元亨燃气(00332) - 2025 - 年度业绩

Company Information and Results Announcement This section provides an overview of Yuanheng Gas Holdings Limited's audited consolidated results for the year ended March 31, 2025 Company Overview Yuanheng Gas Holdings Limited (Stock Code: 332) announced its audited consolidated results for the year ended March 31, 2025 - Yuanheng Gas Holdings Limited (Stock Code: 332) released its audited consolidated results for the year ended March 31, 2025[2][3] Annual Results Announcement The Board of Directors of Yuanheng Gas Holdings Limited announces the audited consolidated results for the year ended March 31, 2025 - The Company's Board of Directors is pleased to announce the audited consolidated results for the year ended March 31, 2025, along with comparative figures[3] Consolidated Financial Statements This section presents the Group's consolidated financial performance and position, highlighting significant losses and deteriorating liquidity Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group recorded a substantial loss for the year ended March 31, 2025, primarily due to a significant increase in expected credit losses Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Total operating revenue | 807,820 | 4,969,826 | | Gross profit | 44,036 | 81,595 | | Impairment losses under ECL model, net | (1,865,601) | (507,777) | | Loss before tax | (1,965,074) | (513,877) | | Loss for the year | (1,992,981) | (522,274) | | Basic loss per share (RMB cents) | (29.27) | (7.60) | - Loss for the year significantly increased from RMB 522,274 thousand in 2024 to RMB 1,992,981 thousand in 2025, primarily due to a surge in net expected credit losses[4] - Basic loss per share worsened from RMB 7.60 cents in 2024 to RMB 29.27 cents in 2025[5] Consolidated Statement of Financial Position As of March 31, 2025, the Group's net current assets turned into a deficit, reflecting a significant deterioration in financial health Key Data from Consolidated Statement of Financial Position | Indicator | March 31, 2025 (RMB thousands) | March 31, 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Non-current assets | 565,368 | 615,134 | | Current assets | 1,132,626 | 2,246,642 | | Current liabilities | 2,766,610 | 1,953,805 | | Net current (liabilities) assets | (1,633,984) | 292,837 | | Total assets less current liabilities | (1,068,616) | 907,971 | | Equity attributable to owners of the Company | (1,088,549) | 844,631 | | Total (capital deficit) equity | (1,082,576) | 886,335 | - Net current assets turned from a RMB 292,837 thousand surplus in 2024 to a RMB 1,633,984 thousand deficit in 2025, indicating severe liquidity deterioration[7] - Equity attributable to owners of the Company shifted from a RMB 844,631 thousand surplus in 2024 to a RMB 1,088,549 thousand deficit in 2025, reflecting a capital deficit in the structure[7] Notes to the Consolidated Financial Statements This section provides detailed notes on the Group's accounting policies, financial performance, and position for the reporting period 1. General Information The Group's principal activities include oil and gas trading, LNG production and sales, and natural gas infrastructure, with financial statements presented in RMB - The Group's principal activities include oil and gas trading, LNG production and sales, vehicle gas sales, piped natural gas sales, LNG transportation, and natural gas pipeline infrastructure construction[8] - The consolidated financial statements are presented in RMB[9] 2. Basis of Preparation of Consolidated Financial Statements The Group faces significant going concern uncertainties but prepares financial statements on a going concern basis, with prior year restatements for expected credit losses 2.1 Going Concern Basis The Group faces severe going concern uncertainties due to substantial losses, significant short-term debt, and cash shortages, with management implementing various mitigation measures - The Group's continuing operations recorded a net loss of approximately RMB 1,958,240,000[11] Debt and Cash Position as of March 31, 2025 | Indicator | Amount (RMB thousands) | | :--- | :--- | | Total bank borrowings (due within 12 months) | 1,117,899 | | Guaranteed notes (due within 12 months) | 184,811 | | Cash and cash equivalents | 10,498 | | Defaulted and cross-defaulted bank borrowings | 1,114,899 | | Defaulted and cross-defaulted guaranteed notes | 184,811 | - Management has implemented or is implementing various