Huahong Company: The 8-inch production line continues to maintain good profitability. The acquisition of Huali Micro has been accepted by the Shanghai Stock Exchange and has entered the substantial review stage.

Dr. Bai Peng, Chairman and CEO of Grace Semiconductor Company, commented on the first quarter performance of 2026, stating that with the increasing role of artificial intelligence and related applications in the industry development and market landscape, the global semiconductor industry is accelerating its evolution. The significant boost in global semiconductor market demand from artificial intelligence, coupled with the ongoing uncertainty in the global supply chain structure, together constitute a more complex market environment that we are currently facing. Grace Semiconductor has always adhered to the strategic goal of being a leading enterprise in specialty process wafer foundry, focusing on market demand, continuously strengthening technology capabilities, and enhancing production capacity. In the first quarter, the company's 12-inch production capacity steadily increased, with revenue accounting for 62.7%; the 8-inch production line continued to maintain good profitability. Meanwhile, the proposed acquisition of Huali Micro has been accepted by the Shanghai Stock Exchange and is now in the substantive review stage, progressing according to the established plan, and is expected to be completed in the second half of this year.