Link: https://links.sgx.com/1.0.0/corporate-announcements/NUHKQ6HZRCWCCRR8/ba08067c8bc1d625828ed97221095e97881855bfada8a5674ddbe391b92bcdbc

Summary:

• Revenue decreased by 6.2% year-on-year to HK$2,199 million due to slower telecom network project spending and transitional product changes.

• Gross profit increased by 4.2% to HK$649 million; gross margin rose to 29.5% (from 26.6%) thanks to competitive new products and reduced inventory provisions.

• Net profit attributable to shareholders was HK$61.8 million, a significant turnaround from a HK$158.4 million loss in 1H 2024.

• Operating cash flow more than doubled year-on-year to HK$451 million; net current assets stood at HK$2.3 billion at period end.

• International sales grew 13.5% to HK$1.1 billion, now accounting for 50% of total revenue.

• Mainland China revenue declined notably; sales to Chinese telecom operators dropped 24% and represented 37% of group revenue, down from 46% last year.

• Expenses decreased across R&D (-29.5%), selling/distribution (-28.7%), and administrative costs (-14%), reflecting focused cost optimization.

• Profit improvement supported by lower bad-debt expenses and strong international growth.

• Interim dividend of HK0.6 cent per share (total ~29% payout ratio) declared, marking a resumption of interim dividends.

• Company remains financially sound with substantial liquidity and no major asset pledges; continues to focus on new technology development and global market expansion.