Cinese International Group Holdings reported a HK$4.74 million net loss for the six months ended 30 June 2026, a 63.3% improvement from the HK$12.80 million deficit booked a year earlier, reflecting the successful disposal of its loss-making North American units in 2025.
Revenue from continuing operations fell 11.2% year on year to HK$30.80 million, driven by a 12.7% decline in the core Travel Products and Services segment to HK$30.29 million. Gross profit contracted 42.1% to HK$4.36 million as segment-level price pressure and higher operating costs compressed the consolidated gross margin to 14.1%, down 7.9 percentage points from 22.0% in the prior-year period.
The Group booked a HK$2.41 million provision for expected credit losses on trade receivables, reversing a HK$0.88 million write-back in the comparative period. Administrative expenses surged 82.9% to HK$7.31 million, reflecting higher staff costs and professional fees linked to the August 2025 disposal of its Canadian subsidiary BVTEHC Inc. and related restructuring. Consequently, the Group swung to an operating loss of HK$5.33 million from a HK$4.99 million profit a year ago.
Finance income of HK$0.17 million and a HK$0.54 million tax credit partially offset operating pressures, narrowing the loss from continuing operations to HK$4.65 million. Discontinued operations, mainly the final wrap-up of North American businesses, contributed an additional HK$0.09 million loss. Basic and diluted loss per share improved to HK0.40 cents from HK1.07 cents.
Cinese International’s balance sheet showed total assets of HK$57.27 million at 30 June 2026, up HK$10.0 million from end-2025, driven by a HK$14.41 million increase in trade receivables to HK$39.56 million. Cash and cash equivalents fell 64.1% to HK$1.39 million, while term deposits remained stable at HK$11.56 million. Total equity declined to HK$7.09 million following accumulated losses of HK$84.82 million. The company remains debt-free, leaving the gearing ratio at 0%.
Operationally, Cinese International is refocusing on China. The Travel Products and Services segment, centred on company-operated cultural tours in the Greater Bay Area, accounted for 98.3% of interim revenue. The newly launched Private Extracurricular Coordination Services for kindergarten students generated HK$0.54 million in its inaugural half-year. Management plans to deepen penetration in the Greater Bay Area, expand health and wellness tourism, and integrate tourism resources with language and arts education offerings.
No interim dividend was declared, in line with the company’s intention to conserve cash for working capital and future expansion.
There were no material acquisitions, disposals or significant investments during the period. Post-period, the board saw a leadership change, with Ms. Liu Jieying replacing Dr. Kou Chung Yin Mariana as Chairperson and Executive Director effective 30 July 2026.
With the North American exit completed and a streamlined focus on China-centric services, Cinese International is positioning itself for growth in travel and education-related segments, although short-term earnings remain under pressure from competitive pricing and elevated operating costs.