至六月三十日止六個月
				2019
				2020
				二零二零年	二零一九年
				(Unaudited)	(Unaudited)
				（未經審核）	（未經審核）
				(US$'000)	(US$'000)
				（千美元）	（千美元）
	Current income tax expense - PRC	當期所得稅開支－中國		(9,841)	(14,936)
	Current income tax expense	當期所得稅開支－其他地區
	- elsewhere			(17)	(18)
	Withholding tax expense on	宣派股息預扣稅開支
	dividend declared			-	(4,656)
	Deferred tax credit	遞延稅項抵免		14,563	10,731
	Total income tax credit/(expense)	所得稅抵免╱（開支）總額		4,705	(8,879)
	During the period, the directors of a subsidiary established in	於期內，於中國內地成立的一間子公司
	Mainland China approved that any undistributed profits of the	董事批准不會就該子公司於二零一九
	subsidiary generated in 2019 will not be paid as dividends to	年產生之任何未分配溢利向本公司支
	the Company. Accordingly, the Group reversed withholding	付股息。因此，本集團就於中國內地成
	taxes on dividends distributable by the subsidiary established	立之子公司的可分派股息撥回預扣稅
	in Mainland China of US$15,832,000 (six months ended 30	15,832,000美元（截至二零一九年六月
	June 2019: US$12,443,000).		三十日止六個月：12,443,000美元）。

36 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

7. Earnings Per Share Attributable to Ordinary	7.	母公司普通股權持有人應佔每
	Equity Holders of the Parent			股盈利
	The calculation of the basic earnings per share amounts is		每股基本盈利乃基於母公司普通股權
	based on the profit for the period attributable to ordinary equity		持有人應佔期內溢利及於期內已發行
	holders of the parent and the weighted average number of		1,291,026,256股（截至二零一九年六月
	ordinary shares of 1,291,026,256 in issue during the period (six		三十日止六個月：1,284,846,838股）普
	months ended 30 June 2019: 1,284,846,838).		通股的加權平均數計算。
	The calculation of the diluted earnings per share amount		每股已攤薄盈利金額乃根據母公司普通
	is based on the profit for the period attributable to ordinary		股權持有人應佔期內溢利計算。計算時
	equity holders of the parent. The weighted average number		採用之普通股加權平均數為計算每股基
	of ordinary shares used in the calculation is the number of		本盈利時採用之期內已發行普通股數目
	ordinary shares in issue during the period, as used in the basic		加上假設所有潛在攤薄普通股被視為行
	earnings per share calculation, and the weighted average		使或兌換為普通股時以零代價發行之普
	number of ordinary shares assumed to have been issued at		通股加權平均數。
	no consideration on the deemed exercise or conversion of all
	dilutive potential ordinary shares into ordinary shares.
	The calculations of basic and diluted earnings per share are		每股基本及攤薄盈利的計算乃基於：
	based on:

					For the six months ended
					30 June
					截至六月三十日止六個月
						2019
					2020
					二零二零年		二零一九年
					(Unaudited)		(Unaudited)
					（未經審核）		（未經審核）
					(US$'000)		(US$'000)
					（千美元）		（千美元）
	Earnings	盈利
	Profit attributable to ordinary equity	用於計算每股基本盈利的
	holders of the parent,	母公司普通股權持有人應佔溢利
	used in the basic earnings
	per share calculation				38,140		90,826

2020年中期報告 INTERIM REPORT 2020 37

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

			30 June 2020
中期簡明綜合財務資料附註二零二零年六月三十日
7. Earnings Per Share Attributable to Ordinary	7.	母公司普通股權持有人應佔每
		Equity Holders of the Parent (continued)		股盈利（續）

					Number of shares
					股份數目

					For the six months ended
					30 June
					截至六月三十日止六個月
						2019
					2020
					二零二零年	二零一九年
					('000)	('000)
					（千股）	（千股）
		Shares	股份
		Weighted average number of	用於計算每股基本盈利的
		ordinary shares in issue during the	期內已發行普通股加權平均數
		period used in the basic earnings
		per share calculation			1,291,026	1,284,847
		Effect of dilution-weighted average	普通股攤薄加權平均數的影響：
		number of ordinary shares:
		Share options	購股權		10,425	14,014
					1,301,451	1,298,861

8. Dividends		8.	股息

					For the six months ended
					30 June
					截至六月三十日止六個月
					2019
					2020
					二零二零年	二零一九年
					(Unaudited)	(Unaudited)
					（未經審核）	（未經審核）
					(US$'000)	(US$'000)
					（千美元）	（千美元）
		Final declared - Nil (2019: HK$31	最終宣派－每股普通股零港仙
		cents) per ordinary share	（二零一九年：31港仙）		-	50,772

The directors did not declare any final dividend for the six months ended 30 June 2020 (six months ended 30 June 2019: US$50,772,000).

董事並無就截至二零二零年六月三十日止六個月宣派任何末期股息（截至二零一九年六月三十日止六個月：50,772,000 美元）。

38 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

9. Property, Plant and Equipment	9. 物業、廠房及設備
	During the six months ended on 30 June 2020, the Group	於截至二零二零年六月三十日止六個
	acquired items of property, plant and equipment with a	月，本集團購置物業、廠房及設備項目
	cost of US$351,371,000 (six months ended 30 June 2019:	的成本為351,371,000美元（截至二零一
	US$332,213,000). Depreciation for items of property, plant and	九年六月三十日止六個月：332,213,000
	equipment was US$88,425,000 during the period (six months	美元）。期內物業、廠房及設備項目的
	ended 30 June 2019: US$60,328,000).		折舊為88,425,000美元（截至二零一九
			年六月三十日止六個月：60,328,000美
			元）。
	No significant property, plant and equipment were disposed	於截至二零二零年及二零一九年六月三
	by the Group during the six months ended 30 June 2020 and	十日止六個月，本集團均無物業、廠房
	2019, respectively.		及設備的重大出售。
10. Trade and Notes Receivables	10. 貿易應收款項及應收票據

				30 June	31 December
				2020	2019
				二零二零年	二零一九年
				六月三十日	十二月三十一日
				(Unaudited)	(Audited)
				（未經審核）	（經審核）
				(US$'000)	(US$'000)
				（千美元）	（千美元）
	Trade receivables	貿易應收款項		112,953	121,884
	Notes receivable	應收票據		24,074	44,613
				137,027	166,497
	Impairment of trade receivables	貿易應收款項減值		(1,509)	(1,529)
				135,518	164,968

2020年中期報告 INTERIM REPORT 2020 39

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

10. Trade and Notes Receivables (Continued)	10. 貿易應收款項及應收票據（續）
		An ageing analysis of the trade receivables, based on the	按發票日期計，貿易應收款項（扣除撥
		invoice date and net of provisions, is as follows:	備）的賬齡分析如下：

				30 June	31 December
				2020	2019
				二零二零年	二零一九年
				六月三十日	十二月三十一日
				(Unaudited)	(Audited)
				（未經審核）	（經審核）
				(US$'000)	(US$'000)
				（千美元）	（千美元）
		Within 3 months	三個月以內	100,348	120,355
		Over 3 and within 6 months	三個月以上及六個月以內	8,698	-
		Over 6 months	六個月以上	2,398	-
				111,444	120,355

11. Trade Payables		11. 貿易應付款項
		An ageing analysis of the trade payables of the Group as at	於報告期末按發票日期計，本集團貿易
		the end of the reporting period, based on the invoice date, is	應付款項的賬齡分析如下：
		as follows:

