Hua Hong Semiconductor Records Net Loss in the Fourth Quarter of 2024

On February 13, 2025, Huahong Semiconductor Co., Ltd. (Huahong Semiconductor) reported a net loss of $25.2 million for the fourth quarter of 2024, marking the first quarterly net loss in nearly three years for the company.

According to the “Fourth Quarter 2024 Performance Report” released by Huahong Semiconductor, the company’s revenue in the fourth quarter was approximately $500 million, an 18% year-on-year increase and a 2% increase from the previous quarter. Despite the revenue growth, the company incurred a net loss of $25.2 million in the fourth quarter, compared to a net profit of $35.4 million in the third quarter.

Data from the Wind database service shows that this is the first time in nearly three years that the company has reported a negative quarterly net profit.

Huahong Semiconductor attributed the fourth-quarter loss mainly to foreign exchange losses, as the company experienced foreign exchange gains in the same period last year and in the previous quarter. The CFO of Huahong Semiconductor, Wang Ding, explained that the $1.5 billion U.S. dollar debt the company holds led to the foreign exchange loss in the fourth quarter due to a 2% increase in the U.S. dollar against the Chinese yuan. The impact of exchange rate fluctuations on the company’s profitability in the first quarter of 2025 remains uncertain.

The performance report also indicated that for the full year of 2024, Huahong Semiconductor’s annual revenue was $2 billion, a decrease of 12% compared to the previous year.

In the first three quarters of last year, Huahong Semiconductor had already experienced a decline in net profit. On November 7, 2024, the company revealed its third-quarter report, showing a revenue of 3.77 billion Chinese yuan, an 8.24% year-on-year decrease, and a net profit of 313 million Chinese yuan, a 226.62% increase year-on-year. During the first three quarters, the company achieved a revenue of 10.502 billion yuan, a decrease of 18.92% year-on-year, and a net profit of 578 million yuan, a 65.69% decrease year-on-year.

Huahong Semiconductor President Bai Pengzhan stated that China’s domestic market faces fierce competition in the low-end chip manufacturing sector, especially in power semiconductors and discrete devices. He mentioned, “There is oversupply in these areas, particularly in the low-end segment, leading to a decrease in the company’s sales and increased price pressure.”

Established on January 21, 2005, Huahong Semiconductor Co., Ltd. is a Chinese investment holding company primarily engaged in specialty process wafer foundry services.