In This Article:
-
Q4 2024 Revenue: $539 million, 18.4% increase over Q4 2023.
-
Q4 2024 Gross Margin: 11.4%, 7.4 percentage points higher than Q4 2023.
-
Q4 2024 Operating Expenses: $110.6 million, 16.4% increase over Q4 2023.
-
Q4 2024 Net Loss: $96.3 million, compared to a profit of $3.5 million in Q4 2023.
-
Q4 2024 Basic Earnings Per Share: Negative $0.015, compared to $0.021 in Q4 2023.
-
Q4 2024 Net Cash Flows from Operating Activities: $308.1 million, 56.8% increase over Q4 2023.
-
Q4 2024 Capital Expenditures: $1,505.7 million.
-
Full Year 2024 Revenue: $2.004 billion, 12.3% decrease from 2023.
-
Full Year 2024 Gross Margin: 10.2%, 11.1 percentage points lower than 2023.
-
Full Year 2024 Net Loss: $140.4 million, compared to a net profit of $126.4 million in 2023.
-
Full Year 2024 Basic Earnings Per Share: $0.034, compared to $0.189 in 2023.
-
Q1 2025 Revenue Outlook: $530 million to $550 million.
-
Q1 2025 Gross Margin Outlook: 5% to 11%.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Hua Hong Semiconductor Ltd (HHUSF) achieved a revenue of USD 539 million in Q4 2024, marking an 18.4% increase over Q4 2023.
-
The company maintained a high average capacity utilization rate approaching 100%, which is a leading level for global wafer foundry enterprises.
-
Successful construction and commencement of operation in the second 12-inch production line in Wuxi represents a significant milestone.
-
Revenue from embedded non-volatile memory increased by 22.5% compared to Q4 2023, driven by demand for MCU and smart car ICs.
-
The company plans to intensify R&D investment and expand capacity, focusing on evolving demands of critical emerging industries.
Negative Points
-
Gross margin for Q4 2024 was 11.4%, which is 0.8 percentage points lower than Q3 2024.
-
Net loss for Q4 2024 was $96.3 million, compared to a profit of $3.5 million in Q4 2023.
-
Operating expenses increased by 16.4% over Q4 2023, primarily due to increased engineering wafer costs and new fab start-up costs.
-
Revenue from Europe and Japan decreased by 22.8% and 36.9% respectively, compared to Q4 2023.
-
The company experienced foreign exchange losses and decreased government subsidies, impacting financial performance.
Q & A Highlights
Q: What business strategies will Dr. Bai promote as the new President of Hua Hong Semiconductor? A: Dr. Bai emphasized improving efficiency, reducing costs, and localizing the supply chain to enhance supply chain security. These efforts are part of a broader strategy to promote better technology platforms and improve marketing efforts. (Peng Bai - President and Executive Director)