Core Viewpoint - Yufengchang Holdings announced that its shares will be temporarily suspended from trading starting at 9 AM on August 7, 2025, pending the release of an insider information announcement in accordance with the Hong Kong Code on Takeovers and Mergers [1] Company Summary - The company is preparing to disclose insider information, which is significant enough to warrant a trading halt [1]

Group 1 - Yufengchang Holdings (08631.HK) announced a temporary suspension of trading starting at 9:00 AM today (August 7, 2025) [1]

Core Viewpoint - Yufengchang Holdings (08631) announced that its shares will be temporarily suspended from trading starting at 9:00 AM on August 7, 2025, pending the release of an insider information announcement in accordance with the Hong Kong Code on Takeovers and Mergers [1] Group 1 - The company is preparing to disclose insider information [1] - The trading suspension is set to last until the announcement is made [1] - The announcement is related to compliance with regulatory requirements [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 主席兼執行董事 王新龍 裕 豐 昌 控 股 有 限 公 司 YUFENGCHANG HOLDINGS LIMITED 香港，二零二五年八月七日 （於開曼群島註冊成立之有限公司） 應裕豐昌控股有限公司（「本公司」）之要求，本公司股份將自二零二五年八月七日上午 九時正起於香港聯合交易所有限公司短暫停止買賣，以待本公司根據《香港公司收購及 合併守則》刊發一則有關本公司內幕消息的公佈。 承董事會命 裕豐昌控股有限公司 （股份代號：8631） 短暫停牌 於本公告日期，本公司執行董事為王新龍先生（主席）、任榮先生（行政總裁）、閆磊先生 及羅名譯先生；及本公司獨立非執行董事為王俊霞博士、何軍龍先生及梁麗娜女士。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 裕豐昌控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08631 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 300,000,000 | HKD | | 0.1 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 300,000,000 | HKD | | 0.1 | HKD | | 30,000,000 | 本月底法定/註冊股本總額： HKD 30,000,000 第 1 頁 共 ...

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally small an ...

Announcement Information [Disclaimer and GEM Characteristics](index=1&type=section&id=%E9%A6%99%E6%B8%AF%E8%81%AF%E5%90%88%E4%BA%A4%E6%98%93%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%EF%BC%88%E3%80%8C%E8%81%AF%E4%BA%A4%E6%89%80%E3%80%8D%EF%BC%89GEM%E4%B9%8B%E7%89%B9%E8%89%B2) The Hong Kong Exchange and Stock Exchange disclaim responsibility for this announcement, as GEM targets high-risk SMEs with potentially volatile and illiquid securities - The Hong Kong Exchange and the Stock Exchange are not responsible for the content of this announcement, make no representations, and accept no liability for any loss[1](index=1&type=chunk)[3](index=3&type=chunk) - GEM is positioned for small and medium-sized companies with higher investment risks; investors should understand the potential risks[3](index=3&type=chunk) - GEM securities may be subject to significant market volatility, and high liquidity cannot be assured[3](index=3&type=chunk) [Annual Results Summary](index=2&type=section&id=%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE%E5%85%AC%E4%BD%88%E6%91%98%E8%A6%81) For the year ended March 31, 2025, the Group's revenue decreased by 19.6% to 55.5 million HKD, gross margin fell to 0.2%, loss attributable to owners expanded to 38.6 million HKD, and no dividend is recommended Summary of Key Financial Data for FY2025 | Metric | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Revenue | 55.5 | 69.0 | | Gross Margin | 0.2% | 7.9% | | Loss Attributable to Owners | 38.6 | 10.7 | | Dividends | Not recommended | Not recommended | Consolidated Financial Statements [Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the year ended March 31, 2025, the Group's revenue was 55.5 million HKD, gross profit only 107 thousand HKD, leading to an expanded annual loss of 38.6 million HKD, and basic loss per share of 96.43 HK cents Key Data from Consolidated Statement of Comprehensive Income (thousand HKD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 55,498 | 69,032 | | Cost of Sales | (55,391) | (63,578) | | Gross Profit | 107 | 5,454 | | Other Income | 574 | 260 | | Selling Expenses | (136) | – | | Administrative and Other Operating Expenses | (9,163) | (7,569) | | Impairment Losses Recognized, Net | (29,531) | (8,173) | | Finance Costs | (424) | (634) | | Loss Before Tax | (38,573) | (10,662) | | Loss for the Year | (38,573) | (10,662) | | Basic Loss Per Share (HK cents) | (96.43) | (26.66) | [Consolidated Statement of Financial Position](index=4&type=section&id=%E6%96%BC2025%E5%B9%B43%E6%9C%8831%E6%97%A5) As of March 31, 2025, the Group's non-current assets significantly decreased, current assets slightly declined, and current liabilities substantially increased, resulting in net current liabilities of 9.8 million HKD and net liabilities of 9.3 million HKD, with total equity turning into a deficit Key Data from Consolidated Statement of Financial Position (thousand HKD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Non-current Assets | 477 | 9,310 | | Current Assets | 36,572 | 40,925 | | Current Liabilities | 46,327 | 20,939 | | Net Current (Liabilities) Assets | (9,755) | 19,986 | | Net (Liabilities) Assets | (9,278) | 29,296 | | Share Capital | 4,000 | 4,000 | | Reserves | (13,278) | 25,296 | | Total Equity (Deficit) | (9,278) | 29,296 | [Notes to the Consolidated Financial Statements](index=5&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes detail company information, accounting standard application, going concern assessment, revenue composition, other income and finance costs, tax policy, expense breakdown, and changes in receivables and payables, highlighting significant going concern uncertainties and management's responses - The Company was incorporated on October 31, 2017, listed on GEM on January 8, 2019, primarily engaged in diesel and related product sales, auxiliary transportation services, and commenced e-commerce business in FY2025[7](index=7&type=chunk)[8](index=8&type=chunk) - Mr. Wang Xinlong became the ultimate controlling party of the Company in September 2024[8](index=8&type=chunk)[9](index=9&type=chunk) - The consolidated financial statements are presented in HKD[10](index=10&type=chunk) - This year, the Group first applied amendments to HKFRS 16, HKAS 1, and HKAS 7, which had no significant impact on financial position or performance[11](index=11&type=chunk)[13](index=13&type=chunk) - Significant uncertainties exist that may cast substantial doubt on the Group's ability to continue as a going concern, as FY2025 recorded a net loss of **38.6 million HKD**, net cash used in operating activities of **10.7 million HKD**, current liabilities exceeding current assets by **9.8 million HKD**, and net liabilities of **9.3 million HKD**[17](index=17&type=chunk) - To address going concern issues, management has taken measures to accelerate trade receivables collection, actively negotiate new financing arrangements, and secured financial support and debt repayment commitments from directors[18](index=18&type=chunk)[19](index=19&type=chunk) - The directors believe that, based on the successful implementation of these plans, the Group will have sufficient cash resources to meet future working capital and financial obligations, thus preparing financial statements on a going concern basis[19](index=19&type=chunk) - FY2025 revenue composition diversified, with Hong Kong diesel sales of **41.2 million HKD**, China petroleum derivative product sales of **10.9 million HKD**, and e-commerce business of **1.9 million HKD**[20](index=20&type=chunk) - Other income for FY2025 was **574 thousand HKD**, primarily from net gain on disposal of property, plant and equipment and government grants[21](index=21&type=chunk) - Finance costs for FY2025 were **424 thousand HKD**, mainly bank overdraft interest and bank loan interest[21](index=21&type=chunk) - Hong Kong profits tax is 16.5%, and Chinese subsidiaries' tax rate is 25%, but the Group had no assessable profits in FY2025 and FY2024, thus no income tax expense[22](index=22&type=chunk) Major Components of Loss Before Tax (thousand HKD) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Staff Costs | 5,164 | 4,521 | | Auditor's Remuneration (Audit + Non-audit) | 620 | 835 | | Cost of Inventories | 52,368 | 59,765 | | Depreciation of Property, Plant and Equipment | 1,590 | 2,459 | | Amortization of Intangible Assets | 1,059 | 88 | Loss Per Share (HK cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic Loss Per Share | (96.43) | (26.66) | | Weighted Average Number of Ordinary Shares | 40,000,000 | 40,000,000 | - For the year ended March 31, 2025, the Company neither paid nor proposed any dividends[25](index=25&type=chunk) Trade Receivables, Net (thousand HKD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Trade Receivables - Customer Contracts | 72,728 | 56,709 | | Less: Provision for Credit Losses | (42,274) | (18,783) | | Trade Receivables, Net | 30,454 | 37,926 | Ageing Analysis of Trade Receivables (thousand HKD) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | Within 30 days | 8,886 | 1,778 | | 31 to 60 days | 5,357 | 1,209 | | 61 to 90 days | 396 | 831 | | 91 to 365 days | 7,368 | 38,982 | | Over 1 year | 50,721 | 13,909 | | **Total** | **72,728** | **56,709** | Trade Payables (thousand HKD) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Trade Payables | 19,152 | 1,686 | Ageing Analysis of Trade Payables (thousand HKD) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | Within 30 days | 9,371 | 360 | | 31 to 60 days | 10 | 895 | | 61 to 90 days | 4,592 | 431 | | 91 to 180 days | 4,520 | – | | Over 180 days | 659 | – | | **Total** | **19,152** | **1,686** | [General Information](index=5&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company was incorporated on October 31, 2017, listed on GEM on January 8, 2019, primarily engaged in diesel and related product sales, auxiliary transportation services, and commenced e-commerce business in FY2025; Mr. Wang Xinlong became the ultimate controlling party in September 2024, and consolidated financial statements are presented in HKD [Application of Accounting Standards](index=6&type=section&id=2.%20%E6%87%89%E7%94%A8%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) This year, the Group first applied amendments to HKFRS 16, HKAS 1, and HKAS 7, which had no significant impact on financial position or performance; these amendments primarily clarify criteria for classifying liabilities as current or non-current, especially those with covenants [Basis of Preparation and Going Concern](index=8&type=section&id=3.%20%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) In FY2025, the Group recorded a net loss, net cash outflow from operations, current liabilities exceeding current assets, and net liabilities, raising significant doubt about its going concern ability; management has implemented measures including accelerating receivables collection, seeking new financing, and securing directors' financial support to ensure continued operations [Revenue](index=9&type=section&id=4.%20%E6%94%B6%E7%9B%8A) FY2025 revenue diversified, with Hong Kong diesel sales of 41.2 million HKD, China petroleum derivative product sales of 10.9 million HKD, and e-commerce business of 1.9 million HKD [Other Income and Finance Costs](index=10&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) FY2025 other income was 574 thousand HKD, mainly from net gain on disposal of property, plant and equipment and government grants; finance costs were 424 thousand HKD, primarily bank overdraft and loan interest [Income Tax Expense](index=10&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Hong Kong profits tax is 16.5%, Chinese subsidiaries' tax rate is 25%, but the Group had no assessable profits in FY2025 and FY2024, thus no income tax expense [Components of Loss Before Tax](index=11&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D%E4%B9%83%E6%89%A3%E9%99%A4%E4%BB%A5%E4%B8%8B%E5%90%84%E9%A0%85%E5%BE%8C%E5%BE%97%E5%87%BA) Loss before tax primarily comprised staff costs, auditor's remuneration, cost of inventories, depreciation of property, plant and equipment, and amortization of intangible assets; FY2025 saw increased staff costs and intangible asset amortization, while inventory costs and depreciation decreased [Loss Per Share](index=12&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) FY2025 basic loss per share significantly expanded to 96.43 HK cents from 26.66 HK cents in FY2024; no diluted loss per share is presented due to the absence of potential ordinary shares [Dividends](index=12&type=section&id=10.