AOM International Group Company Limited reported a net loss attributable to shareholders of HK$17.96 million for the six months ended 30 June 2026, widening from a HK$6.01 million loss a year earlier. The deeper deficit stemmed chiefly from a 26.0% surge in administrative expenses to HK$39.65 million and a sharp rise in finance costs to HK$10.45 million (2025: HK$1.50 million).
Revenue contracted 16.8% year-on-year to HK$169.14 million, reflecting softer contributions across key business lines: • Toys and Gifts Items: sales fell 8.3% to HK$75.45 million; gross margin slipped to 34.0% (2025: 37.7%), turning last year’s HK$1.31 million profit into a HK$8.68 million segment loss. • Chinese Herbs: turnover declined 26.8% to HK$31.03 million following weaker demand in mainland China. • Wines, Food & Beverage Products: revenue dropped 20.2% to HK$62.66 million; segment profit narrowed to HK$0.90 million (2025: HK$2.65 million).
Other segments—including Exploration, Fruit Plantation, Leisure and Culture—contributed negligible revenue and remained loss-making or inactive.
Basic loss per share widened to 1.68 HK cents (2025: 0.76 HK cents). The board declared no interim dividend.
Balance-sheet pressure persisted. Cash and bank balances fell to HK$109.98 million from HK$156.22 million at year-end 2025, while total borrowings climbed to HK$235.44 million (31 Dec 2025: HK$203.00 million). Net debt equated to 67.9% of equity, only slightly better than the 72.0% ratio six months earlier. The group also carries HK$67.84 million of secured borrowings and HK$41.45 million accrued interest that are in default. Management is negotiating refinancing and exploring equity or convertible-bond issuances to address liquidity.
Operating cash outflow was HK$10.75 million; overall cash decreased by HK$42.70 million after investing (HK$23.88 million) and financing (HK$8.08 million) activities.
Strategic moves during the period included: • Acquisition of 72.5% of Jiangxi Jiuai Food Co., Ltd. for HK$59.00 million via zero-coupon convertible bonds (convertible at HK$0.25 per share), adding HK$30.05 million of goodwill. • Disposal of 65% of Heilongjiang Yingli International Trade Co., Ltd. for RMB3.00 million, booking a HK$2.35 million gain.
Post-period developments: • Conditional agreement to buy 51% of Fujian Laojiu Sales Co., Ltd. for HK$100 million, to be paid in convertible bonds. • Completion of a HK$39.79 million share issue (147.30 million shares at HK$0.27) on 20 July 2026 to offset outstanding convertible bonds from the 2021 acquisition of Hubei Jincaotang Pharmaceutical.
Total issued shares rose to 1.18 billion following the March 2026 conversion of HK$59 million convertible bonds into 236.0 million new shares.
Asset pledges and obligations remained modest: leasehold land and buildings valued at HK$47.40 million secure certain loans; no significant capital commitments or contingent liabilities were reported.
Headcount stood unchanged at 378 employees. Management continues to review operations and pursue new investments to diversify revenue streams while prioritising debt restructuring and capital-raising measures to support going-concern status.
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