Silkwave Inc. reported a sharp turnaround in top-line growth for the six months ended 30 June 2026, with revenue surging 267% year on year to US$10.77 million (1H25: US$2.94 million). Despite the strong sales momentum, the Group moved deeper into the red, booking a loss attributable to owners of US$2.58 million versus a US$0.31 million loss a year earlier. Basic and diluted loss per share widened to 0.70 US cents (1H25: 0.25 US cents).

Revenue mix shifted markedly toward the Convergent Mobile Multimedia Broadcasting (CMMB) segment, which generated US$7.02 million—65% of total revenue—up from US$1.73 million in 1H25. Trading of media production, PCB and AI-related products contributed US$3.75 million (1H25: US$1.20 million). However, gross profit contracted to US$0.50 million (1H25: US$1.13 million), compressing gross margin to 4.6% from 38.4%, reflecting higher direct costs tied to bandwidth leasing and product sales.

Operating expenses accelerated. Administrative costs more than doubled to US$1.48 million, while market development and promotion expenses expanded to US$0.74 million (1H25: US$0.03 million). Finance costs eased to US$0.24 million after lower effective interest on convertible notes. The Group also recorded US$0.40 million in expected credit-loss provisions and US$0.39 million in other expenses.

Liquidity improved following a rights issue completed on 2 March 2026 that raised approximately HK$162.00 million (about US$20.99 million) net. Cash and bank balances rose to US$7.37 million at period-end (31 December 2025: US$0.39 million). Net current assets expanded to US$22.25 million (31 December 2025: US$6.54 million), and total equity climbed to US$48.16 million. Convertible notes outstanding stood at US$6.40 million, reducing the gearing ratio to 11.4% from 15.6%.

The Group’s 20%-owned associate, Silkwave Holdings Limited, contributed a share of loss of US$0.03 million (1H25: loss of US$0.23 million) amid ongoing delays in regulatory approvals and fundraising for satellite deployment. No additional impairment was recorded against the Group’s US$18.55 million spectrum usage rights after management’s value-in-use assessment.

Post-period, Silkwave Inc. was served with two winding-up petitions in Hong Kong relating to (i) a disputed US$9.10 million redemption demand on US$7.00 million convertible notes and (ii) an outstanding HK$0.48 million judgment debt. Hearings are scheduled for October and November 2026, respectively. The Group is seeking legal advice and intends to contest the actions.

The Board declared no interim dividend. Management will continue to develop the CMMB platform, expand trading operations, and deploy rights-issue proceeds across technology upgrades, marketing, and working-capital needs while evaluating additional investment opportunities.