Hong Kong-listed Synagistics (02562) reported unaudited interim results for the six months ended 30 June 2026, showing continued progress in its transition to an asset-light, AI-driven digital-commerce model.
Financial performance • Revenue rose 11.6% year on year to SGD 39.81 million, supported by growth in both business lines. – D2B (digital solutions for brands) sales increased 10.90% to SGD 13.89 million. – D2C (direct-to-consumer) sales grew 11.90% to SGD 25.92 million.
• Gross profit expanded 5.40% to SGD 9.90 million; overall gross margin eased to 24.9% from 26.3% due to business-mix shifts. – D2B margin: 61.8% (H1 2025: 66.5%). – D2C margin: 5.1% (H1 2025: 4.6%).
• Net loss narrowed to SGD 17.51 million from SGD 28.85 million, reflecting lower share-based payments and cost optimisation. Loss ratio improved to 44.0% from 80.8%.
• Adjusted EBITDA recorded a loss of SGD 3.76 million (H1 2025: loss of SGD 2.31 million), equating to an adjusted EBITDA margin of –9.4%.
Balance sheet and liquidity • Adjusted net assets stood at SGD 65.28 million (31 Dec 2025: SGD 76.25 million). • Cash and cash equivalents totalled SGD 22.29 million, down from SGD 76.20 million at year-end, mainly after redeeming the US $35 million 4.5% convertible notes in February 2026. • Net current assets amounted to SGD 31.45 million; gearing remained low at 1.0%.
Operational developments • Geene 2.0, a “Trusted AI Commerce Intelligence Ecosystem”, progressed toward commercial launch slated for 31 August 2026, following co-development with 11 sector partners. • MASYN, an AI-powered e-commerce brand jointly created with Mei Ah Entertainment, commenced regional roll-out, showcasing AI-enabled IP commercialisation. • AGONG Durian became the first live deployment of Geene 2.0, integrating AI analytics, blockchain-based provenance and digital-commerce execution.
Segment highlights • D2B remained the main profit contributor; performance marketing drove segment revenue but compressed margins. • D2C margin improved after ceasing the outright inventory model, aligning the business with an asset-light approach.
Capital expenditure and investments • SGD 1.20 million was invested in property, plant, equipment and intangibles, chiefly for Geene and Synagie platform development. No material acquisitions, disposals or pledged assets were disclosed.
Dividend No interim dividend was declared.
Post-period event After 30 June 2026, 6.73 million shares were allotted under the company’s share award scheme.
Outlook Management will prioritise commercialising Geene 2.0, expanding AI partnerships and strengthening cross-border commerce capabilities while maintaining financial discipline and exploring strategic collaborations to build a scalable AI-commerce ecosystem across Southeast Asia.
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