APT Electronics Posts RMB56.31 Million H1 Loss as Auto and Lighting Sales Slide, Display Business Up 34.80%

APT Electronics (02551) released unaudited interim results for the six months ended 30 June 2026.

Revenue slipped 3.00% year on year to RMB1.08 billion, while gross profit fell 22.56% to RMB129.95 million, compressing gross margin to 12.04% from 15.07% in the prior-year period. Rising raw-material costs, intensified price competition in automotive and lighting markets, and higher pre-production expenses contributed to the downturn.

The Group swung to a net loss of RMB56.31 million from a profit of RMB11.23 million a year earlier. Loss before tax reached RMB50.12 million versus a RMB13.97 million profit in 1H 2025.

Segment performance showed divergent trends: • Advanced Display revenue climbed 34.80% to RMB477.97 million, driven by robust Mini LED and RGB Mini LED orders, lifting its share to 44.30% of total sales. • Intelligent Automotive Vision revenue contracted 14.50% to RMB357.91 million amid industry-wide pricing pressure; complete lamp sales were notably weaker, while automotive-grade LED devices and modules rose 27.80%. • High-End Lighting revenue declined 28.40% to RMB243.14 million due to fierce competition and softer demand.

Geographically, sales in Chinese mainland fell 6.20% to RMB838.28 million, whereas overseas sales increased 10.00% to RMB240.74 million, now representing 22.30% of total revenue.

Operating cash outflow totaled RMB42.20 million. Heavy investment spending (RMB531.12 million net) — including RMB268.00 million injected into the newly formed semiconductor fund Guangzhou Tianze Jingxin — was partly offset by RMB335.12 million of net financing inflow. Cash and cash equivalents stood at RMB214.47 million at period-end, down from RMB463.74 million at 31 December 2025.

Total assets expanded 15.30% to RMB3.56 billion, supported by ongoing construction of the Lynway Vision Greater Bay Area headquarters and additional Mini LED production lines. Total liabilities rose 31.00% to RMB2.31 billion, lifting the debt-to-asset ratio to 64.90% (end-2025: 57.10%). Interest-bearing borrowings reached RMB721.80 million, with a 57.80% gearing ratio. Capital expenditure amounted to RMB230.40 million, and outstanding capital commitments were RMB144.20 million.

No interim dividend was declared. Management plans to intensify R&D in intelligent automotive vision, Mini/Micro LED display and high-end lighting, while leveraging AI-driven manufacturing and expanding into third-generation semiconductor opportunities through strategic investments.