Royale Home Holdings Limited released its unaudited interim results for the six months ended 30 June 2026, reporting a sharp deterioration in earnings against a backdrop of subdued domestic furniture demand and a sizeable fair-value writedown on investment properties.

Revenue fell 43.1% year on year to RMB99.12 million, reflecting weaker sales in all major divisions. Furniture manufacturing and sales, the core business, declined to RMB94.89 million from RMB165.11 million. Hotel operations contributed RMB4.03 million, down 53.5%, while property-related income slipped to RMB0.21 million.

Gross profit narrowed 28.7% to RMB6.59 million, yet the margin edged up to 6.6% (1H25: 5.3%) on cost-control initiatives. Other income and gains more than doubled to RMB49.81 million, aided by a RMB34.07 million interest income boost and a RMB12.83 million gain on early bond redemption.

Earnings were weighed by a RMB97.01 million fair-value loss on investment properties, a RMB21.22 million expected credit loss provision and a RMB20.09 million asset impairment. Coupled with finance costs of RMB97.63 million and a RMB90.19 million share of associates’ losses, loss before tax widened to RMB382.33 million (1H25: RMB282.31 million). Net loss attributable to shareholders expanded 24.1% to RMB333.32 million, translating into a basic and diluted loss per share of 13.45 RMB cents (1H25: 10.84 RMB cents).

Total assets declined to RMB3.78 billion as at 30 June 2026 (31 December 2025: RMB4.50 billion), while net assets more than halved to RMB334.35 million. The Group swung to net current liabilities of RMB427.39 million versus net current assets of RMB10.17 million six months earlier, driven by a 42.0% contraction in current assets and marginal easing of current liabilities.

Interest-bearing bank and other borrowings rose to RMB893.33 million; combined with shareholder and related-party loans of RMB2.13 billion, the gearing ratio increased to 93% (end-2025: 86%). Cash and cash equivalents stood at RMB33.87 million, down from RMB78.30 million. Management highlighted a material uncertainty over going-concern status but outlined measures including loan renewals backed by Science City guarantees, asset disposals and intensified collection efforts.

Capital commitments were modest, and the company executed early redemption and full repurchase of outstanding medium-term bonds totaling RMB29.50 million during the period. No interim dividend was declared.

Looking ahead, the Board intends to pursue overseas expansion, deepen industrial renovation partnerships, and continue cost-efficiency initiatives, while monitoring liquidity and debt-restructuring opportunities amid ongoing industry consolidation and weak domestic demand.