新世纪集团(00234) - 2025 - 年度业绩

Consolidated Results Overview This section provides an overview of the Group's consolidated financial performance, including income, comprehensive income, and financial position for the year Consolidated Income Statement The Group's continuing operations shifted from profit to a pre-tax loss of HK$43,352 thousand for the year, with a loss attributable to owners of HK$55,659 thousand and basic loss per share of 0.96 HK cents Consolidated Income Statement Key Data (HK$ thousand) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 90,263 | 88,291 | +2.2% | | Other Income | 17,377 | 15,434 | +12.6% | | Administrative and Operating Expenses | (44,531) | (46,731) | -4.7% | | Fair Value Gains/(Losses) on Investment Properties | (69,400) | 10,149 | Shifted from gain to loss | | Profit/(Loss) Before Tax | (43,352) | 28,631 | Shifted from profit to loss | | Profit/(Loss) for the Year | (46,023) | 34,991 | Shifted from profit to loss | | Profit/(Loss) Attributable to Owners of the Company | (55,659) | 22,413 | Shifted from profit to loss | | Basic Earnings/(Loss) Per Share | (0.96) HK cents | 0.39 HK cents | Shifted from profit to loss | Consolidated Statement of Comprehensive Income The Group recorded a total comprehensive loss of HK$46,301 thousand for the year, primarily due to the shift from profit to loss and exchange differences Consolidated Statement of Comprehensive Income Key Data (HK$ thousand) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Year | (46,023) | 34,991 | Shifted from profit to loss | | Exchange Differences on Translation of Foreign Operations | (365) | (3,415) | Loss narrowed | | Reclassification Adjustment on Disposal of Foreign Operations | – | (9,487) | Not applicable | | Fair Value Changes of Equity Investments | 87 | 362 | Gain decreased | | Total Comprehensive Income/(Loss) for the Year | (46,301) | 22,451 | Shifted from income to loss | | Total Comprehensive Income/(Loss) Attributable to Owners of the Company | (55,937) | 13,729 | Shifted from income to loss | Consolidated Statement of Financial Position As of March 31, 2025, total assets slightly decreased, with a reduction in non-current assets and a slight increase in current assets, leading to a net asset decrease to HK$1,879,711 thousand Consolidated Statement of Financial Position Key Data (HK$ thousand) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 676,775 | 756,427 | -10.5% | | Total Current Assets | 1,312,404 | 1,279,760 | +2.6% | | Total Current Liabilities | 91,977 | 114,791 | -19.8% | | Net Current Assets | 1,220,427 | 1,164,969 | +4.8% | | Net Assets | 1,879,711 | 1,901,925 | -1.2% | | Equity Attributable to Owners of the Company | 1,505,939 | 1,561,876 | -3.7% | | Cash and Cash Equivalents | 682,206 | 518,251 | +31.6% | Notes to Financial Statements This section details the Group's accounting policies, segment performance, revenue, taxation, and key financial statement items Company and Group Information New Century Group Hong Kong Limited, registered in Bermuda, primarily engages in investment holding and securities trading, with subsidiaries involved in money lending, property investment, and securities trading - The Company's principal activities are investment holding and securities trading, with subsidiaries engaged in money lending, property investment, and securities trading[8] - The Group ceased providing cruise chartering services during the year[8] Basis of Preparation The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, primarily on a historical cost basis, with certain investments measured at fair value - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[9] - Investment properties and certain equity investments are measured at fair value, while other items are prepared on a historical cost basis[9] - The consolidated financial statements cover the Company and its subsidiaries, with control assessed based on exposure to variable returns, power, and ability to affect returns[10][11] Changes in Accounting Policies and Disclosures This year saw the initial adoption of revised Hong Kong Financial Reporting Standards, including amendments related to lease liabilities, classification of liabilities, and supplier financing arrangements, with no material impact on the Group's financial position - Initial adoption of amendments to HKFRS 16, HKAS 1, and HKAS 7 & HKFRS 7[13] - These amendments had no impact on the Group's financial position or performance as there were no relevant transactions or arrangements[13][14] Operating Segment Information The Group's operating segments include money lending, property investment, and securities trading, with management monitoring each segment's performance based on adjusted profit/loss before tax from continuing operations - The Group has three reportable operating segments: money lending, property investment, and securities trading[15][17] - Segment results are assessed based on adjusted profit/loss before tax from continuing operations, excluding bank interest income, corporate income, and expenses[15] Segment Revenue and Results The money