HK CHINESE LTD (00655) has reported its interim results for the six months ended June 30, 2026, revealing a sharp downturn in financial performance. The company recorded revenue of HK$15.529 million, a substantial decline of 58.64% compared to the previous corresponding period. More notably, the group swung to a loss attributable to equity holders of HK$569 million, a stark reversal from the profit of HK$199 million achieved in the same period last year. This translates to a loss per share of 28.5 HK cents.

According to the company's announcement, the loss is primarily attributable to the share of losses from a joint venture accounted for using the equity method during the period. These losses are largely non-cash in nature. Additionally, the company also cited the share of losses from its associates, as detailed further in the announcement, as a contributing factor to the overall negative result.

The interim results highlight the significant impact of the company's equity-accounted investments on its bottom line. While the revenue decline is notable, the core driver of the loss is the performance of these investment vehicles. The non-cash nature of the majority of the joint venture losses provides some context to the accounting figures, though the overall outcome represents a considerable shift in the company's financial position for the period.