Since August 18th, Huahong Group has temporarily halted trading to orchestrate a comprehensive plan encompassing the issuance of shares, cash payments for assets, and the procurement of supporting funds. The focal point of this acquisition is the acquisition of a controlling stake in Shanghai HuaLi Microelectronics Co., Ltd., a move designed to address the horizontal competition concerns raised during the initial public offering (IPO). This transaction will involve the consolidation of overlapping businesses between HuaLi Micro and Huahong at the 65/55nm and 40nm process nodes. The transaction parties include Shanghai Huahong (Group) Co., Ltd., and the second phase of the National Integrated Circuit Industry Investment Fund.

According to Huahong Group's recently released financial report, sales revenue for the second quarter of 2025 witnessed a robust year-on-year growth of 18.3%, with projections pointing towards sustained growth in the third quarter. This positive financial trajectory underscores the strategic importance and potential benefits of the impending asset injection from HuaLi Micro.