Kasen International Holdings reported a net loss attributable to shareholders of RMB 5.87 million for the six months ended 30 June 2026, reversing a RMB 22.59 million profit in the prior-year period. The downturn was driven primarily by a RMB 24.55 million foreign-exchange loss versus RMB 0.24 million a year earlier, alongside higher operating costs.

Revenue increased 4.7% year-on-year to RMB 530.55 million, supported by a 15.9% jump in upholstered furniture sales to RMB 330.93 million. However, group gross profit inched down 1.4% to RMB 174.53 million as the gross margin narrowed to 32.9% (1H25: 35.0%).

Segment results were mixed: • Manufacturing & trading of upholstered furniture: profit fell 53.7% to RMB 13.18 million despite stronger sales, reflecting higher raw-material costs and renminbi appreciation against the U.S. dollar. • Property development: segment loss widened to RMB 20.69 million as revenue declined 15.6% to RMB 57.71 million amid fewer property deliveries. • Special Economic Zone (SEZ) operations in Cambodia: profit dropped 19.0% to RMB 37.70 million on a 7.8% revenue decrease to RMB 110.52 million. • Other services (travel, catering, property management): swung to a RMB 0.92 million profit from a RMB 9.90 million loss.

Operating expenses rose: selling and distribution costs increased 21.8% to RMB 31.35 million, while administrative expenses climbed 9.6% to RMB 90.16 million, reflecting staffing for the group’s new Cambodian facilities. Finance costs eased 11.3% to RMB 15.90 million following full conversion of earlier convertible bonds.

Cash and cash equivalents stood at RMB 140.52 million, down from RMB 291.83 million at end-2025, while total borrowings were RMB 937.25 million. The gearing ratio slipped to 23.9% from 25.0%. No interim dividend was declared.

Kasen said upholstered-furniture capacity has largely migrated to Cambodia, and over 100 enterprises have signed up for its Koh Kong Zhejiang SEZ, with more than 40 in operation. The group aims to secure partners for its property projects in Hainan and Changbai Mountain and continue cost optimisation at its Cambodian plants.