Pak Tak International Limited reported a sharp top-line contraction and a wider loss for the six months ended 30 June 2026, as weak demand hit its core businesses and litigation-related provisions weighed on earnings.

Revenue from continuing operations fell 57.1 % year on year to HKD172.15 million, driven by a 69.3 % plunge in Supply Chain Business sales to HKD89.21 million and a 25 % slide in Mining Business turnover to HKD82.94 million. Group direct costs and operating expenses contracted accordingly, but higher expected-credit-loss provisions of HKD38.86 million—reflecting delayed customer payments—offset these savings.

The company booked a net loss of HKD88.72 million from continuing operations versus a HKD85.83 million loss a year earlier. Including discontinued operations—mainly hotel management, catering and property investment being divested via the pending sale of Marvel Innovator Limited—the total loss attributable to shareholders widened to HKD92.60 million (1H 2025: HKD113.79 million).

Pak Tak is pursuing the disposal of Marvel Innovator for a HKD2.00 million cash deposit and a HKD100.00 million promissory note, in exchange for the buyer arranging release of RMB279 million in corporate guarantees. At 30 June 2026, the assets of the Disposal Group were reclassified as “held for sale”, amounting to HKD386.02 million, with related liabilities of HKD591.82 million.

Liquidity remains tight. Cash and cash equivalents stood at HKD20.81 million against interest-bearing borrowings and lease liabilities of HKD433.60 million. The gearing ratio eased to 143.7 % from 203.9 % at end-2025, helped by reclassification of Disposal Group debt, while the liquidity ratio improved to 0.49 but stayed below parity. Management is negotiating additional funding and pursuing receivables collection; operating cash inflow totalled HKD40.70 million in the period.

Capital expenditure was restrained at HKD5.18 million, focused on underground development at the Luobokan iron-ore project, where 260,000 tonnes of ore were extracted and 95,000 tonnes of concentrate produced. A safety-related temporary shutdown and ongoing infrastructure upgrades constrained volumes.

No interim dividend was declared. Post-period, there were no further significant events, though the group continues discussions with China Cinda Asset Management’s Shenzhen branch following transfer of a disputed HKD416.67 million loan previously held by Hua Xia Bank.