%20%E8%82%A1%E6%81%AF) For the year ended March 31, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders, nor has any dividend been recommended since the end of the reporting period [Trade Receivables](index=12&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of March 31, 2025, net trade receivables were 30.5 million HKD, a decrease from 2024, but credit loss provisions significantly increased; the ageing analysis shows a notable rise in receivables over one year old [Trade Payables](index=13&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of March 31, 2025, trade payables were 19.2 million HKD, a significant increase from 2024; supplier credit terms are generally 1 to 180 days, and the ageing analysis indicates an increase in longer-aged payables Independent Auditor's Report [Opinion](index=14&type=section&id=%E6%84%8F%E8%A6%8B) The auditor believes the consolidated financial statements fairly and truly reflect the Group's financial position as of March 31, 2025, and its financial performance and cash flows for the year then ended, prepared in accordance with HKFRS - The auditor believes the consolidated financial statements truly and fairly reflect the Group's financial position, performance, and cash flows, complying with Hong Kong Companies Ordinance disclosure requirements[33](index=33&type=chunk) [Material Uncertainty Related to Going Concern](index=14&type=section&id=%E6%9C%89%E9%97%9C%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E7%9A%84%E9%87%8D%E5%A4%A7%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7) The auditor highlights that the Group's FY2025 net loss, net cash outflow from operations, current liabilities exceeding current assets, and net liabilities indicate a material uncertainty that may cast significant doubt on its going concern ability, though the auditor's opinion is not modified in this respect - As of March 31, 2025, the Group recorded a net loss of **38.6 million HKD**, net cash outflow from operating activities of **10.7 million HKD**, current liabilities exceeding current assets by **9.8 million HKD**, and net liabilities of **9.3 million HKD**[34](index=34&type=chunk) - These events and conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[34](index=34&type=chunk) - The auditor's opinion is not modified in respect of this going concern matter[34](index=34&type=chunk) [Scope of Auditor's Work](index=15&type=section&id=%E4%B9%85%E5%AE%89%EF%BC%88%E9%A6%99%E6%B8%AF%EF%BC%89%E6%9C%83%E8%A8%88%E5%B8%AB%E4%BA%8B%E5%8B%99%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%B7%A5%E4%BD%9C%E7%AF%84%E5%9C%8D) The figures in this preliminary announcement for the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes have been agreed by auditor Kiu On (Hong Kong) CPA Limited to match the audited consolidated financial statements; however, their work does not constitute an assurance engagement, thus no assurance opinion is expressed - The financial figures in the preliminary announcement have been agreed by auditor Kiu On to be consistent with the audited consolidated financial statements[36](index=36&type=chunk) - The work performed by the auditor in this regard does not constitute an assurance engagement, and accordingly, no opinion or assurance conclusion is expressed[36](index=36&type=chunk) Management Discussion and Analysis [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's business encompasses diesel and petroleum derivative sales and mainland China e-commerce; Hong Kong diesel revenue contracted by 38% to 42.6 million HKD, while new mainland China segments contributed 12.9 million HKD, leading to total revenue of 55.5 million HKD but expanded loss due to increased impairment - The Group's business comprises two strategic segments: diesel and petroleum derivative sales and transportation, and mainland China e-commerce[37](index=37&type=chunk) - Revenue from Hong Kong diesel and AdBlue product sales and transportation business was **42.6 million HKD**, a significant year-on-year contraction of **38%**, primarily due to fluctuations in local market demand in Hong Kong[37](index=37&type=chunk) - Petroleum derivative sales and transportation business expanded into mainland China, focusing on polypropylene product supply chain, contributing **10.9 million HKD** in revenue during the first reporting period[37](index=37&type=chunk) - The Group launched e-commerce operations in January 2025 to penetrate the mainland China market, recording **2.0 million HKD** in revenue in the first quarter[38](index=38&type=chunk) - In FY2025, diesel and petroleum derivative sales and transportation businesses collectively contributed **53.5 million HKD** in revenue (**96.4%** of total revenue), with traditional diesel business accounting for **76.7%**, mainland China petroleum derivative sales **19.7%**, and e-commerce business **3.6%**[39](index=39&type=chunk) - Loss attributable to owners for FY2025 was approximately **38.6 million HKD**, primarily due to a twofold increase in impairment losses to **29.5 million HKD**[39](index=39&type=chunk) [Future Outlook](index=16&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Facing persistent headwinds in traditional diesel business, the Group will optimize operational efficiency, seize market recovery opportunities, expand petroleum derivative business, deepen industrial chain layout, and continuously improve e-commerce channel development to achieve diversified growth and risk reduction - The Group will optimize operational efficiency in its traditional diesel business and seize market recovery opportunities[40](index=40&type=chunk) - The Group will further expand its petroleum derivative business scale and deepen its industrial chain layout[40](index=40&type=chunk) - Continuous improvement of e-commerce channel development and enhancement of end-sales capabilities will provide key avenues for growth and risk reduction[40](index=40&type=chunk) [Financial Review](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) FY2025 revenue decreased by 19.6% year-on-year to 55.5 million HKD, primarily due to lower Hong Kong diesel sales, though new contributions from mainland China petroleum derivative sales and e-commerce diversified revenue sources; cost of sales decreased with lower volume, but gross margin significantly declined due to unchanged fixed costs, and increased impairment losses led to an expanded net loss - FY2025 revenue was **55.5 million HKD**, a **19.6%** decrease from **69.0 million HKD** in FY2024[41](index=41&type=chunk) - Revenue sources significantly diversified, with diesel sales share decreasing from **98.0%** to **74.3%**, mainland China petroleum derivative sales contributing **10.9 million HKD** (**19.7%**), and e-commerce sales contributing **2.0 million HKD** (**3.6%**)[41](index=41&type=chunk)[42](index=42&type=chunk) - Diesel sales decreased by **33.3%** year-on-year to **7.8 million liters**, and AdBlue sales decreased by **12.2%** to **316.8 thousand liters**[43](index=43&type=chunk) - Sales volumes for polypropylene, PET chips, and PP toughening and cold-resistant agents were approximately **1,436 tons**, **34.1 tons**, and **10.0 tons**, respectively[43](index=43&type=chunk) - Average diesel selling price decreased by **9.3%** year-on-year to **5.25 HKD per liter**, and average AdBlue selling price fell by **4.8%** to **2.98 HKD per liter**[44](index=44&type=chunk) - FY2025 cost of sales was **55.4 million HKD**, a **12.9%** year-on-year decrease, primarily due to lower diesel sales volume and a **1.4%** decrease in average unit purchase cost[45](index=45&type=chunk) - Material costs for polypropylene, PET chips, and PP toughening and cold-resistant agents were **10.7 million HKD**, accounting for **19.3%** of cost of sales[46](index=46&type=chunk) - Gross profit significantly decreased by **98.1%** from **5.5 million HKD** in FY2024 to **0.1 million HKD** in FY2025, with gross margin falling from **7.9%** to **0.2%**, mainly due to reduced sales volume while fixed operating costs remained unchanged[47](index=47&type=chunk) - Administrative and other operating expenses increased from **7.6 million HKD** in FY2024 to **9.2 million HKD** in FY2025[48](index=48&type=chunk) - No income tax expense was incurred in both FY2025 and FY2024[49](index=49&type=chunk) - Net loss increased from **10.7 million HKD** in FY2024 to **38.6 million HKD** in FY2025, primarily due to impairment losses on trade receivables, intangible assets, and property, plant and equipment increasing to **29.6 million HKD**[50](index=50&type=chunk) [Revenue](index=17&type=section&id=%E6%94%B6%E7%9B%8A) FY2025 revenue decreased by 19.6% year-on-year to 55.5 million HKD; revenue sources significantly diversified, with diesel sales share decreasing from 98.0% to 74.3%, mainland China petroleum derivative sales contributing 10.9 million HKD (19.7%), and e-commerce sales 2.0 million HKD (3.6%) [Sales Volume](index=17&type=section&id=%E9%8A%B7%E9%87%8F) Diesel sales volume decreased by 33.3% year-on-year to 7.8 million liters, and AdBlue sales volume decreased by 12.2% to 316.8 thousand liters; polypropylene, PET chips, and PP toughening and cold-resistant agents' sales volumes were approximately 1,436 tons, 34.1 tons, and 10.0 tons, respectively [Selling Price](index=18&type=section&id=%E5%94%AE%E5%83%B9) Average diesel selling price decreased by 9.3% year-on-year to 5.25 HKD per liter, and AdBlue average selling price fell by 4.8% to 2.98 HKD per liter, consistent with market downtrend; average selling prices for polypropylene, PET chips, and PP toughening and cold-resistant agents were approximately RMB 6,813, RMB 6,027, and RMB 14,823 per ton, respectively [Cost of Sales](index=18&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) FY2025 cost of sales was 55.4 million HKD, a 12.9% year-on-year decrease, mainly due to lower diesel sales volume and a 1.4% decrease in average unit purchase cost; material costs for polypropylene, PET chips, and PP toughening and cold-resistant agents were 10.7 million HKD, accounting for 19.3% of cost of sales, with direct labor costs increasing and depreciation decreasing [Gross Profit and Gross Margin](index=19&type=section&id=%E6%AF%9B%E5%88%A9%E6%BD%A4%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit significantly decreased by 98.1% from 5.5 million HKD in FY2024 to 0.1 million HKD in FY2025, with gross margin falling from 7.9% to 0.2%, primarily due to reduced sales volume while fixed operating costs remained unchanged [Administrative and Other Operating Expenses](index=19&type=section&id=%E8%A1%8C%E6%94%BF%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Administrative and other operating expenses increased from 7.6 million HKD in FY2024 to 9.2 million HKD in FY2025, primarily including administrative staff costs, professional service fees, rent, and rates [Income Tax Expense](index=19&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the years ended March 31, 2025 and 2024, the Group as a whole incurred no income tax [Net Loss](index=20&type=section&id=%E6%B7%A8%E8%99%A7%E6%90%8D) Net loss increased from 10.7 million HKD in FY2024 to 38.6 million HKD in FY2025, primarily due to impairment losses on trade receivables, intangible assets, and property, plant and equipment increasing to 29.6 million HKD [Liquidity and Capital Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of