Financial Performance - The group's revenue for the year ended March 31, 2025, was HKD 6,851,300,000, an increase of 5.8% compared to the previous year[5]. - Gross profit margin improved by 96 basis points to 29.4%, up from 28.5% in the previous year[5][6]. - Profit before finance costs and share of results of associates increased by 9.9% to HKD 359,500,000[5][7]. - The battery business revenue was HKD 4,838,600,000, a growth of 6.8%, driven by increased demand for cylindrical and button batteries[10]. - The rechargeable battery business revenue rose by 18.5% to HKD 432,400,000, supported by higher demand from industrial customers[11]. - The audio business revenue remained stable at HKD 1,580,300,000, with KEF sales increasing by 7.0%[12]. - The company reported a net profit of HKD 139,299 thousand for the fiscal year 2025, a significant recovery from a net loss of HKD 341,860 thousand in 2024[27]. - The operating profit for the fiscal year 2025 was HKD 516,918,000, compared to a loss of HKD 13,788,000 in 2024, indicating a significant turnaround[43]. - The company reported a pre-tax profit of HKD 211,902,000 for 2025, a recovery from a pre-tax loss of HKD 295,567,000 in 2024[50]. - The company reported a basic earnings per share of HKD 0.029 for 2025, recovering from a loss per share of HKD 0.401 in the previous year[26]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.01 per share, totaling an annual dividend of HKD 0.025 per share, with a payout ratio of 86.2%[9]. - Total dividends declared for the year amounted to HKD 22,757,000, with a proposed final dividend of HKD 0.010 per share, consistent with the previous year[53]. - The board proposed a final dividend of HKD 0.01 per share, maintaining the same level as in 2024, with total dividend payments for the year amounting to HKD 0.025 per share, up from HKD 0.01 in 2024[68]. - The company repurchased a total of 7,965,000 shares at an average price of HKD 0.60, totaling approximately HKD 4.796 million, which has been deducted from retained earnings[70]. Expenses and Financial Management - Administrative expenses increased by 5.4% to HKD 855,900,000, mainly due to R&D costs for the new generation of rechargeable batteries[6]. - The company incurred financial costs of HKD 224,337,000 in 2025, down from HKD 248,541,000 in 2024, showing a reduction of approximately 9.7%[49]. - The company recognized a loss of HKD 58,903,000 in other expenses for 2025, compared to a loss of HKD 9,449,000 in 2024, indicating increased financial strain[48]. - The company has implemented a strategy to manage foreign exchange risk through forward contracts and local currency borrowings, minimizing exposure to currency fluctuations[67]. Investments and Asset Management - The company recognized a fair value loss of HKD 267.8 million on its investment in Xuan Yu Technology, which was fully impaired as of March 31, 2025[15]. - The pre-tax contribution from other industrial investments increased from HKD 34.1 million to HKD 44.7 million, primarily due to improved performance from Meilong and Zhifu Technology[13]. - The company plans to accelerate the divestment of non-core assets, including vacant land and idle factories in China, to strengthen its net asset position and enhance financial flexibility[24]. - The company has developed proprietary nickel-zinc battery technology for industrial energy storage applications, addressing the growing demand in the sector[19]. - The fair value of investment properties decreased to HKD 418,246,000 as of March 31, 2025, down from HKD 419,998,000, reflecting a reduction in value[58]. Market and Strategic Initiatives - The company plans to enhance production capacity in Southeast Asia to supply the U.S. market while optimizing its supply chain to minimize tariff impacts[22]. - Management will actively monitor tariff risks and adjust strategies to maintain profitability amid changing macroeconomic conditions[21]. - The company aims to focus on product development and expand its global footprint through partnerships with well-known retailers[21]. - The company announced a significant investment plan of approximately $150 million to establish a state-of-the-art nickel-zinc battery manufacturing plant and advanced R&D center in the Johor-Singapore Economic Zone by February 2025[23]. - The company signed a strategic cooperation framework agreement with the Dongguan Investment Promotion Bureau in March 2025, establishing Dongguan as a comprehensive development base for sustainable energy solutions in the industrial energy storage sector in China[23]. - The company achieved a major industry milestone by becoming the first Asian company to join the Zinc Battery Initiative under the International Zinc Association, highlighting its technological leadership and market advantage in the global sustainable battery ecosystem[23]. Compliance and Governance - The auditors issued reports on the financial statements for the years ended March 31, 2025, and 2024, with no reservations or emphasis of matter[31]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[71]. - The financial reports submitted to the Hong Kong Companies Registry comply with the relevant regulations and standards[31]. Financial Position and Ratios - As of March 31, 2025, the group's net assets amounted to HKD 2,138.1 million after accounting for the fair value loss on Xuan Yu Technology[15]. - The debt-to-equity ratio improved to 0.98 from 1.04 in the previous year, while the current ratio decreased to 0.96 from 1.00[16]. - The company's current liabilities exceeded current assets by approximately HKD 159 million[30]. - The company's total liabilities included short-term bank loans of HKD 1,503,249,000, down from HKD 1,555,333,000 in 2024[65]. - The group's current liabilities net worth increased significantly to HKD 159.4 million from HKD 17.5 million in 2024, primarily due to the reclassification of non-current loans[67]. - The company's total receivables, after deducting non-current deposits, amounted to HKD 1,254,186,000, a decrease from HKD 1,291,816,000 in the previous year[62]. - The company's total assets decreased to HKD 3,761,805 thousand in 2025 from HKD 3,923,823 thousand in 2024, while total liabilities also decreased, improving the company's net asset position[28][29].
金山科技工业(00040) - 2025 - 年度业绩