BRIEF: Hua Hong Semiconductor swings to profit in the fourth quarter

Hua Hong Semiconductor Ltd. (1347.HK; 688347.SH) announced on Thursday that it returned to the black in last year’s fourth quarter with a net profit of $17.45 million, reversing a $25.20 million loss a year earlier.

Revenue for the quarter rose 22.39% year-on-year to a record $660 million, driven by higher wafer shipments and average selling prices. Its gross margin improved by 1.6 percentage points to 13%, supported by pricing gains and cost-efficiency measures. The revenue contribution from 12-inch wafers increased to 61.7% during the quarter, becoming the company’s primary growth driver and reflecting sustained recovery in demand for specialty processes and power devices.

For the full year, Hua Hong reported a net profit of $54.88 million, down 5.55% from 2024. Revenue for the year climbed 19.86% to $2.4 billion, while its gross margin rose 1.6 percentage points to 11.8%. The company said capacity utilization remained high at 106.1%, benefiting from the AI boom and a rebound in domestic consumption.

Looking ahead, Hua Hong said it expects its first-quarter revenue to range between $650 million and $660 million, with gross margin expected at 13% to 15%. Management said it will continue advancing its “8-inch plus 12-inch” dual-engine strategy, focusing on specialty processes and power semiconductors to capture long-term opportunities from China’s domestic substitution drive.

Shares of Hua Hong Semiconductor opened lower on Friday in Hong Kong and closed up 0.55% at HK$100.1 by the midday break.

By Lee Shih Ta

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