Minerva Group Posts Smaller Interim Loss on Lower Fair-Value Write-downs; Rights Issue Raises HK$43.36 Million

Bulletin Express
Aug 27

Minerva Group (00397) reported a narrowed net loss for the six months ended 30 June 2026 as smaller fair-value losses offset softer revenue from money-lending and financial-services operations.

Revenue declined 14.9 % year on year to HK$26.97 million, reflecting a HK$3.26 million drop in interest income from the money-lending unit and a HK$1.17 million slide in brokerage and corporate-finance fees. Money lending remained the principal contributor, accounting for 79 % of group turnover.

Loss attributable to shareholders improved to HK$34.38 million from HK$36.86 million, aided by a reduced HK$19.83 million fair-value loss on financial assets at fair value through profit or loss (FVTPL) versus HK$27.28 million a year earlier. The period also saw an HK$11.51 million impairment charge on loans and interest receivables, down from HK$19.91 million.

No interim dividend was declared.

Balance-sheet metrics remained robust: • Cash and bank balances rose to HK$147.18 million (31 Dec 2025: HK$142.79 million). • Net current assets stood at HK$898.07 million with a current ratio of 19.8 times. • Total FVTPL assets were HK$365.48 million, of which HK$189.64 million was invested in Town Health International Medical Group shares. • Loans and interest receivables fell 4.5 % to HK$356.06 million after impairment provisions. • Net assets were HK$1.02 billion.

Segment performance • Money Lending: Revenue HK$21.35 million (-13.2 %); segment loss HK$0.80 million after impairments. • Financial Services: Revenue HK$5.43 million (-17.7 %); segment loss HK$4.70 million, weighed by a HK$1.90 million trade-receivable impairment. • Assets Investment: Revenue HK$0.20 million; segment loss HK$24.23 million on fair-value and investment-property revaluations.

Capital & liquidity An investment property valued at HK$22.65 million secures HK$21.28 million in bank borrowings. Gearing (total liabilities/total assets) remains low at 4.6 %.

Post-period event On 30 July 2026 Minerva completed a non-underwritten one-for-two rights issue, issuing 1.14 billion new shares at HK$0.038 each and raising HK$43.36 million gross (HK$41.5 million net). Proceeds are earmarked mainly for expanding margin financing, upgrading trading infrastructure, and strengthening the money-lending and investment segments.

Outlook Management will maintain stringent credit controls amid persistent loan-market stress, continue to rebalance the investment portfolio, and allocate rights-issue proceeds to reinforce core businesses while preserving liquidity.

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