Hua Hong Semiconductor (1347) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $660.9 million, up 22.2% year-over-year and 0.2% sequentially, driven by higher wafer shipments and improved ASP, with gross margin at 13%, a 3.8 percentage point increase year-over-year, both in line with guidance.

• Net profit attributable to shareholders was $20.9 million, up 458.1% year-over-year and 19.9% sequentially.

• High capacity utilization maintained across all process technology platforms, with 12-inch wafer revenue contribution rising to 62.7%.

• Acquisition of Huali Micro accepted by Shanghai Stock Exchange and expected to close in H2 2026.

Financial highlights

• Revenue grew 22.2% year-over-year and 0.2% sequentially, driven by increased wafer shipments and ASP.

• Gross margin improved to 13% year-over-year, flat sequentially.

• Operating expenses were $105.6 million, up 8.8% year-over-year, down 18.9% sequentially.

• Net loss for the period was $17.3 million, narrowed by 66.9% year-over-year; net profit attributable to shareholders was $20.9 million.

• Net cash from operating activities was $130.4 million, up 159.9% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $690 million and $700 million, with gross margin projected at 14%-16%.

• Revenue growth for Q2 expected to be close to 5% quarter-over-quarter, driven by both ASP and volume growth.

• Acquisition of Huali Micro expected to close in H2 2026.