China Innovation Investment Limited (CH INNOVATION) reported a sharp reversal to a net loss of HK$61.54 million for the six months ended 30 June 2026, compared with a profit of HK$23.07 million in the same period of 2025.
The setback stemmed mainly from investment market turbulence: • Net realised losses on disposals of fair-value-through-profit-or-loss (FVTPL) investments reached HK$27.15 million versus a HK$47.51 million gain a year earlier. • Net unrealised holding losses on FVTPL assets widened to HK$30.47 million from a HK$18.19 million loss in 2025. • Dividend income from Hong Kong-listed securities slipped to HK$0.17 million (2025: HK$0.22 million).
Turnover, defined as gross proceeds from disposal/redemption of FVTPL investments, improved 13.44% year-on-year to HK$775.02 million, reflecting higher trading activity despite weaker market prices. Other income rose to HK$4.28 million (2025: HK$1.83 million) after booking a HK$3.27 million gain on the disposal of associate Oasis Avenue Limited.
Key financial position metrics as at 30 June 2026: • Cash and bank balances: HK$158.25 million, up HK$19.17 million from end-2025, driven by HK$17.46 million net cash from investing activities. • Total assets: HK$639.85 million; net assets: HK$539.38 million (down 10.3% from 31 December 2025). • Investments at FVTPL: HK$90.18 million, down 33.5% from HK$135.69 million at year-end. • Equity investments at FVOCI (five unlisted holdings): HK$351.57 million, unchanged. • No interest-bearing debt; gearing remains zero.
Per-share metrics: • Basic loss per share: 0.481 Hong Kong cents (1H25: earnings of 0.180 cents). • No interim dividend declared (unchanged YoY).
Portfolio notes: • Listed holdings include a sub-0.01% stake in Alibaba Group Holding Ltd valued at HK$63.97 million and a 13.87% stake in Elife Holdings Limited valued at HK$21.92 million, the latter reflecting an accumulated unrealised loss of HK$5.88 million after dilution from a share placement. • Unlisted positions comprise five investees focused on “New Energy,” “New Light,” “New Materials,” “New Health,” and “New Capital” segments, each valued between HK$64.97 million and HK$77.14 million.
Operational highlights: • Headcount reduced to nine employees (1H25: 15), bringing staff costs down 36.5% to HK$1.07 million. • Administrative and operating expenses increased 15.7% to HK$10.34 million due to higher investment management fees and other costs.
Post-period event: • On 18 August 2026, the High Court of Hong Kong awarded the company and related parties HK$1.50 million in damages plus costs in a defamation case against Apple Daily Limited and AD Internet Limited.
Management attributes the interim loss to a roughly 30% decline in the Hang Seng Internet & Information Technology Index during 1H26 and maintains a strategy focused on medium- to long-term capital appreciation through investments in both listed and unlisted enterprises aligned with energy, materials, health, and asset-management themes.