Link: https://links.sgx.com/1.0.0/corporate-announcements/ETALAM41CHQSQO7R/377b56f76b61ee19a834490044fd27865ae9b68f1c298c5dd6e1367efaa1bec0

Summary:

• Revenue for 1H 2025 reached HK$2.20 billion, down 6.2% from HK$2.34 billion in the prior period, mainly due to a slowdown in network infrastructure spending by global telecom operators and an ongoing product transition phase.

• Profit attributable to owners was HK$61.8 million, a significant turnaround from a HK$158.4 million loss in 1H 2024; group net profit totaled HK$71.3 million.

• Gross profit increased by 4.2% to HK$648.8 million, with gross margin improving to 29.5% (from 26.6%) thanks to new product competitiveness and reduced inventory provisions.

• EBITDA and operating profit rose, while finance costs grew 47.3% due to higher borrowing levels; net finance costs remained low.

• Major expense reductions: R&D expenses cut by 29.5%, S&D by 28.7%, and admin costs by 14.3%.

• International revenue grew 13.5%, now comprising over 50% of group revenue; China market sales declined.

• Segment: Wireless equipment/services contributed HK$2.12 billion in revenue and profit of HK$126 million; operator telecom services added HK$82.8 million in revenue but saw a HK$34.8 million loss.

• Net cash from operating activities was HK$451.4 million; cash and equivalents at period end stood at HK$2.04 billion, with net current assets of HK$2.30 billion.

• Interim dividend of HK$0.6 cent/share declared (payout ratio 28.7%).

• Completed full acquisition of Comba Network Systems, enhancing group synergy.

• Outlook: cautious but optimistic; focus on R&D-led innovation, international expansion, and operational efficiency. No major new investments or asset acquisitions planned.