VSTECS (856) investor relations material

Executive summary

• Revenue grew by 13.6% year-over-year to HK$45.5 billion, with net profit attributable to equity shareholders up 34.7% to HK$610.5 million and EPS at HK44.06 cents.

• Gross profit reached HK$2.16 billion, with gross margin improving to 4.75% from 4.43% year-over-year.

• ROE reached 13.7%, surpassing the Hang Seng Index average of 10.94%.

• CAGR since listing is 24% for revenue and 28% for net profit, with explosive net profit growth during 2020-2021 due to COVID-related factors.

• No significant events occurred after 30 June 2025 up to the report date.

Financial highlights

• Operating profit was HK$928.1 million, up from HK$775.4 million year-over-year.

• Cash and bank balances stood at HK$3.82 billion as of 30 June 2025; total borrowings at HK$9.53 billion.

• Net debt to total assets ratio remained stable at 0.14.

• Inventory days decreased to 48, account payable days to 65, and working capital cycle maintained at 53 days.

• Current ratio improved to 1.31 times from 1.30 times at year-end 2024.

Outlook and guidance

• Targeting around 20% profit and revenue growth, focusing on high operational quality and expanding product/service range.

• Overseas business, especially Southeast Asia, expected to continue strong growth; China business remains selective due to receivables risk.

• Dividend payout ratio to remain stable at around 35%, with one year-end payout; no interim dividend declared.

• M&A activity will be accelerated as part of growth strategy.