Micro-Mechanics Holdings has reported a net profit of $3.18 million for the 3QFY2025 ended March 31, up 72.6% y-o-y. For the 9MFY2025, the company reported a 54.7% y-o-y growth in net profit of $9.21 million.

 

The company' s earnings per share for 3QFY2025 came in at 2.29 cents per share, up 72.2%, and 6.63 cents per share for the 9MFY2025, up 54.5%.

 

Micro-Mechanic' s revenue for the 3MFY2025 came in 17.3% y-o-y higher at $15.96 million, and 12.9% y-o-y higher for 9MFY2025 at $48.5 million.

 

However, on a q-o-q basis, group revenue decreased 2.1% from $16.3 million in 2QFY2025,due to softer results from the group' s consumable tools segment.

 

Sales from the group' s Wafer Fabrication Equipment (WFE) segment increased by 95.7% y-o-y to $4.0 million in 3QFY2025, contributing 25.4% to the group' s revenue.

 

On a q-o-q basis, WFE sales increased by 13.2%. The geographical markets for the WFE segment are mainly the USA and Singapore.

 

By geographical segments, sales from China decreased by 0.3% y-o-y to $15.0 million and remained its largest geographical market, contributing 30.9% to the group' s revenue in 9MFY2025.

 

Sales from the USA also grew 27.3% yoy to $10.8 million in 9MFY2025. This reflects sustained momentum from the sharpened engineering focus on several main product areas for the WFE sector to develop more compelling and competitive differentiation and improved margins.

 

As at March 31, 2025, the group' s balance sheet has a total amount of assets of $56.6 million, shareholders' equity of $47 million and cash and cash equivalents of $19.2 million and no bank borrowings.

 

The group says that it has not experienced any direct impact from the retaliatory tariffs announced across major economies in April 2025. While Micro-Mechanics believes that it is well-positioned to navigate ongoing externalities heading into the rest of FY2025, it remains vigilant about any potential indirect impacts on its customers.

 

New CEO appointment

 

On the same day as its 3QFY2025 results announcement, the group announced the cessation of its CEO Chris Borch effective June 30, 2025.

 

His son, Kyle Borch will succeed as CEO with effect from July 1, after the nominating committe of the company' s review.

 

Chris Borch will remain as the executive chairman of the company.

It is a far cry from the California suburbs where he grew up, but for second-generation deputy CEO Kyle Borch of Micro-Mechanics, the relocation to Singapore represents more than just a change of address - it is the fulcrum of an ambitious plan to future-proof his father' s 40-year-old semiconductor equipment business.

 

Borch' s journey to his current role began unconventionally. Born in Singapore but raised in California from age five, he received a formal education in physics and mechanical engineering, which is applicable to what the family business does.

 

However, Kyle' s father, Christopher Borch, was clear that joining Micro-Mechanics should be his choice, not an obligation. " He wanted me to discover my own path first."

 

That path included stints at other tech firms before Borch joined Micro-Mechanics as what he jokingly calls an " engineering apprentice" , a role that involved everything from machining parts to cleaning factory bathrooms.

 

" Starting at ground level was intentional," he adds. " I needed to understand every aspect of our operations, not just the boardroom perspective."

 

The turning point came in 2022 when frequent trips between California and Singapore convinced Borch that effective leadership required full immersion in Micro-Mechanics' Asian operations.

 

" I was spending more time in airports than factories," he says. " To truly transform this business, I needed to be present where 70% of our manufacturing and our biggest growth opportunities were."

 

Borch' s transition to his current position is also noteworthy for his relationship with his father. Having worked alongside his father for over a decade, Borch has had the unique opportunity to learn firsthand from a successful business leader in the semiconductor sector.

 

" The opportunity to work with my father was invaluable," reflects Borch. " I learned so much from him - not just business strategy but leadership. He always had this ability to make people feel like they were part of something bigger than themselves. That' s a skill I continue to hone."

