Kingboard Laminates Holdings Limited Announces Exceptional FY2025 Results, Strategic Developments, and Robust Outlook

Key Financial Highlights

• Revenue: HK\$20,400.2 million, up 10% year-on-year.
• EBITDA: HK\$4,204.6 million, a remarkable 42% increase.
• Profit Before Tax: HK\$3,111.8 million, surging 77%.
• Net Profit Attributable to Owners:
  • Underlying net profit: HK\$2,494.3 million, up 85%.
  • Reported net profit: HK\$2,442.2 million, up 84%.
• Basic Earnings Per Share:
  • Underlying: HK79.9 cents (+85%)
  • Reported: HK78.2 cents (+84%)
• Dividend:
  • Full-year: HK68.0 cents (+10%)
  • Interim: HK15.0 cents (+25%)
  • Proposed Final: HK25.0 cents (+25%)
  • Proposed Special Final: HK28.0 cents (-7%)
• Net Asset Value Per Share: HK\$5.21 (+6%)
• Net Gearing: 16% (up from 9%)

Business Performance and Strategic Developments

Laminates Division

Fueled by sustained demand in electronics, particularly AI, the division saw robust growth in both unit prices and sales volumes. The company expanded its sales mix towards high-end, high-value-added products such as AI electronic fibreglass yarn, AI electronic fibreglass fabric, and copper foil. Notably, profit from the electronic fibreglass yarn and fabric business exceeded HK\$600 million—a 70% increase from 2024.

• Revenue rose 10% to HK\$20,225.3 million.
• EBITDA climbed 22% to HK\$3,676.6 million.
• Gross profit margin improved due to price increases and efficient cost management.
• Significant investments in R&D and production technology enhanced efficiency and reduced costs.

The division leveraged its vertically-integrated supply chain to ensure stable supplies, benefiting from concurrent price increases in both upstream materials and laminates.

Property Division

• Segment revenue dropped 39% to HK\$77.6 million, mainly from rental income.
• EBITDA declined 44% to HK\$33.8 million.

Investment Segment

• Segment profit increased significantly, reflecting strong performance in equity instruments.
• Gain on fair value changes of equity instruments totaled HK\$503.5 million (vs. loss of HK\$79.3 million in 2024).

Liquidity, Capital Resources, and Working Capital

• Net current assets: HK\$7,430.1 million (down from HK\$8,036.1 million).
• Current ratio: 1.92 (vs. 2.39).
• Net working capital cycle increased to 132 days (from 116 days).
• • Inventory turnover: 66 days.
  • Debtor turnover: 96 days.
  • Creditor turnover: 30 days.
• Net gearing rose to 16% (from 9%).
• Short-term to long-term bank borrowings: 85% : 15% (vs. 51% : 49%).
• Invested HK\$1.3 billion in new capacity in 2025.

The Group maintains a prudent financial policy with no material derivative exposure or foreign exchange risk. Most revenue is denominated in HKD, RMB, and USD, matching operating expenses.

Dividends and Shareholder Information

• Proposed final dividend: HK25.0 cents per share.
• Proposed special final dividend: HK28.0 cents per share.
• Dividend payment subject to approval at AGM on 26 May 2026; payable on 7 July 2026 to shareholders on record as of 18 June 2026.
• Closure of register for voting and dividend eligibility.

Strategic Outlook and Expansion Plans

Growth in High-End Products

Entering 2026, demand for AI data centers, robotics, and computing remains strong. The Group is expanding its market share in mid-to-high-end laminates, including high-frequency, high-speed, heat-resistant, halogen-free, and prepreg materials. Certification by Tier-1 automotive and telecommunications clients strengthens its position.

Capacity Expansion & Specialty Materials

• First kiln (500 tonnes/year) for low-Dk electronic fibreglass yarn started in 2025; three more kilns to be added in 2026.
• Plans for eight additional kilns for low-Dk, low-CTE, and Quartz electronic fibreglass yarn—total of twelve specialty kilns.
• Shaoguan facility (70,000 tonnes yarn, 96 million meters fabric/year) to commence in 2H 2026.
• New copper foil plant (21,000 tonnes/year) focusing on high-frequency, high-speed, low-signal-loss applications—production starts mid-2027.

These expansions address shortages in traditional and AI-related electronic fibreglass materials and position Kingboard as a leader in AI new materials.

ESG Initiatives & Cost Savings

• HK\$1,000 million invested in distributed solar photovoltaics across facilities, generating 240 million kWh/year, saving 64,000 tonnes of coal, reducing 140,000 tonnes of CO₂, and saving HK\$200 million in electricity costs.
• HK\$300 million invested in thermal energy recovery, reducing 74,000 tonnes of CO₂, saving 33,000 tonnes of coal, and HK\$220 million in costs.
• Total savings exceeded HK\$700 million by end 2025.
• Kingboard Laminates invested HK\$650 million in solar power stations, with 150 million kWh/year output, saving HK\$120 million in electricity costs.
• HK\$180 million invested in thermal recovery, saving HK\$100 million in costs.
• Full commitment to ESG goals, delivering sustained long-term benefits.

Recognition & Industry Position

Kingboard Laminates was selected as a constituent of the Hang Seng SCHK Electronics Theme Index (launched 18 December 2025), affirming its leadership among Hong Kong electronics companies.

Corporate Governance & Compliance

• Full compliance with Corporate Governance Code and Model Code for Securities Transactions by Directors.
• No purchase, sale, or redemption of shares by the Company or subsidiaries during the year.
• Audit Committee reviewed audited statements and internal controls.
• Annual financial statements verified by Deloitte Touche Tohmatsu.

Potential Price-Sensitive Information for Investors

• Record profit and revenue growth driven by AI-related demand and high-end materials expansion—likely to positively impact share price.
• Significant investments in capacity expansion and ESG initiatives position the company for sustained growth.
• Substantial dividend increases, including a special final dividend, reflect confidence in ongoing profitability and financial strength.
• Inclusion in the Hang Seng SCHK Electronics Theme Index may attract institutional interest and increase visibility.
• Strategic supply chain enhancements and certifications by Tier-1 clients strengthen competitive advantages.
• Potential for further upside as new facilities and product lines come on stream in 2026–2027.

Disclaimer

The information presented in this article is based on the official annual results announcement of Kingboard Laminates Holdings Limited for the year ended 31 December 2025. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The article does not constitute investment advice, and past performance is not indicative of future results.

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