SOLOMON SYSTECH reported a net loss attributable to shareholders of USD 4.00 million for the six months ended 30 June 2026, reversing a USD 4.00 million profit a year earlier. The downturn reflected a sharp contraction in gross margin to 27.40% (1H25: 39.60%) as wafer-foundry and gold prices rose, outpacing the company’s cost-control initiatives.
Revenue slipped 4.8% year-on-year to USD 43.70 million, weighed by weaker average selling prices and a 3.8% decline in shipment volume to 153.7 million units. Segment contributions were led by New Display ICs at USD 28.15 million (64% of group sales), followed by OLED Display ICs at USD 7.74 million, Mobile Display & Touch ICs at USD 4.05 million and Large Display ICs at USD 3.79 million.
Geographically, Hong Kong remained the largest market, generating USD 24.91 million or 57% of turnover, while Taiwan and Europe accounted for 16.4% and 14.4% respectively. The top two customers, based in Hong Kong and Europe, contributed USD 21.88 million and USD 4.58 million, each exceeding 10% of total revenue.
Operating cash inflow reached USD 2.38 million, while total cash and pledged deposits rose to USD 110.48 million. Capital expenditure was contained at USD 0.12 million. The balance sheet stayed debt-free; total assets were largely stable at USD 164.10 million, with shareholders’ funds at USD 139.20 million and a current ratio of 6.32.
Research and development expenses inched up 3.0% to USD 10.25 million, equivalent to 23.4% of sales, as the group accelerated next-generation colour e-paper, OLED and automotive display IC projects. Management noted sequential improvement in second-quarter performance due to new product ramp-ups and ongoing cost-optimisation measures.
Given the interim loss, the Board declined to declare an interim dividend.
SOLOMON SYSTECH reiterated its focus on high-value display applications—including multi-colour electronic shelf labels, e-paper signage and automotive HUD solutions—while maintaining medium- to long-term wafer supply agreements to mitigate capacity constraints and cost pressure in the second half of 2026.