Paladin Limited released its unaudited interim results for the six months ended 31 December 2025.

Results overview • Revenue fell 29.40% year on year to HK$14.92 million (2024: HK$21.14 million), reflecting softer contributions from both core divisions. • Gross profit declined to HK$6.25 million (2024: HK$10.09 million), while the gross-profit margin slipped to 41.9% (2024: 47.7%). • Net loss attributable to shareholders narrowed to HK$18.55 million from HK$31.29 million a year earlier, mainly due to a smaller fair-value loss on investment properties (HK$4.46 million versus HK$21.10 million). • Basic and diluted loss per share were HK1.13 cents (2024: HK2.16 cents and HK2.17 cents respectively).

Segment performance • Property investment: Rental income dropped to HK$1.45 million (2024: HK$2.89 million). • Research & development: Sales of high-technology products and systems totalled HK$13.47 million (2024: HK$18.24 million). Subsidiary Pexray Oy generated HK$12 million, with non-destructive testing equipment remaining the main driver. • Segment losses were HK$4.98 million for property investment and HK$3.84 million for research & development.

Cost and expenses • Administrative and other operating expenses eased to HK$17.97 million (2024: HK$20.30 million). • Finance costs decreased to HK$2.57 million (2024: HK$3.28 million).

Balance-sheet and liquidity • Net current liabilities stood at HK$116.06 million, and the current ratio was 0.18. • Cash and bank balances totalled HK$11.90 million (30 June 2025: HK$18.86 million). • Total debt was HK$133.21 million, comprising HK$108.74 million in secured bank borrowings and HK$24.47 million in other borrowings; gearing ratio was 30%. • Secured borrowings are backed by HK$159 million of investment properties and HK$161 million of leasehold land and buildings. • Net cash used in operating activities amounted to HK$13.88 million; the Group drew down HK$10 million of new bank facilities during the period.

Capital expenditure and investments • CAPEX was modest at HK$0.26 million. • No material acquisitions, disposals or new investments were recorded during the period.

Dividend • The board did not recommend an interim dividend.

Regulatory and governance updates • Trading in Paladin shares has been suspended since 27 November 2024 after the Stock Exchange ruled that the company failed to maintain sufficient operations or assets under Listing Rule 13.24. Paladin has until 26 May 2026 (18 months from the suspension date) to re-comply or risk delisting. • The resignation of an independent non-executive director on 6 January 2026 left the board with only two INEDs, breaching Listing Rule 3.10(1). A search for a replacement is underway. • The board continues to seek a female director to meet diversity requirements under Listing Rule 13.92.

Going-concern considerations Auditors drew attention to material uncertainties arising from recurring losses and significant net current liabilities. Management’s mitigation plans include reliance on existing banking facilities (HK$55 million undrawn as at 31 December 2025), shareholder support, and cost controls.

Strategic focus Management reiterated commitment to: 1. Expanding the investment-property portfolio when opportunities arise. 2. Scaling the technology division—particularly Pexray, Navigs and Dynim—with the goal of making it a major revenue contributor by the end of the decade.

No forward-looking financial guidance was provided.