March 31, 2025, the Group recorded net current liabilities of 9.8 million HKD, with the current ratio falling to 0.79 and the gearing ratio rising to 125%, indicating deteriorating liquidity; to improve liquidity, management is accelerating receivables collection, seeking new financing, and has secured directors' financial support and debt deferral commitments - As of March 31, 2025, the Group recorded net current liabilities of approximately **9.8 million HKD**[51](index=51&type=chunk) Liquidity Ratios | Metric | 2025年3月31日 | 2024年3月31日 | | :--- | :--- | :--- | | Current Assets (million HKD) | 36.6 | 40.9 | | Current Liabilities (million HKD) | 46.3 | 20.9 | | Current Ratio | 0.79 | 2.0 | - Bank borrowings bear interest at a floating annual rate 2.5% below the Hong Kong Prime Rate[52](index=52&type=chunk) - To improve liquidity and financial position, the Group has taken measures to accelerate collection of outstanding trade receivables and actively negotiate new financing arrangements[54](index=54&type=chunk) - Director Mr. Lo Ming Yik has provided **3.8 million HKD** in loans and **8 million HKD** in loan financing, and together with Mr. Wang Xinlong, committed to defer repayment of a total of **16.7 million HKD** in debts until before June 30, 2026[54](index=54&type=chunk) Gearing Ratio | Metric | 2025年3月31日 | 2024年3月31日 | | :--- | :--- | :--- | | Gearing Ratio | 125% | 41.7% | - Gearing ratio is calculated as net debt divided by total assets, where net debt includes total borrowings, amounts due to directors, and trade and other payables[55](index=55&type=chunk) [Financial Resources and Liquidity](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) As of March 31, 2025, the Group recorded net current liabilities of approximately 9.8 million HKD, with the current ratio at 0.79, a significant decrease from 2.0 in 2024; to address liquidity pressure, management is accelerating receivables collection, seeking new financing, and has secured financial support and debt deferral commitments from directors Mr. Lo Ming Yik and Mr. Wang Xinlong [Gearing Ratio](index=21&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of March 31, 2025, the gearing ratio was 125%, a significant increase from 41.7% in 2024, indicating increased financial leverage and risk for the Group; the gearing ratio is calculated as net debt divided by total assets [Segment Information](index=22&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's segment information is disclosed in Note 6 to the consolidated financial statements, providing detailed financial performance for each business segment - The Group's segment information is disclosed in Note 6 to the consolidated financial statements[56](index=56&type=chunk) [Key Risks and Uncertainties](index=22&type=section&id=%E9%87%8D%E5%A4%A7%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7) Key risks faced by the Group include incorrect oil and gas price assumptions, diesel transportation disruptions due to a single Hong Kong oil supplier, customer loss from price competition and global economic slowdown, and operational disruptions from difficulty retaining employees - Incorrect oil and gas price assumptions may adversely affect profitability, cash flows, and financial position[58](index=58&type=chunk) - Reliance on a single Hong Kong oil supplier may lead to disruptions in diesel transportation services[58](index=58&type=chunk) - Price competition and global economic slowdown may result in customer attrition[58](index=58&type=chunk) - Difficulty in retaining employees may lead to operational disruptions[58](index=58&type=chunk) [Foreign Currency Risk](index=23&type=section&id=%E5%A4%96%E5%B9%A3%E9%A2%A8%E9%9A%AA) The Group primarily operates in Hong Kong and China, with most business and bank borrowings denominated in HKD, thus posing no significant foreign exchange fluctuation risk, and currently has no hedging policy - The Group's principal businesses and bank borrowings are denominated in HKD, thus posing no significant foreign exchange fluctuation risk[59](index=59&type=chunk) - The Board expects that fluctuations in RMB exchange rates will not have a material impact on business operations or financial results[59](index=59&type=chunk) - The Group currently has no foreign exchange risk hedging policy[59](index=59&type=chunk) [Pledge of the Group's Assets](index=23&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of March 31, 2025, the Group had not pledged any assets - As of March 31, 2025, the Group had not pledged any assets[60](index=60&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of March 31, 2025, the Group's capital structure included a loss attributable to owners of approximately 9.3 million HKD, with share capital consisting solely of ordinary shares; the Company's shares were listed on January 8, 2019, and a share consolidation was completed on February 19, 2024 - As of March 31, 2025, the Group's capital structure included a loss attributable to owners of approximately **9.3 million HKD**[61](index=61&type=chunk) - The Company's shares were listed on GEM on January 8, 2019, and a share consolidation of 10 shares into 1 share was completed on February 19, 2024[61](index=61&type=chunk) [Treasury Policy](index=23&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts prudent financial management principles, aiming to maintain a robust liquidity position, continuously assess customer creditworthiness to mitigate credit risk, and closely monitor liquidity to meet funding requirements - The Group adopts prudent financial management principles, aiming to maintain a robust liquidity position[62](index=62&type=chunk) - Customer creditworthiness and financial position are continuously assessed to mitigate credit risk[62](index=62&type=chunk) - Liquidity is closely monitored to ensure the liquidity structure of assets, liabilities, and other commitments can meet funding requirements[62](index=62&type=chunk) [Significant Investments, Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%88%96%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8) For the year ended March 31, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the year ended March 31, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) [Capital Commitments and Contingent Liabilities](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of March 31, 2025, subsidiaries and associates had unpaid registered capital commitments, but the Group had no other significant capital commitments Unpaid Registered Capital Commitments (thousand HKD) | Entity | 2025年3月31日 | 2024年3月31日 | | :--- | :--- | :--- | | Subsidiaries | 76,133 | – | | Associates | 2,606 | – | - The Group had no other significant capital commitments[64](index=64&type=chunk) [Capital Expenditure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) No capital expenditure payments were made during the reporting period, compared to approximately 0.8 million HKD in FY2024 - No capital expenditure payments were made in FY2025, compared to approximately **0.8 million HKD** in FY2024[65](index=65&type=chunk) [Future Plans for Material Investments or Capital Assets](index=24&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in the prospectus, as of the date of this report, the Group has no future plans for material investments or capital assets - Except as disclosed in the prospectus, the Group has no future plans for material investments or capital assets[66](index=66&type=chunk) [Dividends](index=24&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any dividends for the years ended March 31, 2024 and 2025 - The Board does not recommend the payment of any dividends for the years ended March 31, 2024 and 2025[67](index=67&type=chunk) [Events After Reporting Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events occurred from the end of the financial year (March 31, 2025) up to the date of this report - No significant events occurred from the end of the financial year up to the date of this report[68](index=68&type=chunk) Other Information [Use of Net Proceeds](index=25&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The Company has fully utilized the net proceeds from listing, approximately 34.8 million HKD, for purchasing diesel tank trucks, expanding human resources, upgrading IT systems, and working capital, in accordance with the plans disclosed in the prospectus and subsequent announcements - The net proceeds from the listing, approximately **34.8 million HKD**, have been fully utilized[69](index=69&type=chunk)[70](index=70&type=chunk) Actual Use of Net Proceeds (million HKD) | Intended Allocation | Actual Use | | :--- | :--- | | Purchase of diesel tank trucks | (12.4) | | Expansion of human resources | (1.7) | | Upgrade of IT systems | (5.0) | | Working capital | (15.7) | | **Total** | **(34.8)** | [Employees and Remuneration Policy](index=26&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of March 31, 2025, the Group's total number of employees increased to 43, with total staff costs of approximately 5.2 million HKD; remuneration policy is based on performance, qualifications, experience, position, and Group business performance, maintained at market levels and regularly reviewed - As of March 31, 2025, the Group's total number of employees was **43** (2024: **15**)[71](index=71&type=chunk) - Total staff costs for FY2025 were approximately **5.2 million HKD** (2024: **4.5 million HKD**)[71](index=71&type=chunk) - Remuneration and related benefits are determined based on performance, qualifications, experience, position, and Group business performance, and are maintained at market levels[71](index=71&type=chunk) [Environmental Policy and Performance](index=26&type=section&id=%E7%92%B0%E5%A2%83%E6%94%BF%E7%AD%96%E5%8F%8A%E8%A1%A8%E7%8F%BE) The Group's operations in Hong Kong are regulated by environmental laws such as the Air Pollution Control Ordinance and Water Pollution Control Ordinance; the Group recognizes the importance of environmental protection and has implemented measures to minimize its operational impact on the environment - The Group's operations are regulated by Hong Kong environmental laws, including the Air Pollution Control Ordinance and Water Pollution Control Ordinance[72](index=72&type=chunk) - The Group has implemented various environmental protection measures to minimize the impact of its operations on the environment and natural resources[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) From the listing date up to March 31, 2025, no listed securities of the Company were purchased, sold, or redeemed - From the listing date up to March 31, 2025, no listed securities of the Company were purchased, sold, or redeemed[73](index=73&type=chunk) [Directors' and Chief Executive's Interests](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%AC%8A%E7%9B%8A) As of March 31, 2025, Chairman and Executive Director Mr. Wang Xinlong held 25,563,000 shares, representing 63.9% of the issued share capital, through controlled corporate interests; no other directors or chief executives held disclosable interests Directors' and Chief Executive's Long Positions in Shares | Name of Director | Capacity/Nature of Interest | Number of Shares | % of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wang Xinlong | Interest in controlled corporation | 25,563,000 | 63.9% | - Mr. Wang Xinlong is the ultimate shareholder of the Company, holding shares through Hong Kong Yufengchang Co., Limited[76](index=76&type=chunk) - Save as disclosed above, no other directors or chief executives held interests or short positions required to be disclosed under the SFO or GEM Listing Rules[75](index=75&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=28&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%AC%8A%E7%9B%8A) As of March 31, 2025, Mr. Wang Xinlong, Yufengchang International