COMBA (2342) announced that it turned a profit last year, with a 26.5% growth in its network systems business

Turned Loss into Profit, Gross Margin Increased by 2.8% Communication and information solutions provider COMBA (2342.HK) announced its audited results for the year ending December 31, 2025. The company recorded a profit attributable to equity holders of HKD 35.02 million, successfully turning a loss of HKD 564 million from the previous year into a profit. Driven by improved product pricing power and effective cost control measures, the group's gross margin rose to 28.7%, an increase of 2.8 percentage points year-on-year. Steady Revenue Growth, Network Systems Revenue Soars In 2025, the company's revenue increased by 0.9% year-on-year to HKD 4.571 billion. By business segment, the network systems (including wireless optimization and wireless access) performed exceptionally well, with revenue soaring by 26.5% year-on-year to HKD 1.107 billion, with overseas markets contributing to a revenue growth of 31.7%. Revenue from base station antennas and subsystems recorded HKD 1.770 billion, while service revenue was HKD 938 million, accounting for 38.7% and 20.6% of total revenue, respectively. Throughout the year, operational expenses significantly decreased by 25.7% year-on-year due to efficiency optimization; the group's pre-tax profit reached HKD 109 million, and the financial leverage ratio further improved to 10.1%. Additionally, the company completed a placement financing during the year, raising a net amount of approximately HKD 372 million. Synergy Between Domestic and International Markets, Outstanding Performance in International Segment In terms of customer segments, in 2025, COMBA's revenue from China's three major operators and China Tower grew by 3.7% to HKD 1.777 billion, maintaining a dominant position. Revenue from other domestic customers and ETL was HKD 425 million and HKD 167 million, respectively. International customers and core equipment manufacturers further solidified their support for performance, with revenue stabilizing at HKD 2.202 billion, accounting for nearly half (48.2%) of total revenue. Continuously Promoting Green and Intelligent Upgrades The company will closely align with the industry's transformation towards green, low-carbon, and intelligent trends, strengthening independent research and development and product innovation, actively promoting upgrades of green intelligent feeding products and solutions to help operators and industry customers reduce costs and increase efficiency, achieving sustainable development. Chairman Huo Dongling stated that the group will adhere to the philosophy of "technological leadership, reliable quality, rational competition," continue to enhance organizational efficiency and operational effectiveness, and create long-term stable value returns for global shareholders and customers