Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2025, revenue significantly decreased by 70.4% to HKD 125.2 million, yet net profit rose 37.8% to HKD 8.514 million due to cost reductions and improved gross margin, with basic EPS at 2.44 HK cents Key Profit or Loss Data for FY2025 | Indicator (HKD Thousand) | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 125,245 | 422,733 | -70.4% | | Gross Profit | 30,725 | 37,237 | -17.5% | | Profit from Operations | 13,447 | 11,898 | +13.0% | | Profit for the Year | 8,514 | 6,178 | +37.8% | | Total Comprehensive Income for the Year | 7,355 | 2,087 | +252.4% | Earnings Per Share | Earnings Per Share (HK Cents) | 2025 | 2024 | | :--- | :--- | :--- | | Basic | 2.44 | 1.77 | Consolidated Statement of Financial Position As of March 31, 2025, total assets reached HKD 223 million and net assets HKD 122 million, both slightly up year-on-year, with significant increases in non-current assets and inventory, offset by a sharp decrease in other receivables Key Balance Sheet Data | Indicator (HKD Thousand) | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 33,229 | 11,291 | +194.3% | | Current Assets | 189,391 | 193,558 | -2.1% | | Current Liabilities | 99,846 | 85,858 | +16.3% | | Net Assets | 122,074 | 117,957 | +3.5% | - Inventory significantly increased from approximately HKD 12.81 million to HKD 91.95 million, primarily due to gold ingot stockpiling from Yunnan gold-loaded carbon processing and the resumption of Henan gold ore processing542 - Other receivables, deposits, and prepayments significantly decreased from approximately HKD 90.83 million to HKD 16.93 million5 Notes to the Financial Statements General Information and Business Overview Success Dragon International Holdings Limited is an investment holding company incorporated in Bermuda and listed on the Hong Kong Stock Exchange, primarily engaged in gold processing and trading in China - The Group is primarily engaged in gold processing and trading business in the People's Republic of China ("China")7 - The ultimate controlling party of the Company is Ms. Liu Shuting7 Segment and Geographical Information All Group revenue is derived from gold processing and trading in China, thus no operating segment information is presented, with Customers A and E being major contributors, and non-current assets primarily located in China - All Group revenue of HKD 125,245 thousand is derived from the China region16 - Two major customers (Customer A and Customer E) contributed over 10% of total revenue this year, totaling approximately HKD 100 million16 - The vast majority of the Group's non-current assets (approximately HKD 28.02 million, accounting for 84%) are located in China18 Key Financial Items Breakdown This section details key financial statement items including revenue, expenses, taxation, earnings per share, and balance sheet accounts, noting that no dividends were recommended for the current year Revenue and Other Net Gains/Losses All HKD 125 million in revenue this year originated from gold processing and trading, recognized at a point in time when control of goods transferred, with other net gains/losses of HKD 2.85 million primarily from bank interest and reversal of trade receivables impairment - All revenue from contracts with customers is derived from gold processing and trading business, recognized at a point in time18 - Other net gains/losses primarily consist of bank deposit interest income (HKD 1.1 million) and reversal of impairment loss on trade receivables (HKD 1.21 million)21 Profit Before Tax Profit before tax is net of various expenses, notably a significant year-on-year decrease in cost of inventories sold to HKD 94.52 million, while total staff costs remained stable at HKD 11.64 million Key Deductions | Item (HKD Thousand) | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Inventories Sold | 94,520 | 385,496 | | Total Staff Costs | 11,637 | 11,380 | | Depreciation of Property, Plant and Equipment | 2,690 | 907 | Earnings Per Share Basic earnings per share are calculated based on profit attributable to owners of the Company of HKD 8.514 million and weighted average ordinary shares of 348.3 million, with no diluted EPS presented due to the absence of potential dilutive ordinary shares during the period - Profit used for basic earnings per share calculation was HKD 8,514 thousand, with a weighted average number of shares of 348,335 thousand26 - Diluted earnings per share are not applicable as no potential ordinary shares were issued in either year27 - The Board does not recommend the payment of any dividend for the year ended March 31, 202525 - The aging structure of trade receivables improved, with a significant increase in amounts due within 90 days and a notable decrease in amounts overdue by more than 91 days29 Management Discussion and Analysis Financial Review The year's financial performance saw a 70.4% revenue drop due to suspended Henan gold ore processing, yet net profit grew year-on-year, driven by higher-grade raw materials, rising gold prices, and cost control, which boosted the overall gross margin from 8.8% to 24.5% Revenue Analysis Total revenue decreased 70.4% year-on-year to HKD 125 million, with gold-loaded carbon processing revenue falling to HKD 108 million due to gold bar stockpiling, and gold ore processing revenue sharply declining from HKD 269 million to HKD 17 million due to insufficient supply from supplier mine infrastructure Revenue Breakdown by Business Segment | Business Segment | 2025 Revenue (HKD Million) | 2024 Revenue (HKD Million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gold-Loaded Carbon Processing | 108.2 | 153.8 | -29.7% | | Gold Ore Processing | 17.0 | 268.9 | -93.7% | | Total | 125.2 | 422.7 | -70.4% | - Gold ore processing revenue significantly decreased, primarily due to insufficient gold ore supply caused by infrastructure construction at two Henan suppliers' mining areas34 Cost and Gross Profit Analysis Cost of sales decreased 75.5% to HKD 94.5 million in line with revenue, yet gross profit only slightly fell 17.5% to HKD 30.7 million, with gross margin significantly improving from 8.8% to 24.5% due to higher-grade gold-loaded carbon, reduced low-margin gold ore processing, and rising gold prices - Cost of sales decreased from HKD 386 million to HKD 94.5 million, a reduction of approximately 75.5%35 - Overall gross margin significantly increased from approximately 