Brainhole Technology Limited reported a markedly narrower net loss of HK$34.53 million for the year ended 31 December 2025, versus a HK$127.88 million loss in 2024. The turnaround was driven by a sharp expansion in broadband infrastructure and smart-domain services, which partly offset the near-total erosion of semiconductor revenue.
Revenue and Profitability • Group revenue fell 31.3% year on year to HK$82.46 million (2024: HK$119.99 million). • Gross profit swung to HK$13.07 million from a HK$6.45 million gross loss, lifting gross margin to 15.9% (2024: –5.4%). • Operating loss before tax narrowed to HK$34.49 million from HK$108.47 million; loss per share improved to HK4.32 cents (2024: HK15.98 cents).
Segment Performance 1. Broadband Infrastructure & Smart Domain – Revenue jumped 136.1% to HK$81.75 million, buoyed by more projects in smart-venue solutions and broadband construction. – Segment loss reduced to HK$8.88 million (2024: HK14.02 million).
2. Semiconductor Business – Sales plunged 99.2% to HK$0.71 million amid a halt in customer orders and rapid technology shifts. – Segment loss narrowed to HK7.88 million (2024: HK17.63 million) after production ceased and trading volumes collapsed.
3. Strategic Investments – Trading of listed equities generated a HK$6.15 million segment profit, reversing a HK31.44 million loss in 2024. – Net realised gains of HK$10.14 million were partly offset by HK$4.04 million in unrealised fair-value losses; year-end portfolio stood at HK$47.19 million.
Cost Dynamics • Selling and distribution expenses fell 32.9% to HK$4.74 million, mirroring lower semiconductor activity. • Administrative expenses declined 24.7% to HK$40.22 million, aided by reduced staff and professional fees. • Impairment charges on receivables and contract assets eased to HK$5.83 million (2024: HK8.30 million). • Inventory write-downs dropped sharply to HK$0.08 million (2024: HK13.16 million).
Balance Sheet and Liquidity • Cash and bank balances closed at HK$23.55 million (2024: HK$26.57 million). • Net current assets turned positive at HK$7.06 million (2024: net current liabilities of HK89.85 million) after the issuance of HK$123.81 million in perpetual bonds and repayment of a HK$116.28 million loan to the ultimate controlling shareholder. • Loans from related companies totalled HK$44.94 million; creditors have agreed not to demand repayment before end-2026. • Gearing remains elevated; auditors flagged a material uncertainty related to going-concern, mitigated by shareholder support and search for new projects.
Outlook Management plans to: • Continue reallocating resources from the loss-making semiconductor unit to higher-growth smart-product and broadband solution businesses. • Expand smart-venue offerings domestically and via overseas e-commerce channels. • Pursue selective technology investments while maintaining strict risk controls and conservative treasury policies.
No final dividend was proposed for FY 2025.