				30 June	31 December
				2020	2019
				二零二零年	二零一九年
				六月三十日	十二月三十一日
				(Unaudited)	(Audited)
				（未經審核）	（經審核）
				(US$'000)	(US$'000)
				（千美元）	（千美元）
		Within 1 month	一個月以內	59,249	54,737
		Over 1 and within 3 months	一個月以上及三個月以內	17,710	18,276
		Over 3 and within 6 months	三個月以上及六個月以內	4,063	2,901
		Over 6 and within 12 months	六個月以上及十二個月以內	2,428	1,402
		Over 12 months	十二個月以上	9,157	8,803
				92,607	86,119

40 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

12. Share Capital	12. 股本

			Number of
			shares	Amount
			股份數目	金額
			('000)	(US$'000)
			（千股）	（千美元）

	1 January 2020	二零二零年一月一日	1,288,820	1,966,095
	Issue of shares with exercise	發行可行使購股權的股份（附註(a)）
	of share options (note (a))		4,415	5,653

	30 June 2020 (unaudited)	二零二零年六月三十日（未經審核）	1,293,235	1,971,748

	1 January 2019	二零一九年一月一日	1,283,952	1,960,159
	Issue of shares with exercise	發行可行使購股權的股份（附註(a)）
	of share options (note (a))		1,447	1,583

	30 June 2019 (unaudited)	二零一九年六月三十日（未經審核）	1,285,399	1,961,742

Notes:

During the period, the subscription rights attached to 4,415,000 (six months ended 30 June 2019: 1,447,000) share options were exercised at the subscription price of HK$6.912 per share (six months ended 30 June 2019: HK$6.912 per share), resulting in the issue of 4,415,000 (six months ended 30 June 2019: 1,447,000) shares for a total cash consideration of US$3,932,000 (six months ended 30 June 2019: US$1,275,000). An amount of US$1,721,000 (six months ended 30 June 2019: US$308,000) was transferred from the share option reserve to share capital upon exercise of the share options.

附註：

於期內，4,415,000 份（截至二零一九年六月三十日止六個月：1,447,000份）購股權附帶之認購權已按認購價每股 6.912港元（截至二零一九年六月三十日止六個月：每股6.912港元）行使，引致發行4,415,000股（截至二零一九年六月三十日止六個月：1,447,000股）股份，總現金代價為3,932,000美元（截至二零一九年六月三十日止六個月：1,275,000 美元）。購股權獲行使後，1,721,000美元（截至二零一九年六月三十日止六個月：308,000美元）款項已由購股權儲備轉撥至股本。

13. Commitments		13. 承擔
	The Group had the following capital commitments at the end	本集團於報告期末擁有以下資本承擔：
	of the reporting period:

			30 June	31 December
			2020	2019
			二零二零年	二零一九年
			六月三十日	十二月三十一日
			(Unaudited)	(Audited)
			（未經審核）	（經審核）
			(US$'000)	(US$'000)
			（千美元）	（千美元）
	Contracted, but not provided for:	已訂約，但未撥備：
	Property, plant and equipment	物業、廠房及設備	661,824	383,653

2020年中期報告 INTERIM REPORT 2020 41

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

14. Related Party Transactions	14. 關聯方交易
(a) Name and relationship	(a) 名稱及關係

	Name of related party	Relationship with the Group
	關聯方名稱	與本集團的關係

	Huahong Group and its subsidiaries
	華虹集團及其子公司
	- Shanghai Huahong (Group) Co., Ltd.	Holding company of Hua Hong
	("Huahong Group")	International Inc.,
	－上海華虹（集團）有限公司（「華虹集團」）	華虹國際有限公司的控股公司
	- Hua Hong International Inc., ("Huahong International")	Shareholder of the Company
	－華虹國際有限公司（「華虹國際」）	本公司股東
	- Shanghai Huahong Zealcore Electronics Co., Ltd.	Subsidiary of Huahong Group
	("Huahong Zealcore")
	－上海華虹摯芯科技有限公司（「華虹摯芯」）	華虹集團子公司
	- Shanghai Hongri International Electronics Co., Ltd.	Subsidiary of Huahong Group
	("Hongri")
	－上海虹日國際電子有限公司（「虹日」）	華虹集團子公司
	- Shanghai Integrated Circuit Research and	Subsidiary of Huahong Group
	Development Center ("ICRD")
	－上海集成電路研發中心（「集成電路研發」）	華虹集團子公司
	- Shanghai Hua Hong Jitong Smart System Co., Ltd.	Subsidiary of Huahong Group
	("Jitong")
	－上海華虹計通智能系統股份有限公司（「計通」）	華虹集團子公司
	NEC Corporation ("NEC")	Shareholder of the Company
	NEC Corporation（「NEC」）	本公司股東
	- NEC Management Partner, Ltd. ("NEC Management")	Subsidiary of NEC
	- NEC Management Partner, Ltd（.「NEC Management」）	NEC子公司

42 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

14. Related Party Transactions (continued)	14. 關聯方交易（續）
(a) Name and relationship (continued)	(a) 名稱及關係（續）

	Name of related party	Relationship with the Group
	關聯方名稱	與本集團的關係

	SAIL and its subsidiaries
	上海聯和及其子公司
	- Sino-Alliance International Ltd. ("SAIL International")	Shareholder of the Company
	- Sino-Alliance International Ltd（.「SAIL International」）	本公司股東
	- Shanghai Huali Microelectronics Co., Ltd.	Subsidiary of SAIL
	("Shanghai Huali")
	－上海華力微電子有限公司（「上海華力」）	上海聯和子公司
	- QST Corporation ("QST")	Subsidiary of SAIL
	－上海矽睿科技有限公司（「矽睿科技」）	上海聯和子公司
	INESA and its subsidiaries
	儀電集團及其子公司
	- Shanghai INESA Intelligent Electronics Co., Ltd.	Subsidiary of INESA
	("Shanghai INESA")
	－上海儀電智能電子有限公司（「上海儀電」）	儀電集團子公司
	- Shanghai Nanyang Software System	Subsidiary of INESA
	Integration Co., Ltd. ("Nanyang Software")
	－上海南洋軟件系統集成有限公司（「南洋軟件」）	儀電集團子公司
	- Shanghai Nanyang Wanbang Software	Subsidiary of INESA
	Technology Co., Ltd. ("Wanbang")
	－上海南洋萬邦軟件技術有限公司（「萬邦」）	儀電集團子公司
	Shanghai Huahong Technology	Associate of the Group
	Development Co., Ltd.
	("Huahong Technology Development")
	上海華虹科技發展有限公司（「華虹科技發展」）	本集團聯營公司
	- Huahong Real Estate Co., Ltd. ("Huahong Real Estate")	Subsidiary of Huahong Technology
		Development
	－上海華虹置業有限公司（「華虹置業」）	華虹科技發展子公司
	- Shanghai Huajin Property	Subsidiary of Huahong Technology
	Management Co., Ltd. ("Huajin")	Development
	－上海華錦物業管理有限公司（「華錦」）	華虹科技發展子公司

2020年中期報告 INTERIM REPORT 2020 43

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

14. Related Party Transactions (continued)

14. 關聯方交易（續）

In addition to the transactions disclosed elsewhere in this financial information, the Group had the following transactions with related parties during the period:

除該財務資料其他部份所披露交易外，本集團於期內已與關聯方進行以下交易：

		For the six months
		ended 30 June
		截至六月三十日止六個月
		2020	2019
		二零二零年	二零一九年
		(Unaudited)	(Unaudited)
		（未經審核）	（未經審核）
		(US$'000)	(US$'000)
		（千美元）	（千美元）

Sales of goods to related parties (note (i))	向關聯方出售貨品（附註(i)）
ICRD	集成電路研發	5,219	1,572
QST	矽睿科技	2,141	747
Huahong Zealcore	華虹摯芯	1,486	1,750

