Jiu Rong Holdings Limited (02358) released its unaudited results for the six months ended 31 December 2025, outlining a sharp contraction in turnover coupled with a substantial narrowing of net loss amid ongoing liquidity pressure and balance-sheet strain.
Revenue and Profitability • Revenue fell 71.55% year on year to HK$104.03 million (1H FY2024: HK$365.60 million), led by steep declines in Digital Video (–88.9%) and New Energy Vehicles (–59.5%). • Gross profit slipped 27.13% to HK$18.92 million, yet the gross margin improved to 18.2% (1H FY2024: 7.1%) as loss-making digital video manufacturing was scaled back. • Other income and gains surged to HK$41.28 million (1H FY2024: HK$15.63 million), boosted by a HK$29.02 million gain from offsetting payables with financial assets and HK$4.73 million in government grants. • Finance costs remained heavy at HK$26.17 million (1H FY2024: HK$26.61 million). • Loss attributable to shareholders narrowed 57.8% to HK$8.80 million (1H FY2024: loss of HK$20.84 million); basic and diluted loss per share stood at HK0.16 cents (1H FY2024: HK0.38 cents).
Segment Breakdown • Digital Video Business: HK$18.32 million revenue (17.6% of total), reflecting factory shutdown and competitive pressures. • New Energy Vehicles: HK$76.37 million (73.4% of total); revenue decline linked to disposal/closure of charging stations. • Cloud Ecological Big Data: HK$0.44 million. • Properties Investment: HK$8.90 million, broadly stable year on year.
Balance Sheet and Liquidity • Cash and cash equivalents rose to HK$14.77 million from HK$2.97 million as at 30 June 2025. • Bank and other loans increased to HK$901.58 million (30 June 2025: HK$827.73 million); overdue debt included HK$419.83 million from an indirect shareholder and HK$310.20 million from banks. • Net current liabilities widened to HK$1.19 billion; total equity remained negative at –HK$255.60 million. • Gearing ratio (net debt to capital plus net debt) marginally improved to 0.72 (30 June 2025: 0.74). • Capital commitments stood at HK$6.24 million; no interim dividend declared.
Cash Flow • Operating activities consumed HK$128.39 million (1H FY2024: outflow of HK$432.96 million). • Investing activities generated HK$80.19 million, chiefly from asset disposals. • Financing inflow totalled HK$60.19 million, resulting in a net cash increase of HK$11.99 million.
Post-Balance-Sheet Events • Disposal agreement signed to sell 11 Hangzhou EV charging stations for RMB185.30 million (HK$201.40 million); completion pending shareholder-approved transaction. • Five legal actions filed by Hangzhou United Rural Commercial Bank involving claims of RMB282.90 million (HK$313.60 million); approximately RMB12.72 million (HK$14.11 million) in bank deposits frozen. • Termination of a planned sale of Hangzhou Lu Yun Property led to repayment demands: RMB205.00 million advance refund plus RMB60.34 million debt and accruing interest; 20 property units pledged as collateral.
Governance Updates • February 2026: Independent non-executive directors Mr. Wong Chi Kin and Mr. Chen Zheng resigned; Ms. Liu Bingjie resigned as executive director. • Subsequent appointments of Mr. Wong Po Keung and Ms. Lu Ruidi restored compliance with Listing Rules regarding board independence, committee composition, and gender diversity.
Outlook Management sees long-term potential in digital video, new-energy vehicles, and data-driven services, but acknowledges ongoing financing constraints and property-sector headwinds. Strategic focus remains on asset optimisation, cost control, and selective investment to stabilise cash flow and improve balance-sheet resilience.