Xiamen – October 14, 2026 -- High Templar Tech Limited (NYSE: HTT) will bear a tax liability of RMB790 million (US$116 million) tied to historical restructurings of two consolidated entities, as first-half 2026 revenue fell 72.7% to RMB8.0 million (US$1.2 million) after the company fully wound down its last-mile delivery business.
Tax notice targets CEO Luo Min over past equity restructurings
The Xiamen Municipal Tax Bureau issued a notice to Chairman and CEO Luo Min concerning equity restructurings of Xiamen Qudian Technology Co., Ltd. and Xiamen Lexiang Time Technology Co., Ltd. Under PRC tax law, the restructurings are taxable events for Mr. Luo, subject to individual income tax as income from transfer of property.
Mr. Luo held his equity in both entities as nominee solely for the company's benefit, and the restructurings were carried out at the company's instruction. The board, with Mr. Luo abstaining, resolved that the company will bear all related tax, late surcharges and penalties. Mr. Luo has filed for RMB790 million in tax payable, expected to be paid soon.
Discussions with tax authorities are ongoing, and the company does not exclude further taxes, surcharges or penalties. It is also evaluating the impact on other similar historical restructurings and will record accounting provisions and make further disclosures as required.
Net income slips 9.7% to RMB416.9 million on investment income
Net income attributable to shareholders was RMB416.9 million (US$61.4 million), against RMB461.9 million a year earlier. Net income per diluted ADS was RMB2.64 (US$0.39).
Interest and investment income, net, rose to RMB1,283.6 million (US$189.2 million) from RMB605.9 million. A derivative instrument loss of RMB602.7 million (US$88.8 million) offset part of the gain, versus a RMB77.5 million gain in the prior-year period. The company attributed the loss to a decline in the quoted price of the underlying equity securities.
G&A jumps 61.0% to RMB183.9 million as headquarters costs hit
Total operating costs and expenses fell 10.0% to RMB188.1 million (US$27.7 million). General and administrative expenses rose 61.0% to RMB183.9 million (US$27.1 million), driven by higher depreciation after completion of the headquarters, loan arrangement fees on borrowings and employee benefits.
Cost of revenues dropped 77.7% to RMB6.5 million (US$1.0 million). Research and development spending fell 75.0% to RMB6.1 million (US$0.9 million) on lower headcount. Loss from operations was RMB180.0 million (US$26.5 million), versus RMB179.3 million a year earlier.
Restricted cash of RMB2,322.5 million limits liquidity
As of June 30, 2026, cash and cash equivalents stood at RMB3,811.5 million (US$561.7 million). Restricted cash totaled RMB2,322.5 million (US$342.3 million), mainly security deposits guaranteeing short- and long-term borrowings, and is unavailable for general liquidity needs.
Operating activities generated RMB1,142.6 million (US$168.4 million), mainly from interest and investment income. Investing activities used RMB1,752.3 million (US$258.3 million), chiefly deposits pledged as collateral for derivative instruments. Financing activities used RMB225.2 million (US$33.2 million), mainly for ADS repurchases, partly offset by long-term borrowing proceeds.
Buyback reaches US$208.3 million of US$300 million program
Under the 36-month program approved in March 2024 and launched June 13, 2024, the company bought 69.1 million ADSs through October 13, 2026, for about US$208.3 million, an average of US$3.0 per ADS. Separately, as of October 13, 2026, it had purchased 223.4 million ADSs in aggregate for about US$902.5 million, an average of US$4.0 per ADS.
The figures are unaudited and preliminary, and year-end audit adjustments could produce significant differences.