VC Holdings Posts HK$43.12 Million Interim Loss on 20% Revenue Slide; Plans Post-Period Equity, CB Placings

Bulletin Express
Sep 30

VC Holdings (Value Convergence Holdings Limited, 00821) reported a HK$43.12 million loss for the six months ended 30 June 2026, narrowing from a HK$49.29 million loss a year earlier.

\n\nKey Financials • Revenue fell 20.00% year-on-year to HK$25.56 million. • Loss after tax improved by 12.51% to HK$43.12 million (1H 2025: HK$49.29 million). • Net realised and unrealised trading loss narrowed to HK$16.00 million (1H 2025: HK$29.60 million). • Staff costs rose 56.33% to HK$23.90 million, reflecting a HK$3.12 million one-off share-based payment tied to 24.70 million options granted in January 2026. • Impairment losses on accounts receivable increased to HK$14.91 million (1H 2025: HK$12.50 million). • No interim dividend was declared.

\n\nSegment Performance • Brokerage & Financing: Revenue HK$22.47 million (down 7.68%), segment loss HK$6.01 million. Interest income from clients accounted for 79.11% of group revenue. • Corporate Finance & Other Advisory: Revenue HK$1.16 million (down 34.30%), segment loss HK$2.24 million. • Asset Management: Revenue HK$1.51 million (down 15.36%), segment profit HK$0.79 million. • Insurance Brokerage: Revenue HK$0.20 million (down 94.57%), segment loss HK$0.25 million. • Proprietary Trading: No revenue; segment loss HK$18.33 million. • Property Investment: Revenue HK$0.21 million; segment loss HK$0.42 million.

\n\nBalance Sheet & Liquidity • Bank balances and cash: HK$13.70 million (31 Dec 2025: HK$103.00 million). • Net current assets: HK$278.20 million; current ratio ~7x. • Shareholders’ equity: HK$317.90 million, down 11.21% since year-end 2025. • Gearing ratio remained at 12%. • Financial assets held for trading (15 HK-listed equities) stood at HK$63.83 million, 17.3% of total assets. Margin loans payable totalled HK$11.49 million; secured other borrowing remained at HK$9 million.

\n\nCapital & Funding • Outstanding convertible bonds: HK$14.40 million (conversion price HK$1.00) and HK$2.00 million (conversion price HK$0.40). • Share options outstanding: 31.28 million; options granted in January 2026 vested on 26 January 2027 at an exercise price of HK$0.295.

\n\nPost-Period Financing Actions • 6 July 2026: Placed 41.79 million new shares at HK$0.218, raising HK$9.10 million; shares equal 11.26% of enlarged capital. • 10 July 2026: Signed placing agreement to issue up to HK$41.40 million convertible bonds at an initial conversion price of HK$0.23, potentially adding 180 million new shares (32.66% of enlarged share base) upon full conversion. Net proceeds of about HK$40.22 million earmarked for working capital and debt repayment; transaction not yet completed.

\n\nOutlook & Strategy Management intends to maintain a cautious stance in financing operations, optimise resource allocation, and seek new business and investment opportunities amid challenging macro conditions. No guidance on future dividends or earnings was provided.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10