Future Machine Limited (Future Machine, 01401) released its audited results for the year ended 31 December 2025.
Revenue and profitability • Top line rose 49.1% to RMB 4.35 billion, driven by solid smartphone and IoT sales. • Gross profit expanded 40.3% year-on-year to RMB 361.83 million; gross margin slipped to 8.3% (2024: 8.8%) on product-mix shifts. • Net profit climbed 167.3% to RMB 41.71 million, lifting net margin to 1.0% (2024: 0.54%). • Earnings per share doubled to RMB 3.18 cents (2024: 1.28 cents).
Segment performance • Mobile phones remained the core contributor at RMB 2.43 billion (+28.3%), accounting for 55.9% of total revenue. – Smartphones generated RMB 2.18 billion, up 49.6%. – Feature phones fell 42.5% to RMB 251.34 million. • IoT-related products more than doubled to RMB 1.78 billion (+115.9%), representing 40.8% of revenue. • Sales of components and materials (“Others”) declined to RMB 143.81 million (-28.2%).
Geographic mix • China remained the largest market with revenue up 78.4% to RMB 3.04 billion (69.8% of total). • India contributed RMB 1.05 billion, a 5.4% increase, equal to 24.0% of group sales. • Other emerging markets collectively delivered RMB 211.88 million, 4.9% of revenue, led by stronger demand from the UAE, Algeria and the US.
Cost structure and expenses • Selling & distribution expenses rose 33.3% to RMB 75.74 million, reflecting higher logistics and marketing outlays. • Administrative expenses increased 20.4% to RMB 82.09 million. • R&D investment grew 28.1% to RMB 181.79 million, underscoring focus on AI-enabled devices and product diversification. • Finance costs dropped 24.0% to RMB 27.49 million following lower borrowings.
Balance sheet and liquidity • Cash and cash equivalents stood at RMB 153.31 million; pledged bank deposits totalled RMB 2.14 billion. • Net current assets improved to RMB 447.76 million (2024: RMB 286.59 million). • Total borrowings declined to RMB 91.68 million, cutting the gearing ratio to 0.2. • Current ratio remained stable at 1.1x.
Capital moves • A rights issue completed in November 2025 raised net proceeds of approximately HK$138 million for capacity expansion, R&D, working capital and potential M&A.
Operational highlights • The company changed its English name from “Sprocomm Intelligence Limited” to “Future Machine Limited” in July 2025, aligning branding with strategic direction. • Nine memoranda of understanding were signed with telecom and distribution partners across the UAE, Bangladesh, India, Sri Lanka and Türkiye, leading to initial orders for 2.3 million mobile phones worth about USD 160 million. • No dividends were declared for FY 2025.
Outlook Management plans to leverage AI features, 5G proliferation and growing IoT demand, continue R&D investment, expand production capacity, upgrade ERP systems and pursue selective acquisitions to solidify its position in emerging markets.
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