Productive TECH (HKEX: 00650) has released its annual results for the period ending March 31, 2025. The company reported revenue of HK$216.6 million and an annual loss of HK$211.7 million, which narrowed by 32.4% year-on-year. The loss attributable to equity shareholders was approximately HK$198 million, a reduction of 34.82% compared to the previous year, with a loss per share of 2.69 HK cents.
The announcement stated that the group's overall revenue and gross profit continue to be negatively impacted by the prolonged downturn in the photovoltaic industry and a decline in revenue from its crude oil business. Despite this, the net loss for the year narrowed to HK$211.7 million from HK$313.1 million in the 2024 fiscal year. The primary reasons for this improvement are as follows: (1) a change in investment gains and losses, shifting from a net investment loss of approximately HK$50.4 million in FY2024 to a net investment gain of HK$37.5 million in FY2025; (2) no goodwill impairment was recorded this year, whereas a goodwill impairment loss of about HK$67.6 million was recognized in FY2024; and (3) reductions in research and development expenses and administrative costs.
These favorable changes were partially offset by a shift from a share of profit of approximately HK$7.5 million from an associate in FY2024 to a share of loss of about HK$11.5 million in FY2025, a decrease in gross profit of roughly HK$29.3 million, and an increase in inventory impairment losses of approximately HK$32.7 million, which includes provisions related to the ongoing weakness in the photovoltaic sector.
Semiconductor Segment Achieves Major Milestones
During the reporting period, the company's semiconductor equipment business achieved significant breakthroughs. Its full range of single-wafer cleaning equipment and furnace LPCVD/ALD products have successfully entered the industrialization phase, with substantial growth in order deliveries and acceptance. The company secured 12 new semiconductor equipment orders, including multiple repeat orders from existing clients, and cumulatively delivered 13 units while achieving acceptance for 6 units.
Revenue recognized from the semiconductor equipment business for the period amounted to HK$59.8 million, a substantial increase of 118.6% compared to the previous fiscal year.
Strong Order Pipeline and Technological Progress
Regarding its order backlog, the company's pipeline of unfulfilled orders and units awaiting acceptance continues to strengthen. As of the end of the reporting period, the backlog of semiconductor equipment orders for which revenue has not yet been recognized reached HK$209 million, marking a 31.8% increase from the prior fiscal year. The accumulation of mass production experience and positive customer feedback lays a solid foundation for further expanding client coverage and onboarding more leading industry customers.
In advanced technology development, the company has successfully delivered high-temperature sulfuric acid cleaning equipment and 12-inch furnace LPCVD/ALD equipment to customers. It has also completed the development of a Low-K ALD SiOCN furnace device targeting the 14/7nm process node. These devices are widely used in the manufacturing of advanced logic and memory chips, a market long dominated by overseas suppliers, indicating significant potential for domestic substitution.
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