SMC Electric Limited reported a sharp contraction in earnings for the year ended 31 December 2025.

Revenue fell 15.40% year-on-year to HK$217.82 million, pressured by lower order volumes and unit prices amid ongoing U.S. tariffs and trade-war uncertainties. Segment-wise, electric fans edged up to HK$116.91 million, while vacuum cleaners and work lights declined to HK$82.39 million and HK$18.35 million, respectively.

Gross profit slipped 27.70% to HK$51.38 million, driving gross margin down 4.0 percentage points to 23.6% as higher raw-material costs further compressed spreads.

Operating expenses remained broadly flat, yet finance costs more than doubled to HK$0.31 million. As a result, profit attributable to shareholders dropped 63.99% to HK$9.48 million. Basic earnings per share retreated to HK0.474 cent from HK1.318 cents in 2024.

The board proposed an unchanged final dividend of HK$0.005 per share, bringing total 2025 dividends to HK$20.00 million and representing a payout well above annual earnings.

Cash and bank balances stood at HK$70.95 million, down from HK$90.43 million, with no outstanding bank borrowings, leaving the gearing ratio at nil. The current ratio eased to 2.77 times (2024: 2.98 times). Net assets totaled HK$125.35 million.

Capital expenditure reached HK$10.80 million, mainly for plant and equipment, while outstanding capital commitments amounted to HK$4.90 million.

Management flagged persistent headwinds in 2026, citing geopolitical risks and raw-material inflation, and plans to counter them through new product launches and continued cost discipline.