Hua Hong Grace (01347) opened sharply lower today before surging in a straight line, with its A-shares briefly rising over 13% and its H-shares briefly gaining more than 8%. As of press time, the stock was up 2.82% at HK$69.20, with turnover of HK$3.8536 billion.

On the evening of November 5, Hua Hong Grace released its latest financial results. For the first three quarters, the company reported operating revenue of RMB 18.611 billion, up 14.06% year-on-year, and net profit attributable to shareholders of RMB 1.603 billion, up 138.23% year-on-year.

In the third quarter alone, operating revenue reached RMB 6.706 billion, up 13.95% year-on-year, while net profit attributable to shareholders was RMB 835 million, up 136.14% year-on-year.

The company completed the acquisition of a 97.5% stake in Huali Micro in the third quarter, and all financial reports have since included Huali Micro.

During the third quarter, Hua Hong Grace's wafer fabs maintained high capacity utilization rates, with both shipment volumes and average selling prices rising steadily, while capacity expansion projects continued to advance as planned.

Currently, revenue from 12-inch business accounts for 70.7% of total revenue.

Hua Hong Grace expects fourth-quarter sales revenue to be approximately US$1.08 billion to US$1.09 billion, with gross margin estimated at approximately 25% to 26%.