Novautek Reports 51% Revenue Growth and Narrowed Interim Loss on Rising AI Robot Sales

Bulletin Express
03/26

Novautek Technologies Group Limited announced its unaudited results for the six months ended 31 December 2025 (1H FY2026).

Revenue and Profitability • Revenue rose 51% year-on-year to HK$21.87 million (1H FY2025: HK$14.46 million). • Gross profit increased 8% to HK$8.24 million, while gross margin contracted to 37.7% (1H FY2025: 52.8%) due to a lower margin mix. • Net loss attributable to shareholders narrowed to HK$31.36 million from HK$71.23 million. Basic loss per share improved to 1.03 HK cents (1H FY2025: 2.33 HK cents). • Total comprehensive loss declined to HK$25.06 million versus HK$76.94 million a year earlier.

Segment Performance • Property Development remained the largest contributor, generating HK$12.16 million (56% of group revenue) and segment profit of HK$2.13 million. • AI Robots revenue surged 7-fold to HK$2.96 million, reflecting increased commercialisation, though the segment reported a HK$7.28 million loss. Contracted but unrecognised robotics revenue stood at approximately HK$6.17 million at period-end. • Property Investment delivered HK$6.72 million revenue and HK$0.69 million profit, supported by an HK$11.69 million fair-value gain on investment properties, reversing a HK$43.98 million loss in the prior-year period. • Investment Holding contributed HK$0.03 million revenue and recorded a HK$12.20 million segment loss, including a HK$12.73 million fair-value decrease in financial assets and a HK$0.75 million disposal gain.

Financial Position and Cash Flow • Cash and cash equivalents declined to HK$46.91 million (30 June 2025: HK$70.20 million). • Net cash used in operating activities amounted to HK$15.61 million; financing outflows totalled HK$10.49 million. • Total assets reached HK$1.23 billion, with net assets of HK$762.32 million. • Current ratio stood at 1.01x (30 June 2025: 1.04x); gearing ratio (total borrowings to equity) eased slightly to 22% (30 June 2025: 23%).

Key Non-cash Items • HK$10.28 million impairment on non-current assets held for sale. • HK$5.56 million impairment on property, plant and equipment. • HK$11.69 million upward revaluation of investment properties. • HK$12.73 million fair-value loss on financial assets at fair value through profit or loss, mainly reflecting the HK$8.83 million mark-to-market decline in the stake of Zall Smart Commerce Group.

Operational Highlights • AI robot business, a strategic focus, benefited from increased R&D spending and expanded sales to Hong Kong, mainland China, Europe and the Middle East. • Property development activities at the Wuxi project delivered apartments worth HK$12.16 million; outstanding contracted sales totalled HK$7.76 million. • Investment properties in Hong Kong and Wuxi generated HK$6.72 million rental and management income; fair-value gains were driven by PRC assets.

Capital Expenditure and Commitments • Capex during the period amounted to HK$0.66 million, primarily for AI robotics and property assets. • No material capital commitments or contingent liabilities were reported at period-end.

Subsequent Events and Outlook • Management emphasized ongoing R&D in AI robot technologies, expansion of the Robotics-as-a-Service model, and further international market penetration. • No material post-period events were noted up to the report date.

Dividend • The Board does not recommend an interim dividend for 1H FY2026 (1H FY2025: nil).

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