Hong Kong–listed Atlinks Group Limited (Atlinks, 08043) reported a challenging FY2025, moving from a marginal €0.02 million profit in 2024 to a €0.47 million net loss. The downturn was driven by softer demand across key European markets and elevated financing costs.

Revenue and Profitability • Revenue fell 13.2% year on year (YoY) to €25.59 million, primarily due to geopolitical-related sales slowdowns in several regions. • Gross profit slipped 14.4% to €9.18 million; gross margin eased 0.5 percentage points to 35.9%. • Operating profit shrank to €0.03 million (FY2024: €0.69 million) as selling & distribution expenses fell 6.9% to €3.73 million and administrative costs declined 12.3% to €5.30 million. • Net finance costs remained high at €0.55 million, contributing to the bottom-line loss.

Segment Performance • Home telephones: €14.89 million (-20.8% YoY), representing 58.2% of total sales. • Office telephones: €2.12 million (-48.5%), reflecting weaker corporate demand in Europe. • Senior products: €4.80 million (+21.0%), buoyed by expanding product range under Swissvoice and Amplicomms. • Baby monitors: €2.08 million (+94.6%), supported by new market penetration in Europe.

Geographic Mix • France remained the largest market at €11.60 million (45.4% of revenue) but dropped 21.2% YoY. • Other European countries contributed €7.35 million (-14.0%). • APAC/MEA sales grew 32.7% to €5.40 million, partially offsetting European softness. • Latin America and North America delivered €0.30 million (-63.2%) and €0.94 million (-29.1%) respectively.

Balance Sheet and Liquidity • Total assets declined to €26.33 million (-14.2% YoY); equity stood at €7.23 million (-7.4%). • Cash and cash equivalents decreased to €0.98 million (FY2024: €1.73 million). • Borrowings totalled €6.82 million, keeping the net gearing ratio elevated at 59% (FY2024: 55%). • Inventories fell 33.5% to €5.35 million, reflecting tighter working-capital management. • Net current assets narrowed to €2.15 million (FY2024: €2.61 million).

Dividend The board recommended no dividend for FY2025 (FY2024: nil) in light of the loss and uncertain outlook.

Outlook Management anticipates continued margin stability but remains cautious about 2026 demand, especially for the traditionally stronger fourth quarter. Cost controls are being intensified while the company prioritises growth in senior-focused products and baby monitors.