Daisho Microline posts wider operating pressures for FY26; revenue falls 18.3%, net loss steady at HK$21.27 million

Bulletin Express
Jun 18

Daisho Microline Holdings released its audited results for the year ended 31 March 2026, showing persistent top-line contraction and a stable yet sizeable bottom-line loss.

Financial highlights • Revenue dropped 18.3 % to HK$43.43 million, driven by weaker demand in both core segments. • Net loss widened marginally to HK$21.27 million (FY25: HK$21.13 million), translating into a basic loss per share of 1.32 Hong Kong cents. • Gross profit slipped 6.8 % to HK$9.53 million, although gross margin improved to 21.9 % (FY25: 19.3 %) on reduced cost of sales. • Other income fell sharply to HK$0.96 million from HK$3.54 million, mainly on lower foreign-exchange gains. • Total comprehensive loss reached HK$22.74 million after a HK$1.47 million foreign-currency translation deficit.

Segment performance • Printing & packaging products: revenue HK$27.70 million (-18.0 % YoY); segment loss widened to HK$12.58 million, weighed by lower sales and softer exchange gains. • Printed circuit boards: revenue HK$15.73 million (-18.7 % YoY); segment loss increased to HK$1.58 million due to lower volumes. • Petroleum & energy trading remained suspended with no revenue contribution. • Investments in funds recorded a HK$1.48 million fair-value loss; share of loss from an associate amounted to HK$0.73 million.

Expenses and impairments Selling & distribution and administrative expenses fell 13.9 % to HK$24.67 million. Impairment charges totalled HK$4.74 million, largely relating to property, plant and equipment.

Balance-sheet metrics • Cash and cash equivalents plunged to HK$3.23 million (31 Mar 2025: HK$19.95 million). • Net current assets narrowed to HK$7.32 million; current ratio declined to 1.19x (FY25: 1.80x). • Interest-bearing borrowings and lease liabilities lifted the gearing ratio to 8.6 % from 2.8 %. • Net assets contracted to HK$49.78 million (-31.3 % YoY) after absorbing the annual loss.

Capital allocation No final dividend was proposed for FY26 (FY25: nil).

Corporate developments During the year, the group: 1. Invested HK$29.80 million for a 15.12 % stake in Beijing Weihang Yining Health Management, now accounted for as an associate. 2. Saw its joint venture, Noricap Fund, complete an initial HK$18.10 million investment in a licensed cryptocurrency trading-platform operator. 3. Announced a planned name change to “Jsmart Technologies Group Limited 金安具身智能科技集團有限公司,” approved by shareholders on 22 May 2026. 4. Reported post-balance-sheet changes in substantial shareholding, with Jsmart Technologies Limited acquiring a 17.36 % stake on 7 April 2026.

Outlook statements from management cite continued cost control, customer diversification and expansion into artificial-intelligence-driven healthcare and robotics as strategic priorities amid subdued global demand.

No material contingent liabilities or capital commitments were outstanding at year-end. The audit opinion is unmodified.

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