On August 25, Kingsemi Co., Ltd. released its semi-annual report for fiscal 2026.
During the reporting period, the company generated operating revenue of RMB 897 million, up 26.47% year-on-year. Net profit attributable to shareholders of the listed company stood at RMB 8.06 million, a decline of 49.37% from the prior year. After deducting non-recurring gains and losses, the net loss narrowed to RMB 45.14 million, compared with a loss of RMB 49.53 million in the same period last year.
The figures reveal that while Kingsemi Co., Ltd. sustained revenue growth in the first half, profitability remained under pressure. The persistently negative adjusted net profit indicates that the company's core business earnings capacity has yet to be fully realized. Over recent years, Kingsemi Co., Ltd. has steadily expanded its product portfolio, channeling increased investment into new business areas such as front-end cleaning and advanced packaging. A certain time lag exists between R&D and market expenditures and their conversion into revenue.
Founded in 2002, Kingsemi Co., Ltd. focuses on the development, manufacturing, and sale of specialized semiconductor equipment. Its core products include coater-developer systems for lithography processes and single-wafer wet processing equipment. Currently, the company's operations span four major segments: front-end coating and developing, front-end cleaning, back-end advanced packaging, and small-form-factor equipment for compound semiconductors.
Among these, coater-developer equipment remains a cornerstone business. These systems are essential to the lithography phase of wafer fabrication, handling photoresist coating, developing, and curing processes in coordination with lithography machines.
Given that front-end coater-developer equipment has long been dominated by overseas manufacturers with substantial market share, the potential for domestic substitution is considerable. Kingsemi Co., Ltd. has already rolled out products supporting a range of process technologies, including offline, I-line, KrF, and ArF immersion lithography.
However, the semiconductor equipment industry is characterized by lengthy R&D cycles and extended customer qualification periods. For Kingsemi Co., Ltd., the journey from development and validation to volume delivery for new products is necessarily prolonged. In prior investor communications, the company noted that its high-end front-end chemical cleaning equipment is securing market positioning and gradually ramping up shipments, while back-end advanced packaging equipment continues to advance its market expansion efforts.
From a strategic standpoint, Kingsemi Co., Ltd. is actively reducing its reliance on any single equipment category. On one front, it continues to consolidate its strengths in coater-developer equipment; on another, it is accelerating its push into front-end cleaning systems and advanced packaging tools.
With the growth of AI chips, high-performance computing, and related fields, demand for advanced packaging is rising. Technology roadmaps such as Chiplet and HBM are also fueling demand for associated equipment. The temporary bonding and debonding tools that Kingsemi Co., Ltd. is developing are aimed at applications in 2.5D and 3D packaging.
Meanwhile, this business expansion has introduced阶段性 cost pressures. Semiconductor equipment makers must sustain R&D investment to enhance product performance while also bearing expenses tied to customer validation, supply chain development, and market cultivation. When revenue scales up but new ventures have yet to contribute meaningful profits, overall earnings can suffer.
Notably, Kingsemi Co., Ltd.'s ownership structure shifted in 2025, with NAURA Technology Group assuming control of the company. Both entities operate within the semiconductor equipment sector but maintain distinct product portfolios—Kingsemi Co., Ltd. concentrates on coating and developing, and cleaning tools, whereas NAURA covers etching, thin-film deposition, and other domains. The market is closely watching the potential synergies between the two in research, supply chain, and customer resources.
For Kingsemi Co., Ltd., the current phase remains centered on business expansion and capability building. The first-half revenue growth signals that certain equipment demand is materializing, yet profit recovery hinges on the pace of new product ramp-up, improvements in product mix, and the realization of scale benefits. As semiconductor localization and advanced packaging demand continue to advance, the company's future growth trajectory will depend on the commercial progress of its emerging businesses.