Purchases of goods from related	自關聯方購買貨品（附註(ii)）
parties (note (ii))
Hongri	虹日	5,443	2,482
Shanghai Huali	上海華力	1,442	1
NEC Management	NEC Management	396	442
Huahong Zealcore	華虹摯芯	244	275
Jitong	計通	181	5
ICRD	集成電路研發	-	268

Purchases of intangible assets from	自關聯方購買無形資產
related parties (note (ii))	（附註(ii)）
Shanghai Huali	上海華力	17,100	-
ICRD	集成電路研發	-	3,150

Rental income from a related party	來自關聯方的租金收入
(note (iii))	（附註(iii)）
Shanghai Huali	上海華力	6,368	6,697

Service fee charged by related parties	關聯方收取的服務費
(note (iv))	（附註(iv)）
Shanghai INESA	上海儀電	1,702	744
Huajin	華錦	107	111
Huahong Real Estate	華虹置業	50	48
Nanyang Software	南洋軟件	19	21
Wanbang	萬邦	1	-

Interest expense charged by a related	關聯方（作為承租人）
party under lease arrangement	根據租賃安排收取的
as a lessee (note (iii))	利息開支（附註(iii)）
Huahong Real Estate	華虹置業	387	416

Expense paid on behalf of a related	代關聯方支付的開支
party (note (v))	（附註(v)）
Shanghai Huali	上海華力	12,578	14,697

44 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

14. Related Party Transactions (continued)	14. 關聯方交易（續）
(b)	(continued)		(b) （續）
	Notes:			附註：
	(i)	The sales of goods to the related parties were made		(i)	向關聯方出售的貨品乃根據與關
		according to the prices and terms agreed between the			聯方協定的價格及條款作出。
		related parties.
	(ii)	The purchases of goods and intangible assets from related		(ii)	自關聯方購買的貨品及無形資產
		parties were made according to the prices and terms			乃根據關聯方提供的價格及條款
		offered by the related parties.				作出。
	(iii)	The rental income received from a related party was based		(iii)	來自關聯方的租金收入乃根據與
		on the prices and terms agreed between the related			關聯方協定的價格及條款收取。
		parties.
	(iv)	The service fees and interest expense charged by related		(iv)	關聯方收取的服務費及利息開支
		parties were based on the prices and terms agreed			乃根據與關聯方協定的價格及條
		between the related parties.				款支付。
	(v)	The expense paid on behalf of the related party is		(v)	代關聯方支付的開支為不計息，
		interest-free and repayable on demand.			及須按要求償還。
(c)	Compensation of key management personnel of the	(c) 本集團主要管理人員的酬金
	Group

						For the six months
						ended 30 June
						截至六月三十日止六個月
								2019
						2020
						二零二零年		二零一九年
						(Unaudited)		(Unaudited)
						（未經審核）		（未經審核）
						(US$'000)		(US$'000)
						（千美元）		（千美元）
	Short term employee benefits	短期僱員福利			1,023		1,234
	Pension scheme contributions	退休金計劃供款			26		39
	Equity-settled share option expense 以權益結算的購股權開支			539		557
	Total compensation paid to key	支付予主要管理人員的酬金總額
		management personnel				1,588		1,830

2020年中期報告 INTERIM REPORT 2020 45

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

15. Fair Value and Fair Value Hierarchy of	15. 金融工具的公平值及公平值層
	Financial Instruments		級
	The carrying amounts and fair values of the Group's financial	本集團金融工具（不包括賬面值與公平值
	instrument, other than those with carrying amounts that	大致相若的金融工具）的賬面值及公平值
	reasonably approximate to fair values, are as follows:	載列如下：

			Carrying amounts	Fair values
			賬面值	公平值
			30 June	31 December	30 June	31 December
			2020	2019	2020	2019
			二零二零年	二零一九年	二零二零年	二零一九年
			六月三十日	十二月三十一日	六月三十日	十二月三十一日
			(US$'000)	(US$'000)	(US$'000)	(US$'000)
			（千美元）	（千美元）	（千美元）	（千美元）
			(Unaudited)	(Audited)	(Unaudited)	(Audited)
			（未經審核）	（經審核）	（未經審核）	（經審核）

	Financial assets	金融資產
	Equity investments	指定為按公平值計入
	designated at fair	其他全面收益的
	value through other	股本投資
	comprehensive
	income		204,658	207,689	204,658	207,689
	Financial assets at	按公平值計入損益的
	fair value through	金融資產
	profit or loss		84,759	519,779	84,759	519,779

			289,417	727,468	289,417	727,468

	Financial liability	金融負債
	Interest-bearing bank	計息銀行借款
	borrowings		23,307	25,802	20,662	23,079
	Lease liabilities	租賃負債	20,646	18,616	20,646	18,616

			43,953	44,418	41,308	41,695

	The Group's finance department headed by the finance	本集團旗下以財務經理為首的財務部負
manager is responsible for determining the policies and	責釐定金融工具公平值計量的政策及程
procedures for the fair value measurement of financial	序。財務部直接向財務總監報告。於各
instruments. The finance department reports directly to the	報告日期，財務部分析金融工具的價
chief financial officer. At each reporting date, the finance	值變動並釐定估值中適用的主要輸入數
department analyses the movements in the values of financial	據。估值由財務總監審核及批准。
instruments and determines the major inputs applied in the
valuation. The valuation is reviewed and approved by the chief
financial officer.
The fair values of the financial assets and liabilities are	金融資產及負債的公平值是按當前與自
included at the amount at which the instrument could be	願方交易（而非被迫或清盤出售）中可交
exchanged in a current transaction between willing parties,	換有關工具的金額列賬。估計該等按公
other than in a forced or liquidation sale. The following	平值計量的金融資產及負債的公平值乃
methods and assumptions were used to estimate the fair	使用以下的方法及假設：
values of those financial assets and liabilities measured at fair
value:

46 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

15. Fair Value and Fair Value Hierarchy of	15. 金融工具的公平值及公平值層
Financial Instruments (continued)	級（續）
The fair values of equity investments designated at fair value	指定為按公平值計入其他全面收益的股
through other comprehensive income have been estimated	本投資之公平值採用市場法估算。倘最
using the market approach. If there is a recent deal regarding	近成交交易有關未上市投資，公平值乃
the unlisted investments, the fair values are estimated based	基於交易價估算。倘並無該等交易可供
on the dealing price. If there is no such deal to be referenced,	參考，董事將根據行業、規模、影響力
the directors will determine comparable public companies	及策略釐定可比較上市公司（同行），且
(peers) based on industry, size, leverage and strategy, and	就已確定的各可資比較公司計算適當的
calculates an appropriate price multiple, such as price to	價格倍數，如市賬率（「市賬率」）倍數。
book value ("P/B") multiple, for each comparable company	該倍數乃按可資比較公司之企業價值除
identified. The multiple is calculated by dividing the enterprise	以淨資產所得。交易倍數隨後根據公司
value of the comparable company by net assets. The trading	特定情況及狀況就非流動性等因素予以
multiple is then discounted for considerations such as	貼現。貼現倍數適用於非上市股本投資
illiquidity based on company-specific facts and circumstances.	的相應淨資產以計量公平值。董事認
The discounted multiple is applied to the corresponding net	為，計入綜合財務狀況表的估值技術所
assets of the unlisted equity investments to measure the fair	產生的估計公平值以及計入其他全面收
value. The directors believe that the estimated fair values	益的公平值相關變動屬合理，而於報告
resulting from the valuation technique, which are recorded	期末的價值最為恰當。
in the consolidated statement of financial position, and the
related changes in fair values, which are recorded in other
comprehensive income, are reasonable, and that they were
the most appropriate values at the end of the reporting period.
Financial assets at fair value through profit or loss represent	按公平值計入損益的金融資產指由中國
wealth management products issued by banks in Mainland	內地銀行發行的理財產品。本集團根據
China. The Group has estimated their fair value by using a	具類似年期及風險的工具的市場利率，
discounted cash flow valuation model based on the market	採用貼現現金流量估值模型估算其公平
interest rates of instruments with similar terms and risks.	值。
The fair values of interest-bearing bank borrowings and lease	計息銀行借款及租賃負債的公平值乃透
liabilities have been calculated by discounting the expected	過使用具有類似條款、信貸風險及剩餘
future cash flows using rates currently available for instruments	到期時間的工具按目前適用之比率貼現
with similar terms, credit risk and remaining maturities. The	預期未來現金流量計算。本集團本身於
Group's own non-performance risk for interest-bearing bank	二零二零年六月三十日及二零一九年十
borrowings as of 30 June 2020 and 31 December 2019 was	二月三十一日的計息銀行借款的不履約
assessed to be insignificant.	風險被評定為並不重大。