For Borch, this mentorship has shaped his leadership philosophy. " My father always emphasised that business is about more than just making money - it' s about creating something meaningful that lasts," Borch continues. " The company he built was not just about products but about the people and the culture. And that' s the foundation I' m building on."

 

State-of-the-art factory

 

Borch' s relocation coincided with the launch of his signature initiative - the " Five-Star Factory" programme. This comprehensive operational overhaul aims to elevate Micro Mechanics from a precision parts supplier to a strategic solutions provider for next-generation semiconductor manufacturing.

 

" The semiconductor industry is at an inflection point," says Borch. " With artificial intelligence driving demand for more advanced chips, our customers need partners who can solve yield and performance challenges at smaller and smaller nodes and beyond. We' re retooling everything from equipment to employee training to meet that need."

 

The programme' s five pillars - operational excellence, innovation, high-performance teams, customer partnership, and sustainability - reflect Borch' s engineering approach to leadership. Each factory in Micro Mechanics' global network will implement standardised metrics and best practices while maintaining local adaptability.

 

He says: " There was some co-creation with my dad and me. But a lot of the idea was mine, just piecing it together over the past 18 months and figuring out what we needed to do to support the businesses."

 

While each location had operated with some degree of independence, Borch now emphasises the importance of shared vision and common goals. He says: " We need to ensure that our global team operates as one entity, not five separate ones. The future of Micro-Mechanics depends on that unity."

 

Cultural transformation

 

The most challenging aspect of Borch' s initiative has been shifting long-established workplace mindsets. " Changing processes is relatively straightforward," he notes. Changing how people think about their work requires patience and persistence."

 

Rather than imposing change top-down, Borch has focused on empowering veteran employees. He has promoted several long-time team members to VP roles and created cross-functional innovation teams. " Our most valuable institutional knowledge resides with people who' ve been with us 20, 30 years. The key is helping them see change as an opportunity rather than a threat."

 

This approach reflects lessons from Borch' s father, who founded Micro-Mechanics in 1983 with just $1,200 in a borrowed space within a Singapore hat-sewing factory. From that seed money, the company has since grown to achieve earnings of $6.03 million in 1HFY2025 ended Dec 31, 2024, a 46.6% rise from $4.11 million in 1HFY2024.

 

Revenue in the period similarly increased 10.8% y-o-y to $32.5 million, thanks to healthy performance in its consumable tools and wafer fabrication equipment parts segments.

 

" My dad' s philosophy was always ' people make everything happen' ," Borch recalls. " That' s even more true today, as the technical challenges become more complex."

 

He adds that there are mild cultural differences between US and Asia-based workers.

 

" I would say that the American way is maybe more entrepreneurial and willing to take risks, whereas, in Asia, people are much more inclined to follow instructions and are less likely to ask questions. Both of these have their own strengths and challenges," says Borch.

 

Beyond internal transformation, the young deputy CEO must also deal with the semiconductor industry' s geopolitical tensions.

 

Thankfully, Micro-Mechanics' decentralised manufacturing footprint, with facilities serving regional customers, has proven prescient in an era of trade wars and export controls.

 

Borch says: " [Our setup] probably could be a net positive because countries are going to realise that they have to do more manufacturing locally. But it remains to be seen how our customers will respond because they' ll be the ones who are more impacted than we are."

 

He adds: " We' re fortunate that our model was designed for local support from the beginning. Our Malaysian factory serves Southeast Asia, our Chinese operations support China, and our US facilities focus on North America. This buffers us from many of the cross-border tensions."

 

Still, he has had to make tough decisions about technology partnerships and supply chain redundancies. " We' re maintaining dual sourcing for critical components and qualifying alternative materials," he says. " In this environment, resilience is as important as innovation."

 

The day-to-day

 

Borch' s technical background shapes his leadership style in tangible ways. He spends at least two hours a day on the factory floor and insists that his leadership team maintains similar hands-on engagement.

