Novautek Reports 51% Revenue Growth and Narrowed Interim Loss on Rising AI Robot Sales

Bulletin Express
Mar 26

Novautek Technologies Group Limited announced its unaudited results for the six months ended 31 December 2025 (1H FY2026).

Revenue and Profitability • Revenue rose 51% year-on-year to HK$21.87 million (1H FY2025: HK$14.46 million). • Gross profit increased 8% to HK$8.24 million, while gross margin contracted to 37.7% (1H FY2025: 52.8%) due to a lower margin mix. • Net loss attributable to shareholders narrowed to HK$31.36 million from HK$71.23 million. Basic loss per share improved to 1.03 HK cents (1H FY2025: 2.33 HK cents). • Total comprehensive loss declined to HK$25.06 million versus HK$76.94 million a year earlier.

Segment Performance • Property Development remained the largest contributor, generating HK$12.16 million (56% of group revenue) and segment profit of HK$2.13 million. • AI Robots revenue surged 7-fold to HK$2.96 million, reflecting increased commercialisation, though the segment reported a HK$7.28 million loss. Contracted but unrecognised robotics revenue stood at approximately HK$6.17 million at period-end. • Property Investment delivered HK$6.72 million revenue and HK$0.69 million profit, supported by an HK$11.69 million fair-value gain on investment properties, reversing a HK$43.98 million loss in the prior-year period. • Investment Holding contributed HK$0.03 million revenue and recorded a HK$12.20 million segment loss, including a HK$12.73 million fair-value decrease in financial assets and a HK$0.75 million disposal gain.

Financial Position and Cash Flow • Cash and cash equivalents declined to HK$46.91 million (30 June 2025: HK$70.20 million). • Net cash used in operating activities amounted to HK$15.61 million; financing outflows totalled HK$10.49 million. • Total assets reached HK$1.23 billion, with net assets of HK$762.32 million. • Current ratio stood at 1.01x (30 June 2025: 1.04x); gearing ratio (total borrowings to equity) eased slightly to 22% (30 June 2025: 23%).

Key Non-cash Items • HK$10.28 million impairment on non-current assets held for sale. • HK$5.56 million impairment on property, plant and equipment. • HK$11.69 million upward revaluation of investment properties. • HK$12.73 million fair-value loss on financial assets at fair value through profit or loss, mainly reflecting the HK$8.83 million mark-to-market decline in the stake of Zall Smart Commerce Group.

Operational Highlights • AI robot business, a strategic focus, benefited from increased R&D spending and expanded sales to Hong Kong, mainland China, Europe and the Middle East. • Property development activities at the Wuxi project delivered apartments worth HK$12.16 million; outstanding contracted sales totalled HK$7.76 million. • Investment properties in Hong Kong and Wuxi generated HK$6.72 million rental and management income; fair-value gains were driven by PRC assets.

Capital Expenditure and Commitments • Capex during the period amounted to HK$0.66 million, primarily for AI robotics and property assets. • No material capital commitments or contingent liabilities were reported at period-end.

Subsequent Events and Outlook • Management emphasized ongoing R&D in AI robot technologies, expansion of the Robotics-as-a-Service model, and further international market penetration. • No material post-period events were noted up to the report date.

Dividend • The Board does not recommend an interim dividend for 1H FY2026 (1H FY2025: nil).

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