NewTimeSpace丨Hang Seng TECH Index Closes Out 2025: Three Constituents Double, Hua Hong Semiconductor Limited (01347.HK) Leads Gains

The Hang Seng TECH Index rose from 4,468.11 points to 5,515.98 points in 2025, achieving a full-year gain of 23.45%. Among Hong Kong's three major indices, the Hang Seng Index gained 27.77%—marking its best annual performance in five years—while the Hang Seng China Enterprises Index increased 22.27%.

Amid the broad-based rally across all three indices, full-year southbound capital net purchases exceeded HK$1.4 trillion, with cumulative net purchases surpassing HK$5 trillion. Hong Kong's stock market saw hotspot sectors blooming across the board, with non-ferrous metals and semiconductors particularly standing out.

Public information shows that the Hang Seng TECH Index, launched in July 2020, aims to reflect the overall performance of the 30 largest technology-themed listed companies in Hong Kong and is hailed as the Asia-Pacific version of the "Nasdaq 100 Index." Its constituents cover core technology sectors including internet, fintech, cloud computing, e-commerce, and digital business.

As of 2025, the information technology industry weighting accounts for approximately 77%, encompassing technology leaders across multiple industries including industrials, healthcare, financials, non-essential consumer goods, and others.

According to New Spacetime Research statistics, the Hang Seng TECH Index currently comprises 30 constituents. In 2025, 22 stocks posted gains with an average increase of 61.63%. Three stocks doubled in value, with nearly half gaining over 50%. Eight stocks declined with an average drop of 15.89%, and five fell more than 10%.

Top performers included Hua Hong Semiconductor, Horizon Robotics-W, SMIC, JD Health, and Alibaba-W, primarily representing semiconductors, robotics, healthcare, and e-commerce sectors.

Among these leading gainers, SMIC is also a Hang Seng Index constituent. Its 2025 performance was covered in a separate analysis; interested readers may refer to: https://www.newtimespace.com/en/research/1362270.html

Among Hang Seng TECH constituents, aside from SMIC, Hua Hong Semiconductor, Horizon Robotics-W, and JD Health led gains.

New Spacetime Research learned that Hua Hong Semiconductor is a specialty process wafer foundry providing wafer foundry and supporting services to global customers. In 2025, the global semiconductor market gradually emerged from its adjustment period, driven by technological innovation and recovering demand in certain end markets.

Benefiting from industry recovery and domestic supply chain advancement, Hua Hong Semiconductor achieved significant revenue growth in the first three quarters of 2025. Its Q3 report shows revenue of RMB 12.583 billion for the first nine months, up 19.82% year-on-year. However, net profit attributable to parent company was RMB 251 million, down 56.52% year-on-year, reflecting a pattern of rising revenue without profit growth. The core reason for profit decline was that high depreciation pressure from new production lines and continuous R&D investment eroded current profit margins.

From a profitability perspective, gross margin improved to 18.92% in the first three quarters, up 1.35 percentage points from 17.57% in H1, showing clear signs of improved profitability. Net cash flow from operating activities was RMB 2.974 billion, up 129.58% year-on-year, indicating significantly optimized cash position.

New Spacetime Research learned that Horizon Robotics originally started as an AIoT company, launching its autonomous driving business in 2017 and gradually growing into an autonomous driving chip enterprise. Horizon Robotics-W has now formed a "chip + architecture + system" trinity product system with continuous iteration, featuring a clear evolution path and mass production rhythm, making it one of the few domestic ADAS suppliers with full-stack self-research and continuous iteration capabilities.

In H1 2025, Horizon Robotics reported revenue of RMB 1.567 billion, up 67.6% from RMB 935 million in the same period last year. Operating loss was RMB 1.592 billion, up 44% from RMB 1.1 billion; adjusted operating loss was RMB 1.111 billion, up 34.9% from the adjusted operating loss of RMB 824 million in the same period last year.

On December 15, 2025, China's first batch of L3-level conditional autonomous driving vehicle access permits marked a critical node for commercialization. Industry insiders generally believe that 2026 will become China's "mass production year" for L3 autonomous driving. As a domestic ADAS leader, Horizon Robotics received capital market recognition in 2025.

JD Health, as a leading pharmaceutical e-commerce platform and the "first entry point for online health consumption," further strengthened its self-operated, online platform, and instant retail omni-channel supply chain capabilities in 2025, refining synergies among the three models.

In terms of performance, profit growth momentum continued to strengthen. Data shows that in Q3 2025, JD Health achieved operating revenue of RMB 17.12 billion, up 28.7% year-on-year from RMB 13.3 billion, accelerating from Q2's 23.7% growth rate. Operating profit reached RMB 1.243 billion, up 125.3% year-on-year.