 

" You can' t solve yield issues or process bottlenecks from a conference room," he states flatly.

 

This engineering mindset also informs Micro-Mechanics' R& D strategy. The company has doubled its research spending since 2020, focusing on advanced packaging solutions and materials science.

 

" The physics of semiconductor manufacturing are pushing against fundamental limits," Borch says. " Breakthroughs will come from unconventional approaches - that' s where we' re placing our bets."

 

When out of the office, Borch spends his leisure time in Singapore very differently than he does in the US. An avid outdoorsman, he misses California' s mountains and trails.

 

He says he has adapted by starting his days at 5:00am, with swim training, a routine that serves as exercise and mental preparation. Borch muses: " Something about being in the water before sunrise clarifies your thinking."

 

" I miss the mountains and surprisingly cold weather. I grew up thinking in California, it' d be great to live somewhere where it' s tropical all year round. Living in Singapore, I' ve actually come to appreciate the cooler weather. The humidity here is something else."

 

Despite his commitment to work, family remains central.

 

He balances his time by travelling to California quarterly and maintaining weekly video calls with his parents and three siblings. " My dad built this company to support our family and also to serve our employees and customers," he says. " That dual responsibility to both stakeholders and family legacy is something I try to think about daily."

 

Gearing up

 

As Borch looks toward the future, the potential for growth in the semiconductor industry is both exciting and daunting. With the industry' s rapid expansion, Micro-Mechanics seems well-positioned to capitalise on emerging trends, particularly in advanced manufacturing processes for semiconductors.

 

Borch' s emphasis on technological innovation and operational excellence is central to the company' s long-term strategy.

 

" We are in the midst of a major transformation in the semiconductor industry," says Borch. " The next decade will be a defining period, and we' re positioning ourselves to lead the way in advanced manufacturing. Our Five-Star Factory initiative is just one example of how we' re preparing for the future."

 

For Borch, however, the path ahead is not solely defined by business objectives but also by a journey of personal growth and leadership.

 

" Every day presents new challenges and learning opportunities," he concludes. " We are solving complex problems, which makes this role exciting. But it' s not just about the business. It' s about the people I work with and the impact we can have together."

It is a far cry from the California suburbs where he grew up, but for second-generation deputy CEO Kyle Borch of Micro-Mechanics, the relocation to Singapore represents more than just a change of address - it is the fulcrum of an ambitious plan to future-proof his father' s 40-year-old semiconductor equipment business.

 

Borch' s journey to his current role began unconventionally. Born in Singapore but raised in California from age five, he received a formal education in physics and mechanical engineering, which is applicable to what the family business does.

 

However, Kyle' s father, Christopher Borch, was clear that joining Micro-Mechanics should be his choice, not an obligation. " He wanted me to discover my own path first."

 

That path included stints at other tech firms before Borch joined Micro-Mechanics as what he jokingly calls an " engineering apprentice" , a role that involved everything from machining parts to cleaning factory bathrooms.

 

" Starting at ground level was intentional," he adds. " I needed to understand every aspect of our operations, not just the boardroom perspective."

 

The turning point came in 2022 when frequent trips between California and Singapore convinced Borch that effective leadership required full immersion in Micro-Mechanics' Asian operations.

 

" I was spending more time in airports than factories," he says. " To truly transform this business, I needed to be present where 70% of our manufacturing and our biggest growth opportunities were."

 

Borch' s transition to his current position is also noteworthy for his relationship with his father. Having worked alongside his father for over a decade, Borch has had the unique opportunity to learn firsthand from a successful business leader in the semiconductor sector.

 

" The opportunity to work with my father was invaluable," reflects Borch. " I learned so much from him - not just business strategy but leadership. He always had this ability to make people feel like they were part of something bigger than themselves. That' s a skill I continue to hone."

