PAX Global Technology (0327) H1 2025 earnings summary

Executive summary

• Revenue for 1H 2025 declined 9.9% year-over-year to HK$2,716.2 million, mainly due to reduced purchase orders amid global economic uncertainty.

• Profit attributable to owners fell 14.0% to HK$390.9 million, with net profit margin at 14.4%.

• Gross profit margin remained strong at 46.9%, reflecting resilient cost management.

• Interim dividend increased to HK$0.25 per share, up 4.2% year-over-year, with a payout ratio of 67.8%.

Financial highlights

• Net cash generated from operating activities was HK$153.7 million, down from HK$430.7 million in the prior year.

• Operating profit dropped 12.4% year-over-year to HK$471.0 million.

• Basic EPS was HK$0.369, down 13.2% year-over-year; diluted EPS was HK$0.363.

• Selling expenses decreased by 12.8% year-over-year, and administrative expenses fell by 10.6% year-over-year.

• Inventory provision of HK$62 million was recorded.

Outlook and guidance

• Focus on global diversification, high-potential Android models, and SaaS ecosystem expansion, leveraging stablecoin and blockchain trends.

• Emphasis on strengthening shareholder returns, pragmatic working capital management, and driving innovation and cost efficiency.