Comba Telecom Systems (2342) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2025 was HK$2,199.2 million, down 6.2% year-over-year due to slower network construction by global telecom operators and a transitional phase in product upgrades.

• Net profit attributable to owners/shareholders was HK$61.8 million, reversing a loss of HK$158.4 million in the prior year period.

• Gross profit increased 4.2% to HK$648.8 million, with gross margin rising to 29.5% from 26.6% year-over-year.

• Interim dividend of HK$0.6 cent per share declared, with a payout ratio of 28.7%.

• Operating cash flow increased to HK$451.4 million from HK$157.4 million year-over-year.

Financial highlights

• Revenue from Chinese telecom operators and China Tower fell 23.7% to HK$817.6 million, now 37.2% of total revenue.

• International revenue rose 13.5% to HK$1,106.1 million, now 50.3% of total revenue.

• R&D expenses decreased 29.5% to HK$161.9 million; S&D expenses down 28.7% to HK$182.4 million; administrative expenses down 14.3% to HK$177.4 million.

• Finance costs increased 47.3% to HK$19.9 million; net finance costs remained low due to higher interest income.

• Interim dividend of HK$0.6 cent per share declared, payout ratio 28.7%.

Outlook and guidance

• Focus on enhancing organizational performance, R&D, and product competitiveness, with plans for global market expansion.

• Plans to provide stable, high-quality, cost-effective products and services to global operators and industry customers.