Comba Telecom returns to profit despite revenue drop in first half

Comba Telecom Systems Holdings Limited reported revenue of HK$2.19bn for the six months ended June 30, 2025, a 6.2% decrease from the prior period. Despite the revenue decline, the Group achieved a gross profit of HK$648.78m, a 4.2% increase, leading to an improved gross profit margin of 29.5% (2024: 26.6%). The profit attributable to owners of the parent was HK$61.78m, reversing a loss of HK$158.43m in the corresponding prior period.

The Group's financial health saw positive developments, with net current assets increasing to HK$2.3bn (December 31, 2024: HK$1.37bn). A notable capital event was the issuance of 341,448,054 ordinary shares, generating net proceeds of approximately HK$371.68m, primarily for general working capital. The company also declared an interim dividend of HK$0.6 cent per ordinary share.

Operational highlights include an increase in revenue from international customers by 13.5% to HK$1.1bn, now accounting for 50.3% of total revenue. Meanwhile, revenue from major telecom operators in Chinese Mainland decreased by 23.7%. The Group's R&D expenses were reduced by 29.5% to HK$161.89m, reflecting a focus on high-return investments in the post-5G era.