SING LEE Software (Group) Limited released its unaudited interim results for the six months ended 30 June 2026. Revenue increased 13.2% year on year (YoY) to RMB 20.60 million, driven mainly by stronger hardware sales, which more than doubled to RMB 3.50 million. Software product sales fell by 36.2% to RMB 0.34 million, while technical support services remained the Group’s core contributor at RMB 16.76 million, up 3.2%.

Gross margin turned negative, with a gross loss of RMB 0.35 million versus a gross profit of RMB 0.09 million in H1 2025, as cost of sales climbed 15.6% to RMB 20.95 million, outpacing revenue growth. Distribution and selling expenses rose 5.6% to RMB 3.20 million, whereas administrative expenses edged down 3.4% to RMB 5.58 million. Finance costs were broadly stable at RMB 0.53 million.

The Group recorded a net loss of RMB 8.44 million, widening 10.2% from RMB 7.66 million a year earlier. Management attributed the larger deficit to the absence of last year’s RMB 0.81 million impairment reversal on receivables and higher operating costs. Loss per share stood at RMB 0.64 cents (H1 2025: RMB 0.58 cents). No interim dividend was declared.

Balance-sheet metrics weakened. Cash and cash equivalents fell to RMB 2.51 million from RMB 16.25 million at end-2025. Net current assets slipped to RMB 19.58 million (31 Dec 2025: RMB 28.17 million), while the Group moved from net assets of RMB 7.52 million to a net liabilities position of RMB 0.92 million. Total borrowings rose to RMB 31.51 million, including RMB 27.51 million in unsecured loans from controlling shareholder Mr Hung Yung Lai and RMB 4.00 million in bank borrowings, lifting the gearing ratio to 102.3% (31 Dec 2025: 81.9%).

Operationally, headcount increased to 430 employees (H1 2025: 401), though staff costs declined 6.2% to RMB 18.79 million. The Group continues to focus on integrating AI, big data and digital-RMB solutions into its payment technology offerings and is transitioning toward a “product + platform + operation services” business model.

Management expects that ongoing cost controls, a maturing product mix and further market penetration will support performance improvement in the coming quarters, while cautioning that macroeconomic conditions and investment appetite among financial-sector clients remain challenging.