Risecomm Group Holdings Limited (“Risecomm”) reported 1H-2026 revenue of RMB 25.64 million, a 56.3% year-on-year decline from RMB 58.61 million. The drop reflected weaker sales across all three operating segments:
• AMR & Other Business revenue fell 53.8% to RMB 13.09 million, mainly due to lower sales of broadband dual-mode power-line communication products.
• Smart Manufacturing & Industrial Automation (SMIA) revenue slumped 94.3% to RMB 0.91 million amid project delays and limited working capital.
• Wind Farm O&M (WFOM) revenue slipped 19.2% to RMB 11.64 million as service income from long-term maintenance contracts eased.
Gross profit contracted 47.5% to RMB 11.84 million; however, gross margin improved to 46.2% (1H-2025: 38.5%) on a greater contribution from higher-margin WFOM services and newly launched AMR products.
Other income surged to RMB 8.00 million (1H-2025: RMB 3.39 million) on a RMB 5.88 million gain from disposing a subsidiary. Operating loss widened to RMB 9.31 million, and finance costs fell 21% to RMB 2.97 million following partial debt repayment after the 2025 rights issue. Net loss attributable to shareholders increased to RMB 13.36 million versus RMB 12.15 million a year earlier; basic and diluted loss per share were RMB 6.19 cents (restated).
Balance-sheet pressure persisted. As of 30 June 2026, cash and bank balances stood at RMB 9.27 million (31 Dec 2025: RMB 17.01 million), while total interest-bearing borrowings were RMB 172.70 million, bearing coupon rates of 2.5%–12.0%. Net current liabilities were RMB 55.74 million and the group carried a shareholders’ deficit of RMB 59.46 million. The auditors maintained a going-concern emphasis of matter, and management reiterated cost-control and restructuring plans.
Funding initiatives On 27 May 2026, the company signed a debt-equity swap (“Capitalisation Loan”) with existing subscribers: • Issue of 69.82 million capitalisation shares at HK$0.46 each and zero-coupon convertible bonds convertible into up to 279.27 million shares, fully settling HK$128.46 million (about RMB 139.1 million) of shareholder loans. • Concurrent best-efforts placing of up to 85.87 million new shares at HK$0.46 to raise gross proceeds of about HK$39.5 million (net HK$39.0 million) earmarked for repaying two existing bank loans.
Completion of both transactions remains subject to shareholder and Stock Exchange approvals. If completed, the capitalisation shares would equal 24.4% of the enlarged share base, while full conversion of the bonds would raise potential dilution to 49.4%.
Dividend The board declared no interim dividend (1H-2025: nil).
Outlook Management expects China’s 15th Five-Year Plan to sustain investment in smart grids, dual-mode PLC communication and rural charging infrastructure, underpinning demand for Risecomm’s power-line modules and chips. The group will focus on upgrading its dual-mode HRF+HPLC platform, expanding WFOM contracts, and exploring international opportunities under the Belt and Road Initiative while pursuing strict cost controls and completing the announced financing measures to enhance liquidity.
Comments