TE Healthcare reported a sharp turnaround for the six months ended 30 June 2026, delivering HK$74.51 million in total income, up 64.9% year-on-year. Net profit attributable to shareholders reached HK$1.37 million, compared with a HK$2.22 million loss a year earlier, as higher sales of Chinese medicines and healthcare products boosted gross margin to 43.5% from 42.6%.

Inventory turnover improved to 2.1 times versus 0.9 times, while the group remained debt-free with cash and bank balances of HK$212.84 million. The current ratio declined to 8.5 from 42.8 due to expanded sourcing activity, yet liquidity stayed strong and gearing remained nil.

Trade receivables rose to HK$33.14 million; 78% were current and HK$16.47 million had been settled post-period end. A loss allowance of HK$0.24 million is in place.

Operating expenses increased 44% to HK$29.41 million as the company stepped up marketing, customer acquisition and brand initiatives. Management reiterated that these outlays are strategic investments to underpin long-term growth.

No interim dividend was declared. The board cited the early stage of profit recovery, ongoing working-capital needs for inventory build-up, marketing and potential acquisitions, and the desire to preserve liquidity amid unresolved litigation-cost assessments related to Banclogix.

Looking ahead, TE Healthcare plans to deploy HK$110–220 million over the next 12–24 months: HK$40–60 million for expanding existing healthcare operations, HK$20–40 million for product-portfolio growth into wellness supplements, HK$50–120 million for strategic investments or acquisitions, and HK$50–80 million as liquidity reserve.

The company confirmed continued compliance with Hong Kong’s listing rules, maintained a public float above 25%, and recorded no interest-bearing borrowings or material capital commitments.