Xiangxing Technology (01732) announced interim results. Shareholders should account for a loss of 4.995 million yuan

According to the Zhitong Finance App, Xiangxing Technology (01732) announced its 2026 interim results, with revenue of 115 million yuan, an increase of 11.4% over the previous year; loss attributable to the company's equity shareholders was 4.995 million yuan, profit of 6.998 million yuan for the same period last year; basic loss of 0.39 points per share.

The losses during the period were mainly due to: (1) An increase in tax expenses of approximately RMB 8.1 million, mainly due to the additional tax assessment by the Chinese tax authorities during this period on the balance of transactions within the Group that had not previously accrued interest. The tax authorities believe that interest should be accrued on such intra-group transaction balances, and the resulting estimated interest income should be subject to corporate income tax, additional tax, and interest on overdue taxes; (2) the increase in the group's sales costs exceeded the increase in revenue, leading to a decrease in gross profit during the period.