On February 13, 2020, Hua Hong Semiconductor Co., Ltd. (Hong Kong Stock Exchange: 1347), the world's leading unique technology pure wafer foundry, announced today as of December 2019 Comprehensive operating results for the three months ended 31st.
Major financial indicators for the fourth quarter of 2019 (unaudited)
Sales revenue was US $ 242.8 million, a year-on-year decrease of 2.5% and a month-on-month increase of 1.6%.
Gross profit margin was 27.2%, a year-on-year decrease of 6.8 percentage points and a month-on-month decrease of 3.8 percentage points.
Profit for the period was US $ 14 million, compared with US $ 48.6 million in the same period last year and US $ 44.4 million in the previous quarter.
Profit attributable to owners of the parent company was US $ 26.2 million, compared with US $ 49 million in the same period last year and US $ 45.2 million in the previous quarter.
Basic earnings per share were $ 0.020, compared with $ 0.042 in the same period last year and $ 0.035 in the previous quarter.
Return on net assets (annualized) 4.8%.
Major financial indicators for 2019 (unaudited)
Sales revenue reached a record high, reaching 932.6 million US dollars, an increase of 0.2% over the previous year.
Gross profit margin was 30.3%, a decrease of 3.1 percentage points from the previous year.
Profit for the year was $ 155 million, compared with $ 185.6 million for the previous year.
Profit attributable to owners of the parent company was $ 162.2 million, compared with $ 183.2 million in the previous year.
Basic earnings per share were $ 0.126, compared with $ 0.171 last year.
Return on net assets was 7.4%.
Guidance for the first quarter of 2020
We expect sales to be around $ 200 million.
We expect gross margins to be between 21% and 23%.
Dividend distribution in 2019
The company will decide the dividend distribution plan for fiscal year 2019 at the annual meeting held in May 2020.
Message from the President
Mr. Tang Junjun, the president and executive director of the company, commented on the fourth quarter results:
"I'm happy to share with you the company's fourth quarter 2019 results. As you know, the company's management set a very challenging sales target of $ 242 million for the fourth quarter. We know this is A arduous task. In fact, the company's fourth-quarter sales revenue reached US $ 242.8 million, which is the result of our entire team's sincere cooperation and concerted efforts in a challenging market environment. The key is the new The Wuxi 12-inch production line achieved a shipment target of US $ 7.4 million, which is of great significance for the company's future development. The gross profit margin for the quarter was 27.2%. The decline in gross profit margin was mainly due to the decline in capacity utilization and increase in personnel expenses. We are very proud of the official production in the fourth quarter. "
"In the current growing 5G smartphone market, the company currently provides 8-inch platform-based embedded flash memory, power discrete devices, RF-SOI, and power management technical support to many top customers at home and abroad. Our technology research and development The team is, as always, recharging for the growing 5G smartphone market and developing more advanced technologies for related products that will be put into production at the 12-inch factory in Wuxi this year. We saw the production of various products on this new production line. Great opportunities, such as smart card chips, MCUs, power discretes, CIS, logic and RF chips. Customers are very interested in this. For the company's management, the current priority is to ensure that the 12-inch production line can complete the climb smoothly and quickly. Increase the volume and contribute to the company's revenue and profit growth as soon as possible. "
"2019 is a great year for Hua Hong Semiconductor." Mr Tang commented on the company's annual performance. "The semiconductor industry environment in 2019 is full of challenges, and the company has not only built an advanced 12-inch production line, but its overall operating performance has also been very strong and remarkable. I am very proud of this. According to the analysis of the American Semiconductor Industry Association, The global semiconductor market fell by 12% in 2019, but our company's total sales revenue reached US $ 932.6 million, an increase of 0.2% over the previous year. The extraordinary revenue performance was mainly due to the increased demand for MCU, super junction, IGBT and general MOSFET products, especially It is in China, the rest of Asia, and Europe. The gross profit margin was 30.3%, a decrease of 3.1 percentage points from the previous year, mainly due to lower capacity utilization, higher personnel expenses and higher raw material unit costs, which were partially offset by higher average sales prices. Net profit The rate is 16.6%. "
Mr. Tang concluded, "I am deeply honored to be able to lead an outstanding team. We will continue to work on the task of climbing the capacity of Wuxi without fear of challenges. I am confident that with the support of shareholders and the board of directors, we will lead the company Reach a new height. "