KARRIE INT'L (ASX: 01050) has announced its financial results for the year ended March 31, 2026. The company achieved revenue of approximately HK$3.47 billion, marking a 7% year-on-year increase. Net profit was around HK$271 million, up 32% from the previous year. The adjusted net profit reached approximately HK$303 million, representing a significant 48.3% rise. Basic earnings per share were 13.3 HK cents, a 32% increase. A final dividend of 4.5 HK cents per share was declared, up 50%, bringing the total annual dividend per share to 6 HK cents.
Record Revenue and Growth Drivers
During the review period, the group's revenue reached a multi-year high. This performance was primarily driven by increased demand for artificial intelligence-related server products. Notably, the bulk delivery of ASIC-related server products commenced in the second half of the fiscal year, which positively impacted the group's results. The proportion of AI-related products within the group's server chassis segment increased from about 3% for the year ended March 31, 2025, to approximately 12%, becoming a key factor in driving revenue and profit growth.
Factors Behind Profitability Improvement
The profit growth was attributed to higher revenue, an increased share of AI-related products, an optimized product mix, and improved operational efficiency, including contributions from the Thailand base. As the proportion of high-value-added structural components gradually rises, the group's long-term profitability is expected to improve further.
Strategic Advances in AI Supply Chain
The group made significant progress in the AI server supply chain during the year. It has been included in the supplier system for server chassis and cabinet components related to NVIDIA, actively participating in product development, sample delivery, and mold development for new-generation platform projects. Concurrently, the group has also served the demand from major cloud service platform (CSP) clients for ASIC-related servers and cabinet products. The group continues to engage with various original design manufacturers (ODMs), CSPs, and related ecosystem clients to secure more opportunities for new platforms and product introductions.
Capacity Optimization for Future Demand
To meet the growing demand for AI servers, cabinets, and related high-precision structural components, the group is continuously optimizing its production capacity layout. Its core technology and primary production platform in Fenggang, Dongguan, China, possesses comprehensive capabilities in mold making, metal stamping, CNC machining, injection molding, surface treatment, assembly, quality inspection, and logistics. The production base in Amata City Industrial Estate, Chonburi, Thailand, serves as a supplementary capacity platform, primarily supporting clients' regional delivery arrangements and enhancing supply chain resilience, thereby strengthening cross-regional delivery flexibility.
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