Pak Tak International’s interim loss widens to HK$115m on mining costs

For the six months ended June 30, 2025, Pak Tak International reported a net loss of HK$115,509,000, a significant increase from the HK$36,808,000 net loss in the corresponding period of 2024. Revenue for the period rose to HK$444,541,000, up 17.4% from HK$378,542,000 in 2024, primarily due to HK$110,580,000 generated by the new iron ore mining and milling business. However, this was partially offset by a decrease in supply chain business revenue to HK$290,404,000 from HK$328,000,000.

The increase in loss was largely attributed to the acquisition of the mining business, which led to higher direct costs, operating and administrative expenses, and finance costs. Direct costs and operating expenses climbed to HK$421,628,000 from HK$361,464,000, while administrative expenses surged to HK$70,979,000 from HK$23,980,000. Finance costs also increased to HK$33,046,000 from HK$16,758,000. The company faces material uncertainties regarding its ability to continue as a going concern, with current liabilities exceeding current assets by HK$561,157,000 and significant borrowings due within one year.

Litigation initiated by Hua Xia Bank Co. for outstanding amounts totaling approximately 318,794,000 yuan further adds to the company's challenges. The Group is actively negotiating to extend repayment terms and secure additional funding from its substantial shareholder and other sources to mitigate liquidity pressure.