Sino ICT Turns Profitable in FY 2025 as Energy Business Scales; Revenue Jumps 36.6 %

Bulletin Express
Mar 31

Hong Kong – Sino ICT Holdings Limited reported a decisive turnaround for the year ended 31 December 2025, driven by accelerated growth in its newly established energy segment and solid performance in surface-mount technology (SMT) and semiconductor equipment.

Revenue and Profitability • Group revenue rose 36.62 % year on year to HK$337.50 million (2024: HK$247.04 million), supported by both legacy industrial equipment sales and the expanding energy operation. • Gross profit almost doubled to HK$131.71 million, lifting the gross margin to 39.04 % from 24.85 % a year earlier. • After a HK$68.06 million loss in 2024, the Group delivered a net profit of HK$18.14 million, with profit attributable to owners reaching HK$19.20 million (FY 2024: HK$-34.42 million), equivalent to basic earnings of HK 1.32 cents per share. • EBITDA surged to HK$93.07 million (FY 2024: HK$45.62 million), reflecting stronger operating leverage.

Segment Performance Industrial Products (SMT & Semiconductor Equipment) – Revenue increased 5.43 % to HK$242.25 million. – Segment gross profit improved 11.34 % to HK$106.01 million, implying a margin of 43.7 % (FY 2024: 41.4 %).

Energy Business – Revenue expanded more than five-fold to HK$95.26 million, accounting for 28.2 % of Group turnover (FY 2024: 7.0 %). – Segment gross profit reached HK$25.69 million, reversing the prior-year loss of HK$33.83 million amid the ramp-up of the 500 MW/1,000 MWh He Rong energy-storage facility in Shanxi.

Cost and Expense Dynamics • Cost of sales grew 10.8 % to HK$205.80 million, well below the pace of revenue growth, underpinning margin expansion. • Distribution costs rose 13.7 % to HK$44.78 million, in line with higher sales activity. • Administrative expenses contracted 17.5 % to HK$80.76 million, reflecting headcount optimisation and lower R&D outlays. • Net finance costs fell 16.7 % to HK$21.60 million, aided by reduced borrowing costs.

Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$207.12 million at year-end (FY 2024: HK$205.30 million). • Net current assets improved to HK$114.79 million (FY 2024: HK$33.80 million); the current ratio strengthened to 1.48 x. • Total borrowings amounted to HK$476.13 million, yielding a net debt position of HK$269.01 million and a net-debt-to-equity ratio of 131 %. • Capital expenditure was contained at HK$4.06 million, focused on machinery, fixtures and facilities upgrades.

Operational Highlights • Seven new patents increased the Group’s portfolio to 74, underscoring sustained R&D capability in SMT and semiconductor equipment. • The He Rong energy-storage plant achieved a 99.8 % command-response accuracy in primary frequency regulation, positioning the energy unit for deeper participation in China’s ancillary services market. • Inventory days shortened to 38 (-6 days), receivable days to 82 (-13 days), while payable days edged up to 76 (+4 days), reflecting tighter working-capital management.

Dividend The Board did not recommend a final dividend for FY 2025 (FY 2024: Nil), retaining earnings to support growth initiatives.

Outlook Management highlights continued focus on expanding energy-storage operations, leveraging policy tailwinds and market-based revenue streams, while sustaining R&D investment in high-precision SMT and semiconductor equipment to capture demand from 5G, EV and IoT sectors.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10