Executive Summary
HG Semiconductor reported QQ1 2025 revenue of 16.53 million CNY, marking a year-over-year decline of 22.6% and a quarterly decline of 3.5%. The quarter reflects ongoing structural costs tied to R&D and selling/general administration, with gross profit of 1.61 million CNY and a gross margin of 9.72%. Operating performance remained negative, as EBITDA came in at -27.71 million CNY and operating income at -43.80 million CNY, driven by high SG&A expenses (33.65 million CNY) and significant R&D outlays (11.75 million CNY). Net income was -29.65 million CNY, resulting in an EPS of -0.0385. These metrics indicate active restructuring and a period of significant investment, underscoring the need for improved cost discipline and revenue progression to reach sustainable profitability. Management commentary is not provided in the data, and there is no formal forward guidance available, which increases these quarter-on-quarter uncertainties. The key question for investors is whether HG can translate its LED/bead and subcontracting capabilities into higher-margin, scalable revenue while expediting cost reductions.
Key Performance Indicators
QoQ: -3.48% | YoY:-22.56%
QoQ: 18.25% | YoY:-41.49%
QoQ: -19.62% | YoY:-83.33%
Key Insights
Revenue performance: QQ1 2025 revenue of 16,530,500 CNY, down -22.56% YoY and -3.48% QoQ. Gross profit: 1,607,000 CNY with a gross margin of 9.72% (grossProfitRatio 0.0972). Operating performance: EBITDA -27,705,000 CNY; EBIT -43,796,000 CNY; EBITDARatio -1.68; Operating income -43,796,000 CNY and operating income margin -2.65%. Profitability: Income before tax -33,002,000 CNY; net income -29,646,500 CNY; net income margin -1.79%; EPS -0.0385. Cost structure: R&D 11,750,000 CNY; General and ...
Financial Highlights
Revenue performance: QQ1 2025 revenue of 16,530,500 CNY, down -22.56% YoY and -3.48% QoQ. Gross profit: 1,607,000 CNY with a gross margin of 9.72% (grossProfitRatio 0.0972). Operating performance: EBITDA -27,705,000 CNY; EBIT -43,796,000 CNY; EBITDARatio -1.68; Operating income -43,796,000 CNY and operating income margin -2.65%. Profitability: Income before tax -33,002,000 CNY; net income -29,646,500 CNY; net income margin -1.79%; EPS -0.0385. Cost structure: R&D 11,750,000 CNY; General and administrative expenses 33,653,000 CNY; Selling and marketing expenses 718,500 CNY; total operating expenses 45,403,000 CNY; cost and expenses 60,326,500 CNY. Depreciation and amortization 4,341,000 CNY. Balance sheet and cash flow data are not disclosed in the provided material; thus a full cash flow reconciliation and liquidity assessment cannot be completed from the available figures.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.53M |
-22.56% |
-3.48% |
| Gross Profit |
1.61M |
-41.49% |
18.25% |
| Operating Income |
-43.80M |
-83.33% |
-19.62% |
| Net Income |
-29.65M |
41.65% |
-9.30% |
| EPS |
-0.04 |
47.83% |
-6.65% |
Management Commentary
Transcript highlights: No earnings-call transcript data were provided in the material. As a result, there are no management quotes or theme-by-theme insights to extract. The analysis herein relies solely on the disclosed P&L metrics and segment considerations. Note to readers: access to actual management commentary would enable a more precise linking of cost-control initiatives, product mix optimization, and strategic priorities to the observed financial outcomes.
Transcript not available in the provided data.
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Transcript not available in the provided data.
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Forward Guidance
No formal forward guidance was included in the provided data. Given the QQ1 2025 results, HG Semiconductor faces a challenging near-term path, with negative profitability and a lean revenue base. Our qualitative assessment suggests potential upside if management executes on: (1) cost optimization—targeting SG&A and R&D leverage to drive margin expansion without compromising core product development; (2) revenue mix enhancement—accelerating higher-margin LED modules and subcontracting services, and expanding backlight/LED panel opportunities in key PRC customers and export channels; (3) working-capital and mix-shift improvements that could reduce cash burn. Key factors for investors to monitor include: any announced cost-reduction programs, schedule of new product launches or contract wins, changes in capacity utilization, and any formal guidance on near-term revenue and profitability targets.