Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Hua Hong Semiconductor's First Quarter 2026 Earnings Conference Call. Today's call is hosted by Dr. Peng Bai, Chairman and President; and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer.

[Operator Instructions] The earnings press release and first quarter 2026 summary slides are available to download at our company's website, www.huahonggrace.com. Without further ado, I would like to introduce you to Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Thank you.

Yu-Cheng Wang
Executive VP, CFO & Secretary of the Board

Good afternoon, everyone. Thank you for joining our Q1 2026 earnings conference. Today we will first have Dr. Peng Bai, our Chairman and President, provide an overview of our first quarter performance. I will then take you through our financial results in detail and offer guidance for the upcoming quarter. We'll then open the floor for a question-and-answer session.

With that, I turn the call over to Dr. Bai. Dr. Bai?

Bai Peng
President & Executive Chairman

Thank you, Daniel. Good afternoon, everyone. Thank you for joining our earnings call. Hua Hong Semiconductor generated revenue of USD 660.9 million in the first quarter of 2026, a year-on-year increase of 22.2%. Gross margin stood at 13%, a year-on-year increase of 3.8 percentage points. Both figures were in line with our guidance.

Net profit attributable to shareholders