Deep Source Holdings Limited reported robust interim results for the six months ended 30 June 2026, driven by stronger commodity trading volumes and solid performance from associates.
Financial highlights • Revenue from continuing operations climbed 48.7% year-on-year to HK$14.96 billion, led by the distribution, trading and processing segment (HK$14.54 billion). • Iron-ore sales contributed HK$11.97 billion, while other commodities and processing income added HK$2.57 billion. • Gross profit more than doubled to HK$452.40 million. • Profit from continuing operations rose to HK$439.91 million; total profit, including HK$73.50 million from discontinued operations, advanced 38.7% to HK$513.42 million. • Basic earnings per share increased to HK2.58 cents (1H 2025: HK2.39 cents).
Segment performance • Distribution, trading and processing remained the core contributor, buoyed by higher iron-ore volumes. • Financial-services revenue grew to HK$423.50 million, reflecting increased trading activity. • Share of profits from associates amounted to HK$134.46 million, underpinned by stakes in Lianyungang Hengxintong Mining, Green Esteel and Shandong Energy Group Ronghui International Trade.
Balance-sheet metrics • Cash and bank balances stood at HK$3.73 billion; net assets totalled HK$9.42 billion. • Net current assets reached HK$6.12 billion, with a current ratio of 1.32. • Total loans and borrowings were HK$806.55 million, translating into a gearing ratio of 0.09. • Assets of HK$7.97 billion and liabilities of HK$6.30 billion linked to the Group’s Singapore-centred financial-services arm were reclassified as “held for sale” following a July sale agreement with Marex Group.
Capital moves • February 2026 placement of 515 million new shares raised HK$355.25 million to fund an Australian joint venture and offtake agreement. • The Board maintains authority to repurchase up to HK$270 million of shares; 29.91 million shares were bought back after period-end. • No interim dividend was declared.
Post-period events • On 9 July 2026, Deep Source’s subsidiaries agreed to sell their entire interest in Bright Point International Futures and related entities to Marex Group for an estimated HK$1.30 billion, pending completion. • A planned acquisition of a 60% stake in Anhui Chuzhou Hengchuang Enterprise Management Consulting lapsed after conditions precedent were unmet.
Strategic outlook Management intends to expand along the lithium value chain, pursue AI-infrastructure-related opportunities, and continue growing its commodity trading, processing and financial-services platforms in Hong Kong, Singapore and mainland China. The Group is also evaluating mergers and acquisitions in China, Indonesia, Australia and Malaysia to diversify its resource portfolio.