Azeus Systems Holdings has reported earnings of HK$48.3 million ($8.09 million), down 1% y-o-y for 1HFY2026 ended Sept 30.
The IT products and services provider reported a revenue of HK$185.5 million for 1HFY2026, up 10% y-o-y.
This was driven by strong growth from Azeus products, which accounted for 84% of the group’s revenue in the period. Revenue from Azeus products grew 13% y-o-y to HK$155.8 million due to license revenue of the group’s proprietary products and their associated professional services.
Azeus saw higher subscription revenue from its flagship product Convene, and the Central Electronic Recordkeeping System project awarded by the Hong Kong SAR government contributed to revenue.
Meanwhile, revenue contribution from IT services fell 7% y-oy due to the completion of maintenance and support services contracts.
Azeus’ cost of revenue increased by 9% y-o-y to HK$50.0 million in 1HFY2026 due to higher hosting costs for Azeus Products’ subscription business and the increase in direct salaries of the project team.
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Gross profit margin increased marginally by 0.2 percentage points to 73.0%.
Profit before tax declined 3% y-o-y due to higher selling and marketing as the group expanded its marketing team and marketing efforts. Administrative expenses also increased during the period under review to support back-office work of expanding the business.
As at Sept 30, the group’s net cash position increased by 9%y-o-y to HK$294.6 million. The increase was due to the higher revenue and resulting cash collection during the period under review.
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Azeus has no bank borrowings or debt securities.
The board has proposed an interim dividend of HK$1.60 per share, representing a payout ratio of 99%.
Shares in Azeus closed 13 cents lower or 0.952% down at HK$13.52 on Nov 14.
