China Silver Technology Holdings Limited (CHINASILVER TEC) released a quarterly update detailing continued liquidity stress, a significant projected revenue contraction and slow progress toward meeting Hong Kong Stock Exchange resumption requirements.
• Operations and Revenue Outlook The company expects group revenue for the six months ended 30 June 2026 to fall by approximately 40%–50% versus the same period in 2025. Capacity remains constrained because raw-material purchases are limited to orders with customer prepayments or suppliers offering extended credit.
• Liquidity and Working-Capital Measures Management is actively pursuing both debt and equity financing to replenish working capital. Negotiations are also under way with major creditors, including an asset-management company (AMC), to restructure outstanding obligations. No binding agreements have been reached.
• Cost-Reduction Initiatives During 2025, the company relocated its office and experienced staff departures, actions that are expected to lower operating and labour costs. Available funds are being prioritised for overdue employee and service-provider payments.
• Audit Status and Financial Reporting The audit of FY2024-25 results has begun, but completion depends on resolving funding constraints and providing requested information to the external auditor. A publication date for the audited results will be set only when the audit nears completion. The board maintains that releasing unaudited management accounts could mislead investors.
• Equity Fund-Raising Constraints The Hong Kong Stock Exchange has indicated it is unlikely to approve new share issuances by the suspended issuer until all resumption guidance concerns are resolved, limiting near-term equity financing options.
• Trading Suspension Trading in CHINASILVER TEC shares has been suspended since 2 October 2025 and will remain halted until all resumption conditions—including publication of outstanding financial statements and demonstration of compliance with Listing Rule 13.24—are fulfilled.
Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.
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