Holdings Co., Ltd., and Hong Kong Yufengchang Co., Limited were deemed or beneficially owned 25,563,000 shares of the Company, representing 63.91% of the issued share capital, qualifying them as substantial shareholders Substantial Shareholders' and Other Persons' Long Positions in Shares | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wang Xinlong | Interest in controlled corporation | 25,563,000 | 63.91% | | Yufengchang International Holdings Co., Ltd. | Beneficial owner | 25,563,000 | 63.91% | | Hong Kong Yufengchang Co., Limited | Beneficial owner | 25,563,000 | 63.91% | - Mr. Wang Xinlong indirectly holds shares through Yufengchang International Holdings Co., Ltd. and Hong Kong Yufengchang Co., Limited[78](index=78&type=chunk) - Save as disclosed above, no other persons held interests or short positions required to be disclosed under the SFO[78](index=78&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=29&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%B7%B2%E6%8E%A1%E7%B4%8D%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%93%8D%E5%AE%88%E6%BA%96%E5%89%87) The Company has adopted a code of conduct for directors' securities transactions no less exacting than required by the GEM Listing Rules, and all directors confirmed compliance as of this report date - The Company has adopted a code of conduct for directors' securities transactions no less exacting than required by the GEM Listing Rules[79](index=79&type=chunk) - All directors confirmed compliance with the required standards of dealing and code of conduct as of the date of this report[79](index=79&type=chunk) [Sufficiency of Public Float](index=29&type=section&id=%E8%B6%B3%E5%A4%A0%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) As of the date of this announcement, the Company has maintained a sufficient public float as required by the GEM Listing Rules - As of the date of this announcement, the Company has maintained a sufficient public float as required by the GEM Listing Rules[80](index=80&type=chunk) [Audit Committee](index=29&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Company's Audit Committee comprises three independent non-executive directors, chaired by Mr. He Junlong; the committee has reviewed the audited results for the year ended March 31, 2025, and provided advice and recommendations - The Audit Committee comprises three independent non-executive directors, chaired by Mr. He Junlong[81](index=81&type=chunk) - The Audit Committee has reviewed the audited results for the year ended March 31, 2025, and provided advice and recommendations[81](index=81&type=chunk) [Corporate Governance Practices](index=29&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Board considers good corporate governance crucial for managing the Group's business, regularly reviews compliance with the Corporate Governance Code, and confirms adherence during the reporting period - The Board considers good corporate governance a key element in managing the Group's business[82](index=82&type=chunk) - The Company has complied with the Corporate Governance Code during the reporting period[82](index=82&type=chunk) [Outlook](index=30&type=section&id=%E5%B1%95%E6%9C%9B) Facing a challenging market outlook, the Group will strengthen cost control, reallocate resources to enhance service capabilities, expand network layout, and diversify its customer base, while actively seeking potential business developments to broaden revenue streams and increase shareholder value - The Group will strengthen cost control, enhance service capabilities, expand its network layout, and diversify its customer base[84](index=84&type=chunk) - The Group will actively seek potential business developments that can broaden revenue streams and increase shareholder value[84](index=84&type=chunk) [Acknowledgement](index=30&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends its sincere gratitude to shareholders, business partners, customers, and all management and staff for their support and efforts over the past year - The Board extends its sincere gratitude to shareholders, business partners, customers, and all management and staff for their support and efforts[85](index=85&type=chunk) [Board Information](index=30&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) The Company's executive directors include Mr. Wang Xinlong (Chairman), Mr. Ren Rong (CEO), Mr. Yan Lei, and Mr. Lo Ming Yik; independent non-executive directors are Dr. Wang Junxia, Mr. He Junlong, and Ms. Liang Lina; the Board collectively and individually accepts full responsibility for this announcement's content - The Company's executive directors are Mr. Wang Xinlong (Chairman), Mr. Ren Rong (Chief Executive Officer), Mr. Yan Lei, and Mr. Lo Ming Yik[87](index=87&type=chunk) - The Company's independent non-executive directors are Dr. Wang Junxia, Mr. He Junlong, and Ms. Liang Lina[87](index=87&type=chunk) - The directors collectively and individually accept full responsibility for this announcement, confirming its accuracy, completeness, and absence of misleading or fraudulent content[87](index=87&type=chunk)

[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This section provides an overview of Yufengchang Holdings Limited and outlines the characteristics and risks associated with the GEM market [Company Overview](index=1&type=section&id=Company%20Overview) Yufengchang Holdings Limited (Stock Code: 8631) announced its annual results for the year ended March 31, 2025 - Company Name: YUFENGCHANG HOLDINGS LIMITED, Stock Code: **8631**[2](index=2&type=chunk) [GEM Market Characteristics and Risks](index=1&type=section&id=GEM%20Market%20Characteristics%20and%20Risks) The GEM market provides a listing platform for small and medium-sized companies with high investment risks, requiring investors to understand potential volatility and liquidity limitations - The GEM market offers a listing platform for small and medium-sized companies, characterized by higher investment risks, potential for significant market volatility, and no guarantee of high liquidity[3](index=3&type=chunk) - This announcement provides information on the company and its subsidiaries in accordance with the GEM Listing Rules, with directors assuming full responsibility for its accuracy, completeness, and non-misleading nature[3](index=3&type=chunk) [Annual Results Summary](index=2&type=section&id=Annual%20Results%20Summary) This section summarizes the key financial performance of the group for the fiscal year 2025 [Key Financial Performance for FY2025](index=2&type=section&id=Key%20Financial%20Performance%20for%20FY2025) For the year ended March 31, 2025, the Group's revenue decreased by 19.6% year-on-year, gross profit margin significantly dropped to 0.2%, and loss attributable to owners expanded to HK$38.6 million, with no dividend recommended 2025 Financial Year Key Financial Indicators Comparison | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 55.5 | 69.0 | (13.5) | (19.6%) | | Gross Profit Margin | 0.2% | 7.9% | (7.7%) | - | | Loss attributable to owners of the Company | (38.6) | (10.7) | (27.9) | 260.7% | - The Board of Directors does not recommend the payment of any dividend for the year ended March 31, 2025[4](index=4&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated statement of comprehensive income and consolidated statement of financial position for the group [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2025, the Group experienced a decline in revenue, significant reduction in gross profit, slight increase in other income, but a substantial rise in impairment losses, leading to an expanded loss for the year from HK$10.7 million in 2024 to HK$38.6 million Summary of Consolidated Statement of Comprehensive Income (HK$ Thousand) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 55,498 | 69,032 | | Cost of sales | (55,391) | (63,578) | | Gross profit | 107 | 5,454 | | Other income | 574 | 260 | | Selling expenses | (136) | – | | Administrative and other operating expenses | (9,163) | (7,569) | | Impairment losses recognised, net | (29,531) | (8,173) | | Finance costs | (424) | (634) | | Loss before tax | (38,573) | (10,662) | | Income tax expense | – | – | | Loss for the year | (38,573) | (10,662) | | Total comprehensive expense for the year | (38,574) | (10,662) | | Basic loss per share (HK cents) | (96.43) | (26.66) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's non-current assets significantly decreased, current assets slightly declined, but current liabilities substantially increased, resulting in net current liabilities of HK$9.8 million and total equity turning into a deficit of HK$9.3 million Summary of Consolidated Statement of Financial Position (HK$ Thousand) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 477 | 2,262 | | Intangible assets | – | 5,204 | | Financial assets at fair value through profit or loss | – | 1,844 | | **Current assets** | | | | Inventories | 2,744 | – | | Trade receivables | 30,454 | 37,926 | | Cash and cash equivalents | 2,021 | 46 | | **Current liabilities** | | | | Bank overdrafts | – | 4,585 | | Trade payables | 19,152 | 1,686 | | Amounts due to directors | 16,735 | – | | Bank borrowings | 7,084 | 7,539 | | Net current (liabilities) assets | (9,755) | 19,986 | | Net (liabilities) assets | (9,278) | 29,296 | | Total (deficit) equity | (9,278) | 29,296 | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes on the preparation and significant accounting policies applied in the consolidated financial statements, including business operations, accounting standards, and financial positions [General Information](index=5&type=section&id=General%20Information) Yufengchang Holdings Limited, incorporated in the Cayman Islands and listed on GEM in 2019, primarily engages in diesel and related product sales, auxiliary transportation services, and commenced China e-commerce business in FY2025, with Mr. Wang Xinlong becoming the ultimate controlling party in September 2024 - The Company was incorporated in the Cayman Islands on October 31, 2017, and listed on GEM of the Stock Exchange of Hong Kong on January 8, 2019[7](index=7&type=chunk)[8](index=8&type=chunk) - The Group is principally engaged in the sale of diesel and related products and auxiliary transportation services in Hong Kong and China, and commenced China e-commerce business in FY2025[8](index=8&type=chunk) - On September 13, 2024, Mr. Wang Xinlong became the ultimate controlling party of the Company through acquisition, holding approximately **63.91%** of the share capital with his parties acting in concert[8](index=8&type=chunk)[9](index=9&type=chunk) [Application of Accounting Standards](index=6&type=section&id=Application%20of%20Accounting%20Standards) This year, the Group first applied several new and revised Hong Kong Financial Reporting Standards, including those for sale and leaseback and liability classification, but these revisions had no significant impact on the financial position or performance for the current and prior years - Mandatory effective amendments to Hong Kong Financial Reporting Standards for the current year include HKFRS 16 (Lease Liability in a Sale and Leaseback), HKAS 1 (Classification of Liabilities as Current or Non-current), and HKAS 7 and HKFRS 7 (Supplier Finance Arrangements)[11](index=11&type=chunk) - The application of these amendments had no significant impact on the Group's financial position and performance for the current and prior years[11](index=11&type=chunk)[13](index=13&type=chunk) [Amendments Effective](index=6&type=section&id=Amendments%20Effective) This section lists the specific amendments to Hong Kong Financial Reporting Standards that became mandatorily effective for the current reporting period Amendments to HKFRS Mandatorily Effective for the Current Year | Amendment | Content | | :--- | :--- | | HKFRS 16 Amendments | Lease