Hua Hong Grace Semiconductor (688347.SH): Subsidiary intends to transfer all equity interests and related creditor's rights it holds in Huahong Real Estate.

Hua Hong Grace Semiconductor (688347.SH) announced that, in order to revitalize idle stock assets, optimize resource allocation, and improve asset operating efficiency, the company's controlled subsidiary Hua Hong Semiconductor (Wuxi) Co., Ltd. intends to publicly list and transfer its 100% equity interest in Huahong Real Estate (Wuxi) Co., Ltd. ("Huahong Real Estate") and related creditor's rights through the Shanghai United Assets and Equity Exchange. The initial listing price shall be no less than the corresponding appraised value filed with Shanghai Hua Hong (Group) Co., Ltd. The net asset book value of Huahong Real Estate is RMB593.29 million, and its appraised value under the asset-based approach is RMB176.88 million, representing an impairment of RMB416.41 million. Based on the estimated equity disposal loss calculated according to the relevant appraised value, the expected impact on the company's overall net profit for 2026 is approximately -RMB416.41 million, and the impact on the company's net profit attributable to the parent is approximately -RMB212.37 million. Due to significant uncertainty regarding the completion of this asset disposal, the specific impact amount shall be subject to the actual results after the disposal is completed.