**Bullish Points:**
1. Gross profit margin improved significantly to 34.1% in 2024 from 21.3% in 2023.
2. Net profit attributable to owners of the parent increased to US$449.9 million in 2024 from US$280.0 million in 2023.
3. Earnings per share (EPS) rose to US$0.345 in 2024 from US$0.189 in 2023.
4. The second 12-inch production line in Wuxi was successfully put into operation ahead of schedule in Q4 2024.
5. The company accumulated a total of 4,644 authorized patents by the end of 2024.
6. Implemented cost-reduction and efficiency-enhancement measures across various departments.
7. The company expects steady revenue growth starting in 2025 from the new production line and integrated specialty process platforms.
8. Capacity utilization increased to 99.5% in 2024.
9. Wafer shipments increased by 10.8% year-on-year to 4,545 thousand wafers in 2024.
10. The Analog & PM and Logic & RF platforms delivered strong revenue growth in 2024.
11. The company achieved a 9.53% reduction in GHG emissions per unit product in 2024.
12. Comprehensive energy consumption per unit product decreased by 9.08% in 2024.
13. Water consumption per unit product decreased by 2.49% in 2024.
14. The company’s Shanghai Production Base was awarded the Shanghai Green Manufacturing Demonstration List in 2024.
15. The company’s Wuxi Production Base was awarded the title of Advanced Energy-Conservation and Emission-Reduction Enterprise.
16. The diversification rate of raw material suppliers increased significantly in 2024.
17. Senior management collectively increased their holdings of the company’s A-shares.
18. The company’s total assets increased by 50.5% to $6.583 billion, primarily due to the expansion of new production lines.
19. Government grants increased to US$57,563,000 from US$35,017,000 in 2023.
**Bearish Points:**
1. Revenue for 2024 was US$2,004 million, a decrease of 12.3% compared to the previous year.
2. Gross profit for 2024 was US$205.128 million, a decrease of 57.9% compared to 2023.
3. Administrative expenses increased by 8.8% to US$351.276 million in 2024.
4. Loss for the year 2024 was US$140.385 million compared to a profit of US$126.425 million in 2023.
5. Cash and cash equivalents decreased by 20.2% to US$4,459.132 million as of 31 December 2024.
6. Total interest-bearing bank borrowings increased by 4.7% to US$2,197.939 million.
7. The company’s waste produced per unit product increased by 8.41% in 2024.
8. The company’s operating cash flow decreased by 28.4% to $459.495 million.
9. The company’s financing cash flow decreased by 69.6% to $1.150 billion.
10. The company’s debt-to-equity ratio was 11.1%.
11. The Board did not recommend the payment of any dividend for the year ended 31 December 2024.
12. Basic earnings per share decreased to US$0.034 from US$0.189 in 2023.
13. The Group’s property, plant, and equipment net carrying amount increased significantly, indicating higher capital expenditures.
14. The Group’s intangible assets net carrying amount decreased to US$31,456,000 from US$49,827,000 in 2023.
15. Trade and notes receivables decreased to US$270,461,000 from US$278,669,000 in 2023.
**Summary:**
HUA HONG SEMI (01347) experienced a challenging year in 2024 with a notable decrease in revenue and a transition from profitability to a net loss. Despite these setbacks, the company made significant strides in improving its gross profit margin, increasing net profit attributable to owners, and enhancing its production capabilities with the successful operation of a new production line. The company also made substantial progress in environmental sustainability and supply chain diversification. However, increased administrative expenses, higher debt levels, and reduced cash flow are areas of concern. The company’s strategic investments and cost-control measures are expected to drive steady revenue growth starting in 2025.
For more information, you can read the original text of HUA HONG SEMI's financial report.
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