永义国际(01218) - 2025 - 年度业绩

Financial Highlights Financial Highlights The company's revenue from continuing operations grew significantly, but a gross loss and a substantial loss from discontinued operations widened the total annual loss attributable to owners Financial Highlights for FY2025 (vs. FY2024) | Indicator | 2025 | 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Continuing operations | | | | | Revenue (HK$'000) | 488,489 | 196,421 | 148.7% | | (Gross loss)/gross profit (HK$'000) | (17,052) | 30,903 | N/A | | Profit/(loss) attributable to company owners (HK$'000) | 15,595 | (228,334) | N/A | | Discontinued operations | | | | | Loss attributable to company owners (HK$'000) | (733,263) | (24,891) | 2,845.9% | | Overall performance | | | | | Basic loss per share (HK$) | (9.71) | (3.50) | 177.4% | | Total assets (HK$'000) | 3,329,958 | 8,739,039 | (61.9%) | | Total liabilities (HK$'000) | 1,603,393 | 4,136,948 | (61.2%) | | Net assets (HK$'000) | 1,726,565 | 4,602,091 | (62.5%) | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income Continuing operations turned profitable, but a massive loss from discontinued operations due to the deemed disposal of a subsidiary led to a significant increase in the total loss for the year Key Items of Consolidated Statement of Profit or Loss (HK$'000) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Continuing operations | | | | Revenue | 488,489 | 196,421 | | (Gross loss)/gross profit | (17,052) | 30,903 | | Bargain purchase gain on deemed acquisition of an associate | 244,996 | – | | Profit/(loss) before tax | 8,778 | (219,929) | | Profit/(loss) for the year | 15,568 | (228,435) | | Discontinued operations | | | | Loss for the year | (733,263) | (180,124) | | Overall results | | | | Total loss for the year | (717,695) | (408,559) | | Loss for the year attributable to owners of the Company | (717,668) | (253,235) | - Basic loss per share widened to HK$9.71 from HK$3.50 in the same period last year, primarily due to the significant loss from discontinued operations[8] Consolidated Statement of Financial Position The Group's total assets, liabilities, and net assets all experienced substantial declines of over 60%, primarily due to the deconsolidation of the Eminent Group Summary of Statement of Financial Position (HK$'000) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 1,297,887 | 2,404,846 | | Current assets | 2,032,071 | 6,334,193 | | Total assets | 3,329,958 | 8,739,039 | | Liabilities and Equity | | | | Current liabilities | 1,440,490 | 2,788,134 | | Non-current liabilities | 162,903 | 1,348,814 | | Total liabilities | 1,603,393 | 4,136,948 | | Net assets | 1,726,565 | 4,602,091 | | Equity attributable to owners of the Company | 1,728,396 | 2,407,053 | Notes to the Consolidated Financial Statements 4. Segment Information The property development segment was the primary revenue source, though it and the property investment segment both recorded losses, with only the loan financing segment being profitable Segment Results for FY2025 (HK$'000) | Segment | Revenue | Segment results | | :--- | :--- | :--- | | Property investment | 17,152 | (22,047) | | Property development | 466,837 | (131,715) | | Securities and other investments | – | (1,490) | | Loan financing | 4,500 | 212 | | Total | 488,489 | (155,040) | 8. Discontinued Operations The dilution of the Group's shareholding in Eminent L.P. led to a loss of control, classifying its business as discontinued and resulting in a substantial loss of HK$733 million - On April 17, 2024, Eminent L.P. completed a share placement, diluting the Group's equity interest to 8.11%, resulting in a loss of control and the classification of its business as a discontinued operation[23] Financial Impact of Discontinued Operations (HK$'000) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Revenue | – | 30,693 | | Loss on deemed disposal of a subsidiary | (733,263) | – | | Loss for the year | (733,263) | (180,124) | 10. Earnings (Loss) Per Share Despite achieving basic earnings per share from continuing operations, a significant loss from discontinued operations resulted in a substantial overall basic loss per share Details of (Loss)/Earnings Per Share (HK$) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | From continuing operations | | | | – Basic | 0.21 | (3.15) | | – Diluted | (0.17) | (3.15) | | From continuing and discontinued operations | | | | – Basic | (9.71) | (3.50) | | – Diluted | (10.09) | (4.20) | Management Discussion and Analysis Financial Performance Revenue from continuing operations grew due to property sales, but the consolidated loss attributable to shareholders widened significantly, driven by the loss on the deemed disposal of a subsidiary - Revenue from continuing operations increased by 148.7% year-on-year, mainly due to increased property sales[42] - Consolidated loss attributable to shareholders widened to HK$718 million, primarily due to the loss on deemed disposal of a subsidiary, partially offset by reduced property write-downs, decreased