REGAL PARTNERS has released its unaudited interim results for the six months ended June 30, 2026, revealing a significant revenue contraction despite an improvement in its bottom line.
During the reporting period, the company generated approximately RMB 10.3 million in revenue, marking a sharp 75.4% year-on-year decline. Gross profit stood at about RMB 0.1 million, while the loss attributable to the period narrowed by 40.3% to around RMB 18.1 million compared with the previous corresponding period.
The substantial drop in revenue is attributed to the closure of one of the group's manufacturing facilities, compounded by ongoing US tariffs and weak overseas demand. In response to these trade headwinds, the group initiated a strategic shift in 2024, relocating its primary manufacturing base from China to Cambodia to mitigate tariff exposure.
Cost discipline has been a clear focus, with selling and distribution expenses falling 64.8% year-on-year to roughly RMB 3 million. Administrative expenses decreased 53.8% to around RMB 10.2 million, while financing costs dropped 55.6% to approximately RMB 4.9 million.
As of June 30, 2026, the group's interest-bearing bank and other borrowings totalled about RMB 119.9 million, alongside shareholder loans of RMB 111.9 million. Annual interest rates on these facilities range from 3.0% to 5.8%. The company reported a net current liability position of approximately RMB 231 million and net liabilities of roughly RMB 284 million.
Major shareholder Mr. Tse Kam Pang has provided an unsecured loan facility of up to HK$200 million, of which about HK$51.624 million remained undrawn at period end. Additionally, Mr. Tse has committed to not demanding repayment of his outstanding loans, amounting to around RMB 111.899 million, for the next twelve months.
The board has resolved not to declare any interim dividend for the reporting period.
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