 

For Borch, this mentorship has shaped his leadership philosophy. " My father always emphasised that business is about more than just making money - it' s about creating something meaningful that lasts," Borch continues. " The company he built was not just about products but about the people and the culture. And that' s the foundation I' m building on."

 

State-of-the-art factory

 

Borch' s relocation coincided with the launch of his signature initiative - the " Five-Star Factory" programme. This comprehensive operational overhaul aims to elevate Micro Mechanics from a precision parts supplier to a strategic solutions provider for next-generation semiconductor manufacturing.

 

" The semiconductor industry is at an inflection point," says Borch. " With artificial intelligence driving demand for more advanced chips, our customers need partners who can solve yield and performance challenges at smaller and smaller nodes and beyond. We' re retooling everything from equipment to employee training to meet that need."

 

The programme' s five pillars - operational excellence, innovation, high-performance teams, customer partnership, and sustainability - reflect Borch' s engineering approach to leadership. Each factory in Micro Mechanics' global network will implement standardised metrics and best practices while maintaining local adaptability.

 

He says: " There was some co-creation with my dad and me. But a lot of the idea was mine, just piecing it together over the past 18 months and figuring out what we needed to do to support the businesses."

 

While each location had operated with some degree of independence, Borch now emphasises the importance of shared vision and common goals. He says: " We need to ensure that our global team operates as one entity, not five separate ones. The future of Micro-Mechanics depends on that unity."

 

Cultural transformation

 

The most challenging aspect of Borch' s initiative has been shifting long-established workplace mindsets. " Changing processes is relatively straightforward," he notes. Changing how people think about their work requires patience and persistence."

 

Rather than imposing change top-down, Borch has focused on empowering veteran employees. He has promoted several long-time team members to VP roles and created cross-functional innovation teams. " Our most valuable institutional knowledge resides with people who' ve been with us 20, 30 years. The key is helping them see change as an opportunity rather than a threat."

 

This approach reflects lessons from Borch' s father, who founded Micro-Mechanics in 1983 with just $1,200 in a borrowed space within a Singapore hat-sewing factory. From that seed money, the company has since grown to achieve earnings of $6.03 million in 1HFY2025 ended Dec 31, 2024, a 46.6% rise from $4.11 million in 1HFY2024.

 

Revenue in the period similarly increased 10.8% y-o-y to $32.5 million, thanks to healthy performance in its consumable tools and wafer fabrication equipment parts segments.

 

" My dad' s philosophy was always ' people make everything happen' ," Borch recalls. " That' s even more true today, as the technical challenges become more complex."

 

He adds that there are mild cultural differences between US and Asia-based workers.

 

" I would say that the American way is maybe more entrepreneurial and willing to take risks, whereas, in Asia, people are much more inclined to follow instructions and are less likely to ask questions. Both of these have their own strengths and challenges," says Borch.

 

Beyond internal transformation, the young deputy CEO must also deal with the semiconductor industry' s geopolitical tensions.

 

Thankfully, Micro-Mechanics' decentralised manufacturing footprint, with facilities serving regional customers, has proven prescient in an era of trade wars and export controls.

 

Borch says: " [Our setup] probably could be a net positive because countries are going to realise that they have to do more manufacturing locally. But it remains to be seen how our customers will respond because they' ll be the ones who are more impacted than we are."

 

He adds: " We' re fortunate that our model was designed for local support from the beginning. Our Malaysian factory serves Southeast Asia, our Chinese operations support China, and our US facilities focus on North America. This buffers us from many of the cross-border tensions."

 

Still, he has had to make tough decisions about technology partnerships and supply chain redundancies. " We' re maintaining dual sourcing for critical components and qualifying alternative materials," he says. " In this environment, resilience is as important as innovation."

 

The day-to-day

 

Borch' s technical background shapes his leadership style in tangible ways. He spends at least two hours a day on the factory floor and insists that his leadership team maintains similar hands-on engagement.

 

" You can' t solve yield issues or process bottlenecks from a conference room," he states flatly.

