NICHE-TECH SEMI (Tech-Niche Semiconductor Materials Limited) released its unaudited 2026 interim results for the six months ended 30 June 2026.
Revenue and Segment Performance • Group revenue fell 16.00 % year on year to HK$64.54 million (2025: HK$76.85 million). • Wire-bonding materials contributed HK$36.32 million, down 25.12 % amid weaker consumer electronics demand and intensified pricing pressure. • Encapsulant sales were broadly stable at HK$24.94 million (2025: HK$24.87 million). • “Others” revenue slipped 3.94 % to HK$3.29 million.
Profitability • Cost of sales declined 16.20 % to HK$55.54 million, keeping gross margin steady at 13.95 % (2025: 13.75 %). • Administrative expenses eased 7.01 % to HK$13.32 million after cost-control measures; selling and distribution costs remained flat at HK$4.16 million. • Finance costs contracted 21.00 % to HK$2.34 million. • No impairment on intangible assets was booked versus a HK$18.82 million charge a year earlier. • Consequently, loss before tax narrowed to HK$10.18 million from HK$29.58 million. • Net loss attributable to owners contracted to HK$11.24 million (2025: HK$30.46 million), translating into a basic loss per share of HK1.59 cents (2025: HK4.32 cents). • Total comprehensive loss decreased to HK$5.82 million (2025: HK$24.93 million), supported by favourable currency translation gains.
Balance Sheet and Liquidity • Total assets stood at HK$263.23 million, with net assets of HK$136.07 million (31 Dec 2025: HK$141.89 million). • Current ratio remained at 1.20; gearing (interest-bearing debt to equity) rose to 63.0 % (31 Dec 2025: 54.4 %). • Net operating cash inflow improved to HK$12.59 million, but overall cash and cash equivalents closed negative at HK$10.58 million due to HK$8.91 million financing outflow and HK$3.45 million investing outflow.
Bank Borrowings and Default Status • Bank borrowings totalled HK$67.78 million and bank overdrafts HK$17.89 million at 30 June 2026. • Approximately HK$45.20 million of loans and related interest were in default as the Group did not meet scheduled repayments. • No legal proceedings have commenced; the company has appointed an independent debt advisor and is negotiating refinancing and restructuring options with lenders.
Capital Expenditure and Commitments • HK$0.18 million was deployed for plant and equipment additions during the period. • Outstanding capital commitments amounted to HK$0.22 million.
Dividend • The Board did not recommend an interim dividend (2025: nil).
Outlook and Management Actions • Management sees continued near-term pressure from high funding costs and subdued domestic consumption but remains constructive on long-term demand driven by AI computing, power semiconductors and localisation initiatives in China. • Core strategies focus on R&D for high-performance, lower-cost bonding wires, thermally conductive encapsulants and deeper collaboration with leading domestic customers. • The company is implementing cost-cutting, exploring new precious-metal trading activities (subject to working-capital availability), and seeking new financing channels.
Governance Updates • Dr. Chow Hin Bok Felix continues as Executive Chairman; Mr. Shi Yiwu and Mr. Fan Chiu Li retired from the Board at the 1 June 2026 AGM. • The Audit Committee reviewed the interim financial statements and confirmed compliance with applicable accounting standards and GEM Listing Rules.
No interim dividend, material acquisitions, disposals, or contingent liabilities were reported.