Niche-Tech Semiconductor Materials Limited announced its audited results for the year ended 31 December 2025.

Revenue fell 24.6% year-on-year to HK$146.94 million, driven by weaker demand and price pressure in both bonding wire and encapsulant segments. Gross profit contracted 42.7% to HK$20.13 million, trimming the gross margin to 13.7% (2024: 18.0%).

The company booked a HK$15.99 million impairment on intangible assets and a HK$0.69 million provision for slow-moving inventories. After these charges, loss attributable to shareholders narrowed slightly to HK$38.85 million (2024: HK$43.08 million), equivalent to a loss of 5.51 HK cents per share. EBITDA before the impairment was HK$3.80 million (2024: HK$15.30 million).

Liquidity remained strained. Cash and bank balances stood at HK$6.75 million versus total borrowings and overdrafts of HK$95.12 million. Of this, HK$47.26 million became immediately repayable after covenant breaches and payment defaults. Net current assets declined to HK$25.38 million (2024: HK$38.80 million) and the gearing ratio eased to 54.4% (2024: 78.0%) following partial debt reduction.

The auditor issued a disclaimer of opinion, citing material uncertainty over going concern due to recurring losses, negative operating cash flow and defaulted bank loans. Management is negotiating debt restructuring, seeking new financing and implementing cost controls.

No dividend was declared.

Looking ahead, the board targets cost reductions, higher-value product mix and expansion in domestic substitution opportunities within China’s semiconductor supply chain, while pursuing additional funding and operational efficiencies.