FAR International Holdings Group Company Limited (FAR INTL) reported a sharp turnaround for the six months ended 30 June 2026, underpinned by robust top-line growth and the first-time consolidation of newly acquired U.S. subsidiaries.

Financial highlights • Revenue jumped 82.7% year on year to RMB1.48 billion, driven by higher volumes and the addition of North American operations. • Gross profit improved 10.6% to RMB81.54 million, though the gross margin narrowed to 5.5% from 9.1% due to a heavier mix of lower-margin freight forwarding income. • The Group recorded a profit attributable to shareholders of RMB4.92 million versus a RMB14.35 million loss a year earlier. • Finance costs rose 48.6% to RMB14.44 million as borrowings expanded; the gearing ratio climbed to 137.6% from 81.3%. • Cash and bank balances stood at RMB570.33 million, with net current assets of RMB481.30 million.

Segment performance • End-to-end cross-border delivery: revenue up 14.3% to RMB573.49 million (38.8% of total); margin slipped to 5.3%. • Freight forwarding: revenue surged 9.7-fold to RMB497.10 million (33.7% of total); margin eased to 2.2%. • Other logistics services (including U.S. last-mile and warehousing): revenue rose 56.3% to RMB406.05 million (27.5% of total); margin declined to 9.9%.

Strategic developments • Completed acquisition of 51% effective stakes in U.S. operators COPE Services Inc. and Hyperlining LLC on 28 April 2026 for US$15.70 million (approx. RMB107.73 million). The U.S. entities contributed RMB149.54 million revenue and RMB3.32 million profit in the Reporting Period. • Expanded South American network via Miami hub and local customs-clearance teams in Argentina and Ecuador. • Advanced AI-driven logistics optimisation, with applications in route planning, demand forecasting and automated documentation. • Granted 2.65 million share awards on 2 July 2026 (0.28% of issued shares) to selected employees, including two executive directors; vesting in July 2027. • Net proceeds utilisation: HK$0.9 share offer funds (RMB58.79 million) largely reallocated to overseas expansion and IT upgrades; HK$0.455/share placement in Nov 2025 raised RMB63.70 million, fully deployed by 30 June 2026, mainly for warehouse expansion.

Balance sheet and liquidity • Total assets reached RMB2.30 billion; net assets RMB834.23 million. • Borrowings increased to RMB780.53 million; lease liabilities rose to RMB367.15 million following U.S. warehouse leases. • Unutilised banking facilities amounted to RMB20.90 million.

Outlook stated by management Management will focus on “One Core, Two Wings” strategy—AI-enabled digital fulfilment as the core, with trade and financial services as complementary growth wings—while deepening platform partnerships, scaling logistics infrastructure, and pursuing selective M&A to fortify global coverage.

Dividend No interim dividend was declared for the period.

Audit and governance The interim results were reviewed by SHINEWING (HK) CPA Limited and the company’s Audit Committee, with the Board confirming ongoing compliance with the HKEX Corporate Governance Code and maintenance of sufficient public float.