WellCell Holdings Co., Limited released unaudited results for the six months ended 30 June 2026, showing a return to loss amid softer sales and investment markdowns, while accelerating its shift into artificial-intelligence infrastructure services.
Financial Snapshot • Revenue slid 8.2 % year on year to RMB 82.63 million. • The Group swung to a net loss of RMB 41.82 million, versus a RMB 7.72 million profit a year earlier. • Basic loss per share was RMB 1.04 cents, compared with earnings of RMB 0.19 cents in the prior period. • The Board declared no interim dividend.
Drivers of Performance • Core telecommunications activities—wireless network enhancement and network maintenance/engineering—contributed 75.1 % of revenue, up from 50.9 % a year earlier. • ICT integration revenue fell 62.0 % to RMB 14.57 million as the Group redirected resources to higher-margin segments. • Software-related sales inched up 1.7 % to RMB 5.99 million; fintech services booked a token RMB 1,000. • A RMB 16.58 million fair-value loss on unlisted equity investments drove other losses of RMB 14.23 million, reversing a RMB 3.52 million gain in 2025. • Operating costs rose sharply: employee benefits doubled to RMB 14.05 million and other operating expenses climbed 135.4 % to RMB 11.28 million, reflecting head-count additions and spending tied to fintech and AI initiatives.
Balance-Sheet and Liquidity • Cash and cash equivalents stood at RMB 48.93 million (31 Dec 2025: RMB 53.97 million). • Interest-bearing bank borrowings were RMB 29.70 million, all due within 12 months, while a new HK$21.0 million (RMB 18.13 million) related-party loan matures in 2028. • Net current assets totalled RMB 114.61 million; the current ratio improved to 2.16x (31 Dec 2025: 2.03x). • Gearing (debt to equity) rose to 17.1 % from 13.7 %, mainly due to lower equity after the interim loss. • No material capital commitments or contingent liabilities were reported.
Strategic Developments • In June, the Group launched “Novax AI”, an enterprise-focused cloud GPU leasing and compute-dispatch platform, marking entry into AI computing power services. Additional PaaS offerings are slated for release in 3Q 2026. • Post-period, a placing and top-up subscription completed on 16 July 2026 raised net proceeds of HK$187.95 million. Funds are earmarked chiefly for R&D and capacity build-out of the computing-power platform (approx. 93.6 %), with the remainder for general operations.
Outlook Management cited saturation and intense competition in traditional telecom services and intends to prioritise AI infrastructure and related high-growth opportunities while maintaining cost discipline across legacy operations.
No further significant events were reported after the interim period close.