Smart-Core Holdings Limited (Smart-Core) reported interim results for the six months ended 30 June 2026, highlighting a sharp earnings rebound driven by the memory-chip super-cycle.

Revenue climbed 143.8% year-on-year to HK$6.82 billion, with gross profit up 152.0% to HK$408.90 million. Gross margin improved slightly to 6.0% (H1 2025: 5.8%).

Net profit attributable to shareholders surged 498.4% to HK$290.00 million, lifting basic earnings per share to HK63.35 cents from HK10.44 cents a year earlier. Net margin expanded to 4.2% (H1 2025: 1.7%).

Segment performance • Authorised distribution revenue more than doubled to HK$6.71 billion; segment profit reached HK$209.86 million. • Mixed distribution revenue rose 146.3% to HK$103.90 million; segment profit was HK$6.43 million. • Within authorised distribution, memory sales soared 561.4% to HK$3.66 billion, accounting for over half of group turnover. Smart-terminal chips contributed HK$2.56 billion (+35.0%), while computing-infrastructure products delivered HK$494.32 million (+62.1%).

Operating expenses increased in absolute terms but fell as a share of revenue to 1.9% (H1 2025: 3.3%), supporting margin expansion. Finance costs more than doubled to HK$30.59 million, reflecting higher bank borrowings.

Balance-sheet highlights • Cash and bank balances: HK$454.25 million (31 Dec 2025: HK$336.64 million). • Bank and other borrowings: HK$1.27 billion (31 Dec 2025: HK$531.27 million). • Gearing ratio rose to 97.2% from 50.0%. • Net assets stood at HK$1.31 billion, up 23.0% from year-end 2025. • Current ratio declined to 1.30x (31 Dec 2025: 1.57x) after inventory and receivables growth tied to higher sales volumes.

Cash Flow & Working Capital Debtors’ turnover shortened to 40 days (H1 2025: 57 days), while inventory turnover held steady at 19 days. Creditors’ turnover decreased to 23 days (H1 2025: 32 days).

Dividend The board declared an interim dividend of HK5 cents per share (H1 2025: HK3 cents), payable on 25 September 2026 to shareholders on the register as of 16 September 2026.

Post-period event On 13 July 2026, Smart-Core completed a HK$291.30 million share placement (97.74 million new shares at HK$3.00 each) to bolster procurement and inventory of memory and optoelectronic components.

Outlook per management discussion points to continued strength in AI-related memory, edge SoCs and optical-communication chips, though management notes potential volatility in pricing and supply dynamics.