Tenet Fintech Group (CSE: PKK) increased quarterly revenue more than 120-fold, but its Q2 2026 results show the expansion was overwhelmingly concentrated in a single Chinese customer rather than the data and analytics products the company is positioning as its longer-term business.
Revenue reached $52.79 million for the three months ended June 30, up from $433,570 a year earlier and $11.54 million in Q1.
The source of the jump was highly concentrated. Tenet reported $52.21 million in supply-chain service revenue during Q2, representing about 99% of consolidated revenue. All of that supply-chain revenue came from its November 2025 agreement with Chengdu Honglongyi Trading Co. Ltd., or CHTL, under which the Toronto-based fintech sources construction products, equipment, and materials through its GoldRiver platform.
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The CHTL agreement contemplates approximately RMB 1.0 billion to RMB 2.0 billion, or roughly $200.0 million to $400.0 million, of procurement volume through GoldRiver during 2026. Through the first six months, the agreement generated approximately $63.0 million for Tenet.
Net income was $2.66 million, reversing a $1.83 million loss last year and increasing from $728,475 in the first quarter.
Company-wide revenue for the first half reached $64.32 million, compared with $612,731 a year earlier. Tenet disclosed that approximately 98% of its 2026 revenue through June came from CHTL.
It also sourced 100% of its product purchases from three suppliers, with 77% coming from Xizang Jiamao Trading Co. Ltd., 21% from Tibet Bosi Modern Trading Co. Ltd., and 2% from Wuxi Manding Technology Co. Ltd.
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Thin margins
The revenue increase brought a correspondingly large increase in direct costs. Cost of service and delivery jumped to $47.36 million from $142,500 a year ago as Tenet purchased the products and materials subsequently sold through GoldRiver.
Against consolidated revenue of $52.79 million, that left approximately $5.42 million before Tenet’s remaining operating expenses, equivalent to about 10.3% of revenue.
Tenet describes its existing supply-chain business as producing gross margins of roughly 8% to 10%. The company is targeting much higher margins of 70% to 80% from its planned data-derived subscription products, but those figures remain management expectations.
The distinction matters because Tenet’s MD&A says its data products were still in the development or conceptual stage during Q2 and generated no revenue. North American operations also contributed no revenue during the quarter.
Adjusted EBITDA improved to $4.00 million from negative $1.70 million a year earlier. Salaries and benefits declined to $692,426 from $1.41 million, while professional fees fell to $55,300 from $407,113.
Profit did not translate into operating cash
Despite the $2.66 million quarterly profit, Tenet used $2.72 million of cash in operating activities, compared with $828,928 used a year earlier.
The difference came primarily from working capital. Changes in working capital consumed $5.61 million during Q2 as large June deliveries under the CHTL agreement created receivables that remained outstanding at quarter-end. Tenet said 80% of those receivables had subsequently been collected by August 26.
Cash ended June at $2.94 million, compared with $2.31 million at the beginning of the quarter. Tenet said combined cash available across its Canadian and Chinese operations was approximately $6.34 million as of August 26.
The scale-up substantially changed Tenet’s balance sheet. Total assets rose to $75.17 million at June 30 from $30.29 million at year-end, largely because accounts receivable increased by approximately $42.0 million. Amounts due from CHTL totaled about $45.3 million, representing 99% of net accounts receivable at quarter-end.
Total liabilities also climbed to $67.66 million from $29.93 million, driven largely by roughly $37.5 million of additional trade payables associated with purchases from the three principal suppliers supporting the CHTL business.
Tenet most recently guided to $120.0 million to $130.0 million of revenue for 2026 after reporting approximately $16.8 million of supply-chain sales in July. That forecast excludes revenue from potential new agreements and the commercialization of its data products.
The company said it has signed another GoldRiver agreement this month under which Sum Hung Hang Tai Trading Ltd. agreed to purchase at least $225.0 million per year of products and services for three years.