lending segment generated HK$69,716 thousand in revenue, property investment HK$14,914 thousand, and securities trading HK$5,633 thousand, with property investment shifting to a loss and securities trading profit significantly increasing Segment Revenue and Results (HK$ thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Results | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Money Lending | 69,716 | 72,744 | 20,898 | 20,766 | | Property Investment | 14,914 | 15,288 | (57,788) | 21,644 | | Securities Trading | 5,633 | 259 | 5,693 | 315 | | Total | 90,263 | 88,291 | (31,197) | 42,725 | - The property investment segment shifted from a profit of HK$21,644 thousand last year to a loss of HK$57,788 thousand this year[18] - The securities trading segment profit significantly increased from HK$315 thousand to HK$5,693 thousand[18] Geographical Information The majority of the Group's revenue and non-current assets are located in Hong Kong, with Hong Kong revenue at HK$88,717 thousand and non-current assets at HK$468,947 thousand for the year Geographical Revenue and Non-current Assets (HK$ thousand) | Region | 2025 Revenue | 2024 Revenue | 2025 Non-current Assets | 2024 Non-current Assets | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 88,717 | 86,120 | 468,947 | 553,878 | | Southeast Asia (excluding Hong Kong) | 2,560 | 2,613 | 196,860 | 197,200 | | Total | 91,277 | 88,733 | 665,807 | 751,078 | - Total non-current assets in Hong Kong decreased from HK$553,878 thousand to HK$468,947 thousand[20] Revenue and Other Income Total revenue slightly increased by 2.2% to HK$90,263 thousand, driven by significant growth in fair value gains and dividend income from securities trading, partially offset by reduced money lending interest income, while other income grew by 12.6% to HK$17,377 thousand Revenue and Other Income Analysis (HK$ thousand) | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on Mortgage and Unsecured Personal Loans | 69,716 | 72,744 | -4.2% | | Rental Income from Investment Properties | 14,914 | 15,288 | -2.4% | | Fair Value Gains on Equity Investments | 4,140 | 74 | Significant growth | | Dividend Income from Equity Investments | 1,493 | 185 | Significant growth | | Total Revenue | 90,263 | 88,291 | +2.2% | | Bank Interest Income | 16,363 | 14,982 | +9.2% | | Forfeited Tenants' Rental Deposits | 565 | – | New item | | Bad Debts Recovered | 331 | 186 | +77.9% | | Total Other Income | 17,377 | 15,434 | +12.6% | - Significant growth in fair value gains and dividend income from securities trading offset the decrease in money lending interest income[22] Profit/(Loss) Before Tax The pre-tax loss from continuing operations for the year was HK$43,352 thousand, primarily due to fair value losses on investment properties of HK$69,400 thousand and impairment loss provisions for loans and interest of HK$37,059 thousand Profit/(Loss) Before Tax Key Components (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Depreciation | 5,262 | 5,573 | -5.6% | | Auditor's Remuneration | 2,530 | 2,370 | +6.8% | | Employee Benefit Expenses | 22,629 | 22,663 | -0.1% | | Fair Value Loss/(Gain) on Investment Properties | 69,400 | (10,149) | Shifted from gain to loss | | Impairment Loss Provisions for Loans and Interest Receivable | 37,059 | 37,964 | -2.4% | - Fair value of investment properties shifted from a gain of HK$10,149 thousand last year to a loss of HK$69,400 thousand this year, being the primary driver of the pre-tax loss[23] Income Tax Income tax expense for the year decreased to HK$2,671 thousand from HK$2,943 thousand last year, with Hong Kong profits tax at 16.5% and a concessionary rate of 8.25% for the first HK$2,000,000 of assessable profits for eligible subsidiaries Income Tax Expense Analysis (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current - Hong Kong | 8,672 | 5,606 | | Current - Other Regions | 271 | 280 | | Deferred Tax | (6,174) | (2,943) | | Total | 2,671 | 2,943 | - Hong Kong profits tax rate is 16.5%, with a concessionary rate of 8.25% for the first HK$2 million of assessable profits for certain subsidiaries[24] Dividends The Board of Directors does not recommend the payment of any dividend for the year ended March 31, 2025 - The Directors do not recommend the payment of a dividend for the current year[26] Earnings/(Loss) Per Share Attributable to Owners of the Company Basic and diluted loss per share for the year was 0.96 HK cents, compared to a profit of 0.39 HK cents last year, primarily driven by losses from continuing operations Earnings/(Loss) Per Share Analysis (HK cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the Year | (0.96) HK cents | 0.39 HK cents | | Profit/(Loss) from Continuing Operations | (0.96) HK cents | 0.29 HK cents | - The number of ordinary shares used for calculating earnings/loss per share is 5,780,368,705, consistent with the prior year[27][28] - Unexercised share options had an anti-dilutive effect, thus no dilutive adjustment was made to the basic earnings/loss per share amount[27] Loans and Interest Receivable Loans and interest receivable (net of provisions) decreased by 20.3% to HK$577,338 thousand as of March 31, 2025, with most loans secured by collateral and an increase in overdue loans Loans and Interest Receivable (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total Loans and Interest Receivable | 592,015 | 741,494 | -20.2% | | Less: Impairment Loss Provisions | (14,677) | (16,978) | -13.6% | | Total Net of Provisions | 577,338 | 724,516 | -20.3% | | Current Portion | 505,892 | 642,612 | -21.3% | | Non-current Portion | 71,446 | 81,904 | -12.8% | - Overdue loans and interest receivable increased from HK$6,622 thousand to HK$7,345 thousand, with mortgage loans accounting for HK$6,691 thousand of the overdue balance[29] Loans and Interest Receivable Maturity Analysis (HK$ thousand) | Maturity Period | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current | 505,892 | 642,612 | | More than 1 year but within 5 years | 29,930 | 37,684 | | More than 5 years | 41,516 | 44,220 | | Total | 577,338 | 724,516 | Chairman's Statement The Chairman's statement addresses the Group's core business resilience amidst economic challenges and outlines strategies for sustainable growth Resilience in Core Businesses Despite a challenging macroeconomic environment, the Group's core businesses demonstrated resilience, with securities trading offsetting pressures from property investment losses and cautious money lending practices - The Hong Kong economy faces pressures from geopolitical tensions, global financial tightening, and suppressed consumer confidence[32] - The residential property market is affected by high mortgage rates and an oversupply of unsold units, leading to a 6.9% drop in the Centa-City Leading Index and a 27% increase in negative equity mortgage cases[32] - The money lending business adopted a more cautious approach, reducing the number of mortgage loans granted to 28 (from 40 last year) and initiating legal actions to recover credit-impaired loans[33] - The property investment segment faced reduced leasing demand and increased competition, resulting in a significant decrease in the fair value of Hong Kong investment properties, while Singapore investment properties remained stable[34] - The securities trading segment benefited from market volatility and favorable policies, generating substantial profits that partially offset pressures in other areas[34] - The Group's shift from profit to loss was primarily due to a significant decline in investment property fair value, the absence of last year's gain from subsidiary disposal, and reduced mortgage interest income from a smaller loan portfolio[35] Building Sustainable Growth and Lasting Value The Group maintains a positive yet cautious outlook on future property markets and economic conditions, anticipating benefits from government measures and strategic asset management to create lasting value - Recent government measures, including stamp duty reductions and relaxed transaction restrictions, have begun to stimulate market activity, particularly in the primary residential market[36] - Supportive government policies and improving economic conditions are expected to benefit the property investment portfolio, with infrastructure projects potentially boosting commercial property demand[37] - The retail sector shows signs of recovery with rising rents, and the government continues to support small and medium-sized enterprises[37] - Favorable policies in mainland China and the stock connect schemes are expected to enhance liquidity and investor confidence in the securities trading market[37] - The Group will continue to adopt a strategic asset management and portfolio optimization approach, focusing on risk control to create lasting value[37] Management Discussion and Analysis This section offers a detailed review of the Group's financial performance, business segment results, liquidity, and financial resources Financial Review This section provides a detailed review of the Group's financial performance for the year, including specific changes and key drivers for revenue, other income, administrative expenses, investment property fair value, impairment provisions, and profit/loss attributable to owners - The financial review covers revenue, other income, administrative and operating expenses, fair value changes of investment properties, impairment loss provisions, and profit/loss attributable to owners of the Company[38][39][40][41][42][43] Revenue Revenue slightly increased by 2.2% to HK$90,263 thousand, primarily driven by significant increases in fair value gains and dividend income from listed equity investments, partially offset by reduced money lending interest income Revenue Composition and Changes (HK$ thousand) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Money Lending Interest Income | 69,716 | 72,744 | -3,028 | | Investment Property Rental Income | 14,914 | 15,288 | -374 | | Listed Equity Investment Fair Value Gains | 4,140 | 74 | +4,066 | | Listed Equity Investment Dividend Income | 1,493 | 185 | +1,308 | | Total Revenue | 90,263 | 88,291 | +1,972 (+2.2%) | Other Income