HK Stock Market Move | Hua Hong Grace Semiconductor (01347) opened nearly 9% lower; HLMC was formally consolidated in Q3, with net profit up more than 136% year-on-year.

Hua Hong Grace Semiconductor (01347) opened nearly 9% lower. As of press time, it was down 8.62% at HK$61.5, with turnover of HK$47.97 million. On the news front, Hua Hong Grace Semiconductor announced that in the third quarter it achieved operating revenue of RMB6.706 billion, up 13.95% year-on-year; net profit was RMB835 million, up 136.14% year-on-year. In the third quarter, HLMC was formally included in the consolidated financial statements, and its first quarter of consolidation immediately demonstrated significant financial gains and operational synergies; excluding the impact of HLMC's consolidation, the sales revenue and gross margin of Hua Hong Grace Semiconductor's original business both exceeded the upper end of its previous quarterly guidance. The HLMC integration has proven capable of delivering financial gains and operational synergies. Currently, the 12-inch business already accounts for 70.7% of revenue. For the fourth quarter, Hua Hong Grace Semiconductor expects sales revenue to be approximately US$1.08 billion to US$1.09 billion, with gross margin between 25% and 26%.