Liability in a Sale and Leaseback | | HKAS 1 Amendments | Classification of Liabilities as Current or Non-current and related amendments to HK Interpretation 5 (2020) | | HKAS 1 Amendments | Non-current Liabilities with Covenants | | HKAS 7 and HKFRS 7 Amendments | Supplier Finance Arrangements | [Amendments Not Yet Effective](index=7&type=section&id=Amendments%20Not%20Yet%20Effective) The Group has not early adopted several new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, with directors expecting no significant impact in the foreseeable future - The Group has not early applied several new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, but directors expect no significant impact on the consolidated financial statements in the foreseeable future[14](index=14&type=chunk)[15](index=15&type=chunk) [Basis of Preparation of Consolidated Financial Statements](index=8&type=section&id=Basis%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) The consolidated financial statements are prepared in accordance with HKFRS on a going concern basis; however, a net loss, net cash outflow from operating activities, current liabilities exceeding current assets, and net liabilities raise significant doubt about the Group's ability to continue as a going concern, for which directors have considered various measures - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and on a going concern basis[17](index=17&type=chunk) - For the year ended March 31, 2025, the Group recorded a net loss of approximately **HK$38.6 million**, net cash used in operating activities of approximately **HK$10.7 million**, current liabilities exceeding current assets by approximately **HK$9.8 million**, and net liabilities of **HK$9.3 million**, indicating a material uncertainty that may cast significant doubt on its ability to continue as a going concern[17](index=17&type=chunk) - Directors have taken measures to accelerate the recovery of trade receivables, actively negotiate new financing arrangements, and obtained loans and commitments from directors Mr. Lo Ming Yik and Mr. Wang Xinlong not to demand repayment of certain debts to support going concern[18](index=18&type=chunk)[19](index=19&type=chunk) [Revenue](index=9&type=section&id=Revenue) For the year ended March 31, 2025, the Group's total revenue was HK$55.5 million, with HK$42.6 million from the Hong Kong market (primarily diesel sales) and HK$12.9 million from the China market (including petroleum derivative sales and e-commerce business) Disaggregation of Revenue from Contracts with Customers (HK$ Thousand) | Geographical Market | Diesel Sales | AdBlue Sales | Auxiliary Transportation Services | Petroleum Derivative Product Sales | E-commerce Services | Total (2025) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 41,230 | 945 | 403 | – | – | 42,578 | 69,032 | | China | – | – | – | 10,931 | 1,989 | 12,920 | – | | **Total** | **41,230** | **945** | **403** | **10,931** | **1,989** | **55,498** | **69,032** | [Other Income and Finance Costs](index=10&type=section&id=Other%20Income%20and%20Finance%20Costs) Other income increased to HK$0.574 million in FY2025, mainly from net gain on disposal of property, plant and equipment and government grants, while finance costs decreased to HK$0.424 million, primarily due to lower bank overdraft interest Other Income (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net gain on disposal of property, plant and equipment | 393 | 50 | | Government grants | 180 | 103 | | Bank interest income | 1 | – | | **Total** | **574** | **260** | Finance Costs (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on bank overdrafts | 173 | 361 | | Interest on bank borrowings | 251 | 273 | | **Total** | **424** | **634** | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) For the years ended March 31, 2025 and 2024, the Group's entities in the Cayman Islands and BVI were exempt from income tax, Hong Kong operations had no tax provision due to no assessable profits, and China subsidiaries had a corporate income tax rate of 25% - Entities in the Cayman Islands and British Virgin Islands are exempt from income tax[22](index=22&type=chunk) - No provision for Hong Kong profits tax was made as the Hong Kong operations had no assessable profits[22](index=22&type=chunk) - The corporate income tax rate for China subsidiaries is **25%**[22](index=22&type=chunk) [Components of Loss Before Tax](index=11&type=section&id=Components%20of%20Loss%20Before%20Tax) In FY2025, staff costs, cost of inventories, depreciation of property, plant and equipment, and amortisation of intangible assets were significant components of loss before tax, with staff costs and intangible asset amortisation increasing Items Deducted in Arriving at Loss Before Tax (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Staff costs | 5,164 | 4,521 | | Auditor's remuneration | 620 | 835 | | Cost of inventories | 52,368 | 59,765 | | Depreciation of property, plant and equipment | 1,590 | 2,459 | | Amortisation of intangible assets | 1,059 | 88 | [Loss Per Share](index=12&type=section&id=Loss%20Per%20Share) For the year ended March 31, 2025, basic loss per share was HK96.43 cents, a significant increase from HK26.66 cents in 2024, primarily due to the increased loss for the year, with no diluted loss as there were no outstanding potential ordinary shares Loss Per Share Calculation (HK$ Thousand/HK Cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the year used in calculating basic and diluted loss per share (HK$ Thousand) | (38,573) | (10,662) | | Weighted average number of ordinary shares | 40,000,000 | 40,000,000 | | Basic loss per share (HK cents) | (96.43) | (26.66) | [Dividends](index=12&type=section&id=Dividends) For the year ended March 31, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders, and no dividends have been recommended since the end of the reporting period - For the year ended March 31, 2025, the Company neither paid nor proposed any dividends, and no dividends have been recommended (2024: nil)[25](index=25&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) As of March 31, 2025, net trade receivables were HK$30.5 million, a decrease from 2024, but the provision for credit losses significantly increased; credit terms range from 0 to 120 days, no collateral is held, and the proportion of receivables over one year old substantially increased Summary of Trade Receivables (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables - contracts with customers | 72,728 | 56,709 | | Less: Provision for credit losses | (42,274) | (18,783) | | **Net trade receivables** | **30,454** | **37,926** | - The Group grants credit periods ranging from 0 to 120 days to its trade customers and held no collateral for trade receivables as of March 31, 2025 and 2024[26](index=26&type=chunk)[27](index=27&type=chunk) Ageing Analysis of Trade Receivables (HK$ Thousand) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 days | 8,886 | 1,778 | | 31 to 60 days | 5,357 | 1,209 | | 61 to 90 days | 396 | 831 | | 91 to 365 days | 7,368 | 38,982 | | Over one year | 50,721 | 13,909 | | **Total** | **72,728** | **56,709** | [Trade Payables](index=13&type=section&id=Trade%20Payables) As of March 31, 2025, trade payables significantly increased to HK$19.2 million from HK$1.7 million in 2024, with supplier credit terms generally ranging from 1 to 180 days Summary of Trade Payables (HK$ Thousand) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | 19,152 | 1,686 | - Credit terms granted by suppliers for services generally range from 1 to 180 days (2024: 1 to 30 days)[29](index=29&type=chunk) Ageing Analysis of Trade Payables (HK$ Thousand) | Ageing | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 days | 9,371 | 360 | | 31 to 60 days | 10 | 895 | | 61 to 90 days | 4,592 | 431 | | 91 to 180 days | 4,520 | – | | Over 180 days | 659 | – | | **Total** | **19,152** | **1,686** | [Independent Auditor's Report](index=14&type=section&id=Independent%20Auditor's%20Report) This section presents the independent auditor's opinion on the consolidated financial statements and highlights significant uncertainties regarding the Group's going concern ability [Opinion](index=14&type=section&id=Opinion) The independent auditor believes the consolidated financial statements fairly present the Group's financial position as of March 31, 2025, and its financial performance and cash flows for the year then ended, prepared in accordance with HKFRS and the Hong Kong Companies Ordinance - The auditor believes the consolidated financial statements fairly present the Group's financial position, performance, and cash flows, and comply with HKFRS and the Hong Kong Companies Ordinance[33](index=33&type=chunk) [Material Uncertainty Related to Going Concern](index=14&type=section&id=Material%20Uncertainty%20Related%20to%20Going%20Concern) The auditor draws attention to the Group's net loss, net cash outflow from operating activities, current liabilities exceeding current assets, and net liabilities in FY2025, which indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, though the auditor's opinion is not modified in respect of this matter - The auditor draws attention to the Group's net loss, net cash outflow from operating activities, current liabilities exceeding current assets, and net liabilities in FY2025, which constitute a material uncertainty regarding its ability to continue as a going concern[34](index=34&type=chunk) - The auditor's opinion is not modified in respect of the material uncertainty related to going concern[34](index=34&type=chunk) [Scope of Work by Auditor](index=15&type=section&id=Scope%20of%20Work%20by%20Auditor) The auditor, Kuan (Hong Kong) CPA Limited, has agreed that the figures in the preliminary announcement for the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes are consistent with the audited consolidated financial statements, but their work does not constitute an assurance engagement, thus no opinion or assurance conclusion is expressed - The auditor Kuan (Hong Kong) CPA Limited has agreed that the financial figures in the preliminary announcement are consistent with the audited consolidated financial statements[36](index=36&type=chunk) - The work performed by the auditor on the preliminary announcement does not constitute an assurance engagement, and therefore no opinion or assurance conclusion is expressed[36](index=36&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, and future outlook, highlighting strategic shifts and risk factors [Business Review](index=15&type=section&id=Business%20Review) The Group's business comprises diesel and petroleum derivative sales and transportation, and China mainland e-commerce, with e-commerce expanding market reach; Hong Kong diesel business revenue significantly contracted due to demand fluctuations, while China mainland petroleum derivative sales and e-commerce show good development potential, diversifying the Group's revenue structure - The Group's business consists of two strategic segments: diesel and petroleum derivative sales and transportation, and e-commerce business in mainland China, aiming for synergistic development and business transformation[37](index=37&type=chunk) - Revenue from diesel and AdBlue product sales and transportation in the Hong Kong market was **HK$42.6 million**, a significant contraction of **38%** year-on-year (2024: HK$69.0 million), mainly due to fluctuations in local market demand[37](index=37&type=chunk) - The Group has strategically expanded its petroleum derivative sales and transportation business into the mainland China market, focusing on the polypropylene product supply chain, which contributed **HK$10.9 million** in revenue during the first reporting period[37](index=37&type=chunk) - E-commerce operations were launched in mainland China in January 2025 to penetrate the