WEBX INTL HLDGS (WebX International) reported FY2025 revenue of HK$134.96 million, up 12.4% year on year, driven by a 201.1% surge in cloud-based computing and internet traffic services to HK$29.48 million. Sales of functional knitted fabrics, apparel and yarns slipped 4.3% to HK$105.48 million.

Gross profit rose 30.7% to HK$25.78 million, lifting gross margin to 19.1% (FY2024: 16.4%). Stringent cost control and a sharp fall in impairment charges helped narrow the net loss to HK$4.42 million from HK$17.51 million a year earlier.

Segment performance: • Functional knitted fabrics, apparel and yarns: segment profit HK$9.53 million (FY2024: loss HK$7.90 million). • Cloud-based computing and internet traffic services: segment loss HK$3.69 million (FY2024: profit HK$1.34 million).

Key expense items included HK$0.74 million finance costs (-34.8% YoY), HK$0.74 million impairment on trade receivables (FY2024: HK$4.36 million) and HK$1.93 million impairment on prepayments (FY2024: HK$7.49 million).

Cash flow from operations recorded an outflow of HK$48.67 million (FY2024: HK$5.77 million outflow), mainly due to higher working-capital requirements. Year-end cash and cash equivalents stood at HK$69.74 million, down from HK$78.82 million. The net proceeds of HK$47.62 million from a 63.00 million-share placement in September 2025 bolstered liquidity and trimmed gearing to 15.8% (FY2024: 22.6%).

Total assets climbed to HK$221.35 million (FY2024: HK$178.60 million) while net assets improved to HK$169.60 million (FY2024: HK$125.27 million). No final dividend was declared.

Management reiterated its dual strategy of controlling costs in the traditional fabric business while expanding the higher-margin cloud and AI-related services to drive future growth.