Sinopharm Tech (HKEX: 08156) released audited results for the year ended 30 June 2026, reporting a deeper net loss amid weaker demand for its pharmaceutical supply-chain services.
• Revenue slipped 26.0% year-on-year to HK$45.58 million, entirely generated by the Supply Chain Services segment. The Internet Plus solution unit and the personal protective equipment business recorded no revenue.
• Gross profit fell 54.8% to HK$6.42 million as gross margin narrowed to 14.1% from 23.2%.
• Loss attributable to owners widened to HK$9.14 million (FY25: HK$0.87 million loss); total net loss reached HK$11.90 million (FY25: HK$1.37 million loss).
• Operating cash outflow totalled HK$4.02 million, while cash and bank balances stood at HK$5.62 million at fiscal year-end.
• The balance sheet showed net liabilities of HK$48.88 million and net current liabilities of HK$34.42 million. The gearing ratio (interest-bearing borrowings/total assets) rose to 75.8% (FY25: 9.0%) following a reduction in total assets.
• No final dividend was declared. The Board also deferred the first and second annual preferred distributions on 1.48 billion convertible preference shares until 31 December 2027.
Segment highlights — Supply Chain Services revenue decreased to HK$45.58 million (FY25: HK$61.25 million) due to softer demand, intensified competition and lower purchasing power in Mainland China. — Internet Plus solution services and PPE manufacturing remained suspended, generating no revenue.
Financial initiatives — A capital reorganisation and loan capitalisation completed in November 2024 added HK$163.14 million to equity and converted HK$123.25 million of debt into equity and convertible preference shares. — Letters of undertaking from major shareholders obtained post year-end allow deferral of shareholder loan repayments for at least 18 months.
Outlook Management will prioritise artificial-intelligence-driven supply-chain optimisation, cost control and compliance with evolving Mainland pharmaceutical regulations, while monitoring liquidity and exploring “AI+ healthcare” opportunities under Hong Kong’s 2026-27 policy support.