Pinchuang Holdings (08066) is forecasting that the net loss due to company owners in the first half of the year was about HK$10.9 million, a year-on-year profit to loss

Zhitong Finance App News, Pinchuang Holdings (08066) announced that the group expects to obtain a net loss of approximately HK$10.9 million due to company owners in the first half of 2026, while net profit attributable to company owners is approximately HK$40.4 million for the same period in 2025.

The Board believes that the expected loss is mainly affected by a combination of the following:

(1) The Group has upgraded “Dongchuang Digital Entertainment” (a private membership e-commerce platform operated by Shanxi Dongchuang Digital Entertainment Technology Group Co., Ltd.) to version 2.0, focusing on transforming it into a global digital gaming platform operated by Nova Digital Labs Limited, a wholly-owned subsidiary of the Group. Original Motion App (China version) achieved strong performance in the first half of 2025. Since then, the operation of the original private platform has been gradually reduced and transitioned in accordance with the disclosed strategy transformation and reallocation of resources. Since the original platform mainly relied on collecting membership fees from third party game operators, the relevant cooperation contract was terminated after the expiration of the term. The new partner is an international company, so the Dongchuang App must be upgraded to version 2.0 for international operation. Compared with the original Chinese version, the 2.0 version requires more resources and longer time to develop and launch at the technical level, including multi-language adaptation, cross-jurisdiction compliance, product localization, overseas market expansion, partnership establishment, and related system redevelopment. At the operational level, the new platform also requires a large investment of traffic resources in the early stages. As a result, the commercial launch of the Dynamic App 2.0 was delayed from the original forecast, which adversely affected the revenue and profit performance of the business segment during the reporting period. As a result, the relevant division recorded a division loss of approximately HK$7.6 million in the first half of 2026, while the segment profit (after tax) for the same period in 2025 was approximately HK$37.7 million.

(2) The revenue of the SIM card business segment increased by about 11.5% year-on-year, leading to an increase in segment profit of about HK$550,000;

(3) Segmental profit from providing AI voice technology data services fell by HK$3.94 million year-on-year, partly due to higher direct costs related to customized projects undertaken during the reporting period, and partly due to increased amortization costs due to the acquisition of certain intangible assets (proprietary technology) from the second half of 2025; and

(4) The year-on-year increase in corporate expenses.