Capital VC (02324) released unaudited results for the six months ended 31 March 2026, showing a wider net loss but a stronger balance sheet after a rights issue.

Revenue and Earnings • Turnover was negative HK$1.11 million (2025: negative HK$0.28 million), reflecting a HK$9.43 million combined realised and unrealised loss on listed equity investments that outweighed HK$8.32 million of dividend and interest income. • Administrative expenses rose 41.6% year on year to HK$7.18 million. • Finance costs fell 21.3% to HK$1.48 million. • Net loss attributable to shareholders widened to HK$8.57 million, versus a HK$7.23 million loss a year earlier. • Basic and diluted loss per share were HK1.57 cents (2025: HK1.43 cents).

Balance Sheet and Cash Flow • Net asset value (NAV) increased 10.1% to HK$482.77 million, driven mainly by HK$52.75 million net proceeds from a March 2026 rights issue. • NAV per share declined to HK$0.54 (30 September 2025: HK$0.97) after the share base doubled to 900.26 million shares. • Cash and cash equivalents grew to HK$50.42 million from HK$38.26 million at year-end. • Net current assets stood at HK$376.11 million, giving a current ratio of 12.3 (30 September 2025: 11.5). • Interest-bearing borrowings totalled HK$31.11 million, trimming the gearing ratio to 6.4% (30 September 2025: 8.0%). • Operating activities used HK$41.39 million in cash; financing inflows of HK$52.75 million offset the deficit, leaving a HK$12.16 million net increase in cash.

Investment Portfolio Performance • Listed equities: Net realised loss of HK$2.01 million and net unrealised loss of HK$7.42 million produced a HK$9.43 million drag on turnover. Key negative contributors included Vision Synergy (HK$10.50 million unrealised loss) and WLS Holdings (HK$7.90 million unrealised loss); gains were led by BFB Health (HK$12.10 million) and Tai Kam Holdings (HK$10.40 million). • Bonds: Interest income reached HK$7.85 million. Two bonds (HK$22.20 million principal) were redeemed, while six new bonds (HK$56.00 million principal) were acquired. Total investments in financial assets at amortised cost rose to HK$201.20 million (30 September 2025: HK$169.45 million) after a HK$1.20 million reversal of expected credit losses. • Significant holdings at period-end included: – 18.5 million shares of Asia Strategy Digit Technology (fair value HK$56.60 million, 11.0% of total assets); – Gold Medal Hong Kong bond portfolio (carrying value HK$65.91 million, 12.8%); – Hao Wen Holdings bonds (carrying value HK$31.89 million, 6.2%). • Approximately HK$76.10 million of listed securities were pledged against margin facilities.

Capital Actions • A capital reorganisation and 1-for-1 rights issue were completed on 13 March 2026, issuing 450.13 million new shares at HK$0.12 each and raising HK$52.75 million net. Proceeds are earmarked for listed equity investments, unlisted debt investments, and working capital.

Outlook Management signalled a cautious stance amid an unpredictable global environment but will continue to seek opportunities in listed and unlisted securities. The company reported no material commitments, contingent liabilities, or foreign-currency hedge contracts as of 31 March 2026.