measures, including optimizing operational strategies, negotiating loan extensions with creditors, resolving outstanding litigations, restructuring existing debts through legal processes, and securing new funding[11][12] 2.2 Restatement Adjustments The Group restated prior year expected credit losses for trade receivables, significantly impacting 2024 and 2023 financial statements due to increased impairment losses - The Group performed restatement adjustments for prior year Expected Credit Losses (ECL) under HKFRS 9, specifically for trade receivables from two major customers[14][15] Impact of Restatement Adjustments on Financial Position as of March 31, 2024 | Indicator | Previously Reported (RMB thousands) | Restatement Adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | | Trade and other receivables | 2,631,875 | (424,544) | 2,207,331 | | Net current assets | 717,381 | (424,544) | 292,837 | | Equity attributable to owners of the Company | 1,230,104 | (385,473) | 844,631 | | Total equity | 1,310,879 | (424,544) | 886,335 | Impact of Restatement Adjustments on Statement of Profit or Loss as of March 31, 2024 | Indicator | Previously Reported (RMB thousands) | Restatement Adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | | Impairment losses under ECL model, net | (156,385) | (351,392) | (507,777) | | Loss for the year | (170,882) | (351,392) | (522,274) | | Basic loss per share (HK cents) | (2.52) | (5.08) | (7.60) | 3. Application of New and Revised Hong Kong Financial Reporting Standards The Group adopted several revised HKFRSs this year with no material impact, while HKFRS 18 is expected to affect future financial statement presentation and disclosures - The HKFRS amendments first applied this year had no material impact on the Group's financial position and performance[18] - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after January 1, 2027, and is expected to impact the presentation of the statement of profit or loss and future financial statement disclosures[21] 4. Segment Information and Revenue The Group's operating segments include LNG production, oil and gas trading, and piped natural gas, with external customer revenue significantly declining in 2025 - The Group's reportable segments include production and sale of LNG, oil and gas trading, piped natural gas, and the combined "other operations" (vehicle gas sales at refilling stations and LNG transportation)[23] Overview of Segment Revenue and Results | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) (Restated) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) (Restated) | | :--- | :--- | :--- | :--- | :--- | | Production and sale of LNG | 524,751 | 983,477 | (309,899) | (41,094) | | Oil and gas trading | 231,190 | 3,942,794 | (1,577,928) | (438,685) | | Other operations | 51,879 | 43,555 | (1,043) | 953 | | Subtotal from continuing operations | 807,820 | 4,969,826 | (1,888,870) | (478,826) | | Discontinued operations (piped natural gas) | – | 53 | (34,741) | (5,845) | | Total | 807,820 | 4,969,879 | (1,923,611) | (484,671) | - Total revenue in 2025 significantly decreased to RMB 807,820 thousand from RMB 4,969,826 thousand in 2024, primarily due to a sharp decline in oil and gas trading revenue[24][26] Segment Revenue and Results External customer revenue from continuing operations drastically decreased in 2025, with segment loss widening, primarily due to the oil and gas trading segment - External customer revenue from continuing operations significantly decreased from RMB 4,969,826 thousand in 2024 to RMB 807,820 thousand in 2025[24][26] - The oil and gas trading segment's loss expanded from RMB 438,685 thousand in 2024 to RMB 1,577,928 thousand in 2025[24][26] Revenue from Major Products and Services Total revenue for 2025 significantly decreased, mainly driven by reduced revenue from LNG production and sales, and oil and gas contract trading Revenue from Major Products and Services | Product/Service | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Production and sale of LNG | 524,751 | 983,477 | | Oil and gas contract trading | 740 | 24,432 | | Sale of vehicle gas at refilling stations | 41,694 | 31,552 | | LNG transportation | 10,185 | 12,003 | | Total (continuing operations) | 577,370 | 1,051,464 | - Revenue from production and sale of LNG decreased from RMB 983,477 thousand in 2024 to RMB 524,751 thousand in 2025[29] - Revenue from oil and gas contract trading sharply decreased from RMB 24,432 thousand