fair value loss on investment properties, a gain on modification of convertible notes, and a bargain purchase gain[42] Business Review The Group's core businesses are property development and investment, with the former driving revenue while the latter saw modest rental income growth amid market challenges Property Development The property development segment's revenue grew substantially, driven by sales from the "Timber House" and "10 La Salle" projects, while another key project obtained its occupation permit - The "Timber House" project completed transactions for 17 units this year, recording revenue of approximately HK$169 million[47] - The "10 La Salle" project completed transactions for 12 units and 1 car park space, recording revenue of approximately HK$297 million[49] - The Chatham Road North project obtained its occupation permit in March 2025, with an expected total gross floor area of approximately 41,747 square feet[48] Property Investment Rental income from continuing operations increased, but a weak market led to a fair value loss on investment properties, with occupancy rates varying across property types Occupancy Rate of Investment Properties | Property Type | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Residential units | 0.0% | 100.0% | | Commercial units | 98.7% | 99.2% | | Industrial units | 75.6% | 95.0% | Securities and Other Investments The Group's portfolio of financial assets at fair value decreased, and the securities investment segment recorded a loss for the year Major Financial Asset Holdings (as of March 31, 2025) | Nature of Investment | Investment Cost (HK$'000) | Fair Value (HK$'000) | Fair Value (Loss)/Gain for the Year (HK$'000) | | :--- | :--- | :--- | :--- | | Paladin Limited | 41,996 | 49,571 | (9,465) | | Ping An Insurance | 23,253 | 12,408 | 3,551 | | Convertible notes | 70,000 | 69,993 | (3,462) | | Total | 147,237 | 139,564 | (10,711) | Loan Financing Interest income from the loan financing business declined sharply due to loan repayments, resulting in a smaller loan portfolio with high customer concentration - Interest income decreased by 59.6% year-on-year to HK$4.5 million, mainly due to the repayment of loans receivable[56] - As of March 31, 2025, the gross carrying amount of loans receivable was HK$114 million (2024: HK$196 million)[58] - The top five borrowers accounted for 93% of the total loans receivable, indicating high concentration[58] Liquidity and Financial Resources The Group significantly reduced its bank borrowings and maintained a stable gearing ratio, though cash levels and the current ratio decreased due to loan repayments and deconsolidation Liquidity and Financial Position Indicators | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total bank borrowings (HK$'000) | 1,274,237 | 3,671,861 | | Gearing ratio | 0.7 | 0.8 | | Cash and cash equivalents (HK$'000) | 15,638 | 307,435 | | Current ratio | 1.4 | 2.3 | Events After the Reporting Period Post-period end, the Group engaged in further investment activities and amended the terms of its 2023 convertible notes with Eminent L.P., lowering the conversion price - In May 2025, the Group purchased a total of 15,004,000 Paladin shares for a total consideration of approximately HK$15 million[77] - On June 4, 2025, the Group entered into an agreement with Eminent to revise the conversion price of the 2023 convertible notes from HK$0.14 to HK$0.07 per share[78] Prospects Management anticipates a gradual recovery in Hong Kong's property market, supported by government measures and potential interest rate cuts, and will focus on prudent capital management - Management expects that confidence in Hong Kong's property market will gradually recover as interest rates may ease, despite a challenging external environment[80] - The recovery of inbound tourism and an increase in visitors from mainland China are expected to boost demand for office and retail leasing in Hong Kong in the long run[81] - In the future, the Group will continue to focus on developing its existing principal businesses, implement prudent capital management, and seek new opportunities to provide stable returns for shareholders[82] Corporate Governance and Other Information Employees The Group's headcount and total staff costs decreased during the year Employee Data | Item | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees (as of March 31) | 18 | 22 | | Staff costs (HK$'000) | 26,204 | 33,195 | Corporate Governance The company complied with most governance code provisions but deviated by combining the Chairman and CEO roles and not having an internal audit function - Deviation from code provision C.2.1: The roles of Chairman and Chief Executive Officer are both held by Ms. Koon Ho Yan, which the Board believes helps ensure leadership continuity and strategic execution[85] - Deviation from code provision D.2.5: The Group has not established an internal audit function, as the Board believes it is not immediately necessary given the Group's scale and business complexity[86]