善裕集团控股(08245) - 2025 - 年度业绩

Financial Highlights The company reported a significant decline in FY2025 performance, turning from profit to a substantial loss, with revenue decreasing by 36.8% and gross margin sharply contracting FY2025 Performance Summary | Metric | Year Ended March 31, 2025 | Year Ended March 31, 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HKD 31,600 thousand | Approx. HKD 50,000 thousand | -36.8% | | Gross Margin | Approx. 8.9% | Approx. 31.0% | -22.1 percentage points | | Annual (Loss)/Profit | Loss of approx. HKD 15,200 thousand | Profit of approx. HKD 2,000 thousand | Turned from profit to loss | | Basic (Loss)/Earnings Per Share | Loss of approx. 7.49 HK cents | Profit of approx. 1.25 HK cents (restated) | Turned from profit to loss | | Final Dividend | Not recommended | Nil | No change | Consolidated Financial Statements The consolidated financial statements reveal a significant deterioration in the company's financial health, marked by a shift from profit to loss and a negative equity position Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2025, the company turned from profit to loss, with revenue decreasing by 36.8% to HKD 31,593 thousand and gross profit significantly narrowing, resulting in an annual loss of HKD 15,224 thousand Key Items from Profit or Loss Statement (HKD '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 31,593 | 49,960 | | Gross Profit | 2,803 | 15,477 | | Impairment Loss on Goodwill | (5,713) | — | | (Loss)/Profit Before Tax | (15,224) | 2,923 | | (Loss)/Profit for the Year | (15,224) | 1,960 | | Basic (Loss)/Earnings Per Share (HK cents) | (7.49) | 1.25 (restated) | Consolidated Statement of Financial Position As of March 31, 2025, the company's financial position deteriorated from net assets to net liabilities, with net current liabilities expanding to HKD 13,669 thousand and total equity turning negative Key Items from Statement of Financial Position (HKD '000) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 10,800 | 16,534 | | Current Assets | 34,542 | 24,734 | | Current Liabilities | 48,211 | 34,959 | | Net Current Liabilities | (13,669) | (10,225) | | Net (Liabilities)/Assets | (3,054) | 6,309 | | Total (Capital Deficiency)/Equity | (3,054) | 6,309 | Notes to the Consolidated Financial Statements These notes detail the accounting policies, significant financial items, and critical uncertainties, particularly highlighting the company's severe going concern issues Basis of Preparation and Accounting Policies The financial statements are prepared under HKFRS, with significant going concern uncertainties due to net loss, negative operating cash flow, and net current liabilities exceeding assets - The company faces severe going concern challenges, with a net loss for the year, net cash outflow from operations, and net current liabilities and total liabilities exceeding total assets, raising significant doubt about its ability to continue as a going concern[14] - Management is implementing measures to control operating costs, such as negotiating rent reductions and management salary cuts, and expanding business, but the success of these measures is critical to the validity of the going concern assumption[14][16] Revenue and Segment Information Total revenue for the fiscal year decreased by 36.8% to HKD 31,593 thousand, driven by a sharp decline in two-way radio sales, while baby monitors saw significant growth Revenue by Product Segment (HKD '000) | Product | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Two-way Radios | 15,156 | 40,275 | -62.4% | | Baby Monitors | 12,373 | 5,891 | +110.0% | | Plastic Products | 4,064 | 3,794 | +7.1% | | Total | 31,593 | 49,960 | -36.8% | Revenue by Geographical Region (HKD '000) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 31,160 | 31,273 | | Europe | 385 | 2,498 | | China | — | 15,406 | | Others | 48 | 783 | - Customer concentration is very high, with Customer A1 and Customer B1 collectively contributing over 95% of total revenue, and Customer A1's revenue decreasing from HKD 30,760 thousand to HKD 21,225 thousand[28] Key Profit or Loss Items Other income significantly increased due to government grants, while finance costs decreased, and staff costs were reduced, with no income tax expense incurred due to the annual loss - Other income increased from HKD 208 thousand to HKD 1,040 thousand, primarily due to a HKD 772 thousand government grant[30] - Total staff costs, including directors' emoluments, decreased by approximately 38.9% from HKD 5,406 thousand in the previous fiscal year to HKD 3,303 thousand[32] - Due to a pre-tax loss, income tax expense for the current year was zero, compared to HKD 963 thousand in the prior year[32] Loss/Earnings Per Share and Dividends The company reported a loss attributable to owners of HKD 15,224 thousand, resulting in a basic and diluted loss per share of 7.49 HK cents, with no final dividend recommended - The Board does not recommend a final dividend for the current year, consistent with the prior year[37] Loss/Earnings Per Share Calculation | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (HKD '000) | (15,224) | 1,961 | | Weighted Average Number of Ordinary Shares ('000 shares) | 203,327 | 157,048 | | Basic and Diluted (Loss)/Earnings Per Share (HK cents) | (7.49) | 1.25 | Key Asset and Liability Items Goodwill decreased due to a HKD 5,713 thousand impairment loss, while trade receivables and payables saw significant increases in overdue amounts, indicating deteriorating liquidity - An impairment loss on goodwill of HKD 5,713 thousand was recognized during the year, reducing the net carrying amount of goodwill from HKD 15,855 thousand to HKD 10,142 thousand[43] - The aging of trade receivables deteriorated, with amounts overdue for over 180 days surging from HKD 1,791 thousand to HKD 11,144 thousand[47] - The aging of trade payables also worsened, with amounts overdue for over 90 days significantly increasing from HKD 373 thousand to HKD 16,719 thousand[48] Contingent Liabilities and Share Capital The company faces a lawsuit regarding a HKD 8,000 thousand debt guarantee, while share capital changes included a new share placement and a share consolidation - The company is involved in a third-party lawsuit claiming approximately HKD 8,000 thousand for a debt guarantee and legal costs, with the outcome currently uncertain[50] - Share capital changes during the year included the placement of 172,350,000 new shares in May 2024 and a five-into-one share consolidation in June 2024[52][54] Management Discussion and Analysis This section provides an overview of the company's operational and financial performance, highlighting key revenue drivers, profitability challenges, and liquidity management Business Review Total group revenue declined by 36.8% to HKD 31,600 thousand, primarily due to reduced orders for two-way radios, despite strong growth in baby monitor sales - Total revenue decreased by 36.8%, primarily attributed to reduced orders for two-way radios[55] Revenue Performance by Business Segment (HKD '000) | Product Segment | 2025 Revenue | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Two-way Radios | 15,156 | 48.0% | -62.4% | | Baby Monitors | 12,373 | 39.2% | +110.0% | | Plastic Products | 4,064 | 12.8% | +7.1% | Financial Review The group's financial performance significantly deteriorated, with gross margin sharply declining and a shift from profit to a substantial loss due to impairment and credit losses - Gross margin significantly decreased from 31.0% to 8.9%, primarily due to increased material costs and reduced sales of high-margin two-way radio products[57] - The company turned from profit to loss, recording a HKD 15,200 thousand loss, mainly due to declining gross margin, a HKD 5,700 thousand goodwill impairment loss, and a HKD 4,200 thousand expected credit loss[60] Liquidity and Financial Resources The group's liquidity position tightened, with net current liabilities expanding, cash balances decreasing, and the debt-to-equity ratio worsening significantly due to the annual loss - Net current liabilities increased from HKD 10,200 thousand to HKD 13,700 thousand, intensifying liquidity pressure[65] - The debt-to-equity ratio (total liabilities/total equity) worsened from 151.1% to -291.6%, primarily due to the year's loss resulting in negative equity[66] - As of March 31, 2025, the group's bank balances and cash were approximately HKD 4,100 thousand, a decrease from HKD 4,800 thousand in the prior year[65] Significant Events and Future Plans The group had no major investments or disposals during the year, with capital commitments for machinery purchases and funds raised from share placements used for debt repayment and working capital - No significant investments, acquisitions, or disposals of subsidiaries occurred during the year, nor are there related future plans[62] - As of March 31, 2025, the company had capital commitments of HKD 1,700 thousand for machinery purchases[69] - The company completed two new share placements (Placing 1 and 2), with the net proceeds fully utilized as planned for working capital, loan repayment, and machinery purchases[71][73] Corporate Governance and Other Disclosures This section outlines the company's adherence to corporate governance standards and provides details on the audit committee's review and the auditor's report, including going concern uncertainties Corporate Governance Practices The company maintains high corporate governance standards, complying with GEM Listing Rules, and did not engage in any share buybacks or redemptions during the year - For the year ended March 31, 2025, the company consistently complied with the code provisions outlined in the Corporate Governance Code[74] - During the year, neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of the company's listed securities[76] Audit Committee and Auditor's Report The Audit Committee reviewed the annual results, and the external auditor highlighted significant going concern uncertainties due to the group's net loss and negative financial position - The Audit Committee, comprising three independent non-executive directors, oversees financial reporting and internal controls[79] - The external auditor's report explicitly highlighted "Material Uncertainty Related to Going Concern," noting that the company's net loss and net current liabilities raise significant doubt about its ability to continue as a going concern, though no modified opinion was issued on this matter[80]