Poly Xverse Posts Narrower Gross Loss but Wider Bottom-Line Deficit in 1H 2026; HK$176.70 Million Rights Issue Eases Leverage

Bulletin Express
09/30

Poly Xverse Intelligent Technology Co. Ltd reported 1H 2026 revenue of HK$160.51 million, an 8.2% year-on-year increase driven mainly by higher toy sales following partial easing of U.S.–China tariffs. The group remained unprofitable, recording:

• Gross loss: HK$9.89 million, a marginal improvement from HK$10.03 million a year earlier, as higher volumes could not fully offset rising wages and plastic costs.

• Net loss attributable to owners: HK$44.17 million versus HK$38.30 million in 1H 2025, largely due to a HK$11.90 million translation loss from a 4% RMB appreciation.

Operating expenses showed progress: selling & distribution costs fell 22.9% to HK$2.67 million, finance costs dropped 35.2% to HK$4.65 million, and administrative expenses held flat at HK$15.75 million.

Liquidity and capital structure strengthened after a January 2026 rights issue that raised net proceeds of HK$176.70 million:

• Borrowings trimmed to HK$196.04 million (31 Dec 2025: HK$255.19 million) after full repayment of corporate bonds, term loans and an amount due to the ultimate holding company.

• Net current liabilities narrowed to HK$158.40 million from HK$296.65 million; current ratio improved to 0.61x from 0.45x.

• Capital deficiencies attributable to owners reduced 65.1% to HK$75.90 million.

• Gearing ratio eased to 131.7% from 188.4%.

As at end-June, HK$166.04 million of bank loans were secured against HK$89.80 million of PRC properties and right-of-use assets plus HK$1.38 million of pledged deposits; banking facilities of RMB260.00 million run to April 2027.

Corporate actions after the reporting date include a 1-for-10 share consolidation effective 24 July 2026 and the placing of Peak Access International’s entire 20.14% stake, leaving no single substantial shareholder.

Management will pursue automation to curb labour costs, expand domestic designer-toy sales, and continue cost-control measures amid geopolitical and raw-material headwinds. No interim dividend was declared.

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