HG Semi (06908) released its unaudited interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue climbed 55.9% year-on-year to RMB 51.62 million, driven chiefly by stronger LED bead sales. • Gross profit slipped 12.5% to RMB 2.78 million as the consolidated gross margin narrowed to 5.4% (H1 2025: 9.7%), reflecting higher material costs and lower pricing in GaN products. • Net loss attributable to shareholders contracted to RMB 34.64 million from RMB 59.29 million a year earlier; total net loss stood at RMB 41.04 million. • Loss per share improved to RMB 3.05 cents (H1 2025: RMB 7.70 cents).

Segment Performance • LED products contributed RMB 46.32 million, representing 89.7% of group revenue and a 85.8% surge versus the prior-year period. Segment gross margin declined to 5.8%. • GaN and other semiconductor products generated RMB 5.30 million, down 34.8% year-on-year, with a margin of 1.8%.

Cost Structure • Cost of sales increased 63.8% to RMB 48.85 million, outpacing revenue growth. • Administrative and other expenses fell 40.3% to RMB 39.17 million, reflecting lower payroll, R&D and share-based payment charges. • Research and development spending amounted to RMB 17.50 million (H1 2025: RMB 23.50 million). • Finance costs dropped to RMB 0.70 million from RMB 2.26 million.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 7.22 million at period-end (31 December 2025: RMB 14.62 million). • Net current assets were RMB 119.57 million; current ratio declined to 2.4x (end-2025: 4.7x). • Bank borrowings totalled RMB 20.00 million with an effective interest rate of 3.12%; RMB 10.00 million is secured against property, plant and equipment. • A promissory note of RMB 35.65 million was issued to finance part of an acquisition, increasing non-current liabilities to RMB 40.46 million. • Total equity attributable to owners reached RMB 423.24 million.

Corporate Actions • Completed acquisitions of Join Gain HK and Red Mont, lifting the group’s stake in Shenzhen Jiahong Semiconductor to 73.28%. Consideration comprised HK$73.39 million settled by issuing 146.78 million new shares and an interest-bearing promissory note of HK$40.82 million. • No interim dividend was declared.

Outlook Statements The board reiterated its strategy to accelerate development of gallium-nitride epitaxial wafer capability, expand downstream applications, and strengthen its integrated device manufacturing model across R&D, production, packaging, and sales.