Hong Kong-listed CROSSTEC Group Holdings Limited reported FY 2026 (year ended 30 June 2026) results showing solid top-line growth but a sharp swing to deeper losses, driven primarily by a non-cash charge on newly issued convertible bonds.
Financial Performance • Revenue rose 17.90 % year-on-year to HK$65.31 million, supported by larger interior-solutions contracts and the addition of property-related services. • Gross profit increased 18.18 % to HK$11.23 million, leaving the gross margin broadly flat at 17.2 % (FY 2025: 17.1 %). • A fair-value loss of HK$119.81 million on the September 2025 issue of HK$95.50 million in convertible bonds pushed the Group to a net loss of HK$146.26 million (FY 2025: HK$28.21 million loss). • Excluding the convertible-bond impact, underlying loss narrowed 6.24 % to HK$26.45 million, reflecting improved operating leverage and lower finance costs.
Segment & Geographic Mix • Integrated Interior Solutions Services remained the core contributor, generating HK$57.74 million, or 88.5 % of total revenue. • Online Game Integrated Services contributed HK$1.15 million, while the newly added Property Management & Sales Agency Services delivered HK$6.43 million. • Australia emerged as the primary market, accounting for 75.8 % of Group revenue (HK$49.50 million), overtaking Mainland China’s 9.3 % (HK$6.08 million) and Hong Kong’s 14.9 % (HK$9.73 million).
Balance-Sheet Movements • Net liabilities narrowed to HK$11.87 million from HK$65.68 million a year earlier, largely due to the equity conversion of HK$72.60 million in principal amount of convertible bonds into 660 million new shares during the year. • Cash and cash equivalents improved to HK$12.44 million (FY 2025: HK$9.72 million). • Outstanding other borrowings stood at HK$39.75 million, all classified as non-current and repayable between 2028 and 2031; shareholder loans were fully extinguished. • Convertible bonds of HK$21.41 million remain outstanding at end-June 2026, with full conversion completed by 20 July 2026.
Cost and Expense Dynamics • Direct costs rose 17.78 % to HK$54.08 million in line with revenue expansion. • Administrative expenses were stable at HK$22.35 million. • Finance costs declined 23.87 % to HK$8.75 million following debt restructuring and partial conversion of shareholder loans into convertible bonds.
Operational Developments • Property Management and Property Sales Agency activities commenced during the year, adding HK$6.43 million in revenue. • The Group continues to prioritise growth in Australia, Mainland China and Hong Kong while exploring AI-driven design services and further strategic partnerships.
Liquidity Outlook Management’s cash-flow forecast to December 2027 factors in undrawn loan facilities of HK$8.75 million and anticipated operational improvements. Directors believe existing resources and financing arrangements are adequate to meet near-term obligations, supporting the going-concern assumption.
Dividend No dividend was declared for FY 2026 (FY 2025: nil), reflecting the focus on balance-sheet repair and reinvestment.
Audit Rongcheng (Hong Kong) CPA Limited agreed the figures in the audited financial statements; its work did not constitute a formal assurance engagement under HKSA standards, and no assurance opinion was expressed.
Corporate Governance The Company reported compliance with the HKEX Corporate Governance Code, save for the combination of Chairman and CEO roles held by Mr Wang Rong since November 2023.
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