market, building a diversified product portfolio and distributing through traditional and live-streaming e-commerce channels, recording **HK$2.0 million** in revenue in the first quarter[38](index=38&type=chunk) - In FY2025, sales and transportation of diesel and petroleum derivatives collectively contributed **HK$53.5 million** (96.4% of total revenue), with traditional diesel business accounting for **76.7%**, mainland China petroleum derivative sales for **19.7%**, and e-commerce business for **3.6%**, indicating a diversified revenue structure for the Group[39](index=39&type=chunk) [Business Segment Composition](index=15&type=section&id=Business%20Segment%20Composition) The Group's business is strategically composed of two main segments: diesel and petroleum derivative sales and transportation, and e-commerce operations in mainland China - The Group's business consists of two strategic segments: diesel and petroleum derivative sales and transportation, and e-commerce business in mainland China[37](index=37&type=chunk) [Hong Kong Market Business](index=15&type=section&id=Hong%20Kong%20Market%20Business) Revenue from diesel and AdBlue product sales and transportation in the Hong Kong market significantly contracted by 38% to HK$42.6 million, primarily due to local market demand fluctuations - Revenue from diesel and AdBlue product sales and transportation in the Hong Kong market was **HK$42.6 million**, a significant contraction of **38%** year-on-year (2024: HK$69.0 million), mainly due to fluctuations in local market demand[37](index=37&type=chunk) [Mainland China Market Expansion](index=15&type=section&id=Mainland%20China%20Market%20Expansion) The Group strategically expanded its petroleum derivative sales and transportation business into mainland China, focusing on the polypropylene product supply chain, contributing HK$10.9 million in revenue during its first reporting period - The Group has strategically expanded its petroleum derivative sales and transportation business into the mainland China market, focusing on the polypropylene product supply chain, which contributed **HK$10.9 million** in revenue during the first reporting period[37](index=37&type=chunk) [E-commerce Business Development](index=16&type=section&id=E-commerce%20Business%20Development) The Group launched e-commerce operations in mainland China in January 2025 to penetrate the market with a diversified product portfolio, utilizing traditional and live-streaming channels, and recorded HK$2.0 million in revenue in the first quarter - The Group launched e-commerce operations in January 2025 to penetrate the mainland China market, building a diversified product portfolio and distributing through traditional and live-streaming e-commerce channels, recording **HK$2.0 million** in revenue in the first quarter[38](index=38&type=chunk) [Business Transformation and Revenue Composition](index=16&type=section&id=Business%20Transformation%20and%20Revenue%20Composition) In FY2025, diesel and petroleum derivative sales and transportation contributed HK$53.5 million (96.4% of total revenue), with traditional diesel at 76.7%, mainland China petroleum derivatives at 19.7%, and e-commerce at 3.6%, marking a significant strategic shift with nearly a quarter of revenue from diversified energy products and consumer-centric e-commerce, while the Group recorded a loss attributable to owners of HK$38.6 million due to a threefold increase in impairment losses - In FY2025, sales and transportation of diesel and petroleum derivatives collectively contributed **HK$53.5 million** (**96.4%** of total revenue), with traditional diesel business accounting for **76.7%**, mainland China petroleum derivative sales for **19.7%**, and e-commerce business for **3.6%**[39](index=39&type=chunk) - Nearly a quarter (**23.3%**) of the Group's revenue now comes from a diversified energy product supply chain system and consumer-centric e-commerce, marking a significant strategic transformation[39](index=39&type=chunk) - The Group recorded a loss attributable to owners of approximately **HK$38.6 million** (2024: HK$10.7 million), primarily due to a threefold increase in impairment losses to **HK$29.5 million**[39](index=39&type=chunk) [Future Outlook](index=16&type=section&id=Future%20Outlook) Facing challenges in traditional diesel business, the Group will optimize operational efficiency, seize market recovery opportunities, expand petroleum derivative business, deepen industrial chain layout, and continuously improve e-commerce channel construction to achieve development and mitigate risks - The Group will optimize operational efficiency in its traditional diesel business and actively seize market recovery opportunities[40](index=40&type=chunk) - Further expand the scale of petroleum derivative business and deepen the industrial chain layout[40](index=40&type=chunk) - Continuously improve e-commerce channel construction to enhance terminal sales capabilities, providing a key path for development and risk reduction[40](index=40&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) In FY2025, the Group's revenue decreased by 19.6% year-on-year to HK$55.5 million, with revenue sources significantly diversified, as mainland China petroleum derivative sales and e-commerce contributed 23.3%; diesel sales volume and average selling price both declined, leading to reduced cost of sales, but gross profit margin sharply fell to 0.2% due to lower sales volume and unchanged fixed costs, while administrative expenses increased and impairment losses significantly rose, resulting in an expanded net loss - FY2025 revenue was **HK$55.5 million**, a year-on-year decrease of **19.6%**, primarily due to core business challenges and strategic diversification[41](index=41&type=chunk) - Revenue sources significantly diversified, with diesel sales proportion decreasing from 98.0% to **74.3%**, and new businesses of mainland China petroleum derivative sales and e-commerce collectively accounting for **23.3%** of total revenue[41](index=41&type=chunk)[42](index=42&type=chunk) - Diesel sales volume decreased by **33.3%** year-on-year to **7.8 million liters**, and AdBlue sales volume decreased by **12.2%**[43](index=43&type=chunk) - The average selling price of diesel decreased by **9.3%** year-on-year to **HK$5.25 per liter**, and AdBlue average selling price fell by **4.8%**[44](index=44&type=chunk) - Cost of sales decreased by **12.9%** to **HK$55.4 million**, mainly due to lower diesel sales volume and a **1.4%** decrease in average unit procurement cost[45](index=45&type=chunk) - Gross profit significantly decreased by **98.1%** to **HK$0.1 million**, with gross profit margin falling from 7.9% to **0.2%**, primarily due to reduced sales volume and unchanged fixed operating costs[47](index=47&type=chunk) - Administrative and other operating expenses increased to **HK$9.2 million**[48](index=48&type=chunk) - Net loss increased from HK$10.7 million in FY2024 to **HK$38.6 million**, mainly due to impairment losses on trade receivables, intangible assets, and property, plant and equipment increasing to **HK$29.6 million**[50](index=50&type=chunk) [Revenue Analysis](index=17&type=section&id=Revenue%20Analysis) In FY2025, the Group's revenue was HK$55.5 million, a 19.6% decrease from FY2024, with diesel sales remaining the largest segment at HK$41.2 million (74.3%), while mainland China petroleum derivative sales contributed HK$10.9 million (19.7%) and e-commerce sales HK$2.0 million (3.6%) - In FY2025, the Group's revenue was **HK$55.5 million**, a decrease of **HK$13.5 million (19.6%)** from HK$69.0 million in FY2024[41](index=41&type=chunk) - Diesel sales remained the largest segment at **HK$41.2 million (74.3%)**, but its contribution to the total significantly decreased, while mainland China petroleum derivative sales contributed **HK$10.9 million (19.7%)**, and e-commerce sales contributed **HK$2.0 million (3.6%)**[41](index=41&type=chunk)[42](index=42&type=chunk) [Sales Volume Analysis](index=17&type=section&id=Sales%20Volume%20Analysis) This section provides a comparative analysis of the sales volumes for the Group's key products, including diesel, AdBlue, polypropylene, PET chips, and PP toughening cold-resistant agents, for FY2025 and FY2024 Changes in Sales Volume of Major Products | Product | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Diesel | 7.8 million liters | 11.7 million liters | (3.9 million liters) | (33.3%) | | AdBlue | 316.8 thousand liters | 360.8 thousand liters | (44.0 thousand liters) | (12.2%) | | Polypropylene | Approx. 1,436 tonnes | – | – | – | | PET chips | Approx. 34.1 tonnes | – | – | – | | PP toughening cold-resistant agent | Approx. 10.0 tonnes | – | – | – | [Selling Price Analysis](index=18&type=section&id=Selling%20Price%20Analysis) This section presents a comparative analysis of the average selling prices for the Group's key products, including diesel, AdBlue, polypropylene, PET chips, and PP toughening cold-resistant agents, for FY2025 and FY2024 Changes in Average Selling Price of Major Products | Product | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Diesel (per liter) | HK$5.25 | HK$5.79 | (9.3%) | | AdBlue (per liter) | HK$2.98 | HK$3.13 | (4.8%) | | Polypropylene (per tonne) | Approx. RMB6,813 | – | – | | PET chips (per tonne) | Approx. RMB6,027 | – | – | | PP toughening cold-resistant agent (per tonne) | Approx. RMB14,823 | – | – | [Cost of Sales Analysis](index=18&type=section&id=Cost%20of%20Sales%20Analysis) In FY2025, the overall cost of sales was approximately HK$55.4 million, a 12.9% decrease from FY2024, primarily due to lower diesel sales volume and a 1.4% reduction in average unit procurement cost, with diesel costs decreasing in proportion to total sales costs, while material expenses for polypropylene, PET chips, and PP toughening cold-resistant agents accounted for 19.3% of total sales costs - The overall cost of sales for FY2025 was approximately **HK$55.4 million**, a decrease of **12.9% (HK$8.2 million)** from FY2024, primarily attributed to lower diesel sales volume and a **1.4%** decrease in average unit procurement cost[45](index=45&type=chunk) - Diesel costs as a proportion of total cost of sales decreased from **92.0%** in FY2024 to **70.1%** in FY2025[45](index=45&type=chunk) - Material expenses for polypropylene, PET chips, and PP toughening cold-resistant agents amounted to **HK$10.7 million**, accounting for **19.3%** of the total cost of sales for the year[46](index=46&type=chunk) [Gross Profit and Gross Profit Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit significantly decreased by 98.1% to HK$0.1 million, with gross profit margin falling from 7.9% to 0.2%, primarily due to reduced sales volume while fixed operating costs remained unchanged Changes in Gross Profit and Gross Profit Margin | Indicator | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit (HK$ Million) | 0.1 | 5.5 | (5.4) | (98.1%) | | Gross Profit Margin | 0.2% | 7.9% | (7.7%) | - | - The decline in gross profit margin was primarily due to reduced sales volume while fixed operating costs remained unchanged[47](index=47&type=chunk) [Administrative and Other Operating Expenses](index=19&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) This section presents the administrative and other operating expenses for the Group for FY2025 and FY2024 Administrative and Other Operating Expenses (HK$ Million) | Year | Amount (HK$ Million) | | :--- | :--- | | 2025 | 9.2 | | 2024 | 7.6 | [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) For the years ended March 31, 2025 and 2024, the Group as a whole did not incur any income tax - For the years ended March 31, 2025 and 2024, the Group as a whole did not incur any income tax[49](index=49&type=chunk) [Net Loss](index=20&type=section&id=Net%20Loss) This section presents the net loss for the