This article first appeared on GuruFocus .
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Q4 2025 Revenue:$659.9 million, a 22.4% increase over Q4 2024 and a 3.9% increase over Q3 2025.
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Q4 2025 Gross Margin:13%, a 1.6 percentage point increase over Q4 2024.
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Q4 2025 Operating Expenses:$130.2 million, a 17.7% increase over Q4 2024.
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Q4 2025 Net Loss:$18.7 million, narrowed by 80.6% compared to Q4 2024.
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Q4 2025 Net Profit Attributable to Shareholders:$17.5 million, compared to a loss of $25.2 million in Q4 2024.
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Q4 2025 Basic Earnings Per Share:$0.01.
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Q4 2025 Net Cash Flows from Operating Activities:$246 million, 29.5% lower than Q4 2024.
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Q4 2025 Capital Expenditures:$633.5 million.
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Full Year 2025 Revenue:$2.4 billion, a 19.9% increase over 2024.
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Full Year 2025 Gross Margin:11.8%, a 1.6 percentage point increase over 2024.
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Full Year 2025 Net Loss:$110.8 million, narrowed by 21.1% compared to 2024.
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Full Year 2025 Net Profit Attributable to Shareholders:$54 million, a 5.6% decrease from 2024.
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Full Year 2025 Basic Earnings Per Share:$0.032.
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Q1 2026 Revenue Outlook:$650 million to $660 million.
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Q1 2026 Gross Margin Outlook:13% to 15%.
Release Date: February 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Hua Hong Semiconductor Ltd ( HHUSF ) achieved an all-time high quarterly revenue of USD659.9 million in Q4 2025, marking a 22.4% increase over Q4 2024.
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The company maintained full capacity operations throughout 2025 with an average capacity utilization rate of 106%, ranking among the leading levels in the foundry industry.
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Strategic capacity expansion plans are progressing well, with the first phase of the second 12-inch production line in Wuxi (FAB9) exceeding expectations.
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Revenue from various technology platforms, such as embedded non-volatile memory and power management ICs, saw significant growth, contributing to overall revenue increase.
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The company is focusing on developing world-class specialty technology platforms and deepening collaborations with strategic customers, both domestically and internationally, to seize growth opportunities.
Negative Points
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Despite revenue growth, the company reported a net loss of USD18.7 million for Q4 2025, although this was a narrowing of 80.6% compared to Q4 2024.
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Gross margin for Q4 2025 was 13%, a slight decrease from Q3 2025 due to increased labor costs.
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Operating expenses increased by 17.7% over Q4 2024, primarily due to higher labor and depreciation costs.
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The company's debt ratio increased to 36.6% by the end of 2025, up from 28% at the end of Q3 2025, indicating higher financial leverage.
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Net cash flows from operating activities decreased by 29.5% compared to Q4 2024, mainly due to increased payments to suppliers and decreased government subsidies.
Q & A Highlights
Q: Could you elaborate on the strategic benefits Hua Hong gained from the acquisition of Huali, and how do you plan to leverage these resources for future growth? A: The acquisition of FAB5, a 12-inch fab with 55-nanometer and 40-nanometer specialty technology, allows us to grow our scale by adding about 400,000 capacity. This acquisition enables us to optimize the distribution of our specialty technologies across all manufacturing capacities, leading to higher efficiency and lower costs. It is a strategic acquisition that will accelerate our growth in terms of revenue and profitability. - Peng Bai, President, Executive Director
Q: What is your view on the supply-demand balance of the eight-inch and 12-inch mature fab business globally this year, and how will it impact your ASP? A: The supply-demand balance is affected by ownership changes and capacity shifts to memory production. The AI-driven growth in the semiconductor market is positive for us, potentially allowing for price increases. We have been selectively increasing prices in certain areas, and we expect some room for growth in 2026, especially on the 12-inch side. - Peng Bai, President, Executive Director
Q: What are the reasons for the slight decline in capacity utilization rate, and can capacity be reallocated between different platforms quickly? A: The decline is minor and mainly due to the rapid ramp-up of FAB9, where there is a lag between equipment installation and order loading. This is typical in a fast-ramping fab. - Peng Bai, President, Executive Director
Q: How significant will AI-related products be for future revenue growth, and which product categories will benefit most from localization trends? A: AI-related products are growing rapidly, impacting several technology platforms like power management and discrete power devices. Power management and MCUs are expected to continue strong growth. Localization trends will likely boost these areas, with power management and MCUs being the most significant beneficiaries. - Peng Bai, President, Executive Director
Q: Considering the rising cost of raw materials, how do you see the sustainability of the price hike? A: While there are some raw material price increases, they are not significant enough to impact our cost structure substantially. We are increasingly using domestically produced materials, which generally have better costs. Overall, we do not foresee a significant cost increase from materials. - Peng Bai, President, Executive Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
