FIT Hon Teng Limited reported 1H 2026 revenue of USD 2.50 billion, an 8.3 % year-on-year increase. Net profit attributable to shareholders rose 20.9 % to USD 38.10 million, supported by a 71.7 % drop in income-tax expenses. Operating profit, however, fell 29.5 % to USD 74.07 million, with the operating margin contracting to 2.97 % from 4.60 % a year earlier.

Gross profit expanded 11.4 % to USD 477.41 million, lifting the gross margin by 0.54 percentage points to 19.13 %. Management cited product-mix improvements and favourable exchange movements for the margin gain, while higher distribution costs (+15.6 %) and a 17.7 % rise in R&D expenses weighed on operating earnings.

Segment performance was mixed. Cloud-related sales surged 55.8 % to USD 551.51 million, benefiting from AI-driven server demand. Smartphones edged up 2.9 % to USD 375.74 million. System products climbed 14.9 % to USD 676.34 million on stronger wired-earphone shipments. Consumer interconnects declined 20.6 % to USD 343.15 million amid component shortages, and auto-mobility revenue slipped 6.2 % to USD 431.22 million.

The United States remained the largest market, contributing USD 789.15 million, or 31.6 % of consolidated revenue. The PRC accounted for 12.7 %, followed by Taiwan at 9.2 %.

Cash and cash equivalents increased to USD 1.52 billion from USD 1.07 billion at end-2025. Total borrowings rose to USD 2.32 billion, trimming the current ratio to 1.1x (end-2025: 1.4x) and lifting the gearing ratio to 25.9 % (end-2025: 21.5 %). Net operating cash inflow stood at USD 34.00 million, versus USD 117.81 million a year earlier. Capital expenditure reached USD 181.00 million, mainly for new production complexes.

Management reiterated its “3+3” focus on 5G-AIoT, acoustics and auto mobility, expecting AI-driven demand to sustain growth while macro uncertainty persists.

No interim dividend was declared. Subsequent to period-end, the Group extended bank borrowings of USD 799.73 million to March 2029.