Hong Kong – HARBOUR EQUINE Holdings Limited reported a net loss attributable to shareholders of HK$1.23 million for the six months ended 30 June 2026, reversing the HK$12.01 million profit recorded a year earlier. The swing into the red was driven by a steep decline in revenue and the absence of last year’s one-off disposal gain.
Revenue and Profitability • Revenue fell 39.5% year on year to HK$10.07 million (1H25: HK$16.65 million). • Gross profit dropped 88.3% to HK$0.61 million, with gross margin narrowing to 6% from 31% a year ago. • Other gains declined to HK$1.73 million (1H25: HK$10.94 million) as the comparative period included a HK$10.85 million gain from subsidiary disposals. • Finance costs decreased 33.8% to HK$0.78 million. • Administrative expenses were stable at HK$2.78 million.
Segment Review • Interior design & decoration remained the dominant contributor, accounting for 99.8% of group revenue at HK$10.05 million, down 31.1% year on year. • Equine services generated HK$0.02 million, up 23.5%, but remained immaterial (0.2% of revenue). • The sewing threads business recorded no sales, and the securities advisory unit was disposed of on 20 March 2026 (zero revenue vs. HK$2.05 million in 1H25).
Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$0.58 million at 30 June 2026, down from HK$1.91 million at end-2025. • Net current liabilities totalled HK$1.87 million, a reversal from net current assets of HK$0.99 million six months earlier. • Total net liabilities widened to HK$20.66 million (31 December 2025: HK$18.03 million). • Gearing ratio (net debt to equity plus net debt) rose to 238.9% from 225.2% at year-end. • No material capital commitments or contingent liabilities were reported.
Cash Flow • Operating activities used HK$0.36 million (1H25: inflow of HK$4.19 million). • Investing activities generated HK$0.44 million, mainly from the disposal of a subsidiary. • No financing cash flows were recorded during the period.
Dividend • The board declared no interim dividend (1H25: nil).
Management Commentary and Outlook Management attributes the revenue decline to slower project flow in the interior design segment and the disposal of the securities advisory business. Discussions on new design contracts are ongoing, with expectations of improved turnover in the second half of 2026. The equine services unit will continue to operate with reduced resources amid a subdued thoroughbred market.
Post-Period Event On 29 July 2026 the company issued 48.30 million new shares at HK$0.08 each via placing, increasing the share count to 539.24 million.