8.8% in FY2024 to 24.5% this year36 Expenses and Profit Analysis Administrative and other operating expenses decreased 29.7% year-on-year to HKD 20.1 million, mainly due to reduced impairment losses and depreciation, with finance costs and income tax expenses also declining, resulting in net profit attributable to owners increasing to HKD 8.5 million this year - Administrative and other operating expenses decreased by approximately HKD 8.5 million (-29.7%), primarily due to reduced impairment loss on trade receivables, write-off of other receivables, and depreciation of right-of-use assets38 - The Group recorded a net profit attributable to owners of the Company of approximately HKD 8.5 million for the current year (FY2024: HKD 6.2 million)41 Liquidity, Financial Resources and Foreign Currency Risk As of March 31, 2025, the Group held approximately HKD 73 million in cash and equivalents with a current ratio of 1.9 times, indicating a sound financial position and sufficient working capital, maintaining a zero gearing ratio and prudent foreign exchange risk management policies Liquidity Indicators | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HKD 73 Million | HKD 79.8 Million | | Net Current Assets | HKD 89.5 Million | HKD 107.7 Million | | Current Ratio | 1.9 times | 2.3 times | - As of March 31, 2025, the Group's gearing ratio (calculated as total borrowings divided by total equity) was zero43 Capital Structure and Use of Proceeds As of March 31, 2025, the company had 349.5 million ordinary shares issued, disclosing that approximately HKD 40.73 million of the HKD 64.1 million net proceeds from rights issue were used for plant upgrades, equipment, and working capital, with the remaining HKD 23.37 million planned for use by March 31, 2026 - As of March 31, 2025, the total number of ordinary shares issued by the Company was 349,519,56745 Use of Proceeds from Rights Issue | Item | Revised Allocation (HKD Thousand) | Actual Use (HKD Thousand) | Remaining Proceeds (HKD Thousand) | | :--- | :--- | :--- | :--- | | Investment and Upgrading of Leased Plants | 14,100 | 2,168 | 11,932 | | Acquisition of Machinery and Equipment | 35,000 | 23,566 | 11,434 | | Working Capital | 15,000 | 15,000 | – | | Total | 64,100 | 40,734 | 23,366 | Significant Investments and Future Outlook The Group made a significant acquisition of gold-loaded carbon processing equipment for HKD 23.57 million this year. Anticipating a substantial revenue rebound next year as Henan mining infrastructure completes, the Group will continue its core gold processing business, reallocating funds from a suspended self-owned plant construction to upgrading existing leased facilities, driven by increased demand for gold as a safe-haven asset Significant Acquisitions, Disposals and Material Investments In February 2025, the Group's indirect wholly-owned subsidiary agreed to acquire gold-loaded carbon processing machinery and equipment for approximately HKD 23.57 million, with no other significant acquisitions, disposals, or investments during the year - On February 18, 2025, the Company's indirect wholly-owned subsidiary agreed to acquire gold-loaded carbon processing machinery and equipment for RMB 22,030,877.51 (equivalent to approximately HKD 23,573,000)47 Future Development of the Group's Business Facing global central bank gold accumulation and investor safe-haven demand, the Group is optimistic about the gold market and will continue its core gold processing business. With Henan mining infrastructure complete, production has resumed, anticipating a substantial revenue rebound next year, and the company has decided to suspend new processing plant construction, reallocating funds to upgrade existing leased facilities and expand business - Global economic downturn has increased gold's attractiveness as a safe-haven asset, and the Group will continue to develop its core gold processing business51 - Gold ore production in Henan resumed in March 2025, and the Board anticipates a substantial revenue rebound in the coming year52 - The Board decided to suspend the construction of a new beneficiation plant, reallocating the remaining net proceeds to expand existing gold processing and trading businesses5253 Other Disclosures Operations and Risk Management As of March 31, 2025, the Group employed approximately 82 staff members, having identified and managed key risks including strategic enterprise, operational, financial, and compliance risks, monitored through various functional departments and management - As of March 31, 2025, the Group employed approximately 82 staff members54 - Key risks identified by the Group include: strategic enterprise risk, operational risk (e.g., staff turnover), financial risk (e.g., liquidity, foreign exchange, credit risk), and compliance risk59606264 Corporate Governance The company adopted and complied with applicable Corporate Governance Code provisions this year. The Audit Committee, comprising three independent non-executive directors, reviewed annual results, and an independent consulting firm's internal control review confirmed the Group's effective internal control system and adequate accounting and financial reporting resources - The Board is confident that the Company has complied with the applicable code provisions of the Corporate Governance Code throughout the year68 - The Audit Committee, comprising three independent non-executive directors, has reviewed the annual results69 - The Group engaged an independent consulting firm to conduct an internal control review, whose report indicated that the Group has an effective internal control system with no material control deficiencies found70 Purchase, Redemption or Sale of Listed Securities This year, the company repurchased 7,385,000 shares for approximately HKD 3.23 million in the open market under a repurchase mandate, holding them as treasury shares, which the directors believe enhances shareholder value Share Repurchase Details | Month of Repurchase | Number of Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | December 2024 | 1,600,000 | 521,525 | | January 2025 | 1,495,000 | 593,525 | | February 2025 | 2,975,000 | 1,438,900 | | March 2025 | 1,315,000 | 673,350 | | Total | 7,385,000 | 3,227,300 | - The Directors believe that the share repurchases will increase net asset value per share and/or earnings per share, enhancing long-term shareholder value74
胜龙国际(01182) - 2025 - 年度业绩