Hua Hong Grace Semiconductor Limited (688347.SH) has released its interim report for the first half of 2026, showcasing a remarkable financial performance driven by higher gross margins. The company reported a significant surge in profitability, with net profit attributable to shareholders climbing 436.69% year-on-year to RMB 399 million.

During the reporting period, the semiconductor foundry achieved total operating revenue of RMB 9.574 billion, reflecting a solid 19.41% increase compared to the same period last year. The company's net profit attributable to shareholders stood at RMB 399 million, while its net profit excluding non-recurring gains and losses reached RMB 316 million, marking an even more impressive year-on-year growth of 470.34%.

Earnings per share for the period came in at RMB 0.23. The substantial year-on-year increases in total profit, net profit attributable to shareholders, net profit excluding non-recurring items, and both basic and diluted earnings per share were primarily attributed to the rise in gross profit during the period. Additionally, the net cash flow generated from operating activities saw a considerable boost, driven by an increase in cash receipts from sales of goods and the provision of services.