|Revenue and Gross Profit recorded constant growth;|
Revenue of encapsulant products recorded a significant increase of 69.8%
HONG KONG, Mar 22, 2019 - (ACN Newswire) - Niche-Tech Group Limited ("Niche-Tech" or the "Company", with its subsidiaries collectively referred as the "Group"; HKEx Stock Code: 8490.HK), a leading semiconductor packaging materials manufacturer, announced the annual results of the Group for the year ended 31 December 2018 (the "Review Year" or "2018") yesterday.
- During 2018, the Group recorded a revenue of approximately HK$184.4 million, a 2.2% increase as compared with 2017
- The revenue of encapsulant products amounted to approximately HK$28.7 million, a 69.8% increase when compared with 2017
- The gross profit of the Group grew from approximately HK$37.7 million from 2017 to approximately HK$40.8 million in 2018, representing an increase of 8.2%
- The Group recorded a gross profit margin of 22.1% in 2018 (2017: 20.9%)
- Excluding the non-recurring listing expenses of approximately HK$10.4 million, the net profit of the Group in 2018 was approximately HK$10.8 million
During the Review Year, in line with the constant growth of semiconductor product industry, the demand for semiconductor packaging materials has witnessed a stable growth. By implementing its planned growth strategies, the Group's revenue and gross profit have achieved steady improvement in 2018.
During 2018, the Group achieved a 2.2% increase in revenue to approximately HK$184.4 million from approximately HK$180.5 million for the year ended 31 December 2017 (the "Previous Year" or "2017"). In line with the increase in revenue, the Group's gross profit increased to approximately HK$40.8 million for the Review Year from approximately HK$37.7 million in 2017, up by 8.2%.
The Group's revenue principally represents income derived from its main products, namely bonding wire and encapsulant. During the Review Year, the revenue of encapsulant products amounted to approximately HK$28.7 million, representing a significant increase of 69.8% as compared with approximately HK$16.9 million recorded last year. The growth was mostly due to an increase of HK$15.9 million in sales of LED epoxy from HK$4.3 million in 2017. The revenue of bonding wire products was approximately HK$142.6 in 2018 (2017: HK$151.0 million).
Cost of Sales, Gross Profit and Net Profit
The Group's cost of sales mainly comprised direct material costs, direct labor costs and manufacturing overhead. During 2018, the Group recorded cost of sales of approximately HK$143.6 million, which was relatively stable compared to the amount of HK$142.8 million in 2017.
The gross profit of the Group grew from approximately HK$37.7million in 2017 to HK$40.8 million in 2018, representing an increase of 8.2%. Gross profit margin increased to approximately 22.1% in 2018 from approximately 20.9% in 2017.
The profitability of the Group is being affected by the expenses incurred for the listing of Group's shares on GEM of the Stock Exchange. Excluding the non-recurring listing expenses of approximately HK$10.4 million in 2018, the net profit of the Group was approximately HK$10.8 million.
Mr Chow Bok Hin, Executive Chairman and Executive Director of the Group concluded, "In 2018, despite the uncertainties from the global macro-economic environment as a result of the continuing trade tension between the United States of America and the PRC, the PRC continued to be under the world's spotlight and maintained a moderate growth. As an established semiconductor packaging materials manufacturer, Niche-Tech continues to sell products directly to more than 300 customers, including renowned manufacturers of LEDs, camera modules and ICs primarily in the PRC."
Mr. Chow added, "Looking forward, the Group remains positive on the prospects of semiconductor packaging market in the PRC. With the carrying out of implementation plans and expansion of businesses, we look forward to generating further growth and achieving more business breakthroughs. Under the favourable market environment, we will also access new business opportunities prudently, so as to maximize the return to our shareholders."
About Niche-Tech Group Limited
Niche-Tech Group Limited ("Niche-Tech") was established in 2006 in Hong Kong and was successfully listed on the GEM of Hong Kong Stock Exchange in 2018. Niche-Tech is a manufacturer of semiconductor packaging materials and new materials 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 (Corporate) Workstation in 2017.
Mar 22, 2019 19:17 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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