Huahong Company has made an announcement stating that on April 2, 2026, it received an inquiry letter from the Shanghai Stock Exchange. The inquiry pertained to the review of its plan to issue shares, pay cash to purchase assets, raise matching funds (Note: "supporting funds" is used here to accurately reflect the concept of additional funds raised in conjunction with the primary transaction), and handle associated connected transactions. In response, the company, in collaboration with relevant institutions, has thoroughly examined the issues raised in the inquiry letter. They have provided supplementary disclosures in the restructuring report and have now formally submitted their response. This transaction is designed to acquire a 100% stake in Hua Liwei, with the expectation of adding a monthly production capacity of 38,000 wafers for 65/55nm and 40nm processes, thereby eliminating horizontal competition within the industry.
