SoftMedx Healthcare posts 38.6% interim profit growth despite lower revenue; swings to net-cash position

Bulletin Express
Aug 10

SoftMedx Healthcare Limited reported a HK$4.65 million profit attributable to shareholders for the six months ended 30 June 2026, up 38.6% from HK$3.35 million a year earlier. The improvement was driven by a 20.8% cut in administrative expenses to HK$3.61 million and the absence of the HK$2.82 million fair-value loss on financial assets that weighed on 1H 2025 results.

Revenue slipped 4.7% year on year to HK$34.08 million, reflecting softer Hong Kong sales (HK$24.93 million vs. HK$35.77 million) partially offset by new contributions from Mainland China, Macau and other markets (HK$9.14 million combined). A change in product mix trimmed gross profit by 17.9% to HK$9.43 million, compressing gross margin to 27.7% from 32.1%.

Finance costs fell 74.2% to HK$0.09 million following full repayment of bank borrowings (HK$12.10 million outstanding at end-2025). As a result, profit before tax climbed 20.6% to HK$5.78 million.

Balance-sheet metrics strengthened. Cash and bank balances more than doubled to HK$26.51 million, while total borrowings dropped to zero, shifting the Group into a net-cash position. Net assets increased 17.6% to HK$32.22 million, and the current ratio improved to 2.50 from 2.30. Inventories fell 59.0% to HK$2.23 million, although trade receivables rose 15.9% to HK$17.48 million and trade payables expanded to HK$15.50 million.

During the period the company issued 0.82 million new shares (post-consolidation) to scheme creditors and completed a 20-into-1 share consolidation, lifting issued share capital marginally to HK$3.05 billion and expanding the weighted average share base to 106.71 million shares. Basic and diluted earnings per share therefore declined to HK4.4 cents from HK20.6 cents.

The Board did not declare an interim dividend. Management cited a focus on organic growth through broader product sourcing, deeper market penetration and disciplined liquidity management, while continuing to assess acquisition opportunities in the healthcare sector. No significant investments, capital commitments, or post-period events were reported.

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