Hua Hong Semiconductor : Inside Information

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for information only and does not constitute an offer to sell or a solicitation of an offer to buy or an invitation to underwrite, subscribe for or otherwise acquire or dispose of any securities or investment advice in any jurisdiction, including without limitation, the United States, Canada or Japan. The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws of the United States and may not be offered or sold in the United States absent registration under the U.S. Securities Act or except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. There will be no public offering of securities of the Company in the United States.

華虹半導體有限公司

(Incorporated in Hong Kong with limited liability)

This announcement is made by Hua Hong Semiconductor Limited (the "Company") pursuant

to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of Company was informed by Shanghai Alliance Investment Ltd ("SAIL"), one of the controlling shareholders of the Company, of its intention to sell, through its wholly-owned subsidiary, Sino-Alliance International, Ltd. up to 64,010,100 shares in the Company (the "Shares"), representing up to approximately 6.19% of the issued share capital of the Company, through a secondary share placement (the "Placing").

As at the date of this announcement, SAIL is indirectly interested in 620,984,930 shares in the Company, representing approximately 60.06% of the issued share capital of the Company, of which 270,583,830 shares in the Company (representing 26.17% of the issued share capital of the Company) are held by Sino-Alliance International, Ltd. SAIL has advised the Company that it plans to increase the public float of the Company through the Placing. SAIL has further advised the Company that it intends to remain a controlling shareholder of the Company immediately following completion of the Placing.

Shanghai, PRC, 28 June 2017

As at the date of this announcement, the directors of the Company are:

Suxin Zhang (Chairman)

Yu Wang (President)

Jianbo Chen Yuchuan Ma Takayuki Morita Jun Ye

Stephen Tso Tung Chang Kwai Huen Wong, JP Long Fei Ye