HG Semiconductor Narrows Annual Loss Despite Margin Squeeze and Lower Equity

The latest update is out from HG Semiconductor Limited ( (HK:6908) ).

HG Semiconductor Limited reported a 29.9% rise in revenue to RMB97.8 million for the year ended 31 December 2025, but its gross profit fell 43.4% to RMB4.4 million as cost of sales grew faster than turnover and margins narrowed. The company remained loss-making, though its net loss narrowed by 26.8% to RMB134.0 million, with total assets and equity both declining by around low double digits, indicating ongoing financial pressure despite some improvement in bottom-line performance.

The group’s gross profit margin slid from 10.3% to 4.5%, highlighting continued profitability challenges even as impairment losses on receivables and assets were lower than the previous year and operating expenses fell slightly. Key balance sheet metrics showed a still-strong current ratio of 4.7 and low gearing of 2.0%, suggesting liquidity and leverage remain manageable, but the drop in equity and the sizeable comprehensive expense underscore that the business has yet to achieve a sustainable turnaround in its financial health.

The most recent analyst rating on (HK:6908) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on HG Semiconductor Limited stock, see the HK:6908 Stock Forecast page.

More about HG Semiconductor Limited

HG Semiconductor Limited is a Cayman Islands-incorporated semiconductor company listed in Hong Kong that develops and sells semiconductor products and related technologies. The group operates through various subsidiaries and focuses on manufacturing and supplying semiconductor components, positioning itself within the broader electronics and technology hardware value chain.

Average Trading Volume: 1,446,740

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$504.7M

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