 

This engineering mindset also informs Micro-Mechanics' R& D strategy. The company has doubled its research spending since 2020, focusing on advanced packaging solutions and materials science.

 

" The physics of semiconductor manufacturing are pushing against fundamental limits," Borch says. " Breakthroughs will come from unconventional approaches - that' s where we' re placing our bets."

 

When out of the office, Borch spends his leisure time in Singapore very differently than he does in the US. An avid outdoorsman, he misses California' s mountains and trails.

 

He says he has adapted by starting his days at 5:00am, with swim training, a routine that serves as exercise and mental preparation. Borch muses: " Something about being in the water before sunrise clarifies your thinking."

 

" I miss the mountains and surprisingly cold weather. I grew up thinking in California, it' d be great to live somewhere where it' s tropical all year round. Living in Singapore, I' ve actually come to appreciate the cooler weather. The humidity here is something else."

 

Despite his commitment to work, family remains central.

 

He balances his time by travelling to California quarterly and maintaining weekly video calls with his parents and three siblings. " My dad built this company to support our family and also to serve our employees and customers," he says. " That dual responsibility to both stakeholders and family legacy is something I try to think about daily."

 

Gearing up

 

As Borch looks toward the future, the potential for growth in the semiconductor industry is both exciting and daunting. With the industry' s rapid expansion, Micro-Mechanics seems well-positioned to capitalise on emerging trends, particularly in advanced manufacturing processes for semiconductors.

 

Borch' s emphasis on technological innovation and operational excellence is central to the company' s long-term strategy.

 

" We are in the midst of a major transformation in the semiconductor industry," says Borch. " The next decade will be a defining period, and we' re positioning ourselves to lead the way in advanced manufacturing. Our Five-Star Factory initiative is just one example of how we' re preparing for the future."

 

For Borch, however, the path ahead is not solely defined by business objectives but also by a journey of personal growth and leadership.

 

" Every day presents new challenges and learning opportunities," he concludes. " We are solving complex problems, which makes this role exciting. But it' s not just about the business. It' s about the people I work with and the impact we can have together."

 

Micro-Mechanics (Holdings) has reported earnings of $2.95 million for its 2QFY2025 ended Dec 2024, up 108.9% y-o-y. This brings its 1HFY2025 earnings to $6.03 million, up 46.6% y-o-y.

 

Revenue in its 2QFY2025 was up 20.7% y-o-y and up 10.8% y-o-y to $32.5 million in 1HFY2025.

 

The company attributes growth from two business segments, consumable tools, and wafer fabrication equipment parts.

 

" Our improved performance testifies that our strategic priorities aimed at building the core foundations of our business are on the right track," says Christopher Borch, the company' s founder and CEO.

 

Micro-Mechanics says it remains focused on becoming a " leading next-generation supplier" of high-precision tools and parts used in the semiconductor manufacturing ecosystem.

 

It remains " cautiously optimistic" about the continued recovery of the semiconductor industry amid ongoing macroeconomic and geopolitical uncertainty. 

 

It believes it is well-positioned to navigate these potential headwinds.

 

The company is maintaining an interim dividend payout of 3 cents per share for 1HFY2025, representing a payout ratio of 69.2%.

 

Micro-Mechanics shares closed at   $1.66 on Jan 24, unchanged for the day but down 17.41% in the past 12 months.

 

People who walk into a five-star restaurant or hotel know they will receive the highest quality products and services, and that is the standard that Micro-Mechanics, which manufactures precision tools and parts for the semiconductor industry, has set for itself, says its founder and CEO Christopher Borch.

 

The company has over 450 staff globally and five factories in Singapore, China, Malaysia, the Philippines and the US, with the last in Silicon Valley. Borch likens the firm&rsquo s role to producing sewing needles for sewing machines or inkjet cartridges for printers &mdash &ldquo we supply the critical performing parts for systems,&rdquo he says. 

