Hong Kong-listed CHINA AEROSPACE INTERNATIONAL HOLDINGS LIMITED posted a deeper consolidated net loss of HK$165.40 million for the six months ended 30 June 2026, nearly doubling the HK$85.78 million loss recorded a year earlier. The deterioration was driven primarily by a HK$353.19 million fair-value loss on investment properties, up 38.22% year on year, reflecting the ongoing softness in Shenzhen’s office market.

Revenue rose 3.85% to HK$2.10 billion, supported by a 3.95% increase in its core Hi-Tech Manufacturing segment to HK$2.00 billion. Nevertheless, higher raw-material costs, foreign-exchange losses and start-up inefficiencies at Nantong Hong Yuen Circuit Technology pushed the manufacturing arm to a HK$65.82 million operating loss versus a HK$61.30 million profit in 1H25.

Aerospace Service operations, consisting mainly of Shenzhen Aerospace Science & Technology Plaza, generated HK$94.77 million in rental and service income (flat year on year) but booked a segment loss of HK$293.91 million, largely attributable to the property fair-value markdown.

Group gross profit contracted 30.35% to HK$279.30 million, cutting the margin to 13.29% from 19.82% a year earlier. Research and development expenses climbed 29.86% to HK$97.60 million, underscoring continued investment in advanced manufacturing and semiconductor initiatives. Finance costs increased 26.42% to HK$27.78 million on higher borrowings.

Share of losses from associates widened to HK$91.04 million, mainly reflecting Rayitek Hi-Tech Film’s fair-value loss on convertible bonds and operating weakness. A one-off gain of HK$189.39 million on the deemed disposal of an associate buffered results but was insufficient to offset property and operating headwinds.

The company recorded an income-tax credit of HK$135.03 million, up from HK$90.07 million, owing to deferred-tax benefits linked to the property revaluation loss. Loss attributable to shareholders expanded to HK$96.25 million, translating into a basic loss per share of HK3.12 cents (1H25: HK1.37 cents).

Balance-sheet metrics remained stable. Total assets increased 2.30% to HK$14.88 billion, while equity attributable to shareholders rose 1.96% to HK$7.41 billion, equivalent to net asset value of HK$2.40 per share. Cash and cash equivalents plus short-term deposits stood at HK$1.36 billion, down from HK$1.50 billion at end-2025. Interest-bearing bank and other borrowings reached HK$2.01 billion, 96% of which are long-term.

The board declared no interim dividend, mirroring the prior year. Looking ahead, management plans to accelerate product-mix upgrades in high-value electronics, advance capacity ramp-up at Nantong Hong Yuen, and continue tenant diversification at Shenzhen Aerospace Science & Technology Plaza while monitoring property-market conditions.