China In-Tech Limited 2026 Annual Report: Key Developments, Financial Turnaround, and Strategic Moves in Web 3.0

Key Financial Highlights

• Revenue: HK\$76.8 million for FY2026, down 27.4% from HK\$105.8 million in FY2025.
• Net Loss: HK\$32.3 million, a significant improvement from the previous year’s HK\$54.2 million loss (down 40.4%).
• Gross Profit: Turnaround to positive HK\$6.8 million from a gross loss of HK\$5.5 million last year.
• Cash and Bank Balances: Strong increase to HK\$35.9 million from HK\$11.4 million last year, mainly due to successful fund raising.
• Total Assets: HK\$144.7 million as at 31 March 2026, up from HK\$79.5 million.
• Net Assets: Reversal from negative HK\$5.4 million to positive HK\$76.9 million.
• Dividend: No final dividend declared for the year.

Strategic and Operational Developments

• Improvement of Audit Opinion: Last year, auditors issued a modified opinion due to material uncertainty regarding going concern. This year, thanks to successful capital raising and operational cost controls, the disclaimer of opinion has been removed. The company has materially alleviated going concern risk.
• Segment Performance:
  • Electrical Haircare Appliances: Revenue fell 47.6% to HK\$39.4 million due to weak core markets and competition.
  • Information Technology Services: Revenue grew 22.4% to HK\$37.4 million, now representing nearly half of group sales.
  • Five major IT segment customers accounted for 88% of the segment revenue and 42.9% of group revenue, indicating a high customer concentration risk but also deep client relationships.
• Cost Controls and Restructuring: Staff costs fell sharply (from 42% to 30.4% of revenue), workforce reduced from 344 to 257, and overall administrative expenses fell. This drove the significant reduction in net loss.
• Fund Raising Activities:
  • Raised approximately HK\$104 million via the issue of 117,088,000 new shares at HK\$0.90/share in November 2025 to 27 independent subscribers.
  • Raised an additional HK\$10 million via 46,000,000 new shares at HK\$0.22/share in April 2025.
  • Proceeds used for business development (esp. Web 3.0), recruitment, debt repayment, and working capital. Only HK\$6.7 million of the new capital remains unutilised, expected to be deployed within 12 months.
  • None of the subscribers became substantial shareholders, maintaining wide share dispersion.
• Significant Investments:
  • Acquisition of 15% in Panteon Fintech Limited (HK\$9.9 million), an associate focused on fintech settlement platforms, with guaranteed board representation.
  • Acquisition of 10 office property units in Shenzhen for RMB45 million (HK\$49.5 million) to support Web 3.0 business expansion. This move is intended to reduce long-term rental risks and provide a stable base for future growth.

Strategic Shift to Web 3.0 and Blockchain

• Company is making a decisive move into Web 3.0 and blockchain technology. R&D investment has begun, a core technical team has been assembled, and commercialisation plans are being evaluated.
• Group aims to accelerate the integration of IT services with Web 3.0, with the goal to turn this new business into a stable source of revenue and profit in the shortest time possible.
• Further capital investment and strategic alliances are considered likely, subject to regulatory compliance.
• Company is actively exploring new investments, business lines, and partnerships for additional income streams and long-term growth.

Risk Factors and Financial Position

• Liquidity: Net current assets of HK\$27.4 million (vs. net current liabilities last year); current ratio improved to 1.41 from 0.96.
• Capital Commitments: HK\$40.1 million, up sharply from HK\$0.9 million last year—mainly due to property acquisitions.
• Borrowings: Reduced to HK\$23.9 million from HK\$35 million, with manageable interest rates.
• Going Concern: Despite improved position, the company still faces material uncertainty if further fund-raising or refinancing plans are not successful.
• Customer Concentration: Top five customers account for nearly 80% of total sales; risk mitigated by longstanding relationships but remains notable.

Corporate Governance, Shareholder and Regulatory Info

• Company has maintained sufficient public float (>25%), with major shareholder China Yuen Capital Limited holding 28.82%.
• 56.7 million share options granted to directors and employees in April 2026 at HK\$0.62, with a one-year vesting period, potentially dilutive if exercised.
• No significant breaches of law or regulations; continued focus on environmental and sustainability standards.
• No dividend proposed for FY2026.

Potentially Price-Sensitive Information

• Removal of Audit Disclaimer: A major positive for investor confidence and future financing.
• Significant capital raising and improved cash position: Strengthens the balance sheet, reduces going concern risk.
• Strategic shift into Web 3.0 and blockchain: Signals new growth potential and a move away from declining traditional segments.
• Large property acquisition in Shenzhen for Web 3.0 expansion: Indicates management’s strong commitment to the new business direction.
• Grant of substantial share options: May lead to future dilution if exercised, but also aligns management incentives with shareholder value creation.

