China Electronics Huada Technology Company (85) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 18.2% YoY to HK$1,112.3m; profit attributable to owners declined 55.2% to HK$138.6m. Weaker demand, intense competition and lower selling prices pressured results.

• Total sales volume was similar to H1 2024, but product mix and falling prices weighed on revenue and gross margin.

Financial highlights

• Revenue was HK$1,112.3m vs HK$1,360.6m; gross profit was HK$414.1m vs HK$567.4m YoY.

• Operating profit was HK$151.4m vs HK$354.6m; profit before tax was HK$145.6m vs HK$343.0m.

• Net profit was HK$140.1m vs HK$308.8m; profit attributable to owners was HK$138.6m vs HK$309.5m.

• Net cash from operating activities was HK$25.5m vs HK$146.0m; cash and cash equivalents were HK$1,027.6m at 30 June 2025.

Outlook and guidance

• Global smart card and secure element chip demand is expected to remain in a downward cycle; domestic competition and product price declines are expected to continue.

• Intelligent-device security demand and broader eSIM adoption are expected to expand secure element chip applications and create market opportunities; focus remains on tracking demand and developing customers.