Q2 2024 Hua Hong Semiconductor Ltd Earnings Call Transcript
Key Points
- Hua Hong Semiconductor Ltd (HHUSF) reported sales revenue of USD 478.5 million for Q2 2024, in line with guidance and showing sequential growth.
- Gross margin improved to 10.5% in Q2 2024, up from 6.4% in Q1 2024, driven by increased capacity utilization.
- The company is progressing rapidly with the construction of its second 12-inch production line, expected to end trial production by the end of the year, which will expand capacity.
- Revenue from logic and RF increased by 11% over Q2 2023, driven by increased demand for CIS and logic products.
- Hua Hong Semiconductor Ltd (HHUSF) expects revenue for Q3 2024 to be approximately $500 million to $520 million, with a gross margin range of 10% to 12%.
- Revenue decreased from $631.4 million in Q2 2023 to $478.5 million in Q2 2024, primarily due to decreased average selling prices.
- Gross margin dropped significantly from 27.7% in Q2 2023 to 10.5% in Q2 2024, largely due to decreased average selling prices.
- Operating expenses increased by 7.8% over Q2 2023, primarily due to increased expenses for new fab Hua Hong Manufacturing and engineering wafer costs.
- The company reported a loss of $41.7 million for Q2 2024, compared to a profit of $7.8 million in Q2 2023.
- Revenue from several regions, including Europe and Japan, saw significant declines compared to Q2 2023, with Europe down 57% and Japan down 89.7%.
Ladies and gentlemen, thank you for standing by, and welcome to Hua Hong Semiconductor second quarter 2024 earnings conference call. The call is hosted by Mr. Junjun Tang, President and Executive Director and Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. (Operator Instructions)
The earnings press release and Second Quarter 2024 summary slides are available to download at our company's website, www.huahonggrace.com. Without further ado, I'd like to introduce you to Mr. Daniel Wang, Executive Vice President and Chief Financial Officer. Thank you.
Good afternoon, ladies and gentlemen. Thank you for joining us for our second quarter 2024 earnings conference. Today, we will first have Mr. Junjun Tang, our Executive Director and President make remarks on our second quarter performance.
President Tang will address in Chinese, and [Kathy Chien], our Deputy
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