Other income increased by 12.6% to HK$17,377 thousand, primarily driven by higher bank interest income, forfeited rental deposits, and bad debt recoveries Other Income Composition and Changes (HK$ thousand) | Other Income Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Bank Interest Income | 16,363 | 14,982 | +1,381 | | Forfeited Rental Deposits | 565 | – | +565 | | Bad Debts Recovered | 331 | 186 | +145 | | Total Other Income | 17,377 | 15,434 | +1,943 (+12.6%) | Administrative and Operating Expenses Administrative and operating expenses decreased by 4.7% to HK$44,531 thousand, mainly due to a significant 44.4% reduction in advertising and promotion expenses Administrative and Operating Expenses Changes (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Total Administrative and Operating Expenses | 44,531 | 46,731 | -2,200 (-4.7%) | | Advertising and Promotion Expenses | 2,539 | 4,565 | -2,026 (-44.4%) | Fair Value Gains/(Losses) on Investment Properties, Net The Group recorded a net fair value loss on investment properties of HK$69,400 thousand for the year, compared to a net gain of HK$10,149 thousand last year, primarily due to increased fair value losses on Hong Kong investment properties Investment Property Fair Value Changes (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Fair Value Loss/(Gain) on Investment Properties | (69,400) | 10,149 | Shifted from gain to loss | | Hong Kong Investment Property Fair Value Loss | (69,400) | (13,131) | Loss widened | | Singapore Investment Property Fair Value Gain | – | 23,280 | No gain | Impairment Loss Provisions for Loans and Interest Receivable and Repossessed Assets, Net Net impairment loss provisions amounted to HK$37,059 thousand, a 2.4% decrease from last year, primarily attributable to a reduction in the loan portfolio Net Impairment Loss Provisions (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Impairment Loss Provisions | 37,059 | 37,964 | -805 (-2.4%) | Profit/(Loss) Attributable to Owners of the Company The Group recorded a loss attributable to owners of HK$55,659 thousand for the year, compared to a profit of HK$22,413 thousand last year, mainly due to fair value losses on investment properties, partially offset by increased securities trading profit Profit/(Loss) Attributable to Owners of the Company (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company | (55,659) | 22,413 | Shifted from profit to loss | | Securities Trading Profit | 5,693 | 315 | Significant growth | - Last year included a fair value gain on investment properties of HK$10,149 thousand and a gain on disposal of a subsidiary of HK$9,834 thousand, which were absent this year[43] Business Segment Performance This section analyzes the performance of the Group's three core business segments—money lending, property investment, and securities trading—detailing their challenges and achievements for the year - Money lending revenue decreased, but segment profit slightly increased[44][50] - Property investment segment shifted from profit to loss, mainly due to a significant decline in Hong Kong property fair value[51][54] - Securities trading segment profit significantly grew, benefiting from the Hang Seng Index recovery and equity investment gains[55][56] Lending The money lending business, accounting for approximately 77.2% of total revenue, saw a 4.2% revenue decrease to HK$69,716 thousand due to a smaller loan portfolio, with fewer mortgage loans but more unsecured personal loans granted - The money lending business accounted for approximately 77.2% of total revenue, with revenue decreasing by 4.2% to HK$69,716 thousand[44] Lending Business Loan Data | Loan Type | 2025 Number of Loans Granted | 2024 Number of Loans Granted | 2025 Total Principal (HK$ thousand) | 2024 Total Principal (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Mortgage Loans | 28 | 40 | 188,530 | 255,960 | | Unsecured Personal Loans | 7 | 5 | 5,230 | 2,520 | - Loans and interest receivable (net of provisions) decreased by 20.3% to HK$577,338 thousand[47] - Impairment loss provisions for mortgage loans increased to HK$38,984 thousand, while unsecured personal loans recorded an impairment loss reversal of HK$831 thousand[49] - The total carrying amount of repossessed assets increased by 30.5% to HK$134,463 thousand, involving 16 loan cases[49] - The money lending segment recorded a profit of HK$20,898 thousand for the year, a slight increase from last year[50] Property Investment Property investment segment revenue fell by 2.4% to HK$14,914 thousand due to weak tenant demand and rent concessions in Hong Kong retail properties, resulting in a net fair value loss of HK$69,400 thousand and a segment shift from profit to loss - Property investment segment revenue decreased by 2.4% to HK$14,914 thousand[52] - Rental income from Hong Kong investment properties decreased by 2.5%, mainly due to early tenant departures and rent concessions[52] - Overall average occupancy rate decreased to 95.8% (from 96.9% last year), while the overall average annual rental yield increased to 3.1% (from 2.8% last