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| - Revenue increased by 22.5% to HK$102.4m; Sales of LED epoxy recorded significant increase |
HONG KONG, Aug 9, 2019 - (ACN Newswire) - Niche-Tech Group Limited ("Niche-Tech"; HKEx: 8490.HK), a leading semiconductor packaging materials manufacturer, announced the interim results of the Group for the six months ended 30 June 2019 (the "Period") yesterday.
Performance Highlights:
- Revenue of the Group increased by 22.5% to approximately HK$102.4 million for the Period (1H2018: approximately HK$83.6 million).
- Gross profit of the Group grew by 15.9% to approximately HK$19.9 million for the Period (1H2018: approximately HK$17.2 million).
- Profit attributable to owners of the Company for the Period was approximately HK$0.2 million (1H2018: loss of approximately HK$7.7 million (net profit after tax of approximately HK$2.7 million excluded the effect of the non-recurring listing expenses)).
During the Period, growth in semiconductor product industry continued, driving growth in demand for semiconductor packaging materials. By devotedly implementing its core business strategies and catching up to industry growing demand of the LED epoxy and metal alloy (gold and silver) bonding wires, the Group had achieved satisfactory business performance during the Period. The Group recorded outstanding growth in its revenue and gross profit, with an in-crease of approximately 22.5% and approximately 15.9% respectively.
The Group recorded a net profit after tax of approximately HK$0.2 million during the Period, as compared with a loss of approximately HK$7.7 million (net profit after tax of approximately HK$2.7 million excluded the effect of the non-recurring listing expenses) in the corresponding period last year ("1H2018").
In light of the growing demand from the semiconductor packaging market, especially the large demand of packaging materials of LED products for various applications, the Group had enhanced its production capability during the Period by acquiring more machineries and upgrading its facilities. The Group's two new encapsulant production lines have commenced production and enhanced the production capability of the Group significantly. In addition, the Group has continued to develop and launch its new products to meet the requirements of customers, among which, the new products for mini-LED packaging has already gained a wide recognition from its customer during the Period.
Business Review
Revenue
The Group's revenue principally represents income derived from its main products, namely bonding wire and encapsulant. During the Period, the Group recorded a revenue of approximately HK$102.4 million, increased by 22.5% from approximately HK$83.6 million recorded in 1H2018.
The revenue of encapsulant products recorded an increase of 14.6% to approximately HK$12.3 mil-lion during the Period (1H2018: approximately HK$10.7 million), mostly due to an increase in sales of LED epoxy. The revenue of bonding wire products recorded an increase of 20.0% to approximately HK$81.3 million during the Period (1H2018: approximately HK$67.7 million), mostly due to the in-crease in sales volume.
Cost of Sales and Gross Profit
The Group's cost of sales mainly comprised direct material costs, direct labour costs and manufacturing overhead. During the Period, the Group's cost of sales increased by 24.2% to approximately HK$82.5 million (1H2018: approximately HK$66.4 million) which was in line with the increase in revenue.
The gross profit of the Group increased by 15.9% to approximately HK$19.9 million for the Period (1H2018: approximately HK$17.2 million). Gross profit margin was approximately 19.5% for the Period (1H2018: 20.6%), remained similar with that of 1H2018.
Mr. Chow Bok Hin Felix, Executive Chairman and Executive Director of the Group concluded, "Looking ahead, we remain confident about the industry and the Group's future development. We believe, the continuous support from the PRC government, together with the emerging markets of automotive electrification, industrial automation, Internet of Things and artificial intelligence, will drive the further growth of semiconductor industry in the PRC and bring new opportunities to the semiconductor packaging materials industry. Under this condition, we believe that the Group's established position in the PRC bonding wire industry, would allow the Group to pursue more business opportunities."
Mr. Chow added, "In light of the positive industry outlook and market potential, the Group is putting more efforts to develop new products, especially in the packaging of LED products for various applications, such as agriculture and medical lighting. We believe these new products will become another growth momentum for the Group in the near future."
About The Group
The Group was established in 2006 and was successfully listed on the GEM of Hong Kong Stock Ex-change in 2018. Niche-Tech is a manufacturer of semiconductor packaging materials and new mate-rials in the High and New Technology field, specializing in the development, manufacture and sales of bonding wire, encapsulant and special metal materials. Since 2010, the Group has become a High and New Technology Enterprise in the PRC. In 2016, Niche-Tech was recognised as a National Intellectual Property Outstanding Enterprise by the State Intellectual Property Office of the PRC and obtained the recognition as Guangdong Academic Experts (Cor-porate) Workstation in 2017.
This press release is disseminated by TNG Financial Services Limited on behalf of Niche-Tech Group Limited.
Topic: Press release summary
Source: Niche-Tech Semiconductor Materials Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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