2020年中期報告 INTERIM REPORT 2020 47

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

15. Fair Value and Fair Value Hierarchy of	15. 金融工具的公平值及公平值層
	Financial Instruments (continued)	級（續）
	Fair value hierarchy			公平值層級
	The following tables illustrate the fair value measurement	下表顯示本集團金融工具的公平值計量
	hierarchy of the Group's financial instruments:	層級：
Financial assets measured at fair value	按公平值計量的金融資產
	30 June 2020			二零二零年六月三十日

			Fair value measurement categorised into
			分類為以下層級之公平值計量
			Level 1	Level 2	Level 3		Total
			第1級	第2級	第3級	總計
			US$'000	US$'000	US$'000	US$'000
			千美元	千美元	千美元	千美元
			(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
			（未經審核）（未經審核）（未經審核）（未經審核）
	Equity investments	指定為按公平值計入
	designated at fair	其他全面收益的
	value through other	股本投資
	comprehensive
	income		-	-	204,658			204,658
	Financial assets at	按公平值計入損益的
	fair value through	金融資產
	profit or loss		-	-	84,759			84,759
			-	-	289,417			289,417
	31 December 2019			二零一九年十二月三十一日

			Fair value measurement categorised into
			分類為以下層級之公平值計量

			Level 1	Level 2	Level 3	Total
			第1級	第2級	第3級	總計
			(US$'000)	(US$'000) (US$'000)	(US$'000)
			（千美元）	（千美元）	（千美元）	（千美元）

	Equity investments	指定為按公平值計入
	designated at fair	其他全面收益的
	value through other	股本投資
	comprehensive
	income		-	-	207,689			207,689
	Financial assets at	按公平值計入損益的
	fair value through	金融資產
	profit or loss		-	-	519,779			519,779

			-	-	727,468			727,468

48 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

15. Fair Value and Fair Value Hierarchy of	15. 金融工具的公平值及公平值層
	Financial Instruments (continued)	級（續）
	Fair value hierarchy (continued)		公平值層級（續）
	Financial assets measured at fair value (continued)	按公平值計量的金融資產（續）
	During the period, there were no transfers of fair value	於期內，以上金融資產的第1級與第2級
	measurements between Level 1 and Level 2 and no transfers	間並無公平值計量轉移，且第3級並無轉
	into or out of Level 3 for the financial assets above (six months	入或轉出（截至二零一九年六月三十日止
	ended 30 June 2019: nil).			六個月：無）。
	The recurring fair value measurement for the Group's	本集團指定為按公平值計入其他全面收
	equity investments designated at fair value through other	益的股本投資及按公平值計入損益的金
	comprehensive income and financial assets at fair value	融資產的週期公平值計量乃使用二零二
	through profit or loss, was made using significant unobservable	零年六月三十日的重大不可觀察輸入數
	inputs (Level 3) as at 30 June 2020. Below is a summary of the	據（第3級）作出。下表為估值所用估值
	valuation techniques used and the key inputs to the valuation:	技術及主要輸入數據概要：

			Signicant
		Valuation	unobservable		Sensitivity of fair value
		technique	input	Range	to the input
			重大不可觀察		公平值對輸入數據之
		估值技術	輸入數據	範圍	敏感度

	Equity investments	Valuation	Average P/B	2020:	5% (2019: 5%) increase/
	designated at fair	multiples	multiple of peers	0.9x-5.0x	decrease would result in
	value through other			2019:	increase/decrease in fair
	comprehensive income			0.2x-5.5x	value by 5% (2019: 5%)
	指定為按公平值計入其他	估值倍數	同業平均市賬率	二零二零年：	5%（二零一九年：5%）的增
	全面收益的股本投資			0.9x-5.0x	加╱減少將導致公平值
				二零一九年：	增加╱減少5%（二零一九
				0.2x-5.5x	年：5%）
			Discount for	2020:	5% (2019: 5%) increase/
			illiquidity	20%-30%	decrease would result in
				2019:	decrease/increase in fair
				20%-30%	value by 5% (2019: 5%)
			缺乏流通性的	二零二零年：	5%（二零一九年：5%）的增
			折讓價	20%-30%	加╱減少將導致公平值
				二零一九年：	減少╱增加5%（二零一九
				20%-30%	年：5%）
	Financial assets at	Discounted	Discount rate per	2020:	5% (2019: 5%) increase/
	fair value through	cash flow	annum	3.00%	decrease would result in
	profit or loss	method		2019:	decrease/increase in fair
				3.55%-3.80%	value by 0.01% (2019:
					0.02%)
	按公平值計入損益的	貼現現金流量法年貼現率	二零二零年：	5%（二零一九年：5%）的增
	金融資產			3.00%	加╱減少將導致公平值減
				二零一九年：	少╱增加0.01%（二零一九
				3.55%-3.80%	年：0.02%）

2020年中期報告 INTERIM REPORT 2020 49

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

15. Fair Value and Fair Value Hierarchy of	15. 金融工具的公平值及公平值層
	Financial Instruments (continued)		級（續）
	Fair value hierarchy (continued)			公平值層級（續）
	The movements in financial assets categorised into Level 3		期內分類為第3級的金融資產變動如下：
	during the period are as follows:

				Equity
				investments
				designated at	Financial
				fair value	assets at
				through other	fair value
				comprehensive	through
				income	prot or loss
				指定為按公平值	按公平值
				計入其他全面收益	計入損益的
				的股本投資	金融資產
				(US$'000)	(US$'000)
				（千美元）	（千美元）
	1 January 2020	二零二零年一月一日		207,689	519,779
	Purchases	購買		-	738,163
	Disposals	處置		-	(1,173,812)
	Total gains recognised in the	於損益表確認計入其他收入及
	statement of profit or loss	收益的收益總額
	included in other income
	and gains			-	5,112
	Exchange realignment	匯兌調整		(3,031)	(4,483)
	As at 30 June 2020 (unaudited)	於二零二零年六月三十日
		（未經審核）		204,658	84,759
	At 1 January 2019	於二零一九年一月一日	205,973	667,033
	Purchases	購買		-	1,518,918
	Disposals	處置		-	(1,535,350)
	Total gains recognised in the	於損益表確認計入其他收入及
	statement of profit or loss	收益的收益總額
	included in other income
	and gains			-	13,500
	Exchange realignment	匯兌調整	(345)	(5,795)

