China Electronics Huada Technology Company (85) investor relations material

Executive summary

• H1 2026 revenue rose 5.2% YoY to HK$1,170.6m; profit attributable to owners fell 9.8% to HK$125.0m and basic EPS declined to HK6.16 cents from HK6.83 cents.

• Total sales volume increased 21.8% YoY, but lower average selling prices and higher production costs pressured gross profit and margins.

Financial highlights

• Revenue was HK$1,170.6m vs HK$1,112.3m; gross profit was HK$408.2m vs HK$414.1m for H1 2025.

• Operating profit fell to HK$136.0m from HK$151.4m; profit before tax was HK$133.6m vs HK$145.6m, and net profit was HK$126.3m vs HK$140.1m.

• Profit attributable to owners was HK$125.0m vs HK$138.6m; basic EPS was HK6.16 cents vs HK6.83 cents.

• Other income, net, increased to HK$43.1m from HK$36.5m; net finance costs declined to HK$2.8m from HK$5.7m.

Outlook and guidance

• Smart-card and secure-element chip demand is expected to remain stable; domestic competition is expected to intensify and production costs to continue rising into H2.

• Rising security needs in smart devices and wider eSIM deployment may expand demand for secure-element and security microcontroller chips.

• Priorities include expanding markets and sales channels, adapting production and marketing strategies, and introducing a broader range of competitive products.