Powerwin Tech released its unaudited 2026 interim results, highlighting a sharp decline in legacy marketing income alongside rapid execution of its new artificial-intelligence strategy.

Revenue and Profitability • Top-line contracted 76.8% year on year to USD 0.76 million, reflecting the July 2025 disposal of the traditional standardised digital-marketing subsidiary and the industry downturn. • Gross margin swung to –27.7% (1H25: +69.5%) on fixed cost overhang, delivering a gross loss of USD 0.21 million versus a USD 2.26 million profit a year earlier. • Net loss narrowed to USD 1.55 million (1H25: USD 3.76 million) as finance costs dropped 96% to USD 0.07 million after debt reduction.

Strategic Transformation • Following the disposal of Powerwin Media Group, the company ceased standardised cross-border digital-marketing services and merged customised offerings into its Adorado SaaS platform. • In May 2026 Powerwin completed the pilot launch of PowerTokens, a proprietary all-in-one SaaS marketplace aggregating China-developed large-language and multimodal AI models. External promotion began in June; by 30 June the platform recorded c.4,200 registered users and c.1,800 paid recharge accounts. • Management positions the AI computing IT services business as the principal growth engine, aiming to offset cyclicality in traditional advertising demand.

Segment Performance • SaaS-based digital marketing revenue slid 38.0% to USD 0.57 million amid reduced client ad budgets. • Cross-border online-shop SaaS solutions contributed USD 0.19 million, down 36.5% on macro softness in e-commerce. • No revenue was recorded from standardised or customised digital-marketing services post-divestment.

Cost Structure • Cost of sales was stable at USD 1.0 million, but the revenue shortfall led to negative gross profit. • Administrative expenses fell 27% to USD 1.61 million, helped by lower trade-credit insurance premiums and amortisation. • Expected credit-loss provisions on receivables declined 92% to USD 0.19 million, mirroring a smaller receivables base.

Balance Sheet and Liquidity • Cash and cash equivalents totalled USD 17.10 million (31 Dec 2025: USD 19.81 million), sufficient for near-term PowerTokens roll-out. • Net current assets stood at USD 18.13 million; the group remained in a net cash position with USD 1.94 million payable to the disposed subsidiary as the sole interest-bearing obligation. • Gearing ratio edged up to 8.1% (31 Dec 2025: 7.4%) due to lower equity, while debt-to-equity stayed in net-cash territory.

R&D and Workforce • R&D spend reached USD 0.54 million; headcount declined to 43 from 60, aligning with the streamlined business model.

Dividend and Outlook • No interim dividend was declared. • Management reiterates commitment to “innovation-driven growth, ecosystem empowerment and open collaboration,” targeting continuous enhancement of PowerTokens, expansion of domestic AI model partnerships, and deeper global penetration in the second half of 2026.