Hong Kong-based Karrie International posted solid full-year results for the 12 months ended 31 March 2026, buoyed by accelerating demand for artificial-intelligence (AI) server infrastructure.
Revenue rose 7% year on year to HK$3.47 billion, while gross profit climbed 21% to HK$569.66 million, lifting gross margin to 16% from 15% a year earlier. Basic earnings per share increased 32% to HK13.3 cents, tracking a 32% surge in net profit to HK$270.88 million.
Segment performance • Server enclosures (general & AI) remained the largest contributor, with revenue up 7% to HK$1.97 billion. AI-related products accounted for roughly 12% of this segment’s sales, up from 3% in FY25, helping push segment gross margin to 24%. • EV-charger enclosures & other products advanced 23% to HK$234.13 million; gross margin eased to 20% amid product-mix changes. • Storage products under electronic manufacturing services edged up 5% to HK$1.27 billion, maintaining a 3% margin.
Operating profit increased 34% to HK$382.49 million, partly offset by HK$31.34 million in net finance costs and a HK$39.35 million loss on disposal of subsidiaries. A HK$6.90 million fair-value gain on the derivative component of a convertible bond issued in October 2025 provided a one-off boost.
Cash flow and balance sheet Cash and bank deposits stood at HK$338.13 million. Net interest-bearing borrowings were HK$464.87 million, translating into a net‐gearing ratio of 32%, down from 43% a year earlier. The group retains HK$1.35 billion of undrawn banking facilities. Capital expenditure for FY27 is budgeted at HK$285.07 million, focused on additional stamping lines and CNC equipment to support rack-level and cooling-related components.
Capital moves • October 2025: Placed HK$150 million of three-year 2% convertible bonds with Chairman Ho Cheuk-fai; conversion price HK$2.30. • February 2026: Completed a share placing and subscription that raised approximately HK$152 million net to expand production capacity.
Dividend The board proposes a final dividend of HK4.5 cents per share (FY25: HK3.0 cents), bringing the full-year payout to HK6.0 cents, up 9% despite a lower interim distribution.
Outlook Management expects continued momentum from AI servers, racks and high-precision structural components, supported by parallel production facilities in Dongguan and Thailand. Expansion plans target cooling, power-related and rack-level products to deepen participation in next-generation data-centre supply chains.
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