BOARDWARE INTEL (01204) issues a profit warning, expecting a significant increase of no less than 50.0% in mid-term profits.

BOARDWARE INTEL (01204) announced that, based on a preliminary assessment of currently available information (including but not limited to the Group's unaudited consolidated financial data for the six months ending June 30, 2026 (2026 financial period)), the Group expects its profits for the period to increase significantly by no less than 50.0%, while the profits for the six months ending June 30, 2025, were approximately HKD 800,000. The expected profit growth for the 2026 financial period is primarily attributed to the following combined effects: (i) Increased revenue generated by the Groups enterprise IT solutions business, particularly from professional IT services, managed services, IT equipment leasing revenue, and IT maintenance and consulting services, due to the fulfillment of several high-value contracts and the acquisition of contracts from government departments; and (ii) Reduced administrative expenses, mainly due to a decline in employee benefits spending, as well as reductions in legal, professional, and consulting fees. These factors offset the following impacts: (a) a decrease in revenue from the Groups distribution and resale business; (b) an increase in research and development expenses; and (c) an increase in impairment losses expected under the credit loss model.