Solomon Systech (International) Limited announced that it expects an unaudited consolidated loss attributable to shareholders of approximately US$3.80–4.10 million for the six months ended 30 June 2026, reversing from the US$4.00 million profit recorded in the corresponding period of 2025.

The projected swing to loss—equating to a year-on-year deterioration of roughly US$7.80–8.10 million—reflects three primary pressures:

1. Margin Compression: Revenue, gross profit and gross margin declined as semiconductor supply-chain bottlenecks pushed production costs higher and constrained output despite sustained demand.

2. R&D Investment: Accelerated spending on new product development lifted research and development expenses.

3. Currency Impact: Renminbi appreciation increased operating costs for the Group’s Mainland China operations.

Management highlighted that integrated-circuit shipment volumes remained stable during the period, indicating preserved market share. The company also stated that it retains sufficient resources to support its R&D roadmap while maintaining stringent cost-control initiatives to enhance operational efficiency.

The interim results for 1H 2026 are still being finalised and have neither been audited nor reviewed by the external auditor or the Board’s audit committee. Finalised figures are scheduled for release before the end of August 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.