CAQ Holdings Limited (ASX: CAQ), a company whose principal activity includes leasing of an investment property in the Haikou Free Trade Zone in the Peoples Republic of China, has released its consolidated interim financial report for the half-year ended 30 June 2025. The report indicates a net loss after tax of $985,263, an increase from the $684,650 loss reported in the corresponding period of the previous year. This increase in loss is primarily attributed to a drop in the fair value of the company’s investment properties.
Revenue from ordinary activities experienced a significant decline, falling by 29.6% to $624,571. This decrease in revenue from the property leasing business was due to the charge rate by a warehouse tenant upon the renewal of new lease in November 2024. The new lease was charged based on volume of goods stored in the warehouse instead of area occupied, and since April 2025 there was no new goods kept in the warehouse so nil lease income was received from the warehouse tenant. Total rental income generated from this tenant for the half-year ended 30 June 2025 amounted to $159,715 (2024: $382,335).
The company has not proposed the payment of either a final or interim dividend. Net tangible assets per ordinary share remain at 8 cents. Directors have received a letter of support from a shareholder to provide working capital funds of up to A$700,000 over the 12 month period starting from 1 July 2025, which is undrawn at the date of this report.
Ernst & Young issued a disclaimer of conclusion on the half-year financial report. The auditor noted that the Group incurred a net loss after tax for the half-year ended 30 June 2025 of $985,263 and reported a net current liability position of $3,743,189 as at 30 June 2025, and was unable to obtain sufficient appropriate evidence to determine whether the funding being relied on by the directors will be available.
