Truly International (732) H2 2025 earnings summary

Executive summary

• Revenue declined by 7.5% year-over-year to HK$16.5 billion, mainly due to lower smartphone-related sales in the PRC.

• Profit attributable to owners fell 9.2% to HK$274 million, with basic EPS down to 8.93 HK cents.

• Gross profit margin slightly decreased to 7.7%, while net profit margin remained at 1.7%.

• LCD products accounted for 71% of revenue, with the remainder from electronic consumer products.

• Continued investment in R&D, with HK$645 million spent in 2025.

Financial highlights

• EBITDA decreased by 7.9% to HK$1,820 million year-over-year.

• Gross profit dropped 7.8% to HK$1,278 million.

• Other income fell 40% to HK$134 million, mainly due to reduced government subsidies.

• Net other losses increased to HK$108 million, driven by a net foreign exchange loss.

• Distribution and selling expenses decreased by 16% to HK$268 million; administrative expenses fell 5% to HK$440 million.

• Finance costs declined 19% to HK$308 million due to lower interest rates.

Outlook and guidance

• Management remains cautiously optimistic for 2026 amid global economic and geopolitical uncertainties.

• Ongoing cost pressures from key components, especially memory chips, expected to impact smartphone business.

• Stable demand anticipated for display products, with growth in automotive, medical, and IoT sectors.

• Company aims to leverage technological trends and maintain strong customer relationships.