Link: https://links.sgx.com/1.0.0/corporate-announcements/R053452KKBX8UFEP/b32fbd683c670b97837483599aefe285664b91f139d3f4c64fef537af4dd77fb

Summary:

• Karin celebrated its 20th anniversary as a listed company and 49 years in business, maintaining a resilient business model across IT infrastructure, components distribution, and consumer electronics.

• FY2025 revenue declined 12.4% to HK$1,929.5 million amid weak demand and poor economic sentiment in China and Hong Kong.

• IT Infrastructure segment remained the largest contributor but saw an 11.9% drop in sales; CD segment fell 11.1%, and CEP segment declined 19.4%.

• Gross profit decreased 5.6% to HK$176.6 million, though margin improved to 9.2% (from 8.5%) due to higher-margin deals and cost control.

• Net profit attributable to owners rose slightly by 1.0% to HK$19.2 million, supported by lower operating and finance costs despite topline pressure.

• Group maintained strong liquidity, with cash and cash equivalents increasing to HK$144.0 million and continued regular dividends, with total FY2025 payout at 8.78 HK cents per share (payout ratio: 99.2%).

• The outlook is cautious with ongoing geopolitical and consumer challenges, but the Group is focused on expanding value-added AI solutions and further strengthening its IT Infrastructure segment for future growth.

• Management transitions set to drive strategic transformation, emphasizing profitability, disciplined inventory control, and expansion in AI-driven markets.