	As at 30 June 2019 (unaudited)	於二零一九年六月三十日
		（未經審核）	205,628	658,306

50 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

30 June 2020 二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

16. Share Option Scheme	16. 購股權計劃
	The Company operates a share option scheme (the "Scheme")	本公司設有一項購股權計劃（「該計
	for the purpose of providing incentives and rewards to eligible	劃」），旨在為對本集團業務成功作出貢
	participants who contribute to the success of the Group's	獻的合資格參與者提供激勵及獎勵。
	operations.
	The Scheme includes two batches, which were effective on 4	該計劃分為兩批，分別於二零一五年九
	September 2015 (the "2015 Options") and on 24 December	月四日（「二零一五年購股權」）及二零一
	2018 (the "2018 Options"), respectively.		八年十二月二十四日（「二零一八年購股
			權」）生效。
	On 29 March 2019, 500,000 options were granted to the Chief	於二零一九年三月二十九日，500,000
	Executive ("2018 Tranche A"). On 23 December 2019, 300,000	份購股權已授予最高行政人員（「二零一
	options were granted to Directors and key management	八年A部分」）。於二零一九年十二月二
	personnel ("2018 Tranche B") and 2,182,000 options were	十三日，300,000份購股權已授予董事
	granted to other employees ("2018 Tranche C").	及主要管理人員（「二零一八年B部分」）
			及2,182,000份購股權已授予其他僱員
			（「二零一八年C部分」）。
	2015 Options		二零一五年購股權
	The following share options were outstanding under the 2015	以下購股權於期內尚未根據二零一五年
	Options during the period:		購股權行使：

			Number of
			options
			'000
			購股權數目
			千份

	At 1 January 2020	於二零二零年一月一日	13,947
	Exercised during the period	期內行使	(4,415)

	At 30 June 2020	於二零二零年六月三十日	9,532

	2018 Options		二零一八年購股權
	The following share options were outstanding under the 2018	以下購股權於期內尚未根據二零一八年
	Options during the period:		購股權行使：

			Number of
			options
			'000
			購股權數目
			千份

	At 1 January 2020	於二零二零年一月一日	35,811
	Forfeited during the period	期內沒收	(320)

	At 30 June 2020	於二零二零年六月三十日	35,491

2020年中期報告 INTERIM REPORT 2020 51

30 June 2020

二零二零年六月三十日

NOTES TO THE INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

中期簡明綜合財務資料附註

17. Event after the Reporting Period	17. 報告期後事項
There is no material subsequent event undertaken by the	本集團於二零二零年六月三十日後概無
Group after 30 June 2020.	發生任何重大期後事項。

18. Approval of the Interim Condensed Consolidated Financial Information

The interim condensed consolidated financial information was approved and authorised for issue by the Board of Directors on 11 August 2020.

18. 批准中期簡明綜合財務資料

中期簡明綜合財務資料已於二零二零年八月十一日獲董事會批准及授權刊發。

52 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

	OTHER DISCLOSURES
	30 June 2020	其他披露資料

	二零二零年六月三十日
SHARE OPTION SCHEME	購股權計劃
The Company adopted a share option scheme which	本公司採納一項購股權計劃，由二零一五年九月四日起生
became effective on 4 September 2015 and, unless	效，除非被註銷或修訂，否則購股權計劃將由該日期起七
cancelled or otherwise amended, will remain in	年內有效。於二零二零年六月三十日，本公司於購股權計
force for 7 years from that date. As of 30 June 2020,	劃項下共有45,022,996份未行使購股權，相當於該日期本
the Company had options for 45,022,996 shares	公司已發行股份約3.48%。下表載列截至二零二零年六月
outstanding under the share option scheme, which	三十日止六個月期間根據購股權計劃授予董事及其他承授
represented approximately 3.48% of the Company's	人的尚未行使的購股權的詳情及變動情況：
issued shares as of that date. The table below sets out
details of outstanding options granted to Directors and

other grantees under the share option scheme and transactions during the 6 months ended 30 June 2020:

2020年中期報告 Interim Report 2020 53

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

Number of share options

購股權數目

																			Weighted
																			average
																			closing
																			price of the
																			options
																			immediately
																			before the
										Cancelled									dates on
						Cancelled	Cancelled	Cancelled	Cancelled	Exercised	Cancelled	Lapsed			Vesting		Exercise	which the
Name or						during	during	during	during	during	Outstanding	Outstanding	period		price of	options
category of	Granted on Granted on Granted on Granted on	the year	the year	the year	the year	the year	during	during	during	on	on	of share	Exercise period	share	were
participants	04.09.2015	24.12.2018	29.03.2019	23.12.2019	2015	2016	2017	2018	2019	the period	the period	the period	01.01.2020	30.06.2020	options	of share options	options	exercised
			於	於	於														緊接期權
		於	二零一八年	二零一九年	二零一九年									於	於				行使日期
		二零一五年	十二月	三月	十二月	於	於	於	於	於				二零二零年	二零二零年				之前的
參與者之		九月四日	二十四日	二十九日	二十三日	二零一五年	二零一六年	二零一七年	二零一八年	二零一九年				一月一日	六月三十日	購股權之		購股權之	加權平均
姓名或類別		授出	授出	授出	授出	註銷	註銷	註銷	註銷	註銷	期內行使	期內註銷	期內失效	尚未行使	尚未行使	歸屬期間	購股權之行使期	行使價	收市價格

Directors
董事
Mr. Takayuki	119,000	-	-	-	-	-	-	-	-	-	-	-	119,,000	119,000	(1)	04.09.2017-	HK$6.912	-
Morita																	03.09.2022	6.912	-
森田隆之先生																	二零一七年
																	九月四日至	港元
																	二零二二年
																	九月三日
		-	80,000	-	-	-	-	-	-	-	-	-	-	80,000	80,000	(2)	24.12.2020-	HK$15.056	-
																	23.12.2025	15.056	-
																	二零二零年
																	十二月二十四日	港元
																	至二零二五年
																	十二月二十三日
Mr. Junjun		-	-	500,000	-	-	-	-	-	-	-	-	-	500,000	500,000	(3)	29.03.2021-	HK$18.400	-
Tang																	28.03.2026	18.400	-
唐均君先生																	二零二一年
																	三月二十九日至	港元
																	二零二六年
																	三月二十八日

Other	30,131,000	-	-	-	(130,000)	(1,458,000)	(1,353,399)	(754,595)	(58,000)	4,415,031	-	-	13,828,027	9,412,996	(4)	04.09.2017-	HK$6.912	HK$21.356
employees																	03.09.2022
其他僱員																	二零一七年	6.912	21.356港元
																	九月四日至	港元
																	二零二二年
																	九月三日
		-	34,420,000	-	-	-	-	-	-	(1,635,000)	-	-	(305,000)	32,785,000	32,480,000	(5)	24.12.2020-	HK$15.056	-
																	23.12.2025	15.056	-
																	二零二零年
																	十二月二十四日至	港元
																	二零二五年
																	十二月二十三日
		-	-	-	2,482,000	-	-	-	-	(36,000)	-	-	(15,000)	2,446,000	2,431,000	(6)	23.12.2021-	HK$17.952	-
																	22.12.2026	17.952	-
																	二零二一年
																	十二月二十三日至	港元
																	二零二六年
																	十二月二十二日

In aggregate	30,250,000	34,500,000	500,000	2,482,000	(130,000)	(1,458,000)	(1,353,399)	(754,595)	(1,729,000)	4,415,031	-	(320,000)	49,758,027	45,022,996
總數