 

Recently, the company has started to improve its factories under a Five-Star Factory initiative, with five key focus areas: high-performance teams fast and effective decentralised customer support a programme named 8S, an offshoot of Toyota&rsquo s lean manufacturing system aimed at enhancing workplace efficiency and safety operational excellence and innovation excellence.  

 

With this initiative, it has better served its over 600 clients worldwide, which include both makers of semiconductor chips and equipment. Its revenue rose 9.7% from the third to fourth quarter of the 2024 financial year, partly on the back of this upgrade. Borch adds: &ldquo In the long run, it will elevate our competitiveness and support our ambitions for sustainable growth.&rdquo

 

The stronger footing also ensures that it can continue to benefit investors. The company has a formal dividend policy to distribute at least 40% of its after-tax annual earnings, and has consistently exceeded this target. &ldquo If you bought our shares when we went public in 2003, your return on dividends alone would be 128.9 cents per share, or a 700% return.&rdquo

 

A Bloomberg analysis found that total shareholder returns since the firm&rsquo s listing is over 2,800%, assuming dividends are reinvested to buy more of its shares. &ldquo I think this shows that we are a solid company that has an enduring product, is well-managed, and has a track record of understanding the importance of governance, a part of which is rewarding shareholders,&rdquo says Borch.  

 

A micro-tools company ready for macro changes

 

Micro-Mechanics is also prepared to capitalise on emerging opportunities, such as the surge in products with artificial intelligence. Borch explains: &ldquo You&rsquo re going to see more autonomous vehicles and other smart devices, and a greater proliferation of data centres. This overall trend of more data and more computing is great for us as it will create higher demand for chips.

 

&ldquo The challenge, of course, is that technological change is occurring at a speed faster than ever before. Companies need to stay abreast of the advances.&rdquo Even so, he is unfazed, as the firm&rsquo s close relationship with its wide variety of clients keeps its ears close to the ground. 

 

&ldquo Our typical customer orders from us every month, sometimes multiple times in a month&hellip They will tell us, &lsquo we&rsquo re still doing this process, but now we have this additional requirement or stringency&rsquo , so we always know what is the latest development in the industry. We&rsquo re in this real-time research and development loop where we are constantly listening and responding, iterating and improving, staying ahead of the curve.&rdquo

 

Its factory in China has also positioned it to profit from the country&rsquo s inward turn. Borach shares: &ldquo We made the decision shortly after we listed on the Singapore Exchange S68 to set up our plant in China. It&rsquo s been about 20 years. That was a really good move because we now have a cutting-edge facility there and a strong local team, and can grow with the market.

 

&ldquo What&rsquo s happening is that China wants to strengthen its internal supply chains and, if possible, have all of its supply chains completely within the nation. Our longstanding presence there as an established part of the local supply chain means that we can avoid the many problems that other external companies may have when trying to export their products into the country.&rdquo

 

This turn of events also underlines the advantages of Micro-Mechanics&rsquo strategic investment in decentralisation. &ldquo By opening plants across the region and in the US, we&rsquo ve made ourselves valuable to clients. We hear their issues and needs in a timely manner in the same time zone, sometimes in the same dialect or language, and respond quickly and efficiently.&rdquo  

 

Building a sustainable and enduring corporation

 

As Borch readies the firm for the future, he is proud of its journey to date. He shares: &ldquo I came to Singapore in 1981, working for an American company that was a pioneer in automatic or semi-robotic manufacturing equipment for assembly and tests. A few years later, I realised the semiconductor sector was missing some key local suppliers. That led to Micro-Mechanics.

