KINETIX SYSTEMS reported unaudited interim results for the six months ended 30 June 2026.

Financial Performance • Revenue increased 8.1% year-on-year (YoY) to HK$233.30 million, driven mainly by IT development solutions. • Gross profit rose 9.0% to HK$41.68 million; gross margin edged up to 17.9% from 17.7% a year earlier. • Net profit grew 10.4% to HK$3.40 million, equivalent to basic earnings of HK0.23 cents per share (1H 2025: HK0.17 cents). • Operating cash inflow expanded to HK$43.76 million (1H 2025: HK$30.11 million), lifting cash and cash equivalents to HK$91.59 million at end-June (31 Dec 2025: HK$51.21 million). • The Board declared no interim dividend.

Segment Analysis • IT Development Solutions: Revenue advanced 57.0% to HK$87.56 million, accounting for 37.5% of total sales, as multiple large software projects progressed. • IT Infrastructure Solutions: Revenue fell 11.0% to HK$119.13 million (51.1% of total) due to delayed customer replacement cycles. • IT Maintenance & Support: Revenue inched up 2.1% to HK$26.56 million (11.4% of total). • Overall gross margin uplift reflected greater weight from higher-margin development and maintenance services.

Expenses & Profitability • Selling expenses climbed 30.1% to HK$9.70 million, mirroring business expansion. • Administrative and general expenses rose 12.2% to HK$29.25 million, mainly on higher staff costs and right-of-use depreciation. • A HK$0.18 million reversal of expected credit loss provisions contrasted with a HK$1.90 million charge in 1H 2025, supporting bottom-line growth.

Balance Sheet & Liquidity • Total assets stood at HK$265.82 million; equity attributable to shareholders reached HK$80.53 million. • The Group remained debt-free, resulting in a nil gearing ratio. • Undrawn banking facilities amounted to HK$10.00 million, secured by a life-insurance policy and a HK$31.00 million corporate guarantee.

Use of Rights-Issue Proceeds • Of HK$29.90 million net proceeds raised, HK$18.00 million had been deployed by 30 June 2026—HK$8.00 million for expanding PRC technical services and HK$10.00 million for working capital. • HK$11.90 million earmarked for new-energy vehicle industry initiatives remains unutilised; management targets deployment by end-2026.

Outlook Management anticipates macroeconomic volatility and competitive pressures but plans to focus on cloud integration, artificial-intelligence analytics and enterprise automation to broaden revenue streams while maintaining strict cost discipline.