54 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

OTHER DISCLOSURES

30 June 2020 其他披露資料二零二零年六月三十日

* Vesting period of share options	*	購股權之歸屬期間
(1)	One third of the options shall vest on each of 4	(1)	期權的三分之一將分別於二零一七年九月四日、二零一八
	September 2017, 4 September 2018 and 4 September		年九月四日及二零一九年九月四日歸屬
	2019
(2)	One fourth of the options shall vest on each of 24	(2)	期權的四分之一將分別於二零二零年十二月二十四日、二
	December 2020, 24 December 2021, 24 December 2022		零二一年十二月二十四日、二零二二年十二月二十四日及
	and 24 December 2023		二零二三年十二月二十四日歸屬
(3)	One fourth of the options shall vest on each of 29 March	(3)	期權的四分之一將分別於二零二一年三月二十九日、二零
	2021, 29 March 2022, 29 March 2023 and 29 March		二二年三月二十九日、二零二三年三月二十九日及二零二
	2024		四年三月二十九日歸屬
(4)	One third of the options shall vest on each of 4	(4)	期權的三分之一將分別於二零一七年九月四日、二零一八
	September 2017, 4 September 2018 and 4 September		年九月四日及二零一九年九月四日歸屬
	2019
(5)	For employees at or above the level of the vice president,	(5)	副總裁或以上級別的僱員而言，期權的四分之一將分別於
	one fourth of the options shall vest on each of 24		二零二零年十二月二十四日、二零二一年十二月二十四
	December 2020, 24 December 2021, 24 December 2022		日、二零二二年十二月二十四日及二零二三年十二月二十
	and 24 December 2023; for the other employees, one		四日歸屬；其他僱員而言，期權的三分之一將分別於二零
	third of the options shall vest on each of 24 December		二零年十二月二十四日、二零二一年十二月二十四日及二
	2020, 24 December 2021 and 24 December 2022		零二二年十二月二十四日歸屬
(6)	For employees at or above the level of the vice president,	(6)	副總裁或以上級別的僱員而言，期權的四分之一將分別於
	one fourth of the options shall vest on each of 23		二零二一年十二月二十三日、二零二二年十二月二十三
	December 2021, 23 December 2022, 23 December 2023		日、二零二三年十二月二十三日及二零二四年十二月二十
	and 23 December 2024; for the other employees, one		三日歸屬；其他僱員而言，期權的三分之一將分別於二零
	third of the options shall vest on each of 23 December		二一年十二月二十三日、二零二二年十二月二十三日及二
	2021, 23 December 2022 and 23 December 2023		零二三年十二月二十三日歸屬
*	Cancelled during the year 2017: Including Cancelled and	*	於二零一七年註銷：包括於二零一七年已註銷及失效。
	Lapsed during the year 2017.
*	Cancelled during the year 2018: Including Cancelled and	*	於二零一八年註銷：包括於二零一八年已註銷及失效。
	Lapsed during the year 2018.
*	Cancelled during the year 2019: Including Cancelled and	*	於二零一九年註銷：包括於二零一九年已註銷及失效。
	Lapsed during the year 2019.
Please refer to note 16 of the Notes to the Interim	進一步詳情請參閱中期簡明綜合財務資料附註16。
Condensed Consolidated Financial Information for

further details.

2020年中期報告 Interim Report 2020 55

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

DIRECTORS' AND CHIEF EXECUTIVE'S OWNERSHIP IN SHARES AND UNDERLYING SHARES OF THE COMPANY

As of 30 June 2020, except as disclosed below, none of the Directors nor the Chief Executive of the Company had any ownership and short positions in the shares, underlying shares or debentures of the Company or any associated corporation (within the meaning of Part XV of SFO), as recorded in the register kept under section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") contained in the Listing Rules.

董事及最高行政人員於本公司股份及相關股份的權益

於二零二零年六月三十日，除下文披露者外，概無本公司董事及最高行政人員於本公司或任何相聯法團（定義見證券及期貨條例第XV部）的股份、相關股份或債權證中擁有載入根據證券及期貨條例第352條須予存置的登記冊內的任何權益及淡倉，或按照上市規則所載上市發行人董事進行證券交易的標準守則（「標準守則」）須知會本公司及聯交所的任何權益及淡倉。

		Number of
		underlying shares	Approximate
		held in	percentage of
Name of Director	Capacity	long position (1)	ownership
		以好倉持有的
董事姓名	身份	相關股份數目(1)	概約權益百分比

Mr. Junjun Tang	Beneficial owner
唐均君先生	實益擁有人	500,000	0.04%
Mr. Takayuki Morita	Beneficial owner
森田隆之先生	實益擁有人	199,000	0.02%

Note:	附註：
(1) Long position in the underlying shares of the Company	(1) 按購股權計劃授出的購股權項下於本公司相關股份的好
under share options granted pursuant to the Share	倉。有關二零二零年一月一日及二零二零年六月三十日的
Option Scheme. Please refer to page 53 for particulars	尚未行使的購股權的詳情，請參閱第53頁。
of outstanding options as of 1 January 2020 and 30 June
2020 respectively.

56 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

OTHER DISCLOSURES

30 June 2020 其他披露資料二零二零年六月三十日

SUBSTANTIAL SHAREHOLDERS'	主要股東及其他人士於本公司股份和相關
AND OTHER PERSONS' OWNERSHIP	股份的權益
IN THE SHARES AND UNDERLYING
SHARES OF THE COMPANY
As of 30 June 2020, persons other than a Director or	於二零二零年六月三十日，除本公司董事或最高行政人員
Chief Executive of the Company, having ownership	外，於本集團股份及相關股份中擁有5%或以上權益或淡
of 5% or more or short positions in the shares and	倉的人士如下：

underlying shares of the Group, were as follows:

			Approximate
			percentage of
			aggregate
			ownership
	Capacity and	Number of	in issued share
Substantial shareholders	nature of ownership	shares held	capital*
			佔已發行股本
			權益總額的
主要股東	身份及權益性質	持有股份數目	概約百分比*

Shanghai Hua Hong International, Inc.	Legal and Beneficial owner	350,401,100(1)	27.09%
(Hua Hong International) (2)
(2)	法定及實益擁有人
上海華虹國際有限公司（華虹國際）
Shanghai Huahong (Group) Co., Ltd.	Interest in a controlled corporation	350,401,100(1)	27.09%
(Huahong Group) (2)
(2)	受控制法團權益
上海華虹（集團）有限公司（華虹集團）
INESA (Group) Co., Ltd. (INESA) (2)	Interest in a controlled corporation	350,401,100(1)	27.09%
(2)	受控制法團權益
上海儀電（集團）有限公司（儀電集團）
Sino-Alliance International, Ltd.	Legal and Beneficial owner	160,545,541(1)(3)	12.41%
(Sino-Alliance International)
	法定及實益擁有人
Sino-Alliance International, Ltd.	Interest in a controlled corporation	34,919,354(1)	2.70%
(Sino-Alliance International)
	受控制法團權益
Shanghai Alliance Investment Ltd. (SAIL)	Interest in a controlled corporation	545,865,995(1)(4)	42.21%
上海聯和投資有限公司（上海聯和）	受控制法團權益
Xinxin (Hongkong) Capital Co., Limited	Legal and beneficial owner	242,398,925	18.74%
鑫芯（香港）投資有限公司	法定及實益擁有人
Xun Xin (Shanghai) Investment Co., Ltd.	Interest in a controlled corporation	242,398,925	18.74%
巽鑫（上海）投資有限公司	受控制法團權益
China Integrated Circuit Industry	Interest in a controlled corporation	242,398,925	18.74%
Investment Fund Co., Ltd.
國家集成電路產業投資基金股份有限公司	受控制法團權益
NEC Corporation	Legal and beneficial owner	99,038,800(1)	7.66%
	法定及實益擁有人

2020年中期報告 Interim Report 2020 57

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' OWNERSHIP IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY (continued)

Notes:

Long positions in the shares of the Company.
Hua Hong International is a wholly-owned subsidiary of Huahong Group. As of 30 June 2020, Huahong Group was 81.34% owned by SAIL. Therefore SAIL was deemed to be the beneficial owner of all the Shares in which Huahong Group is the beneficial owner by virtue of Part XV of the SFO.
Including 3,084 shares held in escrow by Sino-Alliance International pursuant to an escrow arrangement.
In addition to the 350,401,100 Shares (27.09%) it indirectly held through Hua Hong International, SAIL indirectly held beneficial ownership in the Company through four wholly-owned subsidiaries, including Sino-Alliance International.

