Hua Lien International (Holding) Company Limited reported a markedly smaller interim loss for the six months ended 30 June 2026, even as top-line performance weakened sharply.
Revenue and Profitability • Turnover fell 64.00% year on year to HK$26.49 million, driven by a steep contraction in the Jamaica-based sugar operation. • The Group swung to a gross loss of HK$1.12 million, versus a gross profit of HK$28.51 million a year earlier, as lower production volumes eroded economies of scale. • Loss for the period narrowed to HK$11.51 million from HK$13.12 million, supported by: – Other income of HK$17.21 million (H1 2025: HK$3.06 million), primarily an HK$15.16 million exchange gain. – A 62.49% reduction in finance costs to HK$8.60 million following lower exchange losses. – No impairment of property, plant and equipment (H1 2025: HK$3.34 million). • Basic and diluted loss per share came in at HK0.3259 cent (H1 2025: HK0.3410 cent). No interim dividend was declared.
Segment Performance • Sugar business: revenue HK$26.49 million (-64.00%); segment loss HK$9.65 million (H1 2025: loss HK$22.44 million). Raw-sugar output fell to 4,404 tonnes (H1 2025: 9,500 tonnes) after crushing 103,931 tonnes of cane, reflecting adverse weather and a temporary product recall. • Supporting services: no revenue; segment profit HK$3.00 million (H1 2025: HK$4.33 million) on higher exchange gains. • Ethanol business in Benin remained idle; segment profit HK$0.74 million (H1 2025: HK$0.85 million).
Balance Sheet and Liquidity • Cash and bank balances stood at HK$16.13 million, down from HK$29.10 million at end-2025. • Net current liabilities widened to HK$1.17 billion, while total net liabilities reached HK$1.18 billion. • Total borrowings amounted to HK$1.24 billion, comprising: – HK$518.10 million payable on demand to substantial shareholder Guangken Sugar (repayment deferred to 31 December 2027 under a supplemental undertaking). – HK$699.72 million due to non-controlling interests. – HK$26.47 million in lease liabilities. • The financial statements were prepared on a going-concern basis, relying on continued support from Guangken Sugar and a 12-month cash-flow forecast.
Operational Highlights • Fair-value loss on biological assets (growing cane) increased to HK$3.37 million (H1 2025: HK$1.17 million). • Administrative expenses were trimmed by 9.42% to HK$15.63 million. • No capex was incurred during the period (H1 2025: HK$12.38 million).
Outlook Management expects the Jamaican sugar business to remain under pressure from volatile weather, labour constraints and rising input costs. The recent suspension and recall of certain raw-sugar products are being addressed in coordination with local authorities. The supporting-services unit is likely to stay dormant amid unresolved connected-transaction restrictions, while the ethanol project in Benin remains on hold pending a viable restart plan.
The Board affirmed that measures to improve operating efficiency, control costs and secure financial support are ongoing as the Group navigates a challenging market and significant net-liability position.