Smart-Core Holdings (2166) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 41.8% to HK$6,590.1m; profit attributable to owners increased 60.8% to HK$161.4m, supported by strong smart-terminal and memory sales.

• Gross profit rose 31.4% to HK$409.5m, but gross margin narrowed to 6.2% from 6.7% as lower-margin memory sales expanded.

Financial highlights

• Revenue was HK$6,590.1m versus HK$4,647.9m in FY2024; reported growth was 41.8%.

• Gross profit reached HK$409.5m versus HK$311.7m; profit for the year was HK$161.1m versus HK$101.1m.

• Profit attributable to owners was HK$161.4m, up 60.8%; basic and diluted EPS were HK34.85 cents and HK34.59 cents.

• Finance costs increased to HK$30.4m from HK$26.6m, mainly reflecting higher bank borrowings.

Outlook and guidance

• The 2026 strategy prioritizes AI-related software and hardware, including AI SoCs, memory, computing infrastructure and digitalized distribution operations.

• Memory operations anticipate growth in 2026, citing AI demand for HBM, DRAM and enterprise SSDs; optical components are positioned to benefit from AI infrastructure investment and 800G/1.6T adoption.

• Mixed distribution plans to build supply-chain resilience, strengthen compliance and expand AI-enabled operating capabilities amid continued market volatility.