PRECIOUS DRAGON (01861) has released its interim results for the six months ended June 30, 2026, revealing a net loss attributable to shareholders of HK$14.407 million, a stark reversal from the profit recorded in the same period last year.

The company reported revenue of HK$333 million for the period, representing a modest increase of 2.64% year-on-year. However, the bottom line deteriorated significantly, with the company swinging from a profit attributable to owners of HK$52.711 million in the prior corresponding period to a loss of HK$14.407 million. The loss per share stood at HK6.2 cents.

The transition from profitability to a loss was attributed to a combination of factors. First, a one-off gain of approximately HK$14.3 million from the disposal of a yacht, which boosted results in the same period of 2025, did not recur. Second, gross profit declined by roughly 18.3% due to a drop in e-commerce sales, despite a significant reduction in selling and distribution expenses of around 48.3%. Lastly, the company recognized an impairment loss of approximately HK$31.6 million related to its factory production base located in Thailand.