 

&ldquo Back then, the global chip industry was worth about US$20 billion to US$30 billion annually.   Today, its worldwide revenue is about US$600 billion every year. Its growth has been nothing short of remarkable, and we&rsquo ve become an essential player in the arena. Many of our products have become industry standards in key processes.&rdquo

 

The company has also transformed from a humble operation with just a handful of employees working in a 500 sq ft plant with basic equipment, to a well-resourced corporation with five factories internationally, all fully equipped with state-of-the-art technologies. &ldquo We&rsquo ve built a wonderful, debt-free business with a high gross profit margin that is very profitable.&rdquo

 

Borch plans to maintain his hands-on approach and lead the firm to loftier heights. &ldquo I love working with our people, with the different cultures that we have across our factories. We&rsquo ve always said that each of our plants should be run by locals, because they know the area, it is their home, and they will do a great job. We have achieved this, with very few exceptions.&rdquo

 

Core values like diligence and ownership are also integral to the organisation&rsquo s success, says Borch, who tries to embody these traits in his own leadership approach: &ldquo While I can&rsquo t be involved in everything, I oversee many of the key processes. I take every chance to interact with customers and learn from analysts.&rdquo No matter where he is in the world, he sets his alarm for 5am, so that he can go through his email correspondence for an hour, exercise, and then begin the work day. &ldquo If nothing else, I&rsquo m a pretty hard worker.&rdquo

 

The company&rsquo s listing has also provided valuable lessons about upholding good governance, according to Borch. With over 30 recognitions for its governance efforts, Borch is confident that he has laid the foundations for a sustainable business. &ldquo When I first started Micro-Mechanics, I dreamt that it would one day become a corporation. There&rsquo s nothing wrong with being a mom-and-pop shop, but they usually don&rsquo t outlast their founders. I also didn&rsquo t want to just build something, sell it, and wash my hands off it. I want Micro-Mechanics to be a sustainable corporation that, after I retire as chief executive officer, will keep going on and doing well.&rdquo  

Micro-Mechanics (Holdings), a manufacturer of high-precision tools and parts for the semiconductor industry, has posted net profit of $1.8 million for 3QFY2024 ended March 31, 12.8% higher y-o-y.

 

This comes despite an 8.7% decline in group revenue to $13.6 million during the quarter. 

 

Chris Borch, chief executive officer of Micro-Mechanics, says the global semiconductor industry continued to work through excess inventory that had been built up during the industry&rsquo s recent cyclical slowdown. &ldquo Although the group experienced a decrease in quarterly revenue, we delivered higher net profit for 3QFY2024 due to our diligent efforts to control costs.&rdquo  

The challenging market conditions in the global semiconductor industry were particularly significant in the Wafer-Fabrication Equipment (WFE) sector, adds Borch. This had an impact on the group&rsquo s subsidiary in the US (MMUS), which focuses on manufacturing process-critical products for the WFE sector. 

 

Consequently, sales in the US decreased 42.0% y-o-y to $2.2 million in 3QFY2024 but remained as the group&rsquo s second-largest geographical market, behind China. 

 

Sales to the Singapore market also declined 11.8% y-o-y to $1.4 million in 3QFY2024 due to lower sales of WFE products. 

 

The decrease in the group&rsquo s sales to the US and Singapore markets was partially buffered by higher sales in China, Malaysia and Taiwan, which are markets for its process-critical consumable tools and parts used in chip packaging processes, says the group.

 

In China,the group witnessed sales growth of 12.5% y-o-y to $4.7 million in 3QFY2024, driven by firm demand from the country&rsquo s electric vehicle and mobile phone sectors. 

 

The Malaysia market posted a moderate 4.8% sales increase y-o-y to $2.2 million while sales in Taiwan jumped 61.3% y-o-y to $1.0 million in 3QFY2024. 

 

Borch says: &ldquo As we move into the final quarter of FY2024, we are cautiously optimistic that the worst of the downturn may now be behind us. At MMUS, we have taken various steps over the last nine months to lower the facility&rsquo s operating cost structure and put a stronger emphasis on process improvement and automation.&rdquo

 

As at March 31, the group had a balance sheet with total assets of $54.2 million, shareholders&rsquo equity of $43.9 million, cash and cash equivalents of $13.1 million and no bank borrowings.