Century Legend (Holdings) released unaudited results for the six months ended 30 June 2026, reflecting a swing to loss as fair-value movements in securities and property weighed on otherwise stable operating revenues.
Key Financials (1H 2026 vs. 1H 2025) • Revenue: HK$21.16 million, down 4.5% from HK$22.15 million. • Gross profit: HK$6.47 million, down 5.4%. • Fair-value change on FVTPL investments: loss of HK$8.66 million (vs. gain of HK$16.41 million). • Fair-value loss on investment properties: HK$0.20 million (vs. HK$5.80 million loss). • Finance costs: HK$2.30 million, 16.4% lower year on year. • Reported net result: loss of HK$17.56 million (vs. profit of HK$2.10 million). • Basic and diluted loss per share: HK(5.17) cents (vs. earnings of HK0.78 cents).
Segment Performance • Hair Styling: Revenue HK$6.67 million (+8.0%); swung to HK$0.06 million loss due to higher rental and set-up expenses for a new salon. • Hospitality Services: Revenue HK$12.23 million (–9.0%); narrowed segment loss to HK$0.14 million as depreciation fell; North Point lease expired in June 2026. • Property Investments: Rental income HK$1.41 million (–4.5%); segment loss HK$2.87 million after modest HK$0.20 million valuation decline. • Securities Investments: Dividend income HK$0.76 million (–26.4%); fair-value loss HK$8.66 million versus prior-year gain, driving segment loss of HK$7.90 million. • Money Lending: Interest income rose to HK$0.10 million; segment profit HK$0.05 million. • Property Project Management: No revenue; marginal HK$0.003 million loss.
Balance Sheet Highlights (30 Jun 2026) • Total assets: HK$340.90 million (31 Dec 2025: HK$363.26 million). • Cash and bank balances: HK$3.66 million (31 Dec 2025: HK$5.37 million). • Net current liabilities: HK$94.11 million (31 Dec 2025: HK$81.13 million). • Bank borrowings: HK$113.98 million, secured against investment properties; gearing 5%. • Net assets: HK$187.51 million, down 8.5% from year-end.
Cash Flow & Liquidity • Current ratio declined to 0.34 from 0.45, reflecting reduced current assets and steady short-term borrowings. • Finance costs fell to HK$2.30 million amid lower market interest rates.
Capital Expenditure & Investments • Additions to property, plant and equipment: HK$0.01 million. • Major holdings: – Link REIT: carrying value HK$21.94 million (6% of total assets); HK$1.06 million fair-value gain, HK$0.76 million dividends. – Palantir Technologies Inc.: carrying value HK$16.24 million (5% of total assets); HK$8.50 million fair-value loss.
Dividends • No interim dividend declared (1H 2025: Nil).
Management Commentary • Loss driven predominantly by mark-to-market reversal on listed securities. • Operating environment affected by global inflation, geopolitical tensions and sector-specific challenges—particularly softer hospitality demand in non-core districts and Macau property weakness. • Finance costs eased following lower interest rates; management notes potential headwind if rates rise. • Focus areas include cost control in salons, securing replacement site for North Point guesthouse, and selective investment in technology to enhance service delivery.
Corporate Matters • No share repurchases or new issues during the period. • Audit Committee reviewed the interim results; the Board affirms compliance with Hong Kong’s CG Code, except for combined chairman/CEO role.
Outlook Management cites persistent global volatility but identifies supportive factors such as Hong Kong’s robust tourism recovery, government event funding and potential technology-driven efficiency gains. Capital allocation will remain prudent amid ongoing market uncertainty.