Huahong Company’s Q4 2025 revenue increases by 22.4% year-over-year, reaching a new record high, with capacity continuing to operate at a high level

Hua Hong Corporation Releases Q4 2025 Earnings Announcement

The announcement shows that Hua Hong’s sales revenue for Q4 2025 reached $659.9 million, a record high, representing a 22.4% year-over-year increase and a 3.9% quarter-over-quarter growth.

The gross profit margin for Q4 was 13%, up 1.6 percentage points year-over-year but down 0.5 percentage points from the previous quarter.

In terms of profit, the net profit attributable to the parent company for Q4 2025 was $17.5 million, compared to a loss of $25.2 million in the same period last year and a profit of $25.7 million in the previous quarter.

For the full year 2025, Hua Hong achieved revenue of $2.4021 billion, a 19.9% increase year-over-year; gross profit margin was 11.8%, up 1.6 percentage points from the previous year.

Hua Hong’s Chairman and CEO Bai Peng stated that the company’s revenue and gross margin in Q4 2025 met the guidance expectations, and the growth in performance and gross margin for 2025 aligned with management’s expectations. “Through product mix optimization and cost reduction and efficiency improvements, Hua Hong’s various specialty process platforms performed strongly, especially the standalone flash memory and power management platforms, which significantly supported the company’s revenue growth and profit margin increase.”

Looking at revenue structure, in Q4 2025, Hua Hong’s embedded non-volatile memory sales revenue was $180.2 million, a 31.3% increase year-over-year; standalone non-volatile memory sales revenue reached $56.6 million, up 22.9%; logic and RF product sales revenue was $80.4 million, up 19.2%; analog and power management sales increased by 40.7% year-over-year to $173.8 million.

In terms of regional sales, in Q4 2025, sales from the Chinese market amounted to $539.3 million, accounting for 81.8% of total sales, a 19.6% increase year-over-year; benefiting from increased demand for power management and MCU products, North American sales reached $72.8 million, a 51.3% increase, with the proportion of revenue rising from 8.9% last year to 11%.

Hua Hong’s capacity continues to operate at a high level. Against the backdrop of the global semiconductor market driven by AI and related product demand, and a recovery in domestic consumer demand, Hua Hong’s average annual capacity utilization rate was 106.1%, leading among foundry companies. In Q4 2025, capacity utilization was 103.8%.

Regarding capacity, Hua Hong continued to advance its expansion strategy in 2025, with the first phase of the 12-inch wafer line (FAB9) in Wuxi exceeding expectations. The announcement shows that Hua Hong’s Q4 2025 wafer shipment volume equivalent to 8-inch wafers reached 1.448 million, a 19.4% increase year-over-year; at the end of Q4 2025, the monthly capacity was 486,000 equivalent 8-inch wafers.

Hua Hong’s capital expenditure in Q4 2025 was $633.5 million.

The acquisition of Hua Hong’s Shanghai 12-inch manufacturing base (FAB5) is progressing smoothly. Recently, Hua Hong issued shares to acquire 97.4988% of Huali Micro and raised supporting funds, receiving approval from the Shanghai State-owned Assets Supervision and Administration Commission. The transaction has been approved by Hua Hong’s shareholders’ meeting and is pending review and approval by the Shanghai Stock Exchange and registration approval by the China Securities Regulatory Commission.

Hua Hong stated that this transaction, through the integration of R&D resources and sharing of core technologies, is expected to generate synergies in process optimization, yield improvement, and device structure innovation, accelerating technological innovation and iteration. The listed company will achieve integrated management through consolidation, deepening internal management, process platform, custom design, and supply chain integration, reducing costs and increasing efficiency to realize scale effects, thereby enhancing market share and profitability.

Hua Hong’s guidance for Q1 2026 indicates an expected sales revenue of approximately $650 million to $660 million, with a gross profit margin of about 13% to 15%.

(Source: Kechuangban Daily)