Yue Da International Holdings Limited (Yue Da International, 00629) disclosed interim results for the six months ended 30 June 2026, highlighting resilient earnings and a sharp shift in business mix toward traditional factoring.

Revenue and Earnings • Total revenue rose 19.40% year on year to RMB 38.50 million (H1 2025: RMB 32.26 million). • Net profit attributable to shareholders edged up 3.37% to RMB 15.87 million (H1 2025: RMB 15.35 million), while basic EPS improved to RMB 1.36 cents from RMB 1.31 cents. • Profit before tax increased 6.71% to RMB 25.52 million, but the net margin narrowed to 41.2% (H1 2025: 47.6%) due to higher finance and operating costs.

Segment Performance • Traditional factoring revenue surged 45.71% to RMB 37.27 million, driven by an expansion of gross principal financing receivables to RMB 908.32 million (31 Dec 2025: RMB 759.50 million). • Communications factoring revenue dropped 81.62% to RMB 1.23 million as outstanding receivables fell to RMB 2.66 million (31 Dec 2025: RMB 7.49 million). • Overall return on the factoring portfolio stood at 9.2%, down from 9.7% a year earlier.

Cost and Provision Trends • Finance costs more than doubled to RMB 4.93 million, reflecting interest on bank borrowings and asset-backed financing arrangements. • Net impairment losses of RMB 0.09 million were recognised versus a RMB 1.14 million reversal in H1 2025. • Staff and other operating expenses rose 49.5% to RMB 6.88 million, in line with business growth.

Balance Sheet and Liquidity • Total assets increased to RMB 1.01 billion (31 Dec 2025: RMB 0.84 billion). • Net assets stood at RMB 467.58 million, up 2.25% from year-end 2025. • Cash and cash equivalents improved to RMB 86.91 million (31 Dec 2025: RMB 55.33 million). • Gearing (total liabilities/total assets) climbed to 53.7% from 45.3%, reflecting higher use of bank loans (RMB 120.00 million) and obligations under asset-backed financing (RMB 178.05 million). • Current ratio strengthened to 1.62x (31 Dec 2025: 1.90x) as current liabilities expanded faster than current assets.

Capital Management • Share capital remained unchanged at RMB 105.97 million. • A final dividend of 0.55 HK cents per share (FY 2025) was paid during the period; no interim dividend was declared for H1 2026.

Risk and Asset Quality • All traditional factoring receivables were current; expected-credit-loss coverage on this portfolio was 0.21% (31 Dec 2025: 0.22%). • Communications factoring receivables are small (average RMB 30–700 per end customer) and carry a 3.11%–3.41% average expected loss rate, with credit risk partly borne by external technology service providers.

Corporate Developments • Post period-end, Yue Da International appointed Dr. Wang Li as Independent Non-Executive Director and chair of the Remuneration Committee, restoring full compliance with Hong Kong Listing Rules on board composition. • The subsidiary Yueda (Shenzhen) Commercial Factoring Co., Ltd. entered a new factoring agreement with Dongtai Houyao Urban Development Company Limited on 23 July 2026.

Outlook Management reiterated its focus on expanding traditional factoring within its state-owned enterprise network and exploring additional investment opportunities while monitoring economic headwinds.