Truly International (732) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was HK$6,960 million, down 14.1% year-over-year, mainly due to a 36.6% drop in smartphone-related sales, while non-smartphone product revenue rose 2.1%.

• Gross profit margin improved to 8.3%, up 0.4 percentage points year-over-year, despite a 9.4% decline in gross profit.

• Profit attributable to owners fell 27.7% to HK$101.6 million, reflecting lower revenue and gross profit.

• Interim dividend declared at 3 HK cents per share, down from 5 HK cents in the prior year.

Financial highlights

• EBITDA for the period was HK$850.6 million, down 7.6% year-over-year.

• Basic earnings per share dropped 22.5% to 3.48 HK cents.

• Net cash from operating activities was HK$3,640 million; net cash used in investing and financing activities was HK$259 million and HK$3,170 million, respectively.

• Gearing ratio increased to 56% from 52% at year-end 2025.

• Administrative and selling expenses declined by 10.5% and 21.0%, respectively, due to lower salaries, allowances, and sales commissions.

Outlook and guidance

• Management remains cautiously optimistic but notes ongoing uncertainty in global economic and geopolitical conditions, with continued pressure on smartphone business from rising component costs.

• Stable demand is expected for automotive, industrial, medical, IoT, and wearables display businesses.

• The company expects to submit a second tender to further increase its stake in Truly Renshou in H2 2026.

• The company will continue to monitor technological and supply chain developments and maintain close customer relationships.