Group for FY2025 and FY2024, highlighting the primary reasons for the increase Changes in Net Loss (HK$ Million) | Year | Amount (HK$ Million) | | :--- | :--- | | 2025 | (38.6) | | 2024 | (10.7) | - The increase in net loss was primarily due to impairment losses on trade receivables, intangible assets, and property, plant and equipment increasing to **HK$29.6 million** (2024: HK$8.2 million)[50](index=50&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the Group recorded net current liabilities of HK$9.8 million, with a current ratio decreasing to 0.79 and gearing ratio increasing to 125%, indicating deteriorating liquidity; in response, directors have implemented measures including accelerating receivable collection, seeking new financing, and securing financial support commitments from directors - As of March 31, 2025, the Group recorded net current liabilities of approximately **HK$9.8 million**, and the current ratio was approximately **0.79** (2024: 2.0)[51](index=51&type=chunk) - As of March 31, 2025, the gearing ratio was **125%**, compared to **41.7%** as of March 31, 2024[53](index=53&type=chunk) - To improve liquidity and financial position, the Group has taken measures to accelerate the collection of outstanding trade receivables and will actively negotiate new financing arrangements with financial institutions[54](index=54&type=chunk) - Director Mr. Lo Ming Yik has provided a **HK$3.8 million** loan and **HK$8 million** loan facility, and together with Mr. Wang Xinlong, committed not to demand repayment of certain outstanding debts until June 30, 2026[54](index=54&type=chunk) [Financial Resources and Liquidity Position](index=20&type=section&id=Financial%20Resources%20and%20Liquidity%20Position) The Group funds its operations through cash generated from operating activities and bank financing, with its liquidity position showing net current liabilities of HK$9.8 million and a current ratio of 0.79 as of March 31, 2025 - The Group funds its operations through cash generated from operating activities and bank financing[51](index=51&type=chunk) Liquidity Position (HK$ Million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net current liabilities | (9.8) | – | | Current assets | 36.6 | 40.9 | | Current liabilities | 46.3 | 20.9 | | Current ratio | 0.79 | 2.0 | [Measures to Improve Liquidity](index=21&type=section&id=Measures%20to%20Improve%20Liquidity) The Group is implementing measures to improve liquidity, including accelerating the collection of outstanding trade receivables, actively negotiating new financing arrangements, and securing loans and non-repayment commitments from directors - Accelerate the collection of outstanding trade receivables[54](index=54&type=chunk) - Actively negotiate new financing arrangements with financial institutions and potential lenders[54](index=54&type=chunk) - Mr. Lo Ming Yik has provided an unsecured, interest-free loan of **HK$3.8 million** to the Company and granted an **HK$8 million** loan facility[54](index=54&type=chunk) - Mr. Lo Ming Yik and Mr. Wang Xinlong have committed not to demand repayment of debts amounting to **HK$15.115 million** and **HK$1.62 million**, respectively, before June 30, 2026[54](index=54&type=chunk) [Gearing Ratio](index=21&type=section&id=Gearing%20Ratio) This section presents the Group's gearing ratio for FY2025 and FY2024, calculated as net debt divided by total assets Changes in Gearing Ratio | Year | Ratio | | :--- | :--- | | March 31, 2025 | 125% | | March 31, 2024 | 41.7% | - The gearing ratio is calculated as net debt divided by total assets, where net debt includes total borrowings, amounts due to directors, and trade and other payables[55](index=55&type=chunk) [Segment Information](index=22&type=section&id=Segment%20Information) The Group's segment information is disclosed in Note 6 to the consolidated financial statements - The Group's segment information is disclosed in Note 6 to the consolidated financial statements[56](index=56&type=chunk) [Key Risks and Uncertainties](index=22&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces several key risks and uncertainties, including incorrect assumptions about oil and gas prices, disruption from a single petroleum supplier in Hong Kong, customer loss due to price competition and global economic slowdown, and operational disruptions from difficulty in retaining employees - Incorrect assumptions about oil and gas prices could adversely affect profitability, cash flows, and financial position[58](index=58&type=chunk) - Reliance on a single petroleum supplier in Hong Kong could lead to disruptions in diesel transportation services[58](index=58&type=chunk) - Price competition and a global economic slowdown could result in customer loss[58](index=58&type=chunk) - Difficulty in retaining employees could lead to operational disruptions[58](index=58&type=chunk) [Foreign Currency Risk](index=23&type=section&id=Foreign%20Currency%20Risk) The Group primarily operates in Hong Kong and China, with most business and bank borrowings denominated in HKD, thus facing no significant foreign exchange fluctuation risk, and the Board expects RMB exchange rate fluctuations to have no material impact; the Group currently has no foreign exchange hedging policy - The Group primarily operates in Hong Kong and China, with most business and bank borrowings denominated in HKD, thus facing no significant foreign exchange fluctuation risk[59](index=59&type=chunk) - The Board expects RMB exchange rate fluctuations to have no material impact on the Group's business operations or financial results[59](index=59&type=chunk) - The Group currently has no hedging policy for foreign exchange risk[59](index=59&type=chunk) [Pledge of the Group's Assets](index=23&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of March 31, 2025, the Group had no assets pledged - As of March 31, 2025, the Group had no assets pledged (2024: nil)[60](index=60&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) As of March 31, 2025, the Group's capital structure included a loss attributable to owners of approximately HK$9.3 million, with equity comprising only ordinary shares; the Company's shares were listed on January 8, 2019, and a share consolidation was completed on February 19, 2024 - As of March 31, 2025, the Group's capital structure included a loss attributable to owners of approximately **HK$9.3 million**[61](index=61&type=chunk) - The Company's shares were listed on GEM of the Stock Exchange on January 8, 2019[61](index=61&type=chunk) - Pursuant to a shareholders' resolution, every 10 issued ordinary shares of HK$0.01 each were consolidated into 1 ordinary share of HK$0.1 each, effective February 19, 2024[61](index=61&type=chunk) [Treasury Policy](index=23&type=section&id=Treasury%20Policy) The Group adopts prudent financial management principles to maintain a sound liquidity position, continuously assesses customer creditworthiness to mitigate credit risk, and closely monitors liquidity to meet funding needs - The Group adopts prudent financial management principles, aiming to maintain a sound liquidity position[62](index=62&type=chunk) - Continuously assesses the creditworthiness and financial position of customers to mitigate credit risk[62](index=62&type=chunk) - The Board closely monitors the Group's liquidity position to ensure it can meet its funding needs from time to time[62](index=62&type=chunk) [Material Investments, Acquisitions and Disposals](index=24&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) For the year ended March 31, 2025, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the year ended March 31, 2025, the Group did not undertake any material investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[63](index=63&type=chunk) [Capital Commitments and Contingent Liabilities](index=24&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of March 31, 2025, subsidiaries and associates had unpaid registered capital, but the Group had no other significant capital commitments Unpaid Registered Capital (HK$ Thousand) | Company Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Subsidiaries | 76,133 | – | | Associates | 2,606 | – | - The Group had no other significant capital commitments[64](index=64&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) During the reporting period, there were no capital expenditure payments (2024: approximately HK$0.8 million) - During the reporting period, there were no capital expenditure payments (2024: approximately **HK$0.8 million**)[65](index=65&type=chunk) [Future Plans for Material Investments or Capital Assets](index=24&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this report, the Group has no future plans for material investments or capital assets other than those disclosed in the prospectus - As of the date of this report, the Group has no future plans for material investments or capital assets other than those disclosed in the prospectus[66](index=66&type=chunk) [Dividends](index=24&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividends for the years ended March 31, 2024 and 2025 - The Board of Directors does not recommend the payment of any dividends for the years ended March 31, 2024 and 2025[67](index=67&type=chunk) [Events After Reporting Period](index=24&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the end of the financial year (March 31, 2025) up to the date of this report - No significant events occurred after the end of the financial year (March 31, 2025) up to the date of this report[68](index=68&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section covers various other important information including the use of proceeds from share offer, employee and remuneration policies, environmental performance, directors' and major shareholders' interests, corporate governance, and future outlook [Use of Proceeds from Share Offer](index=25&type=section&id=Use%20of%20Proceeds%20from%20Share%20Offer) The Company's shares were listed on January 8, 2019, and the net proceeds of approximately HK$34.8 million from the share offer have been fully utilized as of March 31, 2025, in accordance with the prospectus and subsequent revised plans, primarily for purchasing diesel tank trucks, expanding manpower, upgrading IT systems, and working capital - The Company's shares were listed on GEM of the Stock Exchange on January 8, 2019, with net proceeds from the share offer of approximately **HK$34.8 million**[69](index=69&type=chunk) Actual Use of Net Proceeds (HK$ Million) | Intended Allocation | As per Prospectus | After Variation | Actual Use as of March 31, 2025 | Unused Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Purchase of diesel tank trucks | 15.0 | 12.4 | (12.4) | – | | Manpower expansion | 12.5 | 1.7 | (1.7) | – | | IT system upgrade | 5.0 | 5.0 | (5.0) | – | | Working capital | 2.3 | 15.7 | (15.7) | – | | **Total** | **34.8** | **34.8** | **(34.8)** | **–** | - The Group has utilized the net proceeds in a manner consistent with the proposed application set out in the prospectus and subsequent variation announcements[70](index=70&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2025, the Group employed 43 staff with total staff costs of approximately HK$5.2 million; remuneration and related benefits are maintained at market levels and determined based on performance, qualifications, experience, position, and the Group's business performance Employees and Staff Costs | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 43 | 15 | | Total staff costs (HK$ Million) | 5.2 | 4.5 | - Employee remuneration and related benefits are determined based on performance, qualifications, experience, position, and the Group's business performance[71](index=71&type=chunk) [Environmental Policy and Performance](index=26&type=section&id=Environmental%20Policy%20and%20Performance) The Group's main operations