CEO's Message
Words from our CEO
Dear Shareholders,
FY2025 has proven to be another challenging year for businesses, particularly in the sectors and markets where Karin is deeply engaged. The mainland China market continues to face significant pressure, driven by a confluence of factors: a property downturn that has weakened economic momentum and credit quality, rising trade tensions and tariffs that have unsettled manufacturers and exporters, and a tightening of consumer and enterprise spending on traditional products and goods.
Yet, despite these headwinds, Karin remains prudent about the road ahead. As a technology-driven company, we take pride in our ability to evolve alongside the industry — helping our customers and partners adapt, grow, and improve their operations through innovation. Our resilience is rooted in decades of navigating change, and our commitment to progress remains unwavering.
Karin had a weaker topline performance in FY2025 due to lower sales across all three of the Group’s business segments. Gross profit in FY2025 decreased 5.6% yoy to HK$176.6 million in tandem with lower revenue.
However, the overall gross profit margin improved from 8.5% to 9.2% due to higher-margin sales and better cost control and resulted in a 1.0% uptick in net attributable profit to HK$19.2 million.
Our IT Infrastructure (“IT”) segment, which is the largest revenue generator, recorded an 11.9% yoy fall in sales to HK$1,439.7 million mainly due to weaker demand. Our Components Distributions (“CD”) segment was affected by poor economic sentiment in the PRC and fell 11.1% yoy to
HK$344.3 million, while the performance of our Consumer Electronics Products (“CEP”) segment continued to reflect the weak consumer sentiment in Hong Kong and fell 19.4% yoy to HK$145.5 million.
Our Group remained in a healthy financial position with cash and cash equivalents of HK$144.0 million as at 30 June 2025 (HK$127.2 million as at 30 June 2024), bolstering our resilience against unforeseen challenges.
Our Group enters the new fiscal year with a pragmatic outlook shaped by the macroeconomic headwinds and geopolitical tensions observed over the past 12 months. Although lower interest rates have eased financial costs, recessionary pressures persist and business demand remains subdued. The economic landscape remains restrained in the PRC, which has placed sustained pressure on our CD business. We also expect the CEP segment to be further dampened by reduced foot traffic and spending from tourists.
Notwithstanding the above challenges, we believe our future growth will come from our IT Infrastructure segment as we expand our strategic focus on AI. We will focus on pursuing favourable margins as we strive to offer more value-added services, particularly in the area of AI solutions.
Ng Mun Kit, Michael
Chief Executive Officer
Karin Group