in 2024 to RMB 740 thousand in 2025[29] 5. Other Income The Group's other income decreased in 2025, primarily due to a reduction in bank interest income Composition of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Bank interest income | 13 | 1,367 | | Government grants | 1,304 | 295 | | Others | 605 | 2,671 | | Total | 1,922 | 4,333 | - Bank interest income significantly decreased from RMB 1,367 thousand in 2024 to RMB 13 thousand in 2025[30] 6. Other Gains and Losses The Group recorded a net loss in other gains and losses in 2025, a reversal from a gain in 2024, mainly due to foreign exchange losses Composition of Other Gains and Losses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Net foreign exchange (losses) gains | (230) | 29,525 | | Write-back of other payables | – | 7,108 | | Total | (230) | 35,241 | - Net foreign exchange gains turned from RMB 29,525 thousand in 2024 to a RMB 230 thousand loss in 2025[31] 7. Impairment Losses under Expected Credit Loss Model, Net Net impairment losses under the ECL model significantly increased in 2025, primarily due to substantial impairment losses on prepayments and trade receivables Composition of Net Impairment Losses under ECL Model | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Impairment losses recognized on trade receivables | (496,768) | (507,777) | | Impairment losses recognized on prepayments | (1,339,751) | – | | Impairment losses recognized on financial guarantees | (27,919) | – | | Total | (1,865,601) | (507,777) | - Prepayments recognized a substantial impairment loss of RMB 1,339,751 thousand for the first time in 2025[32] 8. Finance Costs The Group's finance costs slightly increased in 2025, primarily comprising interest on bank borrowings and guaranteed notes Composition of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Interest on bank borrowings | 53,206 | 52,171 | | Interest on guaranteed notes | 15,830 | 15,302 | | Total (continuing operations) | 69,118 | 67,515 | - Finance costs for continuing operations slightly increased from RMB 67,515 thousand in 2024 to RMB 69,118 thousand in 2025[33] 9. Income Tax Credit The Group's income tax credit increased in 2025, mainly attributable to changes in deferred tax Composition of Income Tax Credit | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | PRC enterprise income tax - current year | 160 | – | | PRC enterprise income tax - under (over) provision in prior years | 582 | (4,114) | | Deferred tax | (7,576) | 1,179 | | Total (continuing operations) | (6,834) | (2,935) | - Income tax credit increased from RMB 2,935 thousand in 2024 to RMB 6,834 thousand in 2025[34] 10. Discontinued Operations Huaheng Energy (piped natural gas business) was deconsolidated in 2025 due to license issues and disputes, resulting in a loss on disposal and financial guarantee liabilities - Huaheng Energy (piped natural gas business) was deconsolidated in 2025 as the Group lost accounting control due to suspended operating licenses and disputes with Guizhou Gas[35][36][61] - The Group has initiated legal proceedings against Guizhou Gas and its subsidiaries to resolve the disputes[36][49][61] - The Group issued financial guarantees to banks for Huaheng Energy's borrowings, resulting in financial guarantee contract liabilities of approximately RMB 67,401,000[36][40][62] Results of Discontinued Operations Discontinued operations recorded a loss on disposal in 2025, reflecting the financial impact of business termination Results of Discontinued Operations | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the year from discontinued operations | – | (11,332) | | Loss on disposal of discontinued operations | (34,741) | – | | Loss before tax | (34,741) | (11,332) | Assets and Liabilities of Huaheng Energy at Deconsolidation Date At the deconsolidation date, Huaheng Energy had net liabilities, leading to a recognized loss for the Group, primarily from financial guarantee liabilities - At the deconsolidation date, Huaheng Energy had net liabilities of RMB 56,730 thousand[40] - The deconsolidation resulted in the Group recognizing a loss of RMB 34,741 thousand, primarily due to the recognition of financial guarantee contract liabilities[40] 11. Loss for the Year The Group's loss for the year is primarily composed of recognized cost of inventories, depreciation, directors' emoluments, and staff welfare expenses Major Components of Loss for the Year | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Auditor's