Ruixin International Swings to Zero Revenue but Narrows Interim Loss

Ruixin International Holdings Ltd. ( (HK:0724) ) has provided an update.

Ruixin International Holdings reported no revenue for the six months ended 30 June 2024, compared with HK$56.2 million a year earlier, as its electronic products business was severely affected by a weak global economy, tariff issues, rising interest rates and fierce industry competition. Despite the revenue collapse, the group’s interim loss narrowed to HK$20.4 million from HK$34.8 million, mainly because costs in the electronics segment were cut back to basic operating levels, although imputed interest on convertible notes and shareholder loans continued to weigh on results and no interim dividend was declared.

Excluding imputed interest expenses on convertible notes and loans from a substantial shareholder, the underlying loss shrank to HK$9.2 million from HK$25.5 million, signaling some operational improvement amid the downturn. However, the absence of revenue, ongoing financing-related charges and the board’s decision to withhold dividends underscore the persistent financial strain on the company and highlight continued risks for shareholders and creditors as the group struggles to stabilize its core business.

More about Ruixin International Holdings Ltd.

Ruixin International Holdings Ltd., incorporated in Bermuda and listed in Hong Kong, operates an electronic products business that has been hit by weakening global economic conditions, tariff protection measures, higher interest rates and intense industry competition. The group’s poor financial position has further undermined customer confidence and the image of its electronics operations, pressuring revenue and constraining its ability to invest for growth.

Technical Sentiment Signal: Sell

Current Market Cap: HK$8.82M

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