Junwea Group (China) Company Limited reported a net loss attributable to shareholders of HK$27.10 million for the six months ended 30 June 2026, reversing a HK$0.12 million profit a year earlier. The setback followed a sharp contraction in gross margin and a surge in operating costs.
Revenue rose 22.9% year on year to HK$79.95 million, supported by larger construction contracts and the first-time contribution from a newly launched Beauty and Health Services segment. Segment details:
• Construction Services generated HK$54.34 million, but posted a HK$7.58 million loss as competitive pricing and delayed work certifications squeezed margins.
• Beauty and Health Services delivered HK$25.60 million in its maiden half-year, yet incurred a HK$10.28 million loss due to start-up and staffing costs across new outlets in major Mainland cities.
• Construction IT Services recorded no revenue.
Group gross profit fell 89.3% to HK$0.88 million, driving gross margin down to 1.1% from 12.7%. Administrative expenses more than tripled to HK$27.50 million, reflecting expansion of the beauty business. Finance costs were roughly stable at HK$0.20 million.
Liquidity strengthened on the back of two equity fund-raisings: a HK$44.53 million subscription by the controlling shareholder in April and a HK$32.50 million share placement in June. Cash and cash equivalents climbed to HK$57.34 million at period-end (31 December 2025: HK$31.12 million), while the Group remained debt-free. The gearing ratio improved to 20.4% from 71.1%.
At the report date, the order book for ongoing construction projects totalled HK$219.20 million, with tenders pending on HK$97.90 million of additional work. Management signalled a “conservative” stance toward Hong Kong construction, citing subdued property developer activity, while targeting further expansion of the beauty and health network to diversify revenue.
No interim dividend was declared.
During the period the Company changed its name to “Junwea Group (China) Company Limited,” adopted “JUNWEA GROUP” as its new stock short name, and introduced a 2026 Share Scheme to replace the 2019 Share Option Scheme. As at 30 June 2026, 37.44 million Shares remained available for future grants under the new scheme.
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