Brainhole Technology Limited (Brainhole Tech) released unaudited results for the six months ended 30 June 2026, reporting a return to profitability despite a sharp contraction in operating income.

Key financials • Revenue fell 85.6% year on year to HK$7.54 million, chiefly reflecting the shutdown of semiconductor operations and a steep drop in smart-domain project activity. • Gross profit declined 63.3% to HK$3.34 million, yet gross margin widened to 44.3% (2025: 17.4%) on a more profitable project mix. • Net profit reached HK$18.01 million (2025 loss: HK$17.24 million), delivering earnings per share of 2.25 HK cents versus a 2.16 HK-cent loss a year earlier. • The turnaround was driven by HK$40.67 million of fair-value gains on listed equity holdings, a HK$10.46 million reversal of an investment impairment and a 42.7% reduction in administrative expenses to HK$15.26 million. Finance costs dropped to HK$0.03 million following repayment of interest-bearing loans.

Segment performance • Broadband infrastructure & smart domain generated HK$7.44 million revenue, down 85.7% amid subdued PRC real-estate activity and lower broadband commission income. • Trading contributed HK$0.09 million; manufacturing recorded no sales. • Strategic investments delivered segment profit of HK$40.67 million, reflecting realised and unrealised gains on listed equity securities and options. • Semiconductor manufacturing and trading remained suspended, producing no revenue.

Cash flow and balance sheet • Operating activities generated HK$6.54 million cash, versus an HK$11.44 million outflow a year earlier. • Free cash was largely absorbed by HK$0.30 million in capex and a HK$9.03 million net financing outflow, leaving period-end cash at HK$21.37 million (31 December 2025: HK$23.55 million). • Financial assets at fair value rose to HK$67.94 million from HK$47.19 million, underscoring the company’s portfolio shift toward marketable securities. • Net current assets improved to HK$35.18 million, and total equity advanced to HK$59.23 million. The group remains ungeared with no bank borrowings; loans from related parties total HK$36.40 million.

Management outlook Brainhole Tech has terminated loss-making semiconductor lines and will focus resources on smart-scenario solutions, health and lifelong-learning initiatives, and technology-driven strategic investments. Management cited China’s “15th Five-Year Plan” emphasis on “new quality productive forces” and flagged potential expansion into AI, IoT and Web 3.0 assets to underpin future growth. No interim dividend was declared.