Hua Hong Semiconductor (HKG:1347, SHA:688347) saw its stock price plummet by 5.12% in early trading on Friday, as investors reacted to the company's disappointing third-quarter financial results released the previous evening.

The semiconductor manufacturer reported a significant 43% year-over-year decline in attributable profit for Q3 2025, with earnings falling to $25.7 million from $44.8 million in the same period last year. This sharp decrease in profitability appears to be the primary driver behind the stock's negative movement, despite the company posting revenue growth.

While Hua Hong's revenue for the quarter increased by 21% to $635.2 million, up from $526.3 million in the previous year, the substantial drop in earnings has raised concerns among investors. The company attributed the revenue growth to increased wafer shipments and an improved average selling price. However, the disconnect between revenue growth and profit decline suggests potential challenges in managing costs or maintaining margins in a competitive semiconductor market.