Kinetix Systems FY2025 Swings Back to Profit on 17% Revenue Growth

Bulletin Express
03/30

Hong Kong–based IT services provider Kinetix Systems Holdings Limited reported a solid turnaround for the financial year ended 31 December 2025 (FY2025).

Revenue rose 17.20% year-on-year to HK$393.09 million, lifted mainly by a 22.73% jump in IT infrastructure solution services to HK$219.70 million. IT development solution services contributed HK$124.61 million, up 14.83%, while IT maintenance and support services edged 2.01% higher to HK$48.78 million.

Gross profit increased 18.24% to HK$78.64 million, keeping margin broadly stable at 20.00%. Lower expected-credit-loss provisions (HK$0.24 million vs. HK$3.01 million) and higher sales volume moved operating results into positive territory: operating profit reached HK$3.90 million versus a HK$6.59 million loss a year earlier.

Net profit came in at HK$3.23 million (FY2024: loss of HK$6.85 million). Basic and diluted earnings per share were HK0.17 cents, reversing the previous year’s loss per share of HK0.33 cents. The board proposed no final dividend.

Balance-sheet metrics improved. Cash and cash equivalents grew to HK$51.21 million from HK$31.19 million, while total assets expanded 42.09% to HK$259.61 million. Contract liabilities surged to HK$82.18 million (FY2024: HK$12.06 million), pushing the gearing ratio to 20.9% from 11.1%.

Capital expenditure amounted to HK$1.10 million (FY2024: HK$0.60 million). The company had no bank borrowings outstanding at year-end, supported by a HK$10.00 million undrawn credit facility.

Regarding the HK$29.90 million net proceeds from the February 2023 rights issue, HK$18.00 million had been deployed by 31 December 2025, including HK$8.00 million to expand technical and development services in mainland China and HK$10.00 million for working capital. The remaining HK$11.90 million earmarked for developing opportunities in the new-energy-vehicle sector is now expected to be fully utilised by 31 December 2026.

Looking ahead, management plans to sustain growth through market expansion, service diversification and tighter cost controls while continuing to monitor merger-and-acquisition prospects in the new-energy-vehicle value chain.

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