year)[52] - Investment property fair value shifted from a net gain of HK$10,149 thousand last year to a net loss of HK$69,400 thousand this year, primarily due to increased fair value losses on Hong Kong properties[53] - The property investment segment shifted from a profit of HK$21,644 thousand last year to a loss of HK$57,788 thousand this year[54] Securities Trading The securities trading segment recorded a significant profit increase to HK$5,693 thousand, driven by a substantial 39.8% rebound in the Hang Seng Index and higher net fair value gains and dividend income from listed equity investments - Securities trading segment profit significantly increased to HK$5,693 thousand (from HK$315 thousand last year)[56] - The Hang Seng Index surged by 39.8% from 16,541 points on March 31, 2024, to 23,119 points on March 31, 2025[56] - Net fair value gains on listed equity investments increased to HK$4,140 thousand (from HK$74 thousand last year), and dividend income increased to HK$1,493 thousand (from HK$185 thousand last year)[56] Equity Investments at Fair Value Through Profit or Loss Details (as of March 31, 2025) | Share Name (Stock Code) | Market Value (HK$ thousand) | Percentage of Net Assets | | :--- | :--- | :--- | | CK Hutchison Holdings Limited (0001) | 1,748 | 0.09 | | Henderson Land Development Company Limited (0012) | 1,561 | 0.08 | | Sun Hung Kai Properties Limited (0016) | 1,475 | 0.08 | | China Construction Bank Corporation (0939) | 1,376 | 0.07 | | China Mobile Limited (0941) | 1,675 | 0.09 | | CK Asset Holdings Limited (1113) | 1,727 | 0.09 | | Ping An Insurance (Group) Company of China, Ltd. (2318) | 926 | 0.05 | | Bank of China Limited (3988) | 936 | 0.05 | | Total | 11,424 | 0.60 | Contingent Liabilities As of March 31, 2025, the Company had outstanding guarantees of HK$70,000 thousand to banks for a subsidiary's credit facilities, none of which were drawn down Contingent Liabilities (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Outstanding Bank Guarantees | 70,000 | 70,000 | | Utilized Credit Facilities under Guarantee | – | – | Pledge of Assets As of March 31, 2025, the Group pledged self-occupied office units and parking spaces with a net book value of HK$103,983 thousand, along with listed equity investments with a fair value of HK$11,424 thousand, to secure total financing loans of HK$78,620 thousand, none of which were utilized Pledged Assets and Financing Loans (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Book Value of Pledged Assets | 103,983 | 108,681 | | Fair Value of Pledged Listed Equity Investments | 11,424 | 15,375 | | Total Financing Loans Secured | 78,620 | 80,968 | | Utilized Financing Loans | – | – | Liquidity and Financial Resources The Group maintains a strong financial position with net current assets increasing to HK$1,220,427 thousand and cash and cash equivalents totaling approximately HK$682,206 thousand, supported by stringent cost control measures Liquidity and Financial Resources (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 1,220,427 | 1,164,969 | +4.8% | | Equity Attributable to Owners of the Company | 1,505,939 | 1,561,876 | -3.7% | | Cash and Cash Equivalents | 682,206 | 518,251 | +31.6% | | Amounts Due to Intermediate Holding Company | 80,000 | 80,000 | No change | | Advances from Non-controlling Shareholders | – | 24,087 | Waived | - The Group has implemented stringent cost control measures and believes it has sufficient funds for continuing operations and development[62] Gearing Ratio As of March 31, 2025, the Group's gearing ratio decreased to 5.3% (from 6.7% last year), reflecting reduced financial leverage Gearing Ratio | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 5.3% | 6.7% | -1.4% | - Total debt is defined as lease liabilities and amounts due to an intermediate holding company[63] Key Risks and Uncertainties This section identifies and discusses the primary market, credit, equity price, and foreign exchange risks impacting the Group's operations Market Risk The Group's business performance is closely tied to Hong Kong's economic conditions and property market dynamics, with potential impacts on mortgage loan growth and impairment losses, which the Group mitigates by monitoring market trends and collateral valuations - The Group's business performance is closely linked to Hong Kong's economic conditions and property market dynamics[64] - An economic downturn or deterioration in the property market could affect mortgage loan portfolio growth and increase the risk of impairment losses[64] - The Group will closely monitor property market trends and collateral valuations, implementing appropriate risk mitigation strategies[64] Credit Risk The Group mitigates credit risk by lending to quality clients and securing sufficient collateral, conducting due diligence, and continuously monitoring repayment status and internal control systems - The Group primarily engages in lending and leasing transactions with quality clients and obtains sufficient collateral or deposits to mitigate default risk[65] - A loan committee approves loans, and