China Castson 81 Finance Company Limited released its 2026 interim results for the six months ended 30 June 2026, reporting a return to profitability and a sharp expansion in net assets following a successful rights issue.\n\nKey Financials\n• Net profit reached HK$4.20 million, versus a loss of HK$3.82 million a year earlier.\n• Net asset value (NAV) rose to HK$82.80 million from HK$28.60 million at 31 December 2025, buoyed by operating profit and HK$50.00 million in net proceeds from the April rights issue.\n• NAV per share stood at HK$0.12 (31 December 2025 restated: HK$0.13) after the issue of 509.11 million rights shares.\n• Gross proceeds from disposal of investments and dividends surged to HK$41.34 million, compared with HK$3.47 million in 1H 2025.\n• Dividend income rose to HK$0.23 million (1H 2025: HK$0.15 million).\n• Administrative expenses were HK$5.82 million (1H 2025: HK$5.54 million). The increase mainly reflected higher brokerage costs linked to more active trading.\n\nInvestment Performance\n• Net fair-value gains on financial assets at fair value through profit or loss (FVTPL) expanded to HK$10.25 million, up from HK$2.16 million in the prior-year period, driven by price appreciation in selected non-index Hong Kong equities.\n• The listed-equity portfolio, entirely in Hong Kong stocks, was valued at HK$53.45 million at period-end (31 December 2025: HK$20.42 million). All holdings were classified as current assets following the disposal of previously non-current positions.\n\nBalance-Sheet Highlights\n• Bank and cash balances climbed to HK$15.11 million (31 December 2025: HK$0.96 million).\n• Net current assets increased to HK$67.90 million (31 December 2025: HK$10.48 million).\n• The Group remained ungeared, with no outstanding borrowings or capital commitments at 30 June 2026.\n\nCapital Activity\n• The April 2026 rights issue, offered on a five-for-two basis at HK$0.102 per share, raised gross proceeds of HK$51.93 million and net proceeds of HK$50.00 million after expenses. As of 30 June 2026, HK$36.00 million had been deployed—HK$32.00 million for portfolio investments and HK$4.00 million for working capital—with HK$14.00 million earmarked for further use by 2027.\n\nOutlook\nThe Board expects global monetary easing and continued investment in artificial intelligence and clean-energy themes to sustain market liquidity in the second half of 2026. Management plans to pursue a “disciplined yet opportunistic” investment strategy, emphasising portfolio diversification, balance-sheet optimisation and operational efficiency. No interim dividend was declared.
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