North Asia Strategic Holdings Limited (NAS HOLDINGS) reported a solid turnaround for the year ended 31 March 2026, moving from a HK$7.90 million loss in FY2025 to a HK$10.14 million profit. Basic earnings per share rebounded to HK2.2 cents (FY2025: loss of HK1.7 cents).

Revenue rose 22.7% year on year to HK$1.69 billion, driven chiefly by the Hi-Tech Distribution & Services division, whose sales climbed 25.2% to HK$1.55 billion. Group gross profit improved 12.2% to HK$324.69 million, although the gross margin narrowed to 19.2% (FY2025: 21.0%) amid pricing pressure in China’s electronics manufacturing sector.

Segment performance:

• Hi-Tech Distribution & Services: profit advanced 20.6% to HK$50.75 million on robust demand from smartphone, automotive electronics, new energy and AI-related customers, alongside equipment upgrades to Fuji’s new NXTR series.

• Leasing: revenue held steady at HK$135.61 million (-0.2% YoY); segment profit increased 13.5% to HK$17.57 million, supported by higher finance-lease receivables and disciplined risk controls.

• Electronic Payment Solutions: revenue inched up 3.2% to HK$2.93 million, but a HK$14.79 million impairment on goodwill and other intangibles tied to the “Jarvix” platform pushed the unit to a HK$22.85 million loss. Excluding this non-cash charge, group profit would have been approximately HK$24.93 million.

Operating expenses rose 6.1% to HK$304.57 million, but the cost-to-revenue ratio improved to 18.1% (FY2025: 20.9%). Operating profit reached HK$16.20 million versus a HK$1.27 million loss a year earlier.

Balance-sheet highlights include cash and equivalents of HK$390.59 million and no bank borrowings at year-end, leaving the Group in a net cash position. Total assets stood at HK$2.03 billion, while shareholders’ equity increased to HK$1.39 billion, translating to net asset value of HK$3.06 per share (31 March 2025: HK$3.00).

The Board proposed no dividend for FY2026.

Management Outlook: • Hi-Tech Distribution expects sustained demand from AI, new-energy vehicles and continued localisation of China’s electronics supply chain, supported by PRC industrial-upgrade policies. • Leasing will emphasise asset optimisation and prudent credit assessment amid intensified competition. • Electronic Payment Solutions will focus on cost discipline, selective merchant acquisition and product refinement to navigate ongoing shifts in Hong Kong’s retail landscape.

The Group plans to leverage its diversified model—spanning distribution, services, leasing and payments—while maintaining strong liquidity and risk controls to pursue sustainable growth opportunities in Greater China and Southeast Asia.