BOARDWARE INTEL (BoardWare Intelligence Technology Limited) reported unaudited interim results for the six months ended 30 June 2026.
Financial Snapshot • Revenue eased 1.7 % year-on-year to HK$316.04 million, hurt by a 39.0 % contraction in hardware distribution and resale to HK$91.78 million. • Enterprise IT solutions—now 71 % of group turnover—rose 31.3 % to HK$224.27 million, led by Professional IT services (+21.9 %) and Managed services including equipment leases (+40.7 %). • Gross profit declined 5.9 % to HK$65.79 million; gross margin compressed to 20.8 % (FY25 interim: 21.7 %) on higher hardware procurement costs. • Operating expense discipline (administrative costs –15.5 %) offset heavier R&D outlays (+23.6 %), lifting operating profit to HK$1.36 million (FY25 interim: HK$0.84 million). • Net profit improved 62.5 % to HK$1.27 million; net margin doubled to 0.4 %. • Basic EPS advanced to HK0.25 cent from HK0.16 cent. • Cash and cash equivalents jumped 61.7 % to HK$107.42 million, while total borrowings fell 29.8 % to HK$59.24 million, trimming gearing to 17.0 % (31 Dec 2025: 24.5 %). No interim dividend was declared.
Segment Performance • Professional IT services: HK$145.77 million, driven by execution of several high-value contracts signed late 2025. • Managed services & IT equipment leases: HK$34.15 million, supported by renewed private-cloud agreements with a Macau gaming operator. • IT maintenance & consultancy: HK$44.35 million, boosted by new government-sector contracts. • Distribution & resale: HK$91.78 million; supply-chain tightness for GPU servers and other AI-related hardware weighed on deliveries.
Cost & Expense Trends • Cost of sales dipped 0.6 % to HK$250.25 million, broadly in line with revenue. • R&D expenditure added HK$2.11 million to HK$11.05 million, reflecting investment in AI and brain-computer interface (BCI) initiatives. • Net impairment losses on receivables increased to HK$2.71 million from HK$0.93 million.
Balance Sheet & Liquidity • Pledged deposits declined to HK$26.07 million (31 Dec 2025: HK$62.58 million) following banking-facility revisions. • Net operating cash flow and reduced debt underpinned the stronger cash position.
Operational Highlights The group advanced four proprietary product lines—BCI AI Glasses, BarcoOne Dynamic Agent Collaboration Platform, Stager Digital Human, and TerraMind AI agent platform—aimed at enterprise digital-transformation and AI applications. Management cited Macau’s MOP20 billion Government Guidance Fund and Hengqin’s cross-border data policies as catalysts for future growth, particularly in AI, cybersecurity and data-center initiatives.
Outlook BOARDWARE INTEL plans to deepen penetration in Macau, Hong Kong and mainland China, expand AI-driven services, and explore cross-border data and supercomputing opportunities in the Hengqin Cooperation Zone. The company remains focused on cost control, R&D investment and a diversified revenue mix to support sustainable profitability.