HaoWei Group (豪威集团) posts strong 2025 results — but profits may be masking risks

Strong headline numbers, shaky under the surface

HaoWei Group (豪威集团), formerly Will Semiconductor (韦尔股份), reported what looks like a strong 2025: revenue of ¥28.855 billion, up 12.14%, and net profit attributable to shareholders of ¥4.045 billion, up 21.73%. On the face of it, a clean beat. But is the headline as healthy as it looks? Profit growth noticeably outpaced revenue growth, and much of the improvement stems from non-operating items rather than core operations.

Growth driven by CIS rebound — but smartphones lag

It has been reported that the global semiconductor cycle bottomed and began recovering in 2025, with demand for automotive CIS (CMOS image sensors) and AIoT fuelling a market rebound. According to Sigmaintell, global in‑vehicle CIS demand surpassed 460 million units in 2025, a 21% year‑on‑year rise. HaoWei’s semiconductor design segment brought in ¥23.80 billion (82.6% of main business revenue), and image sensor solutions accounted for ¥21.246 billion (73.73%), up 10.71% — the clear engine of growth. Yet smartphone CIS revenue fell 15.61% year‑on‑year and still represents about 39% of the business, leaving the company exposed while it tries to pivot toward automotive and new markets.

Financial engineering and inventory build pose risks

The company’s reported financials show a steep drop in financial expenses (down 470.08%), with interest income from cash management contributing roughly ¥394 million to the profit line — a non‑operating boost that may not be repeatable. Management expenses eased as depreciation fell, and sales costs rose only marginally. Worryingly, inventories climbed to ¥8.598 billion, making up 32.49% of current assets and growing 23.61% — well above revenue growth. HaoWei itself warned that failure to timely match downstream changes or sell inventory would negatively affect operating performance and cash flow.

What to watch next

For Western readers, the numbers underline a familiar theme in China’s chip sector: strong pockets of demand (auto, AIoT) even as legacy smartphone volumes soften, all against a backdrop of geopolitical pressures on supply chains and export controls that shape investment and customer decisions. Investors and partners should watch inventory trends, the sustainability of financial income, and the pace at which automotive and new‑market revenues can replace smartphone declines. Can operational performance catch up with the glossy headline profit? That will determine whether the 2025 results mark a durable turnaround or a short‑lived reprieve.