Hua Hong Semiconductor (01347) announced its financial results for the fourth quarter of 2025, achieving a record high in quarterly sales revenue of approximately USD 660 million, representing a year-on-year increase of 22.4% and a quarter-on-quarter growth of 3.9%. Gross profit reached USD 85.464 million, up 39.1% compared to the same period last year, but down 0.5% from the previous quarter. Profit attributable to owners of the parent company was USD 17.454 million, turning a profit year-on-year, though it decreased by 32.2% compared to the third quarter. The gross profit margin for the quarter stood at 13.0%, an increase of 1.6 percentage points year-on-year, primarily driven by higher average selling prices and cost reduction efforts, but declined by 0.5 percentage points quarter-on-quarter due to increased labor expenses.
For the full year 2025, the company reported sales revenue of approximately USD 2.402 billion, a 19.9% increase compared to the previous year. Gross profit amounted to about USD 283 million, growing 37.9% year-on-year. However, profit attributable to owners of the parent company was USD 54.881 million, a decrease of 5.6% from the prior year. Earnings per share were USD 0.032. The annual gross profit margin was 11.8%, up 1.6 percentage points from the previous year, mainly due to improved average selling prices and cost efficiency measures, partially offset by higher depreciation costs.
Dr. Bai Peng, Chairman and President of the company, commented on the fourth quarter and full-year 2025 results: "Hua Hong Semiconductor achieved a record high in sales revenue for the fourth quarter of 2025, reaching USD 659.9 million, with a quarterly gross margin of 13.0%, both meeting guidance expectations. For the full year 2025, the company recorded sales revenue of USD 2.4021 billion and a gross margin of 11.8%, both showing year-on-year growth and aligning with management expectations. Against the backdrop of global semiconductor market growth driven by AI and related product demand, coupled with recovering domestic consumer demand, the company maintained high capacity utilization, with an annual average capacity utilization rate of 106.1%, ranking among the leading levels in the wafer foundry industry."
Dr. Bai further stated: "Through product portfolio optimization and cost reduction initiatives, each of our specialty technology platforms demonstrated strong performance, particularly the standalone flash memory and power management platforms, which significantly supported the company's revenue growth and margin improvement. In 2025, the company continued to advance its strategic plan for capacity expansion. The first phase of capacity construction for the second 12-inch production line in Wuxi (FAB9) exceeded expectations, and the acquisition of the Shanghai 12-inch manufacturing base (FAB5) is progressing in an orderly manner. Looking ahead, the company will remain highly focused on building a world-class specialty process technology platform through innovation and rapid iteration, while deepening cooperation with strategic customers both domestically and internationally. We are confident in seizing growth opportunities amid the ongoing transformation of the global semiconductor industry and strive to meet the long-term expectations of our shareholders."
Additionally, the company forecasts first-quarter 2026 sales revenue to be between USD 650 million and USD 660 million, with an expected gross margin ranging from 13% to 15%.