Guangdong Tianyu Semiconductor Co., Ltd. (TIANYU SEMI) expects to swing to a net loss of about RMB104 million–RMB123 million for the six months ended 30 June 2026, a sharp reversal from the RMB30.90 million net profit reported in 1H2025.

The Board attributes the downturn to three main factors:

1. Margin contraction despite revenue growth. Average selling prices for silicon carbide (SiC) epitaxial wafers declined amid supply-demand rebalancing and fierce price competition. First-quarter seasonality and the Chinese New Year holiday curtailed production volumes and reduced fixed-cost absorption. Although output improved in the second quarter, it was insufficient to offset fixed manufacturing costs and depreciation. Additionally, the Group booked a non-cash inventory write-down due to lower estimated selling prices and a higher inventory base, while benefits from prior write-off reversals diminished.

2. Weaker other net income. Depreciation of the Hong Kong dollar against the Renminbi generated higher net foreign-exchange losses on Hong Kong dollar-denominated funds.

3. Higher administrative and other operating expenses. A swing from reversal of impairment losses in 1H2025 to new impairment losses on trade receivables in 1H2026 followed a reassessment of expected credit losses tied to slower-than-expected customer payments.

TIANYU SEMI is finalising its interim results; figures are based on unaudited management accounts and may change. The company will publish full 1H2026 results in accordance with Hong Kong Listing Rules. Shareholders and potential investors are urged to exercise caution when dealing in the company’s securities.