华盛国际控股(01323) - 2025 - 年度业绩

Performance Overview Financial Highlights FY2025 continuing operations revenue and gross profit declined 32.0% and 52.2% respectively, gross margin fell to 17.5%, leading to an annual loss of HKD 92.4 million and basic loss per share of 12.22 HK cents FY2025 Financial Highlights | Metric | FY2025 | Change | | :--- | :--- | :--- | | Revenue from Continuing Operations | HKD 372.6 million | -32.0% | | Gross Profit from Continuing Operations | HKD 65.2 million | -52.2% | | Gross Margin from Continuing Operations | 17.5% | Decreased from 24.9% | | Loss for the Year Attributable to Owners of the Company | HKD 92.4 million | - | | Basic and Diluted Loss Per Share | 12.22 HK cents | - | Consolidated Financial Statements The consolidated financial statements for the current fiscal year reflect overall performance pressure, with expanded losses, decreased assets and weakened liquidity, impacting shareholders' equity Consolidated Statement of Profit or Loss and Other Comprehensive Income FY2025 continuing operations revenue decreased 32.0% to HKD 373 million, gross profit fell 52.2% to HKD 65.2 million, resulting in a total annual loss attributable to owners of HKD 92.38 million Consolidated Statement of Profit or Loss Summary (HKD thousands) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Continuing Operations | | | | Revenue | 372,566 | 547,762 | | Gross Profit | 65,199 | 136,313 | | Loss for the Year from Continuing Operations | (78,664) | (6,567) | | Discontinued Operations | | | | Loss for the Year from Discontinued Operations | (13,716) | (24,874) | | Loss for the Year Attributable to Owners of the Company | (92,380) | (31,441) | Loss Per Share (HK cents) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | From Continuing and Discontinued Operations | (12.22) | (6.21) | | From Continuing Operations | (10.40) | (1.30) | | From Discontinued Operations | (1.82) | (4.91) | Consolidated Statement of Financial Position As of March 31, 2025, total assets decreased to HKD 1.465 billion, net assets slightly declined to HKD 898 million, and net current assets decreased to HKD 479 million, primarily due to reduced cash Consolidated Statement of Financial Position Summary (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Non-current Assets | 565,505 | 464,724 | | Current Assets | 899,904 | 1,171,255 | | Total Assets | 1,465,409 | 1,635,979 | | Current Liabilities | 421,160 | 460,804 | | Non-current Liabilities | 146,397 | 214,778 | | Total Liabilities | 567,557 | 675,582 | | Net Assets | 897,852 | 960,397 | Consolidated Statement of Changes in Equity As of March 31, 2025, total equity attributable to owners decreased by HKD 62.55 million to HKD 898 million, primarily due to an annual loss of HKD 92.38 million, partially offset by fair value gains on equity investments - Total equity attributable to owners of the company decreased from HKD 960 million at the beginning of the year to HKD 898 million at year-end[7] - Key drivers of equity changes include: - Annual loss: -HKD 92.38 million - Fair value change of equity investments at fair value through other comprehensive income: +HKD 38.55 million - Exchange differences arising from translation of overseas operations: -HKD 8.37 million[7] Management Discussion and Analysis Business and Financial Review In FY2025, core concrete business revenue decreased 32.0% and gross profit 52.2% due to market weakness and cost pressures, while the disposal of money lending operations led to an expanded annual net loss of HKD 92.4 million - The Group primarily engages in the production and sale of ready-mixed concrete ("concrete business") and disposed of its money lending services business ("money lending business") during the year, which has been classified as discontinued operations[88] - The net loss attributable to owners of the company for the year expanded to approximately HKD 92.4 million, compared to a loss of approximately HKD 31.4 million in the prior year[88] Operating Results Concrete business revenue decreased to HKD 373 million due to reduced demand and competition, with average selling prices down 9%; gross margin fell to 17.5% due to cost and price pressures, and other net losses expanded from impairments and write-offs - Concrete business revenue decreased by 32.0% to HKD 373 million, primarily due to reduced demand for ready-mixed concrete products in Hainan Province and intensified market competition, leading to an approximate 9% decrease in average selling price per cubic meter of product[89] - Gross profit significantly decreased by 52.2% to HKD 65.2 million, with gross margin falling from 24.9% to 17.5%, mainly due to increased raw material costs coupled with reduced average selling prices of products amidst fierce competition[91] - Other net losses increased to HKD 42.8 million, primarily due to increased impairment of trade receivables, write-off losses on property and inventories caused by typhoons, and the non-recurrence of bond discount income recognized in the prior year[93] Discontinued Operations As of March 31, 2025, the Group disposed of 65% equity in its money lending business, classified as discontinued operations, which recorded a net loss of HKD 13.7 million for the year, including a one-off loss of HKD 14.82 million from the disposal - The money lending business was disposed of during the year and classified as discontinued operations, with its results presented separately in the consolidated statement of profit or loss[99] Results of Discontinued Operations (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit (Loss) After Income Tax | 1,104 | (24,874) | | Loss on Disposal of a Subsidiary | (14,820) | – | | Loss from Discontinued