Renze Harvest Returns to Profit as Finance Costs Reverse and Tax Credit Boosts First-Half 2026 Earnings

Renze Harvest International Limited reported a net profit of HK $29.87 million for the six months ended 30 June 2026, rebounding from a HK $48.69 million loss a year earlier. Profit attributable to shareholders came in at HK $13.73 million, translating into basic earnings of 0.27 Hong Kong cents per share versus a 1.78 Hong Kong-cent loss per share in the prior-year period.

Revenue slipped 8.9 % year on year to HK $415.73 million, but gross profit rose 4.9 % to HK $128.86 million as gross margin widened to 31.0 % from 26.9 %. Operating profit climbed to HK $14.08 million from HK $1.28 million.

A swing from net finance costs of HK $38.93 million to net finance income of HK $0.81 million, driven by HK $40.21 million of capitalised interest on investment properties under construction, materially improved the bottom line. In addition, a HK $15.52 million income-tax credit—largely stemming from a land appreciation tax reversal—contrasted with an HK $11.04 million charge a year earlier.

Segment performance:

• Automation: Revenue fell 13.4 % to HK $305.39 million, but segment profit surged 84.7 % to HK $36.38 million on tighter cost control and foreign-exchange gains.

• Property Investment & Development: Revenue eased 3.4 % to HK $81.15 million, while segment profit more than doubled to HK $55.00 million, aided by a HK $21.70 million reversal of excess land appreciation tax.

• Financial Services: Revenue increased 35.4 % to HK $31.05 million; segment profit rose 22.0 % to HK $12.83 million as brokerage turnover improved.

• Securities Investment: A trading loss narrowed to HK $1.87 million; the segment recorded a marginal operating loss of HK $0.16 million.

Total assets reached HK $10.43 billion, with cash and cash equivalents at HK $665.75 million. Net assets grew to HK $6.15 billion, while the gearing ratio edged down to 27.4 % from 28.7 % at end-2025. The current ratio remained steady at 1.5.

No interim dividend was declared. The board cited ongoing capital commitments of HK $5.21 billion—principally for investment properties and development projects in Shenzhen, Ganzhou and Shantou—as a near-term funding priority.

Looking ahead, management will continue construction of Phase III and Phase IV of Shenzhen Bangkai Science and Technology Industrial Park, pursue staged asset disposals in Ganzhou, and progress apartment sales in Shantou, while expanding overseas automation services to align with customers’ manufacturing relocation plans.