Looking Ahead

• Management maintains an optimistic but cautious outlook amid global economic uncertainties.
• Focus for the coming year is on stabilising the traditional haircare segment, accelerating Web 3.0 commercialisation, and exploring further investments or alliances.
• Company is prepared to undertake additional fund-raising if required to support new business initiatives or liquidity needs.

Disclaimer

This article is a summary and interpretation of China In-Tech Limited’s 2026 annual report for informational purposes only. It does not constitute investment advice. Investors should conduct their own research or consult a professional adviser before making any investment decisions. The company’s performance and future outlook are subject to risks and uncertainties as described.

中國創新科技有限公司2026年年報：重大發展、財務轉機及Web 3.0戰略部署

主要財務重點

• 收入：2026財年為港幣7,680萬元，較2025年下跌27.4%。
• 淨虧損：港幣3,232萬元，較去年大幅減少40.4%（去年虧損5,421萬元）。
• 毛利：由去年虧損5,480萬元扭虧為盈，錄得6,802萬元毛利。
• 現金及銀行結餘：大幅上升至3,588萬元（去年為1,140萬元），主因成功集資。
• 總資產：截至2026年3月31日為1.45億元（上年為7,948萬元）。
• 淨資產：由負資產5,437萬元轉為正資產7,687萬元。
• 股息：本年度不派末期股息。

策略及營運發展

• 審計意見改善：上年度因持續經營不確定性獲得保留意見。經成功集資、成本控制，本年度經營前景明顯改善，保留意見已被移除，持續經營風險大大紓緩。
• 分部表現：
  • 電髮護理產品：收入大減47.6%至3,940萬元，主要因核心市場疲弱及競爭加劇。
  • 資訊科技服務：收入增長22.4%至3,739萬元，佔集團總收入近一半。
  • 五大IT分部客戶佔分部收入88%、佔集團總收入42.9%，客戶集中度高但關係深厚。
• 成本控制與重組：員工成本由收入佔比42%降至30.4%，人手由344人減至257人，行政開支大減，驅動虧損大幅收窄。
• 集資活動：
  • 2025年11月以每股0.90元發行新股1.17億股，籌得約1.04億元；
  • 2025年4月再發行4,600萬股，籌得1,000萬元。
  • 集資主要用於Web 3.0發展、人才招聘、還債及營運資金，僅剩670萬元未動用。
  • 所有認購者均非主要股東，股份分布廣泛。
• 重大投資：
  • 以990萬元收購Panteon Fintech Limited 15%股權，專注金融科技結算平台，集團獲董事會席位。
  • 以4,950萬元購買深圳10個辦公室單位，配合Web 3.0業務拓展，降低租金波動風險。

Web 3.0及區塊鏈戰略轉型

• 集團正積極開展Web 3.0及區塊鏈技術，已組建核心技術團隊，並評估商業化方案。
• 目標加快IT服務與Web 3.0融合，盡快將其打造為新盈利來源。
• 不排除進一步增資、與商業夥伴結盟，惟需合規進行。
• 積極尋求新投資、拓展多元業務，壯大收入來源。

風險因素與財務狀況

• 流動性：淨流動資產2,739萬元，流動比率由0.96升至1.41。
• 資本承擔：4,006萬元（去年僅91萬元），主因購置物業。
• 借貸：由3,500萬元降至2,386萬元，利率溫和。
• 持續經營：雖然狀況改善，如未能成功集資或再融資，仍存一定不確定性。
• 客戶集中度高：五大客戶佔總銷售近八成，雖關係穩定但風險不容忽視。

企業管治、股東及監管資訊

• 維持足夠公眾持股量（>25%），主要股東中國元資本持有28.82%。
• 2026年4月授予董事及員工5,670萬份期權，行使價0.62元，1年後可行使，未來或具稀釋效應。
• 無重大違法或違規事件，持續重視環保及可持續發展。
• 本年度不派息。

可能影響股價之重點

• 審計保留意見撤銷：有助提升市場信心及未來融資能力。
• 成功集資及現金充裕：大幅減低持續經營風險，鞏固資產負債表。
• Web 3.0區塊鏈新業務布局：為集團開啟新增長點，擺脫傳統業務下滑困局。
• 深圳大規模購置物業：顯示公司對新業務發展決心。
• 大量期權發放：將來或稀釋現有股東，但有助激勵管理層。

展望

• 管理層於全球經濟不明朗下，持審慎樂觀態度。
• 今年重點：穩定電髮業務，加速Web 3.0商業化，尋求更多投資及合作。
• 如有需要，會再進行集資以支持新業務及流動性需求。

免責聲明

本文章僅為中國創新科技有限公司2026年年報之摘要及解讀，僅供參考，並不構成任何投資建議。投資者應自行研究或諮詢專業顧問後才作出投資決定。公司業績及前景存在風險及不確定性，請留意相關披露。

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