Golden Power Group releases 2026 interim financial report

Summary

Golden Power Group (03919.HK) reported a significant widening of its H1 2026 net loss to HK$9.96 million, up from HK$3.16 million YoY etnet. Revenue fell 13.2% to HK$138 million, while gross profit dropped 22.7% due to customer price sensitivity, RMB appreciation, and reduced export tax rebates etnet. The board skipped the interim dividend .

Impact Analysis

So basically, Golden Power is caught in a classic margin squeeze, and it’s getting ugly. The H1 2026 loss didn’t just widen; it tripled to nearly HK$10M etnet. The real tell here isn’t just the 13% revenue drop, but management’s admission that customers couldn’t stomach higher prices . When you can’t pass on costs during a period of RMB appreciation and shipping disruptions, you’ve lost your competitive moat.

The 22.7% drop in gross profit shows exactly how thin their buffer has become, with margins sliding to 17.4% etnet. They raised a tiny HK$7.67M in May for a “special battery” pivot, which feels like a drop in the bucket while the core business bleeds . Market’s missing that this isn’t just a “macro headwind” story—it’s a fundamental pricing power crisis. I’d read this as a value trap; until they prove the new battery segment has actual leverage, there’s no bottom in sight. Avoid.