Zhongzheng International Company Limited reported a narrowed loss from continuing operations of HK$14.07 million for the six months ended 31 December 2025, versus a HK$36.95 million loss a year earlier. The prior-period figure had included HK$18.70 million of combined impairments on receivables that did not recur this year and there were no discontinued-operation losses in the current period.
\n\nRevenue fell 35.9 % year on year to HK$41.39 million, driven by a 34.2 % decline in the core healthcare and household segment to HK$41.20 million as a major U.S. customer diversified sourcing. Coal-mining royalty and commission income dropped 86.7 % to HK$0.19 million after mining activities were suspended for part of the period.
\n\nGross profit decreased to HK$10.36 million (HY2024/25: HK$16.30 million) but the gross margin held at 25.0 % thanks to cost-control measures, including workforce rationalisation (headcount in the PRC factory cut from 563 to 234) and outsourcing of selected production processes.
\n\nOther income rose to HK$9.85 million, underpinned by a HK$9.59 million gain from the July 2025 debt-to-equity swap with two substantial shareholders. Finance costs fell 14.9 % to HK$6.25 million following repayment of other loans and partial conversion of shareholder loans.
\n\nBalance-sheet metrics improved markedly: • Net assets increased to HK$464.96 million from HK$259.09 million at 30 June 2025, mainly after a HK$899.14 million share-premium reduction offset accumulated losses, a HK$91.33 million debt capitalisation and a HK$111.97 million rights issue. • Net current assets swung to HK$117.69 million (30 June 2025: net current liabilities of HK$100.12 million). • Cash and bank balances jumped to HK$99.93 million (30 June 2025: HK$11.35 million), reflecting net rights-issue proceeds of HK$112.00 million and lower loan repayments. • Total debt and borrowings fell to HK$254.48 million from HK$356.09 million; the gearing ratio declined to 54.73 % from 137.44 %.
\n\nOperational updates Healthcare & Household: The Group agreed in September 2025 to sell its Dongguan factory land and buildings for RMB58.00 million (about HK$64.36 million) with a one-year leaseback to maintain production; completion is targeted for March 2026. Coal Mining: A new contractor took over the PT Bara mine in late-October 2025; an updated 2026 work plan awaiting Indonesian regulatory approval would cap annual output at 21,000 tonnes, down from the initially proposed 600,000 tonnes. Money Lending: No new loans were issued; outstanding loan receivables were HK$0.94 million, all past due and under collection.
\n\nCorporate actions • 20-for-1 share consolidation became effective on 14 July 2025. • Debt capitalisation issued 504.57 million new shares. • Rights issue completed on 20 August 2025, adding 572.90 million shares and net proceeds of HK$112.00 million. • On 31 December 2025, the Company agreed to acquire Elise Beauty Group Limited for HK$62.50 million via share issuance, aiming to enter PRC SaaS-based beauty-tech services; completion is expected in 1H 2026.
\n\nNo interim dividend was declared.
\n\nOutlook Management expects continued pricing pressure in the healthcare and household segment amid geopolitical tensions and will further shift to subcontracting to enhance flexibility, targeting a workforce of about 50 by June 2026. In the mining segment, operational strategy will be adjusted in line with Indonesia’s revised production quota while monitoring policy developments. The Group’s strengthened cash position provides funding for ongoing restructuring and the pending Elise Beauty acquisition.