Valuetronics Holdings Ltd posted a net profit of HK$111.4 million for the 12 months ended 31 Mar 2026, down 33.1 % year-on-year, as impairment charges linked to its Trio AI venture and higher tax costs offset firmer gross margins and growth in its industrial business.

Basic earnings per share slipped to 28.7 Hong Kong cents from 41.6 cents a year earlier. The board declared total dividends of 38 Hong Kong cents a share for FY2026—comprising interim, special interim, final and special final payouts—up from 27 cents a year ago. The proposed final dividend of 14 cents and a special final dividend of 16 cents per share are slated for payment on 28 Aug 2026, subject to shareholder approval at the July annual meeting. The payout lifts the full-year cash distribution to about HK$155.6 million.

Group revenue eased 4.0 % to HK$1.66 billion. Industrial and Commercial Electronics (ICE) remained the growth engine, with revenue up 6.2 % to HK$1.45 billion and segment profit rising 6.7 % to HK$279.3 million, helped by contributions from new customers in network-access solutions. Consumer Electronics (CE) sales fell 41.6 % to HK$214.2 million as the company phased out low-margin traditional lifestyle products; segment profit slid to HK$17.5 million.

Gross profit improved 6.3 % to HK$312.1 million, lifting the margin to 18.8 % from 17.0 % a year earlier, reflecting a shift toward higher-margin product mix. Operating profit, however, declined 22.0 % to HK$136.8 million after recognising HK$45.0 million of impairment on graphics-processing-unit assets and HK$2.2 million on loans linked to Trio AI. Profit before tax dropped 25.2 % to HK$130.7 million, and the effective tax charge more than doubled to HK$19.3 million owing to the expiry of a full tax holiday for the Vietnam plant and utilisation of prior-year tax losses.

The balance sheet remained robust with cash and cash equivalents of HK$1.21 billion and no bank debt at end-March. Net current assets expanded to HK$1.05 billion from HK$952.9 million a year earlier, while shareholders’ funds were broadly steady at HK$1.47 billion.

Looking ahead, management expects the operating environment for electronics manufacturing services to stay “fluid and uncertain” amid inflationary pressures, geopolitical tensions and component-supply constraints. The group said it will continue diversifying its customer base—pursuing opportunities in automotive electronics and additional network-access projects—while leveraging its dual-site manufacturing footprint in China and Vietnam.

Valuetronics plans to return about HK$300 million to shareholders over FY2027-FY2028 through a mix of special dividends and share buybacks. For FY2026, the board has proposed a special final dividend of 16 cents per share and, subject to renewal of the buyback mandate, intends to deploy at least HK$80 million for share repurchases in the next 12 months. The company reiterated that it “expects to remain profitable” in FY2027, barring unforeseen circumstances.