Niche-Tech Group Limited Announces 2019 First Quarterly Results

Performance Highlights- Revenue of the Group increased by 31.5% to approximately HK$45.9 million for the three months ended 31 March 2019 (Three months ended 31 March 2018: approximately HK$34.9 million). - Gross profit of the Group grew by 32.6% to approximately HK$8.8 million for the three months ended 31 March 2019 (Three months ended 31 March 2018: approximately HK$6.6 million).- Gross profit margin increased to approximately 19.2% for the three months ended 31 March 2019 (Three months ended 31 March 2018: approximately 19.0%).- Profit attributable to owners of the Company for the three months ended 31 March 2019 was approximately HK$0.6 million (Three months ended 31 March 2018: approximately HK$0.7 million).

During the Period, the growth of semiconductor product industry had continued, which had driven the constant growth of the demand for semiconductor packaging materials. Besides, the price of bonding wire and encapsulant mostly maintained at a stabilised level. By implementing its core business strategies and catching up to industry demand, the Group has gained satisfactory business performance during the Period, with its revenue and gross profit achieved a 31.5% and a 32.6% growth, reaching HK$45.9 million and HK$8.8 million respectively.

In addition, the Group has continued to enhance its production capability during the Period by acquiring more machineries and upgrading its facilities. Its new encapsulant production line, which has been installed in June 2018, has commenced trial run and is expected to enhance the production capability of the Group further and drive the Group's business growth accordingly.

Business Review

Revenue AnalysisThe Group's revenue principally represents income derived from its main products, namely bonding wire and encapsulant. During the three months ended 31 March 2019, the revenue of encapsulant products recorded an increase of 72.9% to approximately HK$5.2 million during this Period from approximately HK$3.0 million during the corresponding period of last year, mostly due to an increase in sales of LED epoxy. The revenue of bonding wire products recorded an increase of 27.4% to approximately HK$38.3 million during the Period from approximately HK$30.1 million during the corresponding period of 2018, mostly due to the increase of sales in high gold composition bonding wire products.

Cost of Sales, Gross Profit and Net ProfitThe Group's cost of sales mainly comprised direct material costs, direct labor costs and manufacturing overhead. During the Period, the Group recorded cost of sales of approximately HK$37.1 million (Three months ended 31 March 2018: approximately HK$28.3 million).

The gross profit of the Group grew from approximately HK$6.6 million for the three months ended 31 March 2018 to approximately HK$8.8 million for the three months ended 31 March 2019, representing an increase of approximately 32.6%. Gross profit margin increased to approximately 19.2% for the Period (Three months ended 31 March 2018: approximately 19.0%).

Profit attributable to owners of the Company of for the Period was approximately HK$0.6 million (Three months ended 31 March 2018: approximately HK$0.7 million).

Mr Chow Bok Hin, Executive Chairman and Executive Director of the Group concluded, "Despite being a traditionally slack season, we are happy to see that the Group was abled to achieve a stable business growth in the first quarter of 2019. Looking forward, to meet the rising demand from the market, we will continue to put efforts on the expansion of production capability and the development of new products. In addition, we will devote more resources to increase sales and marketing activities, in the aim of further promoting Niche-Tech's corporate profile and driving business growth. We will also assess new business opportunities prudently, so as to create maximum return to the Shareholders and to facilitate the long-term growth of the business of the Group."

Topic: Press release summarySectors: Daily Finance, Daily News^[1][2] http://www.acnnewswire.com From the Asia Corporate News Network

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References

1. ^{^} Daily Finance (www.acnnewswire.com)
2. ^{^} Daily News (www.acnnewswire.com)