The disposal was completed on Dec 6, and the company received its remaining 5% of the consideration on Feb 5.

Ellipsiz has reported earnings of $2.98 million in the 1HFY2025 ended Dec 31, 2024, a reversal from its loss of $1.95 million in the same period a year ago, due to the gain on disposal of its 51% stake in Axis-Tec.

The group says that the results of the discontinued operations for the 1HFY2025 and 1HFY2024 were not comparable, as a result of the gain on disposal net of related expenses. In contrast, 1HFY2024 recorded results of both subsidiaries for the full six months period.

As a recap, the company entered into a sale and purchase agreement on Nov 29, 2024 for the disposal of 93,674 shares or 51% of issued and paid-up share capital of Axis-Tec to Yanmade Electronic. 

The disposal was completed on Dec 6, 2024 and the company received 95% of the consideration or about $2.79 million. The remaining 5% was received on Feb 5. 

The group’s revenue for the 1HFY2025 came in 17% higher y-o-y at $27.9 million, primarily driven by higher sales of equipment, chemicals, spare parts and consumables, and increase in demand for engineering services of the distribution and services solutions (DSS) segment. 

Ellipsiz reported a higher profit after tax of $1.3 million in 1HFY2025 compared to a profit after tax of $0.5 million in 1HFY2024, from continuing operations, attributable to higher revenue of the DSS segment.

The group recorded an earnings per share for the 1HFY2025 of 1.12 cents. 

The group says that the World Semiconductor Trade Statistics Fall forecasted a broadbased growth for the semiconductor market in 2025, and a steady overall expansion for the industry — an outlook that bodes well for the DSS segment. 

However, the industry also faces challenges from deglobalisation stemming from trade wars and geopolitical tensions. 

“As a distributor in the semiconductor industry, our business could be impacted by supply chain disruptions, product availability and higher distribution costs. While new regional opportunities may arise, restrictions on cross-border trades and shifting customer preferences could introduce uncertainties. The group will remain vigilant, adapt to market changes, and position itself for growth in and beyond FY2025,” it says. 

The group signed a memorandum of understanding with an investor for new shares in IFH, and has a business venture to develop and operate indoor golf simulators in Singapore. 

Shares in Ellipsiz Bix closed flat at 16.6 cents on Feb 10.