Fire Rock Holdings Limited released its unaudited 2026 interim results for the six months ended 30 June, showing modest top-line growth but a sustained bottom-line loss as the company steps up investment in game development.

Financial performance • Revenue increased 1.80% to HKD74.16 million (1H25: HKD72.92 million), driven almost entirely by the Game Operation & Publishing segment, which contributed HKD74.13 million. The nascent Game & Software Development segment delivered HKD0.03 million.

• Gross profit rose 2.30% to HKD56.73 million, lifting the gross margin slightly to 76.4% (1H25: 76.0%).

• Operating profitability deteriorated: the group swung from a HKD1.96 million pre-tax profit in 1H25 to a HKD0.23 million pre-tax loss, weighed down by sharply higher research expenses (HKD16.02 million versus nil a year earlier) and a 16.1% rise in administrative costs to HKD26.77 million.

• Net loss attributable to shareholders was HKD18.26 million, broadly unchanged from HKD18.24 million a year ago. Basic and diluted loss per share improved to 7.52 Hong Kong cents (1H25: 9.33 cents) on a higher share base following the December 2025 rights issue.

Expense dynamics • Distribution costs fell 25.9% year on year to HKD14.80 million, reflecting reduced advertising and promotion. • No impairment of intangible assets was booked, versus a HKD10.80 million charge in 1H25. • Research costs jumped to HKD16.02 million as several projects remained in the R&D phase.

Cash flow and balance sheet • Cash and cash equivalents stood at HKD91.30 million at 30 June 2026, down from HKD112.92 million at year-end 2025, after HKD1.18 million of capital expenditure and higher operating outflows.

• The group remains debt-free; total liabilities were HKD30.50 million, giving a gearing ratio of 20.5% (31 Dec 2025: 14.5%). Net current assets amounted to HKD94.76 million.

• Net assets declined to HKD118.30 million (31 Dec 2025: HKD135.07 million) reflecting the period loss and higher lease liabilities.

Capital actions • No interim dividend was declared, unchanged from the prior year. • Following a 1-for-20 share consolidation and a rights issue completed in December 2025, the company’s issued share capital stands at 242.82 million shares. Approximately HKD18.70 million of the HKD79.50 million rights-issue proceeds had been utilised by the results announcement date, mainly for team expansion, development bases, marketing and working capital.

Outlook and strategy Management intends to continue prioritising game R&D and publishing to lessen reliance on self-operated game revenue. Planned investments include launching new titles in Southeast Asia, further recruitment in the PRC, and establishing a development hub in Indonesia, with remaining rights-issue funds earmarked for these initiatives by year-end 2026.