Borqs Technologies (BRQSF) posts H1 2025 profit on subsidiary sale gains
Rhea-AI Filing Summary
Borqs Technologies, Inc. reports unaudited results for the six months ended June 30, 2025. Total net revenues were US$16,813 thousand, roughly flat versus US$16,773 thousand a year earlier, as software revenues fell while hardware revenues increased. Gross profit declined to US$758 thousand from US$3,388 thousand, and the operating loss widened to US$12,309 thousand from US$3,694 thousand, reflecting higher general and administrative expenses.
Below the operating line, Borqs recorded a gain on disposal of a subsidiary of US$17,620 thousand, compared with US$14,372 thousand in the prior period, which helped produce net income from continuing operations of US$6,220 thousand, down from US$15,023 thousand. On the balance sheet, total assets were US$23,901 thousand and total liabilities were US$19,269 thousand as of June 30, 2025. Shareholders’ equity improved from a deficit of US$(3,598) thousand at December 31, 2024 to positive equity of US$4,632 thousand, supported by lower liabilities and disposal-related effects.
Positive
- Return to positive equity: Total shareholders’ equity moved from a deficit of US$(3,598) thousand at December 31, 2024 to positive equity of US$4,632 thousand at June 30, 2025, reflecting a materially stronger balance sheet.
- Profitable continuing operations: Despite a larger operating loss, net income from continuing operations was positive at US$6,220 thousand for the six months ended June 30, 2025, supported by a US$17,620 thousand gain on disposal of a subsidiary.
Negative
- Weaker operating performance: Total gross profit fell to US$758 thousand from US$3,388 thousand, and the operating loss widened from US$3,694 thousand to US$12,309 thousand for the six-month period, signaling deterioration in core operations.
- Higher cost structure: General and administrative expenses increased to US$11,939 thousand from US$5,687 thousand for the six months ended June 30, 2025, contributing significantly to the enlarged operating loss.
Insights
Asset-sale gains restore positive equity despite weaker core operations.
For the first half of 2025, Borqs Technologies held revenue roughly flat at US$16,813 thousand versus US$16,773 thousand in 2024, but the revenue mix shifted. Software revenue declined while hardware grew, and total gross profit dropped to US$758 thousand from US$3,388 thousand, indicating much thinner margins on the overall business.
Operating performance weakened materially, with the operating loss widening to US$12,309 thousand from US$3,694 thousand, driven mainly by higher general and administrative expenses of US$11,939 thousand. However, a large gain on disposal of a subsidiary of US$17,620 thousand (up from US$14,372 thousand) turned overall results profitable, yielding net income from continuing operations of US$6,220 thousand.
On the balance sheet, total liabilities declined from US$29,007 thousand to US$19,269 thousand between December 31, 2024 and June 30, 2025, and total shareholders’ equity moved from a deficit of US$(3,598) thousand to positive equity of US$4,632 thousand. This shift indicates that disposal-related gains and liability reductions have materially strengthened the capital position, even though underlying operating results remain loss-making.
FAQ
How did Borqs Technologies (BRQSF) perform financially in the first half of 2025?
For the six months ended June 30, 2025, Borqs Technologies generated total net revenues of US$16,813 thousand and net income from continuing operations of US$6,220 thousand. The company remained loss-making at the operating level, with an operating loss of US$12,309 thousand, but a substantial gain on disposal of a subsidiary supported overall profitability.
What were Borqs Technologies’ revenues by segment for the six months ended June 30, 2025?
For the six months ended June 30, 2025, software revenues were US$2,253 thousand and hardware revenues were US$14,560 thousand, for total net revenues of US$16,813 thousand. In the comparable 2024 period, software contributed US$6,173 thousand and hardware US$10,600 thousand, indicating a shift toward hardware-driven sales.
How did Borqs Technologies’ profitability change compared with the prior-year period?
Compared with the six months ended June 30, 2024, Borqs’ total gross profit declined from US$3,388 thousand to US$758 thousand and its operating loss widened from US$3,694 thousand to US$12,309 thousand. Net income from continuing operations decreased from US$15,023 thousand to US$6,220 thousand, despite larger gains on disposal of a subsidiary.
What major non-operating items affected Borqs Technologies’ first-half 2025 results?
The most significant non-operating item was a gain on disposal of a subsidiary of US$17,620 thousand for the six months ended June 30, 2025, compared with US$14,372 thousand in the prior-year period. There was also interest income of US$87 thousand, interest expense of US$49 thousand, and income tax expense of US$946 thousand.
What does the June 30, 2025 balance sheet show about Borqs Technologies’ financial position?
As of June 30, 2025, Borqs reported total assets of US$23,901 thousand and total liabilities of US$19,269 thousand. Total shareholders’ equity, including noncontrolling interests, was positive at US$4,632 thousand, an improvement from a deficit of US$(3,598) thousand at December 31, 2024.
How did Borqs Technologies’ cash and short-term liquidity change by June 30, 2025?
Cash and cash equivalents increased from US$2,032 thousand at December 31, 2024 to US$9,592 thousand at June 30, 2025. Time deposits also rose from US$3,377 thousand to US$4,500 thousand over the same period, while short-term borrowings declined from US$417 thousand to zero.