China Electronics Huada Technology Company (85) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 7.1% YoY to HK$2,181.2 million; profit attributable to owners declined 59.9% to HK$235.4 million; basic EPS was HK11.59 cents.

• Total sales volume increased 13.3% YoY, led by security MCU chips and identity-authentication products, but lower selling prices and a shift toward lower-priced products weighed on revenue and gross margin.

• Growth initiatives included security MCU and security SE chips, eSIM solutions, and continued R&D for smart-terminal, IoT and vehicle-network applications.

Financial highlights

• Revenue was HK$2,181.2 million versus HK$2,349.0 million in 2024; gross profit was HK$836.9 million versus HK$1,135.0 million.

• Operating profit was HK$260.9 million versus HK$652.1 million; profit before tax was HK$251.5 million versus HK$633.8 million.

• Profit for the year was HK$237.8 million versus HK$588.7 million; owners’ profit was HK$235.4 million versus HK$587.5 million.

• Net operating cash flow was HK$305.0 million versus HK$274.4 million; cash and cash equivalents closed at HK$617.1 million versus HK$743.0 million.

Outlook and guidance

• For 2026, global demand for smart cards and secure element chips is expected to remain stable; eSIM deployment and scaling are expected to accelerate as policies are gradually relaxed.

• Digital identity, digital payments and higher security needs in smart devices are expected to broaden opportunities for security MCU and security SE chips.

• Plans include expanding market channels, adapting production and sales strategies to demand, diversifying products, and increasing R&D investment in smart-terminal, IoT and vehicle-network security chips.