IDT International Limited Issues Profit Warning and Strategic Business Update

Key Highlights for Investors

• Substantial Decline in Forecasted FY2025 Profit: IDT International Limited anticipates a sharp decrease in its profit for the year ending 31 December 2025, projecting earnings in the range of HK\$62.0 million to HK\$76.0 million. This is a significant drop compared to the FY2024 profit of approximately HK\$114.6 million.
• Main Reason for the Decline: The decrease in profit is primarily attributed to lower overall revenue and gross profit during FY2025. The Group cites a noticeable decline in sales within the People’s Republic of China (PRC) as the key factor impacting its top and bottom lines.
• Delay in AI Integration: The Group acknowledges that its integration of Artificial Intelligence (AI) into its product ecosystem started later than its industry peers, resulting in reduced product competitiveness and negatively affecting sales performance.
• Ongoing Auditing Process: The profit figures provided are based on preliminary, unaudited management accounts and have not yet been confirmed or reviewed by the Company’s auditors or audit committee. Final results will be published by the end of March 2026, and actual results may differ from current estimates.

Detailed Business Update and Strategic Outlook

With the rapid development and adoption of AI technologies across industries, IDT International has found itself lagging behind certain competitors in integrating AI into its product offerings. This late adoption has led to a weakening in product competitiveness within the market, especially in the Greater China region, and has had a notable negative impact on sales.

In response, the Group is planning to strengthen its investment and exploration in several cutting-edge technology areas:

• Artificial Intelligence (AI): Accelerated development and integration of AI technologies into products.
• Internet of Things (IoT): Expanding product connectivity and smart capabilities.
• Cloud Technology and AI Data Infrastructure: Building proprietary infrastructure to support AI-integrated products and enhance the Group’s overall product ecosystem.

The Group’s management believes that these efforts will help to broaden the portfolio of AI-enabled products, improve competitiveness, and support long-term growth, particularly in the highly competitive Greater China market.

Important Information for Shareholders

• Potential Share Price Impact: The significant decrease in expected profit, coupled with ongoing competitive challenges, could be price-sensitive and may affect the Company’s share value.
• Final Results Pending: Investors should note that the financial information disclosed is preliminary and subject to changes. The final audited results will be released by the end of March 2026.
• Caution Advised: Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s shares and to review the final results announcement carefully upon its publication.

Board Composition

As of the announcement date (25 March 2026), the Board comprises:

• One executive Director: Mr. Tiger Charles Chen
• Two non-executive Directors: Ms. Ng Kwok Ying Isabella and Ms. Cheung Yuk Ki
• Three independent non-executive Directors: Ms. Chen Weijie, Mr. Mak Tin Sang, and Dr. Lowe Chun Yip

Conclusion

The announced profit warning and business update from IDT International Limited are highly relevant for shareholders and potential investors. The expected drop in profit, driven by weakened sales and delayed adoption of AI technologies, is a significant development that could materially affect the share price. Management’s renewed focus on AI, IoT, and cloud infrastructure demonstrates a strategic pivot aimed at regaining competitiveness, but the effectiveness of these measures will need to be monitored closely in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise their own judgment and consult with professional advisers before making any investment decisions. The actual results of IDT International Limited for FY2025 may differ from the preliminary figures stated above.