InnoTek Limited recorded net profit attributable to shareholders of S$0.1 million for the six months ended Jun 30, 2026, down 64.2 percent year-on-year, as foreign-exchange losses offset an improvement in operating profitability.
Revenue slipped 3.0 percent YoY to S$99.5 million, while earnings per share fell to 0.06 Singapore cent from 0.18 Singapore cent. The precision metal components maker did not declare any dividend for the period.
Gross profit rose 3.7 percent to S$14.4 million, lifting the gross margin to 14.5 percent from 13.6 percent a year earlier, helped by a more favourable product mix. Earnings before interest, tax, depreciation and amortisation expanded 9.0 percent to S$7.5 million. Profit before tax eased 7.0 percent to S$0.7 million after a S$1.6 million forex loss, compared with a S$0.3 million gain in 1H’25.
By sector, Automotive revenue improved on higher electric-vehicle component orders, partially offset by softer demand for internal combustion engine parts. The AI server segment declined as customers migrated to next-generation models, altering order volumes and mix. Office Automation sales weakened amid subdued Chinese demand but were partly cushioned by growth in Southeast Asia, while the TV/Display division contracted following procurement changes at a key customer.
The group ended the half with net operating cash inflow of S$9.7 million and a net cash position of S$66.8 million. A private placement in April added S$16.0 million to the balance sheet.
During the half, InnoTek expanded its Southeast Asian footprint, setting up Mansfield Technology (Thailand) in Chonburi for liquid-cooling components, extending its Rayong plant by 15,772 sq m, and opening a new facility in Melaka, Malaysia. Pilot production for liquid-cooling parts is slated for October 2026 with mass production targeted for January 2027.
Chief executive officer Lou Yiliang said the company lifted margins through a stronger product mix and disciplined cost control. He noted that start-up expenses for new plants and project gestation will weigh on FY2026 earnings, but contributions from AI servers, liquid cooling and robotics are expected to become more meaningful from FY2027. The CEO added that the group’s robust cash position supports continued investment to meet demand from emerging industries and deepen customer relationships.
Management remains optimistic about long-term prospects, citing resilient demand for AI, data-centre and high-performance computing applications. In the near term, the firm will continue adapting its automotive portfolio toward electric-vehicle components and work with Office Automation clients on production relocation, while mitigating headwinds in the TV/Display segment.