FY Financial 2026 Interim: Revenue Contracts 88%, Net Loss Expands to RMB 11.28 Million Amid Energy Storage Weakness

Bulletin Express
09/17

FY Financial (Shenzhen) Co., Ltd. released its 2026 interim report, revealing a sharp deterioration in top-line performance and profitability for the six months ended 30 June 2026.

Revenue and Earnings • Revenue fell 88.38% year on year to RMB 5.42 million, down from RMB 46.61 million in 1H 2025, as contributions from the energy-storage and cross-border e-commerce units slid sharply. • Net loss widened to RMB 11.28 million (1H 2025: RMB 1.39 million loss). Gross profit dropped to RMB 2.42 million versus RMB 12.90 million a year earlier. • Other items weighed on results: a RMB 3.00 million net loss under “other income, gains and losses” contrasted with a RMB 1.36 million gain in the prior-year period, driven chiefly by fair-value losses on a financial asset disposal.

Business Segment Update • Finance leasing: No new leasing projects were initiated; the Group held no outstanding leasing assets at period-end. • Factoring: Balance stood at RMB 197.03 million, providing accounts-receivable factoring to SME clients. • Energy storage: Sales volume declined markedly due to higher battery raw-material costs, tight supply and intensifying retail competition, leading to a severe revenue contraction. • Cross-border e-commerce: Remained a minor contributor without material scale.

Cost and Expense Dynamics • Cost of sales decreased 91.11% to RMB 3.00 million, reflecting lower trading activity. • Operating expenses fell 47.70% to RMB 1.88 million and administrative expenses edged 5.67% lower to RMB 8.85 million, aided by reduced selling and agency costs. • A net reversal of RMB 0.21 million in impairment provisions compared with a RMB 13.17 million charge at FY 2025 year-end.

Balance Sheet and Liquidity • Total assets slipped 2.98% since year-end to RMB 490.40 million; accounts receivable represented 62.59% of assets. • Total liabilities declined 3.46% to RMB 106.02 million; gearing ratio was little changed at 21.62% (31 Dec 2025: 21.73%). • Cash and cash equivalents closed at RMB 25.93 million (30 Jun 2025: RMB 27.69 million). Short-term bank borrowings totaled RMB 9.70 million at a 2.95% fixed rate.

Cash Flow • Operating activities used RMB 8.89 million (1H 2025: RMB 0.53 million inflow). • Investing activities generated RMB 2.91 million, mainly from partial redemption and deposits related to financial assets. • Financing outflows totaled RMB 0.45 million, primarily lease and loan repayments.

Capital Expenditure, Commitments and Risk • Capital spending was minimal; capex centered on office equipment. • Outstanding capital commitment of RMB 12.93 million relates to a fund investment. • No significant contingent liabilities or asset charges were reported. • Internal audit reviews found no material control deficiencies; the Board deemed risk-management and internal-control systems effective.

Dividend and Corporate Actions • The Board declared no interim dividend. • No share purchases, sales or redemptions occurred; no share incentive scheme is in place. • No material acquisitions or disposals of subsidiaries, associates or joint ventures were recorded during the period.

Strategic Outlook Management reiterated a “cautiously optimistic” stance, focusing on sustainable, disciplined growth rather than aggressive expansion. Priority areas include supporting small- and medium-sized enterprises through prudent factoring activities and rebuilding momentum in the energy-storage segment via strategic supplier alliances and regional market penetration.

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