Qianhai Health Holdings (00911) released its unaudited results for the six months ended 30 June 2026.

Revenue and profitability • Revenue dropped 65.7% year on year to HK$116.76 million, with 98% generated by the Electronic Component Business. • Gross profit fell 45.5% to HK$7.71 million; however, the gross margin improved to 6.6% (1H 2025: 4.2%) on selective pricing adjustments and product‐mix optimisation. • Profit attributable to owners declined 36.7% to HK$2.84 million, reflecting lower turnover partially offset by a HK$2.03 million reversal of expected credit loss provisions. • Basic and diluted EPS decreased to 1.68 Hong Kong cents from 2.82 cents.

Cost and expense dynamics • Cost of sales contracted 66.6% to HK$109.05 million, largely in line with the revenue drop. • Administrative expenses were reduced 27.9% to HK$6.76 million, while finance costs were minimal at HK$0.01 million following the absence of bank borrowings. • A net reversal of HK$0.15 million in inventory allowance and a HK$0.11 million net foreign-exchange loss were recorded under “other gains, net”.

Balance-sheet movements • Total assets rose 8.1% to HK$441.43 million, driven by a quadrupling of inventories to HK$231.37 million. • Cash at bank fell 70.9% to HK$17.88 million, trimming the current ratio to 8.9x (31 Dec 2025: 22.6x). • Contract liabilities of HK$32.40 million emerged, reflecting advance receipts from customers. • Total equity inched up 0.7% to HK$394.05 million; the Group remains debt-free but has pledged land and buildings worth HK$18.80 million as security for product purchases.

Operational context Management cited global semiconductor supply constraints—stemming from capacity shifts toward AI-related memory such as HBM and DDR5—as the principal factor behind the revenue contraction. Restricted allocations of standard NAND and DRAM limited shipment volumes, while higher procurement costs compressed trading margins despite improved gross margin percentage.

Segment performance • Electronic component products: Revenue HK$114.51 million (-66.2% y/y); segment gross profit HK$7.25 million. • Health-care products and food: Revenue HK$2.25 million (+29.5% y/y); segment gross profit HK$0.46 million.

Cash flow and capital management Operations remained self-funded with no interest-bearing borrowings. The Group continues to employ strict inventory and credit‐risk controls, as reflected in the ECL provision reversal during the period.

Dividend No interim dividend was declared.

Outlook The Board expects continued semiconductor market growth in 2026, fuelled by AI demand and tight memory supply. Management plans to deepen partnerships with key clients, strengthen supply-chain resilience, and explore investment or acquisition opportunities to enhance medium- to long-term shareholder value.