China Netcom Technology Holdings Limited (CH NetcomTech, 08071) released its unaudited results for the six months ended 30 June 2026.
Revenue and Segment Performance • Consolidated revenue rose 25.0% year on year to HK$16.23 million, supported by a sharp expansion in the smart retail business. • Smart retail contributed HK$15.21 million, surging from HK$5.02 million a year earlier, driven by stronger platform usage and new cloud-service contracts. • Automotive culture revenue declined to HK$1.02 million (1H 2025: HK$8.00 million) amid intensified competition and product rationalisation. • The AWS cloud services unit, classified as a discontinued operation following its August 2024 disposal, recorded no revenue (1H 2025: HK$0.13 million).
Profitability • Gross profit improved 56.0% to HK$2.12 million; gross margin expanded to 13.0% from 10.0% in 1H 2025, reflecting scale gains and cost controls in the smart retail segment. • Administrative expenses fell 33.4% to HK$2.98 million due to streamlined staffing and cost optimisation. • Net loss attributable to shareholders narrowed 77.3% to HK$0.88 million (1H 2025: HK$3.87 million). Basic and diluted loss per share reduced to HK0.94 cents from HK4.13 cents. • Other gains swung to a HK$0.07 million profit (1H 2025: HK$1.00 million loss), aided by lower foreign-exchange losses and a reversal of credit-loss provisions.
Balance Sheet and Liquidity • Total assets stood at HK$17.42 million (31 Dec 2025: HK$21.73 million). • Cash and bank balances were HK$9.95 million, down from HK$16.07 million at year-end, reflecting HK$5.64 million net operating cash outflow. • Current ratio remained stable at 1.3x, while borrowings declined to HK$1.63 million (31 Dec 2025: HK$2.10 million). Gearing improved to 36% from 39%. • Contract liabilities increased 182.4% to HK$1.15 million, mirroring higher advance payments for upcoming smart-retail services. Trade and other payables fell 27.1% to HK$9.98 million following accelerated settlement of supplier balances.
Capital Actions • A 50-for-1 share consolidation became effective on 30 June 2026, reducing issued shares to 93.72 million at HK$0.25 par value. • The company repurchased and cancelled 31 shares in May for approximately HK$0.0004 million.
Dividend • No interim dividend was declared (1H 2025: Nil).
Management Outlook Management will prioritise scaling the smart retail platform, advance cross-border e-commerce services, and maintain stringent cost controls. The automotive culture business will undergo product and channel optimisation to enhance resilience amid competitive pressures.