Vodatel Network (08033) has announced its interim results for the six months ended 30 June 2026, reporting a revenue of HK$244 million, which marks a year-on-year decrease of 8.2%. The company recorded a loss attributable to shareholders of the parent company amounting to HK$7.107 million, contrasting with a profit of HK$5.183 million in the same period last year. Basic loss per share stood at 1.15 HK cents.

Despite a robust order backlog carried over from 2025 and a 2.5% growth in new contracts secured during the six-month period, the company experienced a notable 8.17% revenue decline year-on-year. This downturn was primarily driven by extremely prolonged equipment delivery timelines, which caused significant delays in project execution and revenue recognition.

The gross profit margin for the period fell by over two percentage points, dropping from 19.02% to 16.69%, largely due to an unexpected surge in DRAM prices. This sharp increase in costs highlights the substantial impact of rising expenses and supply chain disruptions on profitability. The company was unable to fully pass on these elevated procurement costs to its customers, forcing it to absorb a portion of the price increases to maintain competitive pricing.

The pressure on gross margins, combined with higher total employee costs resulting from initiatives to expand its artificial intelligence applications and investments in succession planning, contributed to the company posting a loss for the six-month period.