Lerado Financial Posts 60% Slide in 1H26 Revenue; Net Profit Down to HK$9.84 Million

Bulletin Express
Aug 27

Lerado Financial Group Company Limited (“Lerado Financial”) released its unaudited interim results for the six months ended 30 June 2026.

Key Financials • Revenue fell 60.3% year-on-year to HK$36.12 million, driven mainly by a sharp contraction in money-lending income. • Gross profit declined to HK$8.40 million from HK$64.44 million in the prior-year period. • Net profit attributable to shareholders dropped 80.0% to HK$9.84 million. • Basic and diluted earnings per share contracted to HK4.28 cents from HK21.39 cents.

Segment Performance • Medical products contributed HK$32.09 million, representing 88.9% of group revenue but down 9.4% year-on-year. • Securities brokerage and asset management generated HK$1.23 million, broadly flat versus 2025. • Money-lending and other financial services delivered HK$2.80 million, compared with HK$54.39 million a year earlier as the Group tightened credit amid a challenging macro environment. • A HK$19.56 million fair-value gain on listed equity investments partially offset operating pressures.

Balance Sheet Highlights (30 June 2026) • Cash and cash equivalents: HK$59.29 million. • Net loans receivable after ECL provisions: HK$156.93 million. • Financial assets at fair value through profit or loss: HK$207.64 million. • Bonds payable: HK$40.00 million, carrying a 6% coupon and maturing on the eighth anniversary of issuance. • Net current assets: HK$297.79 million; current ratio: 2.2. • Total equity: HK$349.88 million; gearing ratio: 11.4%.

Cash Flow • Operating activities generated HK$7.17 million net cash. • Financing outflows amounted to HK$7.60 million, reflecting bond coupon payments and lease liabilities. • Overall cash position was broadly stable, down HK$0.42 million during the period.

Management Commentary The Board attributed the earnings contraction to a deliberate slowdown in loan origination amid volatile markets. Management reiterated its focus on expanding complementary financial-services offerings, including corporate finance and asset management, while maintaining cautious capital allocation.

Dividend No interim dividend was declared.

Looking Ahead The Group intends to preserve balance-sheet strength, broaden its financial-services platform, and pursue selective investment opportunities to diversify earnings streams. The Board will continue to monitor market conditions and portfolio performance to safeguard shareholder value.

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