Synertone Communication Corporation reported FY2026 revenue of HK$36.80 million, down 68.5% year-on-year, primarily reflecting a sharp retreat in the smartphone distribution business.

Gross profit decreased 34.6% to HK$10.40 million; however, gross margin improved to 28.3% (FY2025: 13.6%) as lower-margin smartphone sales virtually disappeared.

Segment breakdown • Control system: revenue HK$26.45 million (71.9% of group total), segment profit HK$0.27 million. • Building intelligence: revenue HK$10.30 million, segment loss HK$9.10 million. • Smartphone distribution: revenue HK$0.05 million, segment loss HK$0.90 million. • Data centre: no revenue recorded for the year.

Operating loss widened to HK$46.11 million (FY2025: HK$33.46 million), driven by: • HK$8.15 million in net expected-credit-loss allowances; • HK$23.66 million fair-value loss on a financial asset measured at FVTPL; • Lower other income of HK$0.42 million (FY2025: HK$2.46 million).

Finance costs fell sharply to HK$0.04 million following the repayment of all bank borrowings. Loss attributable to shareholders rose 30.2% to HK$42.34 million, equating to a basic loss per share of 8.7 HK cents (FY2025: 7.8 HK cents).

Balance-sheet position • Cash and cash equivalents increased to HK$19.50 million (FY2025: HK$11.03 million). • Net current assets grew to HK$58.01 million (FY2025: HK$33.61 million) as current liabilities halved after bank debts were cleared. • Total equity stood at HK$83.07 million (FY2025: HK$107.72 million). • Non-current assets declined to HK$25.06 million, reflecting the disposal of MOX Group and the write-down of a minority investment.

Capital movements • A January 2026 rights issue raised net proceeds of HK$10.80 million, of which HK$0.78 million had been utilised for working capital by year-end. • Post year-end, a placing of 1.00 billion new shares completed on 29 June 2026, generating net proceeds of approximately HK$106.60 million.

No dividend was declared for the year.