Neo-Neon Holdings Limited (NEO-NEON, 01868) reported unaudited interim results for the six months ended 30 June 2026 (“H1 2026”), highlighting double-digit top-line growth and a rebound in profitability amid cost pressures and tariff headwinds.

Revenue and Profitability • Revenue rose 15.10% year on year to RMB 334.00 million (H1 2025: RMB 290.08 million), driven mainly by higher U.S. lighting orders and new product wins. • Gross profit held steady at RMB 122.01 million; however, the gross margin narrowed to 36.5% from 42.0% as rising raw-material costs, fuel prices and trade tariffs lifted the cost base. • Other income and net gains increased 23.1% to RMB 44.54 million, bolstered by tariff refunds booked during the period. • Operating expenses edged up 1.2% to RMB 154.69 million, with higher selling expenses partially offset by lower administrative costs. • Finance costs trebled to RMB 1.77 million, mainly reflecting increased interest on lease liabilities. • Profit before tax more than doubled to RMB 9.20 million; after a RMB 3.33 million tax charge (versus a tax credit a year earlier), net profit attributable to shareholders advanced 17.1% to RMB 5.79 million. Basic EPS improved to RMB 0.28 cent (H1 2025: RMB 0.24 cent). No interim dividend was declared.

Balance Sheet and Liquidity • Cash and bank balances stood at RMB 629.77 million, down 1.1% from end-2025. • Net current assets were RMB 1.15 billion, underpinning a robust current ratio of 6.3 times. • Total lease liabilities fell 9.7% to RMB 52.98 million, lowering the lease-adjusted gearing ratio to 3.4% (31 Dec 2025: 3.6%). • A revolving loan to ultimate holding company Tsinghua Tongfang amounted to RMB 433.58 million, earning 3.00% interest per annum and repayable on demand. • The loan to a third party declined to RMB 15.43 million after continued recoveries; impairment allowance stands at RMB 33.39 million. • Capital expenditure reached RMB 12.90 million, mainly for property, plant, equipment and right-of-use assets.

Operational Highlights • All revenue derived from lighting products; North America remained the core market, contributing 97.5% of sales. • Inventory stood at RMB 169.27 million, broadly flat versus end-2025; trade receivables were stable at RMB 100.69 million, with 68% aged within one month. • The group repurchased 3.30 million shares for HK$1.23 million during H1 2026; the shares remain in treasury.

Management Commentary Management attributed revenue growth to expanding high-value-added smart and energy-efficient lighting lines and incremental U.S. orders. Profitability was tempered by tariff-related costs and commodity inflation, compressing margins despite higher sales. Strategic supply-chain optimisation and tariff refunds supported earnings resilience.

Outlook The board cited ongoing geopolitical tensions, trade barriers and cost volatility as persistent challenges but reaffirmed commitment to product upgrading, global supply-chain diversification and prudent financial management to sustain long-term growth.

No significant acquisitions, disposals or capital commitments were recorded post-period, and no events requiring disclosure occurred after 30 June 2026.