Hong Kong – XinKong International Capital Holdings Limited (XINKONG INT CAP) reported a narrowed unaudited net loss of HK$141.47 million for the six months ended 30 June 2026, a 52.6% improvement from the HK$298.80 million loss a year earlier.
Revenue and Profit & Loss • Total revenue fell 20.1% year on year to HK$14.13 million, weighed down by weaker interest income (-44.6% to HK$8.91 million) and lower brokerage commission and fee income (up 173.2% to HK$4.41 million but off a low base). • Net investment result remained negative: HK$26.24 million loss on financial assets at FVTPL and a HK$3.97 million loss on disposal of FVOCI assets. • A HK$13.02 million net impairment reversal—driven by cash recovery from legacy projects—helped stem losses. • Basic loss per share improved to HK3.9 cents from HK5.7 cents.
Segment Performance • Securities: Segment posted a HK$6.27 million loss (1H25: HK$6.67 million loss) on HK$0.74 million revenue; reduced impairment charges supported the marginal improvement. • Asset Management & Direct Investment: Revenue slipped to HK$13.39 million (1H25: HK$14.90 million) while segment loss narrowed to HK$162.57 million (1H25: HK$304.37 million) due to lower impairment provisions. • Corporate Finance: No revenue recorded in either period. • Financial Services & Others: A forex-related gain of HK$27.37 million swung the segment to profit (1H25: HK$4.13 million loss).
Balance Sheet Highlights (30 Jun 2026) • Total assets: HK$1.29 billion (-12.4% vs 31 Dec 2025). • Cash and bank deposits: HK$405.11 million; additional HK$99.27 million held as client funds. • Net current liabilities: HK$117.19 million (vs net current assets of HK$68.13 million at end-2025). • Total borrowings: HK$4.17 billion, largely shareholder loans from intermediate holding company CFAIH. • Negative equity widened to HK$3.80 billion; perpetual capital securities of HK$6.24 billion continue to support capital base. • Gearing ratio (borrowings/total assets) rose to 324% from 277%. • Unutilised bank credit lines stood at HK$100 million.
Key Investments and Impairments • Convertible bond and equity exposure to ARTA TechFin valued at HK$239.57 million (18.6% of total assets). • Stakes in TUJIA (US$18.94 million) and All-Stars Investment Private Partners Fund L.P. (US$17.58 million) represent 22.2% of assets combined. • The Crown International loan carrying value remained HK$67.83 million after further impairment; collateral includes 7.92% of Crown International shares. • Finance lease receivables stood at HK$8.21 million after HK$52.41 million ECL allowance.
Liquidity and Capital Management • Cash resources cover day-to-day operations; no bank debt was drawn, and all regulatory capital requirements were met. • Shareholder and perpetual securities funding from CFAIH totals US$1.32 billion, with fixed interest rates between 5.80% and 6.86% and maturities in three to four years.
Management Outlook The Board expects continued global macro-economic volatility, driven by geopolitical tensions and a prolonged high-interest-rate environment. Strategic priorities include expanding asset-management mandates, leveraging parent-company resources to support securities and corporate-finance businesses, and intensifying recovery efforts on legacy assets through litigation, collateral disposal and restructuring. No interim dividend was declared.