Karin Technology (K29) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 12.4% YoY to HK$1,929.5m, while net attributable profit edged up 1.0% to HK$19.2m, supported by improved IT profitability and lower finance costs.

• Proposed final dividend of HK3.88 cents/share; including the HK4.90 cents interim dividend, FY2025 total dividend was HK8.78 cents/share.

Financial highlights

• Gross profit declined 5.6% YoY to HK$176.6m as revenue fell; gross margin improved to 9.2% from 8.5% on higher-margin sales and better cost control.

• Profit before tax was HK$24.1m, up 0.4% YoY; net attributable profit was HK$19.2m, up 1.0%.

• Other income and gains rose 13.2% YoY to HK$10.3m, mainly from higher interest income on US dollar bank deposits; overall expenses declined.

• Expenses fell primarily on lower selling and distribution costs and administrative expenses after full depreciation of Hong Kong office renovation costs.

Outlook and guidance

• FY2026 outlook is pragmatic amid macroeconomic headwinds and geopolitical tensions; lower interest rates eased finance costs, but recessionary pressures and subdued demand persist.

• IT is expected to drive future growth through an expanded AI focus, new distributorships, and development of an ecosystem and broader AI solutions portfolio.

• CEP priorities include profitability through disciplined inventory management, strategic purchasing, and stringent cost controls; financial prudence and a healthy cash position remain priorities.