Financial Highlights • Revenue reached HK$1.99 billion, up 10.70% year-on-year. • Gross profit rose 5.36% to HK$502.22 million; gross margin held at 25.1% (2024: 26.4%). • Net profit attributable to shareholders surged 67.99% to HK$94.07 million, driven by stronger sales volumes, enhanced production efficiency and a HK$23.71 million foreign-exchange gain. • Basic and diluted earnings per share increased to HK1.01 cents (2024: HK0.60 cent). • Return on equity improved to 3.0% from 1.9%.
Operating Drivers 1. Output & Deliveries: Upgraded manufacturing systems in the US and Germany shortened lead times and lifted throughput across key engine specifications. 2. Product Mix: Higher contributions from Jet-A and Avgas engines lifted overall unit sales, while aftermarket services contributed HK$92.35 million, or 4.6% of total revenue. 3. Other Income: Insurance compensation and FX gains lifted other income and gains to HK$75.60 million (2024: HK$26.68 million). 4. Cost Discipline: Administrative expenses grew 7.76% to HK$319.27 million, largely in line with the 10.70% revenue expansion; R&D spend declined 11.83% to HK$45.25 million following completion of major programs.
Balance-Sheet & Liquidity • Cash, cash equivalents and time deposits totalled HK$951.33 million, up 18.99% from year-end 2024. • Net current assets stood at HK$1.47 billion; current ratio improved to 3.97x (2024: 3.73x). • Lease liabilities were HK$283.33 million, yielding a gearing ratio of 8.4% versus 8.8% a year earlier. • No bank borrowings or asset pledges were reported.
Dividend The Board proposes a final dividend of HK0.5 cent per share, unchanged from the prior year and representing a 49.46% payout of FY-2025 earnings.
Operational Milestones • Jet-A engine fleet surpassed 12 million flight hours. • CD-170R rotorcraft engine received EASA certification and an industry award. • First authorised service centre established through partnership with Chuck’s Aircraft; 24/7 global support model introduced. • Three redesigned websites launched, featuring interactive engine configurators and parts catalogues.
Outlook Management flagged steady market demand for piston engines alongside persistent supply-chain and cost pressures. Key 2026 initiatives include a plant renovation and ERP rollout in Germany, continued testing of sustainable fuels, and the 25th anniversary of the Jet-A program.
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