Solomon Systech International (2878) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 4.8% YoY to $43.7m; gross margin dropped to 27.4% from 39.6%, and attributable earnings swung to a $4.0m loss from $4.0m profit.

• Higher wafer and gold costs, lower average selling prices and slightly lower shipments weighed on results; Q2 improved sequentially as new products ramped and cost controls took effect.

Financial highlights

• Revenue was $43.723m versus $45.934m; gross profit was $11.981m versus $18.175m for H1 2025.

• Operating expenses included R&D of $10.246m, up 3.0% YoY; selling and distribution costs were $1.712m, while G&A costs were $5.299m.

• Net loss attributable to owners was $3.953m versus net profit of $4.003m; basic and diluted loss per share was US 0.16 cents versus earnings per share of US 0.16 cents.

• Operating cash flow was $2.382m; cash and cash equivalents ended the period at $107.982m versus $104.413m at the start.

Outlook and guidance

• Revenue and operating performance are expected to improve gradually as new products enter production and marketing advances; no quantified guidance was given.

• H2 plans include mass production of additional large-format e-paper sizes, E6 e-paper solutions and an OLED product adopted for gaming-terminal modules.

• Further launches include e-paper wallet and integrated IC products in Q4 2026, Prism 3 samples in Q3, and automotive HUD bridge-IC SoC samples targeted for Q4.

• Medium- to long-term wafer supply agreements are intended to stabilize supply; benefits are expected to emerge gradually and support profitability.