Truly International (732) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was HK$8,098 million, down 5.7% year-over-year, mainly due to a 12.1% decline in smartphone-related sales in China.

• Gross profit fell 8.7% to HK$637 million, with gross margin slightly down to 7.9% amid fierce competition in the smartphone market.

• Profit attributable to owners dropped 19.2% to HK$140.7 million, and basic EPS declined 18.5% to 4.49 HK cents.

• Interim dividend of 5 HK cents per share declared, unchanged from the prior year.

Financial highlights

• EBITDA decreased 6.8% to HK$920.2 million; EBITDA margin was 11.4%.

• Other income declined 26.2% to HK$59.5 million, mainly due to lower government subsidies.

• Net other losses increased to HK$33.2 million, primarily from foreign exchange losses.

• Administrative and selling expenses decreased by 12.4% and 17.1%, respectively.

• Net cash from operating activities was HK$3,640 million, with a net increase in cash and cash equivalents of HK$211 million.

Outlook and guidance

• Management expects the smartphone and non-smartphone product businesses to remain stable in H2 2025, but global economic and geopolitical uncertainties may impact demand.

• Focus remains on R&D, production process upgrades, and maintaining strong customer relationships for steady expansion.