SGX-listed Renaissance United swung back into the black in its first quarter, as soaring demand for memory chips used in AI data centres more than doubled sales at its semiconductor testing unit, according to results released on Friday (Oct 16).
Net profit attributable to shareholders came in at S$190,000 for the three months ended July 31, compared with a loss of S$595,000 a year earlier. Revenue rose 41.2 per cent to S$22.4 million from S$15.9 million, while total expenses grew a slower 33.1 per cent to S$22.2 million.
Chip testing drives turnaround
The standout performer was ESA Electronics, the group’s 81.25 per cent-owned semiconductor testing subsidiary. Its turnover jumped 148.9 per cent to S$8.7 million from S$3.5 million, which the company attributed to stronger orders for burn-in boards from chipmakers serving AI data centre expansion in Asia. The electronics and trading segment posted a segment profit of about S$1.94 million, against a small loss a year ago.
Revenue from its natural gas distribution business in China’s Hubei province, which operates four 30-year concessions, rose 10.8 per cent to S$13.7 million, helped by a new residential gas pricing policy in China. However, that segment’s loss widened to S$289,000. The property development arm recorded no turnover in the period.
The quarter also included a S$440,000 fair value loss on financial assets, mainly tied to its holding in Annica Holdings, and flood damage of about 2.8 million yuan at its Hubei gas operations that insurance is not expected to fully cover.
Balance sheet still stretched
Operating cash flow improved to S$2.36 million, and cash and bank balances rose to S$8.5 million as at July 31 from S$7.27 million at end-April. Still, the group reported net current liabilities of S$15.3 million and total borrowings of S$25.9 million. Its auditor, Baker Tilly, issued a disclaimer of opinion on the FY2026 financial statements over the going concern assumption.
No dividend was declared for the quarter.
What’s next
Management expects ESA to keep benefiting from high memory chip demand linked to AI data centres, and sees the new gas pricing policy, now applied across all four concessions, delivering a long-term positive impact on earnings. The company is also in refinancing talks with its lenders.
Shareholders will meet at the annual general meeting on Oct 29 to adopt the FY2026 accounts, while a date for an extraordinary general meeting on a proposed acquisition linked to Skyline One Sentosa has yet to be announced.