In Q3 2025, JD Health signed strategic cooperation agreements with several renowned pharmaceutical companies including Eli Lilly, Innovent Bio, and Bayer China, further consolidating its advantages in high-end pharmaceutical supply chain and strengthening its market position as the "first online launch station for new and special drugs."

After reviewing the rising stocks in Hang Seng TECH, let's examine the companies that weakened against the trend in 2025.

In 2025, despite the Hang Seng Index's strength, eight listed companies still weakened against the trend, with five declining more than 10%. Among the top decliners, the three leading companies were Meituan-W, Li Auto-W, and BYD Electronic.

Notably, these three listed companies were also the leading decliners in the Hang Seng Index. Detailed analysis and introduction were provided in the Hang Seng Index list; interested readers may refer to:https://www.newtimespace.com/en/research/1362270.html

In the Hang Seng TECH Index decline list, New Spacetime Research focuses on JD.com-SW, Kingsoft, and Haier Smart Home.

New Spacetime Research learned that in Q3 2025, JD.com achieved revenue of RMB 299.059 billion, up 14.9% year-on-year, beating market expectations. More importantly, JD Retail performed steadily with revenue of RMB 250.577 billion, up 11.4% year-on-year, with operating margin of 5.9%, up from 5.2% in the same period last year.

Despite impressive revenue growth, JD.com's net profit attributable to ordinary shareholders was RMB 5.3 billion, compared with RMB 11.7 billion in the same period last year. The profit decline was mainly due to strategic investments in new businesses such as food delivery, with new business losses of RMB 15.736 billion in Q3.

Additionally, operating losses for new businesses expanded to RMB 15.7 billion in Q3, up about RMB 1 billion quarter-on-quarter. Although the company stated that food delivery subsidies have significantly tapered this quarter, the investment has not disappeared. Moreover, under the叠加of food delivery distribution, internal fulfillment volume growth, and overseas expansion costs, logistics shifted from being a stable profit generator to a drag on profitability.

Under the food delivery war, Meituan's performance declined significantly, and JD.com was similarly affected. Both companies underperformed in the capital market in 2025.

Kingsoft is an internet software company listed on the Hong Kong Stock Exchange in 2007. Its business involves the design, R&D, and sales promotion of WPS Office software products and services, with main business lines including Kingsoft Office, Seasun, Kingsoft Cloud, and Cheetah Mobile.

Kingsoft released its Q3 2025 financial report, showing Q3 revenue of RMB 2.419 billion, down 17% year-on-year, and net profit of RMB 213 million, down 48% year-on-year. In terms of performance, Kingsoft was mainly dragged down by gaming, with online game and other business revenue of RMB 898 million in Q3, down 47% year-on-year and 6% quarter-on-quarter, accounting for 37% of gaming revenue.

Regarding the Q3 gaming business decline, Kingsoft's CEO stated it was mainly due to declining revenues from "Jian Wang 3" and "Snowbreak: Containment Zone," while the new game "Mecha Break" is in its early development stage and has not yet established market influence.

Compared with the above two companies' weakness, Haier Smart Home delivered a solid performance report.

New Spacetime Research learned that Haier Smart Home's main business is the R&D, production, and sales of home appliances, covering refrigerators/freezers, kitchen appliances, air conditioners, laundry equipment, water appliances, and other smart home businesses, as well as providing complete smart home solutions.

In the first three quarters of 2025, Haier Smart Home achieved operating revenue of RMB 234.05 billion, up 10% year-on-year; net profit attributable to parent company was RMB 17.37 billion, up 14.7% year-on-year, hitting a record high. Q3 alone saw revenue of RMB 77.56 billion, up 9.5% year-on-year; net profit of RMB 5.34 billion, up 12.7% year-on-year.

Moreover, Haier Smart Home's overseas performance in 2025 was outstanding, with overseas revenue up 10.5% year-on-year during the reporting period, achieving balanced development across regional markets. North America operated steadily, European market share expanded steadily, South Asian market grew over 25%, Southeast Asian market grew over 15%, and Middle East-African market grew over 60%.

However, in the capital market, Haier Smart Home's performance was not recognized, with both A-shares and H-shares closing lower in 2025.

Looking ahead to 2026, CITIC Securities stated that Hong Kong stocks will enter the second round of valuation repair in 2026 amid policy dividends and external risk games, with internal and external factors resonating to further open up upside space. In this context, investment should focus on the mainline of "earnings certainty + valuation elasticity," concentrating on four major tracks: technology, pharmaceuticals, resources, and essential consumption. From a allocation perspective, the revaluation of pricing power for resources and traditional manufacturing, as well as corporate overseas expansion, remain core allocation directions for institutions.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.