Palinda Group posts HK$1.15 million interim loss as margins halve; bank loan remains in default

Bulletin Express
08/24

Palinda Group Holdings Limited reported virtually flat revenue of HK$64.34 million for the six months to 30 June 2026, but a sharp margin contraction drove the company to a net loss of HK$1.15 million, reversing a HK$1.03 million profit in the prior‐year period.

Gross profit fell 42.5% to HK$4.93 million, pushing gross margin down to 7.7% from 13.3% a year earlier. Administrative and staff cost controls trimmed operating expenses by HK$0.67 million year-on-year, yet finance costs climbed 17.1% to HK$4.06 million, reflecting higher interest outlays.

Liquidity pressure persisted. Cash and bank balances stood at HK$0.47 million against total borrowings of HK$116.89 million, including a HK$90.00 million bank loan and HK$14.62 million of related interest that were overdue at period-end. The overdue facility is secured by a floating charge over HK$300.00 million of inventories and a corporate guarantee; receivers appointed by the lender continue to control the pledged assets.

Inventories totalled HK$471.86 million, accounting for 99.7% of current assets. Trade receivables contracted to HK$0.02 million from HK$28.21 million after a HK$1.23 million impairment reversal. Net cash from operating activities improved to HK$2.56 million (2025 interim: outflow of HK$4.53 million).

Total equity edged down 0.3% to HK$339.36 million, yielding a gearing ratio of approximately 34%. The board did not declare an interim dividend.

Management reiterated “material uncertainties” around going-concern status and is pursuing negotiations with the lender, cost-control measures and potential fund-raising options.

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