Jiufang Digital swings to HK$5.05 million interim loss despite seven-fold revenue jump; rights issue narrows net deficit

Jiufang Digital Technology Holdings Limited reported an unaudited net loss attributable to shareholders of HK$5.05 million for the six months ended 30 June 2026, widening from a HK$0.32 million loss a year earlier. Basic loss per share deepened to 1.74 HK cents from 0.26 HK cents.

Revenue surged more than six-fold to HK$80.60 million (1H 2025: HK$11.82 million), driven by the launch of an artificial-intelligence and omni-media precision marketing segment that contributed HK$80.60 million, versus nil a year ago. However, gross profit edged down 2.86% year on year to HK$6.38 million as the new service line operates at lower margins than the legacy publications and advertising business.

Operating expenses rose 47.4% to HK$9.40 million, reflecting professional fees linked to a rights issue and HK$1.50 million of mainland marketing costs. Finance costs slipped 8.6% to HK$0.58 million. After recognising HK$1.61 million of PRC tax, the Group posted a total comprehensive loss of HK$5.20 million (1H 2025: HK$0.41 million).

The March 2026 rights issue—three rights shares for every consolidated share at HK$0.20—raised net proceeds of HK$49.44 million and expanded issued share capital to 348.36 million shares. Net liabilities narrowed sharply to HK$1.40 million at 30 June 2026 from HK$45.93 million at end-2025; the current ratio improved to 1.0x (31 Dec 2025: 0.4x). The Group held cash of HK$10.42 million with no bank borrowings.

Post-period, Jiufang Digital completed a HK$3.50 million issue of 4% one-year convertible bonds on 10 July 2026, convertible into up to 17.42 million shares at HK$0.20 each. The company also acquired Henan Zhihui Shenghe Digital Communication Co., Ltd. for RMB0.10 million to deepen its digital marketing footprint.

The auditor issued a disclaimer of opinion on the FY2025 accounts due to multiple uncertainties relating to going-concern. Management cites the completed rights issue, the bond financing, business pivot to AI-led marketing and strict cost controls as key mitigation measures; the audit committee supports this view.

No interim dividend was declared. The company adopted a new 10-year share option scheme on 30 June 2026 with a 10% scheme mandate limit (2% sub-limit for service providers). Stock short names were changed to “Jiufang Digital” (English) and “玖方數智” (Chinese) on 3 August 2026 following the corporate name change from Winto Group (Holdings) Limited.