The percentages are calculated based on the total number of issued shares of the Company as of 30 June 2020, i.e., 1,293,234,591 shares.

Except as disclosed above, so far as is known to any of the Directors and Chief Executive of the Company, as of 30 June 2020, no other person or corporation had any beneficial ownership or short positions in any shares or underlying shares of the Company which was recorded in the register required to be kept by the Company pursuant to section 336 of the SFO.

PURCHASE, SALE OR REDEMPTION OF SECURITIES

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the six months ended 30 June 2020.

GEARING RATIO

The 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 bank borrowings, lease liabilities and amounts due to related parties, less cash and cash equivalents. The Group's gearing ratio as at 30 June 2020 was -9.92% (31 December 2019: -2.14%).

58 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

主要股東及其他人士於本公司股份和相關股份的權益（續）

附註：

於本公司股份中的好倉。
華虹國際為華虹集團的全資子公司。於二零二零年六月三十日，華虹集團由上海聯和擁有81.34%股權。根據證券及期貨條例第XV部，上海聯和被視為於有關股份中擁有權益。
Sino-AllianceInternational股數包含因託管安排而代為持有 3,084股股份。
除透過華虹國際間接持有350,401,100 股股份(27.09%)
外，上海聯和透過四家全資子公司包括Sino-AllianceInternational間接持有本公司權益。

百分比乃按本公司於二零二零年六月三十日已發行的股份總數（即1,293,234,591股股份）計算。

除上文披露者外，就本公司董事及最高行政人員所知，於二零二零年六月三十日，概無本公司董事或最高行政人員以外的其他人士或法團於本公司任何股份或相關股份中有任何權益或淡倉並已記入根據證券及期貨條例第336條本公司須予存置的記錄冊內。

買賣或贖回證券

截至二零二零年六月三十日止六個月期間，本公司或其任何子公司概無買賣或贖回本公司任何上市證券。

資產負債比率

本集團以資產負債比率監控資本，資產負債比率按淨負債除以權益總額加淨負債計算。本集團將貿易應付款項、其他應付款項及暫估費用、計息銀行借款、租賃負債以及應付關聯方款項扣除現金及現金等價物計入淨負債。於二零二零年六月三十日，本集團的資產負債比率為-9.92%（二零一九年十二月三十一日：-2.14%）。

CHARGES ON GROUP ASSETS

As at 30 June 2020, certain of Group's property, plant and equipment with a net carrying value of US$22,763,000 (31 December 2019: US$25,059,000) and right-of-use assets of US$5,261,000 (31 December 2019: US$5,445,000) were pledged to banks to secure the Group's banking facilities.

Pledged deposits with a carrying value of US$739,000 as at 30 June 2020 (31 December 2019: US$749,000) were pledged to secure the issuance of letters of credit.

Other pledged deposits with a carrying value of US$27,000 as at 30 June 2020 (31 December 2019: US$27,000) were pledged to secure the payment of dividends to shareholders.

OTHER DISCLOSURES

30 June 2020 其他披露資料二零二零年六月三十日

抵押集團資產

於二零二零年六月三十日，本集團賬面淨值為22,763,000 美元（二零一九年十二月三十一日：25,059,000美元）的若干物業、廠房及設備及賬面淨值為5,261,000美元（二零一九年十二月三十一日：5,445,000美元）的使用權資產已抵押予銀行以取得本集團的銀行信貸融資。

於二零二零年六月三十日，已抵押賬面值為739,000美元（二零一九年十二月三十一日：749,000美元）的已抵押存款以獲發行信用證。

於二零二零年六月三十日，已抵押賬面值為27,000美元（二零一九年十二月三十一日：27,000美元）的其他已抵押存款，以向股東支付股息。

2020年中期報告 Interim Report 2020 59

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

PERFORMANCE OF THE EQUITY INVESTMENTS AND FVTPL

The table below sets out the breakdown of the performance in respect of the Equity Investments and FVTPL during the six-month period ended 30 June 2020.

股權投資及按公平值計入損益之表現

下表載列截至二零二零年六月三十日止六個月期間有關股權投資及按公平值計入損益之表現詳情。

			Principal guaranteed
			structured deposits
			and wealth
	Shanghai		management products
	Huali	QST	purchased from banks
			從銀行購買的保本的
	上海華力	矽睿科技	結構性存款和理財產品
	(USD'000)	(USD'000)	(USD'000)
	（千美元）	（千美元）	（千美元）

Initial investment cost	229,133	1,704	84,752
初始投資成本

Book value at the beginning of the period	205,344	2,345	519,779
於期初之賬面值
Purchases	-	-	738,163
購買
Redemption	-	-	(1,173,812)
贖回
Changes in fair value	-	-	5,112
公平值變動
Exchange realignment	(2,997)	(34)	(4,483)
匯兌調整

Book value at the end of the period	202,347	2,311	84,759
於期末之賬面值

Percentage of shares*	6.3428%	2.18%	N/A
股份百分比*
Size compared to the total assets	5.7%	0.1%	2.4%
與資產總值比較之規模

refers to the percentage of shares held by the Company in Shanghai Huali and QST respectively

During the six-month period ended 30 June 2020, the Group did not dispose of any shares in Shanghai Huali or QST. Increases in the fair value of the Company's equity investment in Shanghai Huali and QST were Nil.

Shanghai Huali was established in 2010. As an industry-leading IC wafer foundry company, Shanghai Huali has advanced process technologies and offers comprehensive solutions. It is devoted to providing one-stop wafer foundry technical services for process technology nodes from 65/55nm to 28/22nm for design companies, IDM companies and other system companies. Shanghai Huali has two 12-inchfully-automated wafer fabs in China.

分別指本公司於上海華力及矽睿科技所持股份之百分比

截至二零二零年六月三十日止六個月期間，本集團並未出售上海華力或矽睿科技之任何股份。本公司於上海華力及矽睿科技股權投資之公平值增值為零。

上海華力起步於2010年。作為行業內領先的積體電路晶片製造企業，上海華力擁有先進的工藝制程和完備的解決方案，專注於為設計公司、IDM公司及其他系統公司提供 65/55納米至28/22納米不同技術節點的一站式晶片製造技術服務。上海華力在中國有兩座12吋全自動晶圓工廠。

60 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

PERFORMANCE OF THE EQUITY INVESTMENTS AND FVTPL (continued)

During the six-month period ended 30 June 2020, the book value of the Company's equity investment has decreased by US$2,997,000 due to depreciation of the RMB. Overall, Shanghai Huali continued steady development in 2020. Accordingly, the Board is of the view that the performance of Shanghai Huali during the six-month period ended 30 June 2020, has been in line with its expectations.

QST is committed to the research and development of high performance sensors, emerging sensors and intelligent sensor systems for the internet-of-things, and industrial and automobile applications. In 2018, QST was awarded the Top 10 MEMS Enterprises of China. Similar to the investment in Shanghai Huali, the increase of exchange rate has caused a foreign currency statement loss of around US$34,000. As the business of QST is still in its early development stage, the Board is of the view that the performance and strategic planning of QST during the six-month period ended 30 June 2020 have been consistent with its expectations.

With respect to of the FVTPL, the Products are generally principal-protected,short-term and low-risk investment products offering a better interest rate than prevailing rates. Their fair value increased by US$5,112,000 during the six-month period ended 30 June 2020. Their performance in the period tracks the expected rate of return as contained in the terms and conditions of these financial products and are in line with the management expectations.

