Junwea Group (China) Company Limited reported interim results for the six months ended 30 June 2026 showing a sharp swing into loss, as expanding operating costs and start-up spending in its new Beauty & Health Services unit offset higher revenue.
Financial highlights • Revenue rose 22.9% year on year to HK$79.95 million (1H 2025: HK$65.06 million), lifted by the launch of Beauty & Health Services (HK$25.60 million) and resilient Construction Services turnover (HK$54.34 million). • Gross profit slid 89.3% to HK$0.88 million, compressing the margin to 1.1% from 12.7% a year earlier, as cost of services jumped 39.2% to HK$79.07 million. • Administrative expenses tripled to HK$27.48 million, reflecting staffing and set-up costs for mainland beauty stores and higher corporate overheads. • Net loss attributable to shareholders reached HK$20.04 million (1H 2025: HK$0.12 million profit), translating to a basic loss per share of HK4.60 cents. Total loss for the period was HK$27.08 million after a HK$0.16 million tax charge. • Other income increased to HK$0.31 million, while finance costs edged up to HK$0.20 million. Impairment charges under the expected credit-loss model totalled HK$0.46 million, versus a small reversal a year earlier.
Segment performance • Beauty & Health Services generated HK$25.60 million revenue but posted a HK$10.28 million segment loss, reflecting initial investment phase. • Construction Services contributed HK$54.34 million revenue and recorded a segment loss of HK$7.58 million amid competitive pricing and delayed certifications. • Construction IT Services recorded no revenue during the period.
Balance sheet and liquidity • Total assets more than doubled to HK$133.80 million, fuelled by a rise in contract assets to HK$50.32 million and cash to HK$57.34 million. • Net current assets expanded to HK$69.13 million (31 Dec 2025: HK$6.30 million). • The group remained debt-free; lease liabilities stood at HK$6.96 million and the amount due to a related company was HK$3.18 million. • Equity attributable to shareholders increased to HK$87.54 million, supported by capital inflows from a HK$44.53 million share subscription, a HK$33.02 million placing, and the exercise of share options. • Resulting gearing ratio fell to 20.4% from 71.1% at end-2025.
Capital actions During the half-year, Junwea: 1) Issued 112.32 million new shares to controlling shareholder China Alliance Venture Technology at HK$0.3965 each, raising HK$44.53 million. 2) Completed a placing of 74.88 million new shares at HK$0.441 each, raising HK$33.02 million. 3) All 26.00 million outstanding share options were exercised. 4) Increased authorised share capital from 400 million to 1.20 billion shares.
Dividend No interim dividend was declared.
Outlook Management signalled a cautious stance toward Hong Kong’s subdued construction market while seeking to defend market share in wet-trade works. In mainland China, the Beauty & Health Services segment is expanding through jointly-owned clinics in major cities, but remains in an investment phase. The enlarged capital base and strong cash position provide funding flexibility for ongoing projects and potential opportunities in existing and new business lines.
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