BoardWare Intelligence Technology (1204) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 9.7% YoY to HK$648.0m, while gross profit rose 8.0% to HK$124.8m on a higher-margin business mix.

• Profit fell 77.8% to HK$1.0m; net margin declined to 0.1% from 0.6%, reflecting expense growth despite improved gross margin.

• Growth initiatives target managed services, AI and BCI solutions, supported by increased R&D and expansion across Macau, Hong Kong and the Greater Bay Area.

Financial highlights

• Revenue was HK$648.0m, down 9.7% YoY; cost of sales and services fell 13.1% to HK$523.2m.

• Gross profit increased 8.0% to HK$124.8m; profit before tax was HK$1.6m versus HK$7.4m, and net profit was HK$1.0m versus HK$4.5m.

• Other income rose 112.2% to HK$17.4m, mainly from R&D grants and a digital-economy partnership; R&D expense increased 84.0% to HK$18.4m.

• Distribution and selling expenses rose 36.2% to HK$44.0m; administrative expenses rose 9.1% to HK$78.3m.

• Cash and cash equivalents were HK$85.9m at year-end, versus HK$28.7m a year earlier.

Outlook and guidance

• Macau gaming operators’ non-gaming investment commitments and ongoing complex contracts are expected to support future IT revenue as project work progresses.

• Managed services and IT maintenance and consultancy contracts are expected to contribute steady revenue; managed services development remains a strategic focus.

• Plans include AI solutions for financial technology, smart retail and government, alongside SaaS subscriptions and customized solutions for gaming-sector digital transformation.

• A multi-agent information-security platform is targeted for full deployment by mid-2026; initial BCI research results are expected by end-2025.