Hong Kong-listed Zall Smart Commerce Group Ltd. reported a sharp reversal for the six months ended 30 June 2026, posting a net loss attributable to shareholders of RMB1.15 billion versus a profit of RMB97.05 million a year earlier.
Revenue fell 59.40% year-on-year to RMB36.91 billion, driven by a 59.50% contraction in supply-chain management and trading income to RMB36.73 billion. Rental income from investment properties dropped 32.95% to RMB78.40 million, while property sales declined 27.20% to RMB33.44 million.
Gross profit slipped 19.55% to RMB223.11 million, though the margin improved to 0.60% from 0.30% as the group pruned low-margin trading volumes. A RMB1.14 billion fair-value loss on investment properties and RMB162.45 million of credit-impairment charges were the main drivers of the operating deficit.
Segmentally, property development and related services generated RMB111.83 million revenue and RMB24.40 million profit, but this was offset by a RMB200.40 million loss in the supply-chain segment.
Net finance costs rose 34.68% to RMB272.00 million, reflecting higher borrowing expenses and reduced deposit interest.
Cash and cash equivalents decreased to RMB862.88 million from RMB1.51 billion at year-end 2025, while pledged deposits stood at RMB3.20 billion. Interest-bearing borrowings totalled RMB11.68 billion, cutting total debt by 18.90% but raising the adjusted net-debt-to-capital ratio to 59.27% from 42.14%. Net current liabilities widened to RMB7.37 billion.
Management disclosed a RMB1.45 billion operating cash outflow and acknowledged “material uncertainty” over going-concern status. Mitigation measures include cost reductions, refinancing negotiations, pledging unencumbered investment properties valued at RMB12.63 billion, and potential asset disposals.
No interim dividend was declared.
Looking ahead, the group intends to deepen digital-trade, supply-chain and technology services, and to prioritise higher-margin verticals within agricultural products, chemicals/plastics and ferrous metals, while enhancing AI-enabled solutions across its platform portfolio.