Thanks to the increase in the number of shipped wafers, Hua Hong Semiconductor achieved both year-on-year and quarter-on-quarter growth in sales revenue for the fourth quarter.
On February 13, Hua Hong Semiconductor released its performance report for the fourth quarter of 2024, showing that
1) Key Financial Data:
<blockquote>
Fourth quarter sales revenue was USD 539.2 million, an increase of 18.4% year-on-year and 2.4% quarter-on-quarter, in line with guidance.
Gross margin was 11.4%, up 7.4 percentage points year-on-year, down 0.8 percentage points quarter-on-quarter, in line with guidance.
Net profit was USD 25.2 million, compared to net profits of USD 35.4 million and USD 44.8 million in the same quarter last year and the previous quarter, respectively. This was mainly due to foreign exchange losses this quarter, while both the same quarter last year and the previous quarter had foreign exchange gains.
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</blockquote>
For the whole year, the sales revenue of Hua Hong Semiconductor for the fiscal year 2024 was USD 2.004 billion, a decrease of 12.3% year-on-year, mainly due to a decline in average selling prices, partially offset by an increase in the number of shipped wafers. The gross margin was 10.2%, down 11.1 percentage points from the previous year, mainly due to a decline in average selling prices and an increase in cost of goods sold.
2) Breakdown of Revenue Data:
<blockquote>
Business: 95.1% of sales revenue this quarter came from direct sales of semiconductor wafers.
Wafer Size: Sales revenue from 8-inch wafers and 12-inch wafers this quarter was USD 252.2 million and USD 286.9 million, respectively.
Region: Sales revenue from China this quarter was USD 450.8 million, accounting for 83.7% of total sales revenue, an increase of 23.0% year-on-year; sales revenue from North America was USD 48.1 million, an increase of 30.7% year-on-year; sales revenue from Asia was USD 23.9 million, a decrease of 20.9% year-on-year; sales revenue from Europe was USD 14.3 million, a decrease of 22.8% year-on-year.
Capacity: The monthly production capacity at the end of this quarter was 391,000 equivalent 8-inch wafers. The overall capacity utilization rate was 103.2%, down 2.1 percentage points from the previous quarter.
</blockquote>
The company's president and executive director, Bai Peng, stated that market demand is complex and changeable. The recovery in the consumer sector and the rapid growth of some emerging application markets have driven the good performance of the company's image sensors, power management, and other platforms, but the demand for mid-to-high-end power devices still needs improvement. Despite fierce market competition, the company has maintained stable revenue and capacity, with overall performance showing a trend of improvement quarter by quarter. The average annual capacity utilization rate was close to 100%, placing it at a leading level among global wafer foundries.
For the first quarter guidance, the company expects sales revenue to be between USD 530 million and USD 550 million; gross margin to be between 9% and 11%.
Today, Hua Hong Semiconductor's Hong Kong stock closed down 5.23%
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The company expects first-quarter sales revenue to be between USD 530 million and USD 550 million; gross margin is expected to be between 9% and 11%

- Hua Hong Semiconductor reported a fourth-quarter revenue of $539.2 million, marking an 18.4% year-over-year increase and a 2.4% quarter-over-quarter rise, driven by higher wafer shipments.  
- The company experienced a net profit of $25.2 million, down from $35.4 million a year ago, primarily due to foreign exchange losses.  
- For the full year, revenue declined by 12.3% to $2.004 billion, attributed to lower average selling prices, despite increased wafer shipments, with a projected first-quarter revenue guidance of $530 million to $550 million.

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In the fourth quarter, Hua Hong Semiconductor's sales revenue increased by 18.4% year-on-year, and net profit turned to a loss due to foreign exchange losses | Financial Report Insights