the Group continuously monitors property market conditions and collateral values of its mortgage loan portfolio[65] - Client repayment status is closely monitored, legal actions are taken for defaulting debts when necessary, and internal control systems are regularly reviewed[65] Equity Price Risk The Group faces equity price risk from its investments in listed securities on the Hong Kong Stock Exchange, which management addresses by monitoring price movements and market conditions to consider appropriate mitigation actions - The Group faces equity price risk arising from its investments in listed securities on the Hong Kong Stock Exchange[66] - Management manages this risk by monitoring price movements and market conditions, and will consider appropriate actions to mitigate the risk[66] Foreign Exchange Risk The Group's revenues, costs, and cash equivalents are primarily denominated in HKD, SGD, and USD, with no current hedging policy, though management monitors foreign exchange risk and will consider hedging if needed - The majority of the Group's revenue, costs, and cash equivalents are denominated in Hong Kong Dollars, Singapore Dollars, and US Dollars[67] - There is currently no foreign exchange hedging policy, but management closely monitors foreign exchange risk and will consider hedging when necessary[67] Other Information This section provides additional information on human resources, corporate governance, and other operational and administrative matters Employees and Remuneration As of March 31, 2025, the Group had 32 employees, with total employee benefit expenses of HK$22,629 thousand for the year, offering benefits including salary increments, MPF, medical insurance, discretionary bonuses, and vocational training Employee and Remuneration Data (HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Number of Employees | 32 | 32 | | Employee Benefit Expenses | 22,629 | 22,663 | - Employee benefits include salary increments, Mandatory Provident Fund schemes, medical insurance, and discretionary bonuses, along with vocational training[68] Significant Investments, Acquisitions and Disposals of Subsidiaries and Associates Held The Group did not hold any significant investments or undertake any material acquisitions or disposals of subsidiaries and associates during the year - The Group had no significant investments, acquisitions, or disposals of subsidiaries and associates during the year[69] Suspension of Register of Members To determine eligibility for attending and voting at the Annual General Meeting, the Company will suspend its register of members from September 11 to September 16, 2025, inclusive - The Annual General Meeting will be held on September 16, 2025[70] - The register of members will be suspended from September 11 to September 16, 2025[70] Purchase, Redemption or Sale of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the year - Neither the Company nor its subsidiaries conducted any purchase, redemption, or sale of listed securities during the year[71] Corporate Governance The Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited for the year ended March 31, 2025 - The Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[72] Standard Code for Securities Transactions by Directors The Company adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all Directors confirmed their compliance - The Company adopted the Standard Code in Appendix C3 of the Listing Rules, and all Directors confirmed compliance[73] Audit Committee The Audit Committee, comprising four independent non-executive Directors, reviewed the Group's consolidated financial statements, accounting principles, and practices, and discussed internal controls, risk management, and financial reporting matters - The Audit Committee consists of four independent non-executive Directors[74] - The Audit Committee reviewed the consolidated financial statements, accounting principles and practices, and discussed internal controls, risk management, and financial reporting matters[74] Scope of Work of the Company's Auditor The Company's auditor confirmed that the figures in the preliminary announcement for the consolidated income statement, comprehensive income statement, financial position, and related notes align with the consolidated financial statements, though this work does not constitute an assurance engagement - The auditor confirmed that the financial data in the preliminary announcement is consistent with the consolidated financial statements[75] - The auditor's work does not constitute an assurance engagement, thus no assurance was expressed[75] Board of Directors As of the announcement date, the Board of Directors comprises Mr. Wong Wai Kit as Chairman, Ms. Siu Yun Kwan as Vice Chairman, Ms. Wong Sau Lan as Chief Operating Officer, other executive directors, and four independent non-executive directors - The Board of Directors comprises Mr. Wong Wai Kit as Chairman, Ms. Siu Yun Kwan as Vice Chairman, Ms. Wong Sau Lan as Chief Operating Officer, other executive directors, and four independent non-executive directors[76][77]