Chuanglian Holdings Limited (02371.HK) released its unaudited interim results for the six months ended 31 December 2025 (“1H FY2025”).
Revenue and Profitability • Group revenue rose 11.5% year-on-year to RMB336.47 million (1H FY2024: RMB301.75 million). • Net loss contracted sharply to RMB1.14 million (1H FY2024: loss RMB24.66 million). • Loss attributable to equity holders reduced to RMB1.53 million, versus a loss of RMB25.29 million a year earlier. • Gross profit increased 1.3% to RMB55.72 million; gross margin softened to 16.6% (1H FY2024: 18.2%) as lower-margin financial services accounted for a higher revenue share.
Segment Performance • Financial services revenue climbed 16.0% to RMB249.51 million, representing 74.2% of group turnover. • Education services (online, on-site and consultancy) generated RMB86.96 million, broadly flat year-on-year. • Segment result swung to a combined profit of RMB6.53 million (1H FY2024: loss RMB3.60 million), offset by unallocated net expenses of RMB2.09 million and finance costs of RMB1.24 million.
Cost Structure • Cost of services increased 13.8% to RMB280.75 million, reflecting business expansion. • Selling & marketing expenses rose 24.7% to RMB25.63 million, mainly on staff costs. • Administrative expenses fell 45.3% to RMB23.25 million, benefiting from lower staff, professional and depreciation charges. • Finance costs declined 61.4% to RMB1.24 million following lower borrowings.
Cash Flow and Balance Sheet • Operating cash outflow totalled RMB2.62 million (1H FY2024 inflow: RMB3.64 million). • Period-end cash and bank balances stood at RMB91.54 million; borrowings were RMB12.67 million. • Net current assets amounted to RMB34.28 million; current ratio improved slightly to 1.26 times (30 June 2025: 1.24 times). • Gearing ratio (total liabilities/total assets) eased to 53.8% from 55.6% at end-June 2025.
Capital & Corporate Actions • A 10-for-1 share consolidation became effective on 2 January 2026; board lot size changed to 8,000 consolidated shares from 16 January 2026. • Specific mandates approved on 29 December 2025: – Subscription of 94.74 million consolidated shares at HK$0.38 each (pending completion). – Issue of 13.16 million consolidated shares on 20 January 2026 to settle HK$5 million shareholder loans. • No interim dividend declared.
Operational Highlights & Outlook Statements Management reiterated its “education + financial services” dual-growth model. Key initiatives include: 1. Expanding Beijing Zhongjin’s insurance brokerage network across additional PRC cities to meet rising demand for life, property and reinsurance products. 2. Scaling RuiLian Financial Group’s Type 1, 4 and 9 licence businesses, with assets under management targeted to exceed HK$5 billion. 3. Broadening vocational and continuing education coverage via more online platforms and new offline training centres to lift market share and average revenue per user.
No material contingent liabilities were reported, and outstanding capital commitments total RMB13.84 million for associate capital injections.