CMON Limited (01792) reported a marked improvement in its interim performance for the six months to 30 June 2026, reducing its net loss to USD 2.08 million (H1 2025: USD 6.98 million) as restructuring and cost-control measures cut expenses and restored positive gross margins.

Revenue and Profitability • Revenue grew 7.3 % year on year to USD 3.68 million, led by a 30.8 % jump in Asian sales to USD 2.04 million. Europe contributed USD 0.98 million and the Americas USD 0.64 million. • Cost of sales fell 23.1 % to USD 3.23 million, lifting gross profit to USD 0.46 million versus a USD 0.76 million gross loss a year earlier. • Selling and distribution expenses were trimmed by 53.0 % to USD 0.86 million, while general and administrative costs declined 45.8 % to USD 2.37 million. • Other gains totalled USD 0.63 million, driven by an USD 0.83 million gain on disposal of assets held for sale, partly offset by a USD 0.20 million impairment on receivables. • Basic and diluted loss per share narrowed to USD 0.03 (H1 2025: USD 0.12).

Cash Flow and Balance Sheet • Operating activities consumed USD 2.16 million (H1 2025: generated USD 2.67 million). • Net cash from investing amounted to USD 2.27 million, reflecting proceeds from asset disposals. Financing outflows were USD 0.04 million, bringing net cash and cash equivalents to USD 0.50 million at period-end (31 December 2025: USD 0.43 million). • The Group held no bank borrowings at 30 June 2026, down from USD 1.16 million at year-end 2025. • Net current liabilities widened to USD 7.34 million, while total net liabilities stood at USD 4.46 million, weighed by contract liabilities of USD 7.57 million. Management reiterated its going-concern assumption, citing prospective director support, the forthcoming rights issue, and ongoing cost-reduction measures.

Capital Moves • In February 2026 CMON raised gross proceeds of HKD 9.80 million through a placing of 10.32 million shares at HKD 0.95 each; the HKD 9.40 million net proceeds were fully deployed for marketing, game development and working capital by 30 June 2026. • A rights issue announced in June and detailed in an 11 August 2026 prospectus proposes three rights shares for every existing share at HKD 0.81, targeting gross proceeds of up to HKD 150.50 million (net HKD 146.20 million) to strengthen liquidity, repay liabilities and fund expansion. • Post-period, the Board cancelled a planned 2.2 % equity acquisition announced in April 2026 after conditions precedent were unmet, stating no material financial impact.

Operational Focus and Outlook Management highlighted continued emphasis on fulfilling outstanding customer commitments, prudent cost management, and selective game development, with Asia remaining the key growth region. The Board did not declare an interim dividend.