China Strategic Technology Group Limited released unaudited results for the six months ended 30 June 2026.
Financial Performance • Revenue rose 41.3% year-on-year to RMB243.76 million, led by Electronics Manufacturing Services (EMS) sales of RMB196.69 million and the launch-stage Trading business at RMB47.07 million. • Gross profit fell 52.8% to RMB17.11 million as lower-margin trading activity and higher EMS input costs narrowed margins. • A disposal gain of RMB197.79 million offset operating pressures, lifting profit attributable to shareholders to RMB141.56 million versus a RMB32.42 million loss a year earlier. • Basic and diluted earnings per share swung to RMB19.82 cents from a loss of RMB6.43 cents.
Cost Structure and Expenses • Cost of sales climbed 66.3% to RMB226.65 million, outpacing revenue growth. • Selling and distribution expenses increased 13.1% to RMB6.94 million, while general and administrative expenses declined 30.0% to RMB56.50 million after subsidiary disposals. • Net finance costs dropped 35.7% to RMB3.60 million, helped by reduced lease-related interest.
Segment and Geographic Mix • EMS contributed 80.7% of group revenue; printed circuit board assemblies generated RMB187.53 million, up 36.5%. • Fully-assembled electronic products revenue contracted 74.8% to RMB8.86 million amid weaker overseas demand. • Mainland China accounted for 68.1% of sales, followed by Vietnam (12.2%) and Hong Kong (7.4%).
Balance Sheet and Liquidity • Total assets stood at RMB559.95 million; cash and cash equivalents were RMB30.20 million. • Total equity turned positive at RMB49.98 million after the profit and completed share subscriptions. • Interest-bearing borrowings reached RMB234.20 million; gearing ratio was 528.9%. • Net current assets amounted to RMB9.20 million, lifting the current ratio to 1.02 from 0.60 at end-2025.
Capital Movements • March 2026 share subscriptions and April 2026 share placing raised a combined HK$117.84 million (approximately RMB105.83 million) for working capital and loan repayment. • A placing announced on 18 August 2026 targets up to 163.68 million new shares at HK$0.30 each; completion was pending at the results announcement date.
Other Highlights • Capital expenditure reached RMB33.42 million, primarily for plant, machinery and aerospace-related projects; outstanding capital commitments total RMB426.70 million. • Headcount fell to 356, with staff costs of RMB19.13 million. • No interim dividend was declared.
The board stated that continued investment in artificial intelligence, precision manufacturing and aerospace technology remains central to the group’s long-term strategy.
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