Karin Technology Holdings, the IT and components solutions and services providers in Hong Kong and China, says it registered a net profit of HK$9.1 million ($1.6 million), coupled with a healthy cash balance of HK$44.7 million for the six months ended 31 December 2009 (1HFY10) despite the slowdown in the electronics industry.

Karin’s total revenue in 1HFY10 amounted to HK$756.9 million, a decrease of 16.2% from HK$902.8 million for the same period last year. The decrease was due mainly to a decrease in revenue from its three business segments – Information Technology Infrastructure segment, Components Distribution segment and Integrated Circuit Application Design segment.

The group’s main revenue contributor, the IT Infrastructure segment, saw its revenue decreased by HK$44.7 million or 9.7%, from HK$460.9 million in 1HFY09 to HK$416.2 million for the current period. The reduction was due mainly to a decline in demand for various computer products and peripherals which fall under this segment as well as a decline in demand for our products from customers in the financial services industry.

Revenue from the Components Distribution segment decreased by HK$23.3 million or 8.0%, from HK$289.9 million in 1HFY09 to HK$266.6 million in 1HFY10. The decrease was due largely to a drop in demand for electronic components in mobile phones and computers.

The ICAD segment also saw its revenue decrease by HK$77.9 million or 51.3%, from HK$152.0 million in 1HFY09 to HK$74.1 million in 1HFY10. The drop in revenue was due mainly to the decrease in demand for toys in Northern America and Western Europe.

To reward Karin’s shareholders, the directors have declared an interim dividend of HK 3.2 cents per share, which will be paid to shareholders on 25 March 2010.