The Company confirms that it has complied with the accounting policy of investments and other financial assets (policies under HKFRS 9 applicable from 1 January 2018) as contained in the interim report of the Company for the six-month period ended 30 June 2020.

The Company expects the future prospects of the aforementioned investments to be largely in line with that over the past period. No significant changes in investment strategy or source of funding are expected for the coming year.

OTHER DISCLOSURES

30 June 2020 其他披露資料二零二零年六月三十日

股權投資及按公平值計入損益之表現（續）

截至二零二零年六月三十日止六個月期間，由於人民幣貶值，本公司股權投資賬面值減少2,997,000美元。總體而言，二零二零年上海華力穩步發展。因此，董事會認為，上海華力於截至二零二零年六月三十日止六個月期間之表現符合預期。

矽睿科技致力於研發用於物聯網以及工業及汽車應用的優質傳感器、新興傳感器及智能傳感器系統。二零一八年，矽睿科技被評為中國十大MEMS企業。與於上海華力投資類似，匯率上升導致外幣報表虧損約34,000美元。由於矽睿科技業務仍處於早期發展階段，董事會認為矽睿科技於截至二零二零年六月三十日止六個月期間的表現及戰略規劃符合預期。

就按公平值計入損益的產品而言，該等產品通常為保本型短期低風險投資產品，其利率高於現行利率。該等產品於截至二零二零年六月三十日止六個月期間的公平值增加 5,112,000美元。該等金融產品於期內的表現與其條款及條件所載的預期回報率一致，且符合管理層的預期。

本公司確認，其已遵守本公司截至二零二零年六月三十日止六個月期間的中報所載的投資及其他金融資產之會計政策（根據香港財務報告準則第9號自二零一八年一月一日起適用的政策）。

本公司預期上述投資的未來前景將與去年同期基本一致，且投資策略或資金來源預計於來年不會發生重大變動。

2020年中期報告 Interim Report 2020 61

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

EMPLOYEES AND REMUNERATION POLICIES

As of 30 June 2020, the company had approximately 5,500 employees in the People's Republic of China and overseas (30 June 2019: approximately 4,700). The Company's remuneration policy is reviewed periodically and determined by reference to the analysis on market competitiveness, company performance, and individual qualifications and performance. Staff benefits include medical schemes, mandatory social insurance and provident fund etc.

COMPLIANCE WITH THE DEED OF NON-COMPETITION AND DEED OF RIGHT OF FIRST REFUSAL

Huahong Group, SAIL and INESA, being controlling shareholders of the Company, entered into a deed of non-competition (the"Deed of Non-competition") dated 23 September 2014, details of which have been set out in the paragraph headed "Deed of Non-competition" in the section headed "Relationship with Controlling Shareholders" of the Company's Prospectus dated 3 October 2014 (the "Prospectus"). In addition, Huahong Group and SAIL 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 paragraph headed "Right of First Refusal" in the section headed "Relationship with Controlling Shareholders" of the Prospectus. As of 30 June 2020, the Company has reviewed the written declaration from each of the controlling shareholders mentioned above on their compliance with their commitments under the Deed of Non-competition and the Deed of Right of First Refusal (as the case may be). The Independent Non-Executive Directors have reviewed the status of compliance and confirmed that all the commitments under the Deed of Non-competition and the Deed of Right of First Refusal (as the case may be) have been complied with by the relevant parties.

62 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

僱員及薪酬政策

於二零二零年六月三十日，本公司於中華人民共和國及海外擁有約5,500名僱員（二零一九年六月三十日：約4,700 名）。本公司定期審視薪酬政策，該政策乃參考市場競爭性分析、公司業績表現及員工勝任技能與工作績效釐定。員工福利包括醫療計劃、強制性社會保險及公積金等。

遵守不競爭契據及優先購買權契據

本公司的控股股東華虹集團、上海聯和及儀電集團訂立日期為二零一四年九月二十三日的不競爭契據（「不競爭契據」），詳情載於日期為二零一四年十月三日的本公司招股章程（「招股章程」）「與控股股東的關係」一節中「不競爭承諾」一段。另外，華虹集團和上海聯和亦訂立日期為二零一四年六月十日的優先購買權契據（「優先購買權契據」），詳情載於招股章程「與控股股東的關係」一節中「優先購買權」一段。本公司於截至二零二零年六月三十日止已覆核上述各控股股東有關他們遵守不競爭契據及優先購買權契據（視情況而定）內承諾的書面聲明。獨立非執行董事已覆核遵守情況，並確認不競爭契據及優先購買權契據（視情況而定）下的全部承諾均獲有關訂約方遵守。

CORPORATE GOVERNANCE

The Company is committed to maintaining a high standard of corporate governance with a view to safeguarding the interests of its shareholders and enhancing corporate value and accountability.

The Board is of the view that the Company has complied with the code provisions set out in the Corporate Governance Code as contained in Appendix 14 of the Listing Rules during the six months ended 30 June 2020.

OTHER DISCLOSURES

30 June 2020 其他披露資料二零二零年六月三十日

企業管治

本公司致力保持企業管治在高水平，以保障股東權益及提升企業價值及問責性。

董事會認為，本公司於截至二零二零年六月三十日止六個月期間一直遵守上市規則附錄十四所載的企業管治守則內的守則條文。

CODE OF CONDUCT FOR SECURITIES	董事進行證券交易之行為守則
TRANSACTIONS BY DIRECTORS
The Company has adopted a code of conduct	本公司已採納董事進行證券交易之行為守則（「該守則」），
regarding the Directors' securities transactions on terms	而該守則的有關條款不低於上市規則附錄十所載上市發行
no less exacting than the required standard set out in	人董事進行證券交易的標準守則所規定的標準。本公司已
the Model Code for Securities Transactions by Directors	向所有董事作特定查詢，每位董事均已書面確認其於截至
of Listed Issuers as set out in Appendix 10 of the Listing	二零二零年六月三十日止六個月期間遵守該守則所載的必
Rules (the "Code"). Having made specific enquiries of	守標準。
all Directors, the Company has received their written
confirmation that they have complied with the required
standard as set forth in the Code throughout the six
months ended 30 June 2020.

2020年中期報告 Interim Report 2020 63

OTHER DISCLOSURES

其他披露資料 30 June 2020

二零二零年六月三十日

AUDIT COMMITTEE

The Audit Committee, comprising one Non-executive Director and two Independent Non-executive Directors of the Company, has reviewed and approved the unaudited results of the Group for the six months ended 30 June 2020 and has discussed with management the accounting principles and practices adopted by the Group, internal controls and financial reporting matters.

PUBLICATION OF INTERIM REPORT ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY

The interim report for the six months ended 30 June 2020 containing information required by Appendix 16 of the Listing Rules will be dispatched to shareholders and published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.huahonggrace.com) in due course.

By Order of the Board

Hua Hong Semiconductor Limited

Mr. Suxin Zhang

Chairman and Executive Director

64 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司

審核委員會

由本公司一位非執行董事及兩位獨立非執行董事組成之審核委員會已審閱及批准本集團截至二零二零年六月三十日止六個月的未經審核業績，並已與管理層就本集團採納的會計政策及常規、內部監控及財務報告相關事宜進行討論。

於聯交所及本公司網站刊發中期報告

載有上市規則附錄十六所規定資料的截至二零二零年六月三十日止六個月的中期報告，將於適當時候寄發予股東及於聯交所網站(www.hkexnews.hk)和本公司網站

(www.huahonggrace.com)刊載。

承董事會命

華虹半導體有限公司張素心先生

主席兼執行董事

www.huahonggrace.com

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MICRON TECHNOLOGY, INC.	+25.11%	124B
ARM HOLDINGS PLC	+16.03%	108B
ANALOG DEVICES, INC.	-7.66%	93.02B