SIM Technology Group Limited (SIM TECH, 02000) reported a net loss attributable to shareholders of HK$11.03 million for the six months ended 30 June 2026, reversing from a HK$8.81 million profit in the prior-year period. Basic loss per share was HK0.5 cent versus earnings of HK0.43 cent a year earlier.

Revenue slipped 8.4% year on year to HK$190.76 million, weighed down by the cessation of the automotive intelligent products line and softer property-rental income. Group gross profit fell 24.4% to HK$34.23 million, trimming overall gross margin to 17.9% from 21.8%. The deterioration was driven primarily by a global shortage-induced spike in memory-chip prices and intensified downstream pricing pressure.

Key profit-and-loss items: • Other gains and losses deteriorated to a HK$23.65 million deficit (1H25: HK$9.47 million loss), including a HK$17.59 million fair-value write-down on investment properties. • Research and development expenses contracted 38.4% to HK$17.14 million as certain costs were expensed rather than capitalised during early-stage robotics development. • Finance costs rose to HK$0.87 million (1H25: HK$0.27 million). • A deferred-tax credit of HK$4.40 million swung total taxation to a HK$6.09 million credit (1H25: HK$1.93 million credit).

Segment performance 1. Intelligent Terminal ODM: Revenue was broadly stable at HK$173.07 million (-7.6% including the discontinued automotive line). Segment loss narrowed to HK$11.04 million (1H25: HK$14.24 million loss) amid lower R&D spend, but margins were hit by higher component costs and initial robotics investment. 2. Property Management: Rental income fell 15.7% to HK$17.69 million. Impairment on Shenyang and Shanghai assets pushed the segment to an HK$8.93 million loss (1H25: HK$2.03 million loss).

Balance sheet and liquidity At 30 June 2026, cash and short-term deposits totalled HK$957.82 million, up 1.9% from end-2025, while bank borrowings rose to HK$32.97 million, leaving gearing at a low 1.7%. The current ratio remained robust at 3.2x. Net assets attributable to shareholders increased to HK$1.48 billion (31 December 2025: HK$1.45 billion) on currency translation gains.

Capital management No interim dividend was declared. The group recorded HK$42.78 million in staff costs (-7.2% YoY) and had 602 employees at period-end. There were no material acquisitions, disposals, or significant capital commitments during the half.

Outlook Management anticipates continued margin pressure in H2-2026 from elevated memory-chip, PCB and battery prices, alongside intense industry competition. Strategic priorities include accelerating AI-enabled upgrades in traditional terminals, scaling the nascent robotics platform, expanding sales channels and tightening cost controls to restore profitability.