XinXiang Era Group Company Limited released its 2026 interim report showing revenue of HK$77.60 million for the six months ended 30 June 2026, down 37.1% from HK$123.42 million a year earlier. Despite the contraction, profit attributable to shareholders increased 31.9% year on year to HK$2.25 million (1H 2025: HK$1.71 million), supported by stringent cost reductions and contribution from a new e-commerce business line.

Revenue mix shifted during the period. Traditional Hong Kong restaurant operations (fine dining and casual format) generated HK$75.13 million, compared with HK$123.42 million a year ago. A newly launched goods-trading segment in mainland China contributed HK$2.47 million.

Cost management was decisive. Raw-material and inventory costs fell 31.4% to HK$22.35 million, while staff costs declined 45.3% to HK$24.70 million following the closure of several outlets. Depreciation dropped 72.2% to HK$2.53 million. Property rentals and related expenses edged up 1.6% to HK$13.23 million, reflecting higher turnover-linked rent at the group’s Duddell’s Airport restaurant.

Net operating cash inflow reached HK$3.90 million (1H 2025: HK$13.43 million). Cash and cash equivalents stood at HK$12.02 million as at 30 June 2026, up from HK$9.30 million at year-end 2025. Net current liabilities narrowed to HK$4.37 million from HK$8.69 million over the six-month period, and total equity attributable to shareholders improved to HK$3.03 million, compared with HK$0.81 million at 31 December 2025. The current ratio increased to 0.9 from 0.8, while the group remained in a net liabilities position of HK$0.55 million.

Capital expenditure during the half-year was HK$0.51 million. The group reported no pledged assets, no material contingent liabilities, and no capital commitments. All net proceeds from previous share placings in 2020 and 2021, totaling HK$30.70 million, have been fully deployed. Outstanding share options amount to 10 million, representing 6.90% of issued share capital.

The board declared no interim dividend. Management highlighted plans to further diversify beyond traditional dining and e-commerce by expanding product categories, deepening presence in mainland China and pursuing strategic partnerships to enhance resilience against market volatility.