BoardWare Intelligence Technology (1204) H1 2025 earnings summary

Executive summary

• FP2025 revenue rose 1.0% YoY to HK$321.440m and gross profit increased to HK$69.886m; profit for the period declined 20.0% to HK$0.785m.

• Distribution and resale growth offset lower enterprise IT solutions revenue; signed AI and customised-solutions contracts are expected to contribute significantly in H2 2025.

Financial highlights

• Revenue was HK$321.440m vs HK$318.109m; cost of sales and services declined 0.3% to HK$251.554m.

• Gross profit rose to HK$69.886m from HK$65.768m, and gross margin increased to 21.7% from 20.7%.

• Profit before tax fell to HK$0.840m from HK$1.733m; profit for the period was HK$0.785m vs HK$1.038m, and basic EPS was HK0.16 cents vs HK0.21 cents.

• R&D expenses rose 32.8% to HK$8.9m, mainly due to higher AI-focused R&D headcount in Macau; finance costs increased 50.0% to HK$0.9m.

• Operating cash flow was HK$15.8m, compared with cash used of HK$24.6m in FP2024.

Outlook and guidance

• Several contracts for customised IT products and AI solutions signed in FP2025 are expected to contribute significant revenue in H2 2025.

• Managed-services and IT maintenance and consultancy contract counts grew significantly; continued investment in these areas is intended to support steady future revenue.

• Focus areas include AI-driven gaming solutions, GPU servers and compute-related devices, AI services, digital humans and cross-border data solutions.