XinXiang Era (08519) reported unaudited interim results for the six months ended 30 June 2026, showing profit resilience despite a sharp contraction in turnover.

Revenue contracted 37.10% year-on-year to HK$77.60 million, primarily due to the shutdown of several Hong Kong restaurants. Catering services remained the core business, contributing HK$75.13 million (−39.10%). A newly launched mainland China goods-trading arm added HK$2.47 million, marking the segment’s first contribution.

Cost discipline offset the revenue decline. Staff costs fell 45.25% to HK$24.70 million following outlet closures, while depreciation dropped 72.21% to HK$2.53 million. Raw materials and inventories consumed decreased 31.39% to HK$22.35 million. Combined savings underpinned a 32% rise in profit attributable to shareholders to HK$2.25 million, lifting net margin to 2.9% (H1 2025: 1.4%). Basic earnings per share improved to 1.55 HK cents from 1.18 HK cents.

Operating cash inflow reached HK$3.90 million (H1 2025: HK$13.43 million). Cash and cash equivalents stood at HK$12.02 million as of 30 June 2026, up from HK$9.30 million at year-end 2025. The current ratio edged up to 0.9 (31 Dec 2025: 0.8). Net liabilities narrowed to HK$0.55 million from HK$2.92 million over the half-year, while equity attributable to shareholders improved to HK$3.03 million.

The Board declared no interim dividend.

Management highlighted ongoing cost controls and the gradual build-out of e-commerce and mainland sales channels as key to future diversification beyond its traditional Hong Kong restaurant base.