HUA HONG SEMI (01347) releases fourth quarter performance results for 2024, with a net loss of $25.2 million for shareholders, a decrease from profit to loss compared to the same period last year.

HUA HONG SEMI (01347) announced its fourth quarter performance in 2024, with sales revenue of 539.2 million US dollars, an increase of 18.4% year-on-year and 2.4% quarter-on-quarter. The gross profit margin was 11.4%, up 7.4 percentage points year-on-year but down 0.8 percentage points quarter-on-quarter. The net loss attributable to the parent company was 25.2 million US dollars, compared to a net profit attributable to the parent company of 35.4 million US dollars and 44.8 million US dollars in the same period last year and the previous quarter, respectively, resulting in a basic loss per share of 0.015 US dollars. The announcement stated that the increase in revenue was mainly attributed to the increase in the number of wafer shipments, partially offset by the decrease in average selling prices; the quarter-on-quarter growth of 2.4% was mainly driven by an increase in average selling prices and wafer shipments. The shareholder's loss was mainly due to foreign exchange losses in this quarter, while foreign exchange gains were recorded in the same period last year and the previous quarter. The company expects sales revenue in the first quarter of 2025 to be between 530 million US dollars and 550 million US dollars. The gross profit margin is expected to be between 9% and 11%. CEO and Executive Director Bai Peng commented on the performance of the fourth quarter and full year of 2024 for HUA HONG SEMI: "It is a great honor for me to represent HUA HONG SEMI for the first time in the performance release. The fourth quarter sales revenue of the company in 2024 was 539 million US dollars, with a quarterly gross profit margin of 11.4%, both in line with guidance. The total sales revenue for the full year of 2024 reached 2.004 billion US dollars, with a full-year gross profit margin of 10.2%." "For HUA HONG SEMI, 2024 was a year of challenges and opportunities. The market demand is complex and ever-changing, with the recovery of the consumer sector and the rapid growth of some emerging applications driving the good performance of the company's image sensors, power management platforms, but the demand for high-end power devices still needs improvement. Facing intense market competition, the company maintained revenue and capacity stability, with overall performance showing a quarterly improvement trend. The average capacity utilization rate for the year was close to 100%, leading the global wafer foundry companies." Bai continued to add: "2024 was also a year of continued progress. The second 12-inch production line in Wuxi was successfully completed and put into production, marking a new milestone for the company on its strategic development path. In 2025, HUA HONG SEMI will strengthen research and development investment around new technology platforms and the iteration of various technology platforms, expand the capacity of the new production lines, and continue to establish strategic partnerships with key customers at home and abroad to solidify the company's leading position in the field of specialty process wafer foundry. At the same time, the company will further enhance operating efficiency and strengthen cost control to create greater value for shareholders."