Sing Lee Software (Group) Limited (SING LEE; 08076) reported interim results for the six months ended 30 June 2026.

Revenue and Profitability • Group revenue rose 13.2% year on year (YoY) to RMB 20.60 million, driven mainly by a 145.6% surge in hardware sales to RMB 3.50 million. Software sales fell 36.2% to RMB 0.34 million, while technical support services, the core contributor, inched up 3.2% to RMB 16.76 million. • Higher procurement costs lifted cost of sales 15.6% to RMB 20.95 million, swinging gross margin from a 0.5% profit to a 1.7% loss (gross loss of RMB 0.35 million). • Operating loss widened to RMB 8.44 million, versus RMB 7.66 million a year earlier, reflecting the absence of a RMB 0.81 million credit-loss reversal recorded in the 2025 period. • Finance costs were broadly stable at RMB 0.53 million. Basic and diluted loss per share expanded to RMB 0.64 cents (H1 2025: RMB 0.58 cents).

Balance Sheet and Liquidity • Cash and cash equivalents dropped 84.6% to RMB 2.51 million from RMB 16.25 million at end-2025, following a RMB 15.85 million operating cash outflow. • Total borrowings increased to RMB 31.51 million (31 Dec 2025: RMB 29.97 million), comprising RMB 27.51 million in unsecured loans from a related party and RMB 4.00 million in bank borrowings. • Current ratio weakened to 2.39 times (31 Dec 2025: 3.63 times). • Shareholders’ equity moved from RMB 7.52 million to a deficit of RMB 0.92 million, as accumulated losses rose to RMB 211.62 million. The gearing ratio (total liabilities/total assets) deteriorated to 102.3% (31 Dec 2025: 81.9%).

Segment Performance • Software products: revenue RMB 0.34 million; segment loss RMB 0.06 million. • Hardware products: revenue RMB 3.50 million; segment loss RMB 0.99 million. • Technical support services: revenue RMB 16.76 million; segment loss RMB 5.19 million.

Operational Highlights • Government grants of RMB 0.20 million were recognised. • Advances to staff rose to RMB 7.66 million (31 Dec 2025: RMB 5.96 million). • Owned properties in Hangzhou with a net book value of RMB 7.02 million continue to secure banking facilities. • No dividends were declared; no share options were granted or exercised during the period.

Management Commentary Management cited cautious tech spending by financial-sector clients and rising labour costs as headwinds, but highlighted ongoing investment in AI, big-data-driven payment solutions and digital renminbi applications. Strategic priorities include shifting from bespoke project delivery to a “product + platform + operational services” model, expanding partnerships with banks and payment institutions, and tightening cost controls.

Outlook The board expects policy support for “AI +” and digital-economy initiatives to create new growth avenues, while acknowledging continuing margin and funding pressures. No material acquisitions or disposals were undertaken during the reporting period, and no contingent liabilities were noted.