South China Financial Holdings Limited reported interim revenue of HK$19.62 million for the six months ended 30 June 2026, broadly flat against HK$19.44 million a year earlier. A sharp turnaround in fair-value movements and tighter expense management cut the period loss to HK$13.83 million, a 70.5% improvement from the HK$46.81 million shortfall in 2025.

Key income drivers and expenses • Other income surged to HK$2.80 million (2025: HK$0.79 million) after a HK$2.00 million gain on disposal of an insurance brokerage unit. • Net fair-value movements swung to a HK$3.59 million gain (2025: HK$23.60 million loss), comprising: – Investment properties: +HK$1.70 million (2025: –HK$21.00 million) – Convertible bonds: +HK$20.59 million (2025: –HK$4.70 million) – Financial assets at FVTPL: –HK$16.71 million (2025: +HK$2.10 million) • Operating expenses fell 3.5% to HK$33.53 million, reflecting staff-cost and rental savings. • Finance costs declined 17.6% to HK$4.30 million.

Earnings and balance-sheet highlights • Basic and diluted loss per share narrowed to HK$0.046 from HK$0.155. • Net assets dropped to HK$47.80 million from HK$60.81 million at 31 December 2025. • The gearing ratio (net debt to capital plus net debt) rose to 87.4% (end-2025: 84.4%), with total interest-bearing borrowings and convertible bonds at HK$368.75 million. • Net current liabilities improved to HK$97.67 million, versus HK$217.03 million at year-end 2025. Cash and bank balances stood at HK$36.30 million.

Segment performance • Brokerage revenue fell 17.3% to HK$6.39 million; segment loss narrowed to HK$5.16 million. • Margin financing & money lending revenue slipped 16.6% to HK$5.59 million, maintaining a modest HK$0.29 million profit. • Corporate advisory & underwriting revenue jumped to HK$6.31 million (2025: HK$0.85 million), delivering HK$1.48 million profit versus a HK$1.61 million loss. • Trading & investment swung to a HK$21.35 million loss, driven by a HK$16.71 million fair-value loss on listed equities, mainly i-CABLE Communications and South China Holdings shares. • Property investment produced HK$3.14 million rental income and HK$3.03 million profit, aided by valuation gains. • Asset & wealth management and other businesses posted combined operating loss of HK$1.81 million.

Liquidity and going-concern considerations At period-end, current liabilities exceeded current assets by HK$97.67 million, and HK$186.54 million of borrowings mature within 12 months. The board relies on HK$50 million unsecured, interest-free shareholder loans (HK$40.90 million utilised) and the three-year extension of HK$139.84 million convertible bonds to support liquidity. Directors believe these measures, alongside potential asset disposals, provide adequate working capital for the next 12 months.

Dividends and outlook No interim dividend was declared. Management will prioritise strengthening corporate-finance capabilities, optimising assets, and exploring selective technology joint ventures while continuing cost controls.

Regulatory and corporate governance The company stated compliance with the Corporate Governance Code and confirmed all directors observed the Model Code for securities dealings during the period.