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

Equity and earnings analyst

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.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2025

Commission File Number 001-37593

BORQS TECHNOLOGIES, INC.

(Translation of registrant’s name into English)

Office B, 21/F, Legend Tower, 7 Shing Yip Street

Kwun Tong, Kowloon, Hong Kong

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒      Form 40-F ☐

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Borqs Technologies, Inc. (the “Company”) hereby submits its interim balance sheet and income statement for its six months ended on June 30, 2025. This submission is made within six months following the end of said period. The consolidated financial statements herein are unaudited, prepared by the management of the Company and furnished to this Current Report on Form 6-K and incorporated herein by reference.

1

BORQS TECHNOLOGIES, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of US dollar (“US$”), unless otherwise stated)

		December31, 2024				June 30, 2025
		US$				US$
ASSESTS
Current assets:
Cash and cash equivalents			2,032				9,592
Restricted cash			26				-
Time deposit			3,377				4,500
Accounts receivable net			116				837
Inventory, net			-				380
Prepaid expenses and other current assets, net			6,747				8,543
Current assets held for sale			11,057				-
Total current assets			23,355				23,852
Non-current assets:
Property and equipment, net			7				9
Right of Use Asset			216				40
Non-current assets held for sale			1,831				-
Total non-current assets			2,054				49
Total assets			25,409				23,901
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings			417				-
Accounts payable			5,388				4,006
Accrued expenses and other payables			15,296				14,920
Contract liabilities			1,299				316
Lease Liabilities- current			179				27
Current liabilities held for sale			4,337				-
Total current liabilities			26,916				19,269
Non-current liabilities:
Non-current liabilities held for sale			2,091				-
Total non-current liabilities			2,091				-
Total liabilities			29,007				19,269
Shareholders’ equity
Ordinary shares			-				-
Additional paid-in capital			330,016				330,016
Subscription receivables			(16,091	)			(16,091	)
Statutory reserve			1,901				1,901
Accumulated deficit			(314,842	)			(308,985	)
Accumulated other comprehensive loss			(4,389	)			(2,379	)
Total Borqs Technologies, Inc. shareholders’ equity (deficit)			(3,405	)			4,462
Noncontrolling interest			(193	)			170
Total shareholders’ equity (deficit)			(3,598	)			4,632
Total liabilities, noncontrolling interest and shareholders’ equity			25,409				23,901

2

BORQS TECHNOLOGIES, INC.

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands of US dollar (“US$”), unless otherwise stated)

		For the six months ended June 30,
		2024				2025
		US$				US$
Net revenues:
Software			6,173				2,253
Hardware			10,600				14,560
Total net revenues			16,773				16,813
Cost of revenues
Software			(4,222	)			(2,134	)
Hardware			(9,163	)			(13,921	)
Total cost of revenues			(13,385	)			(16,055	)
Total gross (loss) profit			3,388				758
Operating expenses:
Sales and marketing expenses			(202	)			(147	)
General and administrative expenses			(5,687	)			(11,939	)
Research and development expenses			(1,193	)			(981	)
Total operating expenses			(7,082	)			(13,067	)
Operating income (loss)			(3,694	)			(12,309	)
Interest income			260				87
Interest expense			(1,755	)			(49	)
Other income			82				11
Other expense			-				(9	)
Gain on disposal of subsidiary			14,372				17,620
Gain on cancellation of shares to former subsidiary			5,950				-
Foreign exchange income (loss)			(193	)			(77	)
Income (loss) from continuing operations, before income taxes			15,023				5,274
Income tax expense			-				946
Net income (loss) from continuing operations			15,023				6,220

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BORQS TECHNOLOGIES INC.
	(registrant)
Dated: December 23, 2025	By:	/s/ Pat Sek Yuen Chan
		Pat Sek Yuen Chan
		Chief Financial Officer

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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.