in Hong Kong are regulated by environmental laws and regulations, and it has implemented various environmental protection measures to minimize the impact of its operations on the environment and natural resources - The Group's main operations in Hong Kong are regulated by environmental laws and regulations such as the Air Pollution Control Ordinance and Water Pollution Control Ordinance[72](index=72&type=chunk) - The Group has implemented various environmental protection measures to minimize the impact of its operations on the environment and natural resources[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) From the listing date up to March 31, 2025, there have been no purchases, sales, or redemptions of any of the Company's listed securities - From the listing date up to March 31, 2025, there have been no purchases, sales, or redemptions of any of the Company's listed securities[73](index=73&type=chunk) [Directors' and Chief Executive's Interests](index=27&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of March 31, 2025, Mr. Wang Xinlong, Chairman and Executive Director, held 25,563,000 shares of the Company through controlled corporations, representing 63.9% of the issued share capital; no other directors or chief executives had disclosable interests or short positions Directors' and Chief Executive's Long Positions in Shares | Director's Name | Capacity/Nature of Interest | Number of Shares | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wang Xinlong | Interest in controlled corporation | 25,563,000 shares (L) | 63.9% | - Mr. Wang Xinlong is the ultimate shareholder of the Company and is deemed to have an interest in the shares held by Hong Kong Yufengchang Limited[76](index=76&type=chunk) - Save as disclosed above, no other directors or chief executives of the Company had any interests or short positions in the shares, underlying shares, and debentures of the Company or any of its associated corporations that were required to be notified to the Company and the Stock Exchange[75](index=75&type=chunk) [Interests of Substantial Shareholders and Other Persons](index=28&type=section&id=Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons) As of March 31, 2025, Mr. Wang Xinlong, Yufengchang International Holdings Co., Ltd., and Hong Kong Yufengchang Limited were all deemed to hold 25,563,000 shares of the Company, representing 63.91% of the issued share capital, qualifying them as substantial shareholders Interests of Substantial Shareholders and Other Persons in Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wang Xinlong | Interest in controlled corporation | 25,563,000 shares (Long Position) | 63.91% | | Yufengchang International Holdings Co., Ltd. | Beneficial owner | 25,563,000 shares (Long Position) | 63.91% | | Hong Kong Yufengchang Limited | Beneficial owner | 25,563,000 shares (Long Position) | 63.91% | - Mr. Wang Xinlong is deemed to have an interest in all shares held by Hong Kong Yufengchang Limited, which is wholly owned by Yufengchang International Holdings Co., Ltd[78](index=78&type=chunk) [Directors' Securities Transactions Code of Conduct](index=29&type=section&id=Directors'%20Securities%20Transactions%20Code%20of%20Conduct) The Company has adopted a code of conduct for directors' securities transactions no less stringent than required by the GEM Listing Rules and confirms that all directors complied with it as of the reporting date - The Company has adopted a code of conduct for directors' securities transactions no less stringent than required by the GEM Listing Rules[79](index=79&type=chunk) - The Company confirms that all directors complied with the required standards of dealing and the code of conduct regarding directors' securities transactions as of the date of this report[79](index=79&type=chunk) [Sufficient Public Float](index=29&type=section&id=Sufficient%20Public%20Float) As of the date of this announcement, the Company has maintained a sufficient public float as required by the GEM Listing Rules - As of the date of this announcement, the Company has maintained a sufficient public float as required by the GEM Listing Rules[80](index=80&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Company established an Audit Committee on December 11, 2018, comprising three independent non-executive directors, chaired by Mr. Ho Kwan Lung, which has reviewed the audited results for the year ended March 31, 2025 - The Company established an Audit Committee on December 11, 2018, comprising three independent non-executive directors, chaired by Mr. Ho Kwan Lung[81](index=81&type=chunk) - The Audit Committee has reviewed the audited results for the year ended March 31, 2025[81](index=81&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The Board believes good corporate governance is crucial for managing the Group's business and affairs, regularly reviews practices to comply with the Corporate Governance Code, and confirms compliance during the reporting period - The Board believes that good corporate governance is a key element in managing the Group's business and affairs[82](index=82&type=chunk) - The Company has complied with the Corporate Governance Code during the reporting period[82](index=82&type=chunk) [Communication with Shareholders](index=30&type=section&id=Communication%20with%20Shareholders) The Company is committed to maintaining continuous communication with shareholders, particularly through annual general meetings or other general meetings, where all resolutions will be voted by poll and results published promptly, while maintaining an open and effective investor communication policy - The Company is committed to maintaining continuous communication with shareholders, particularly through annual general meetings or other general meetings[83](index=83&type=chunk) - All resolutions proposed at general meetings will be voted by poll, and the poll results will be published promptly on the Company's and the Stock Exchange's websites[83](index=83&type=chunk) - The Company will continue to maintain an open and effective investor communication policy[83](index=83&type=chunk) [Outlook](index=30&type=section&id=Outlook) The Group will continue to implement its strategy, strengthen cost control, enhance service capabilities, expand network layout and diversify its customer base, and actively seek new business development opportunities,詳情與管理層討論及分析中的未來展望一致 - The Group will strengthen cost control, allocate more resources to enhance service capabilities, expand network layout, and diversify its customer base[84](index=84&type=chunk) - The Group will also actively seek potential business developments that can expand revenue streams and increase shareholder value[84](index=84&type=chunk) [Acknowledgements](index=30&type=section&id=Acknowledgements) The Board expresses its sincere gratitude to shareholders, business partners, customers, management members, and staff for their continuous support and efforts - The Board extends its sincere gratitude to shareholders, business partners, and customers for their continuous support to the Group[85](index=85&type=chunk) - The Group also takes this opportunity to thank all management members and staff for their tireless efforts and concerted dedication during the year[85](index=85&type=chunk) [Board Information](index=30&type=section&id=Board%20Information) This announcement was signed by Mr. Wang Xinlong, Chairman and Executive Director, on June 26, 2025; the Company's executive directors include Mr. Wang Xinlong, Mr. Ren Rong, Mr. Yan Lei, and Mr. Lo Ming Yik, while independent non-executive directors are Dr. Wang Junxia, Mr. Ho Kwan Lung, and Ms. Leung Lai Na - This announcement was signed by Mr. Wang Xinlong, Chairman and Executive Director of the Board, on June 26, 2025[86](index=86&type=chunk) - The Company's executive directors are Mr. Wang Xinlong (Chairman), Mr. Ren Rong (Chief Executive Officer), Mr. Yan Lei, and Mr. Lo Ming Yik[87](index=87&type=chunk) - The Company's independent non-executive directors are Dr. Wang Junxia, Mr. Ho Kwan Lung, and Ms. Leung Lai Na[87](index=87&type=chunk)

Core Viewpoint - Yufengchang Holdings' subsidiary, Jiajia Shared Cloud Warehouse, is collaborating with Jishi Automotive Logistics Group to establish 15 shared cloud warehouses in Shaanxi, marking a significant partnership aimed at transforming the logistics industry in the region [1][2]. Group 1: Company Overview - Jiajia Shared Cloud Warehouse is a key business segment of Yufengchang Holdings, focusing on creating an intelligent and efficient warehousing service system [1]. - The company utilizes advanced cloud computing technology and big data analytics to optimize warehouse resource allocation, providing precise inventory management, rapid sorting, and efficient delivery services [1]. Group 2: Partnership Details - The collaboration with Jishi Automotive Logistics Group aims to leverage both companies' strengths, enhancing logistics and distribution capabilities [1]. - Jishi Automotive Logistics Group is recognized for its systematic operational management and a large-scale fleet of new energy logistics vehicles, with logistics capacity distributed across major cities nationwide [1]. Group 3: Logistics Network Development - The 15 shared cloud warehouses will be strategically located in key cities and logistics hubs across Shaanxi, creating a comprehensive warehousing service network [2]. - These warehouses will feature advanced storage facilities and intelligent management systems, enabling automated storage, sorting, and packaging, significantly improving operational efficiency [2]. Group 4: Benefits for Enterprises - Utilizing Jiajia Shared Cloud Warehouse services allows companies to reduce capital investment in building their own warehouses, lowering storage costs and operational risks [2]. - The efficient services provided by shared cloud warehouses can shorten order processing times, enhance customer satisfaction, and improve market competitiveness for enterprises [2]. - Additionally, big data analytics will offer market forecasting and inventory management recommendations, aiding companies in optimizing supply chain management [2]. Group 5: Future Outlook - The establishment of shared cloud warehouses in Shaanxi is a strategic move to meet market trends and customer demands, injecting new vitality into the local logistics industry [2]. - Both companies plan to deepen their collaboration and continuously optimize services to provide higher quality and more efficient logistics and warehousing solutions [2].

Company Overview - Yufengchang Holdings Limited primarily engages in diesel sales in Hong Kong, providing services that include sourcing diesel through oil trading companies and delivering it to customers using the company's fleet of diesel tankers [2] - The company has established itself as a significant diesel supplier in the logistics industry in Hong Kong, with a market share of approximately 10.5%, ranking second in terms of revenue from diesel sales in 2017 [2] Financial Performance - As of September 30, 2024, Yufengchang Holdings reported total revenue of 8.5445 million HKD, a decrease of 83.17% year-on-year [1] - The company experienced a net loss attributable to shareholders of 4.3169 million HKD, representing a year-on-year decline of 466.82% [1] - The gross margin stood at 0.12%, with a debt-to-asset ratio of 49.3% [1] Market Position and Valuation - The current price of Yufengchang Holdings is 0.55 HKD per share, reflecting a 37.5% increase, although it has seen a cumulative decline of 12.09% over the past month and 36.51% year-to-date [1] - The company's price-to-earnings (P/E) ratio is -0.95, ranking 41st in its industry, while the average P/E ratio for the oil and gas sector is -6.49 [1] - No investment ratings have been provided by institutions for Yufengchang Holdings at this time [1]