Operations | (13,716) | (24,874) | Analysis of Key Balance Sheet Items As of March 31, 2025, net trade and retention receivables decreased to HKD 667 million, with HKD 19.6 million in expected credit loss provision, and additional impairment losses of HKD 13.8 million on bills receivable and HKD 2 million on other receivables - Net trade and retention receivables amounted to approximately HKD 667 million, for which an expected credit loss allowance of approximately HKD 19.6 million was recognized during the year[100] - Several impairment losses were recognized during the year, including: - Impairment loss on trade and retention receivables and other receivables of approximately HKD 21.6 million - Impairment loss on loans receivable of approximately HKD 6.6 million - Impairment loss on bills receivable of approximately HKD 13.8 million[103] Liquidity and Financial Resources As of March 31, 2025, the Group held HKD 76.6 million in cash, with total debt of HKD 226 million; current ratio was 2.1x and gearing ratio 29.6%, indicating sufficient financial resources despite significantly decreased cash levels Liquidity and Financial Resources Metrics | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HKD 76.6 million | HKD 163.4 million | | Total Debt | HKD 226 million | HKD 328.6 million | | Current Ratio | Approx. 2.1 | Approx. 2.5 | | Gearing Ratio | Approx. 29.6% | Approx. 34.2% | Capital Structure As of March 31, 2025, the Group's share capital structure remained unchanged, with total shareholders' equity of HKD 898 million; debt primarily consists of three outstanding bonds, including USD and HKD denominated instruments - As of March 31, 2025, total shareholders' equity was approximately HKD 898 million, with 755,654,743 ordinary shares issued, and no changes to the share capital structure during the year[106] - The Group has three main outstanding bonds: - Seven-year corporate bond: Issued in 2021, principal of USD 20 million, annual interest rate of 4.2% - Three-year unlisted bond: Issued in 2021, principal of HKD 25 million, maturity extended to 2027, annual interest rate of 8% during the extended period - Six-year corporate bond: Issued in 2024, principal of HKD 63 million, annual interest rate ranging from 3.5% to 10.5%[107] Significant Investments, Acquisitions and Disposals During the reporting period, the Group increased its stake in Wisdom Moon by 4.52% for HKD 45 million and disposed of 65% equity in Sincerity Finance for HKD 32.5 million, exiting the money lending business - In November 2024, the Group acquired an additional 4.52% of Class A shares in Wisdom Moon for HKD 45 million in cash, increasing its total holding to 17.92% of Class A shares, with this investment recognized as an equity investment at fair value[117][118] - On March 31, 2025, the Group disposed of 65% of the equity interest in Sincerity Finance for a consideration of HKD 32.5 million (partially in cash, partially in bills receivable), after which Sincerity Finance ceased to be a subsidiary of the company[119] Post-Reporting Period Events On April 9, 2025, the Group agreed to acquire four Hong Kong industrial units for HKD 16.5 million, aiming for stable rental income or capital appreciation, with the acquisition completed in June 2025 - On April 9, 2025, the Group agreed to acquire four industrial building units in Hong Kong for HKD 16.5 million, aiming to generate stable rental income and/or capital appreciation; the acquisition was completed in June 2025[121] Outlook The Group anticipates continued challenges from the persistent downturn in real estate and construction markets, leading to weak demand and rising costs; strategies include strict cost control, efficiency enhancement, and seeking diversified investment opportunities - Looking ahead, the Group expects the real estate and construction markets to remain relatively sluggish, with demand for ready-mixed concrete products continuing to be weak, and increasing raw material and labor costs posing ongoing challenges to the Group's operations and financial performance[122] - Strategies to address these challenges include: regularly reviewing business strategies, strictly adhering to cost control policies, reducing costs and improving efficiency, and actively seeking suitable investment opportunities to diversify the business portfolio[124] Corporate Governance and Other Information Corporate Governance The company maintains high corporate governance standards, complying with all Stock Exchange Corporate Governance Code provisions and adopting a directors' securities transaction code no less exacting than the Model Code, with all directors confirming compliance - The Board believes that the company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of the Stock Exchange throughout the year[125] - The company has adopted a code of conduct for directors' securities transactions, the terms of which are no less exacting than the Model Code, and all directors have confirmed compliance during the year[126] Audit and Financial Information Disclosure The financial information in this announcement, extracted from audited consolidated financial statements, has been reviewed by the Audit Committee; the auditor has reconciled the data but expressed no assurance opinion on this preliminary announcement - The financial information in this announcement is extracted from the consolidated financial statements for the year and has been reviewed by the company's Audit Committee[128] - The auditor, Zhonghui Anda CPA Limited, has reconciled the financial data in this announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and therefore no assurance opinion has been expressed on this preliminary announcement[129]