remuneration | 850 | 932 | | Cost of inventories recognized | 756,070 | 959,451 | | Depreciation of property, plant and equipment | 38,137 | 42,166 | | Directors' emoluments | 2,603 | 2,806 | | Salaries and other benefits (excluding directors' emoluments) | 38,513 | 41,706 | | Retirement benefit scheme contributions (excluding directors' emoluments) | 8,055 | 8,714 | 12. Loss Per Share The Group's basic and diluted loss per share significantly increased for the year ended March 31, 2025, indicating continued deterioration in profitability Loss Per Share Data | Indicator | 2025 (RMB cents) | 2024 (RMB cents) (Restated) | | :--- | :--- | :--- | | Basic loss per share from continuing and discontinued operations | (29.27) | (7.60) | | Basic loss per share from continuing operations | (28.74) | (7.51) | - The weighted average number of ordinary shares used to calculate loss per share was 6,545,621 thousand for both years, with no outstanding potential ordinary shares[42] 13. Dividends The Company neither paid, declared, nor proposed any dividends for the two years ended March 31, 2025 - The Company neither paid, declared, nor proposed any dividends for the two years ended March 31, 2025[43] 14. Trade and Other Receivables The Group's total trade and other receivables significantly decreased due to a surge in credit loss provisions, particularly for prepayments, and a high proportion of overdue trade receivables Overview of Trade and Other Receivables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Trade receivables (net of provision) | 138,213 | 623,712 | | Other receivables (net of provision) | 4,716 | 6,636 | | Prepayments (net of provision) | 957,566 | 1,576,983 | | Total | 1,100,495 | 2,207,331 | - Credit loss provision for trade receivables increased from RMB 593,715 thousand in 2024 to RMB 1,090,483 thousand in 2025[44] - Prepayments incurred a credit loss provision of RMB 1,339,751 thousand in 2025, compared to zero in 2024[44] 15. Trade and Other Payables The Group's trade and other payables substantially increased in 2025, primarily driven by a surge in other payables Composition of Trade and Other Payables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 172,945 | 180,145 | | Other payables | 891,146 | 107,777 | | Receipts in advance | 102,894 | 106,340 | | Total | 1,234,899 | 448,146 | - Other payables significantly increased from RMB 107,777 thousand in 2024 to RMB 891,146 thousand in 2025[45] - Trade payables aging analysis shows overdue amounts over 365 days increased from RMB 23,935 thousand in 2024 to RMB 82,234 thousand in 2025[45] 16. Bank Borrowings The Group's total bank borrowings in 2025 were largely in default or triggered cross-defaults, classified as current liabilities, indicating severe short-term repayment pressure Overview of Bank Borrowings | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total bank borrowings | 1,117,899 | 1,196,220 | | Repayable within one year or on demand | 1,117,899 | 1,187,720 | | Secured borrowings | 938,119 | 950,551 | | Unsecured borrowings | 179,780 | 245,669 | - As of March 31, 2025, the Group defaulted on approximately RMB 1,043,305,000 of bank borrowings and triggered cross-defaults on approximately RMB 71,594,000 of other borrowings, all presented as current liabilities[46] 17. Financial Guarantee Liabilities The Group recognized financial guarantee liabilities for Huaheng Energy's defaulted bank borrowings, amounting to RMB 95,320 thousand as of March 31, 2025 - The Group issued financial guarantees to banks for Huaheng Energy's borrowings and recognized related liabilities as financial guarantee liabilities due to its default[47] - As of March 31, 2025, financial guarantee liabilities amounted to RMB 95,320 thousand, with an expected credit loss provision of RMB 27,919 thousand recognized[48] 18. Litigation The Group faces multiple litigations related to overdue bank borrowings and disputes with Guizhou Gas, with management actively seeking amicable resolutions - The Group is involved in several litigations regarding the repayment of overdue/outstanding bank borrowings[49] - The Group has filed legal proceedings against Guizhou Gas, its subsidiaries, and related parties in the Intermediate People's Court of Guizhou Province, China[49] Extracts from Independent Auditor's Report This section presents key findings from the independent auditor's report, including a disclaimer of opinion due to insufficient audit evidence and going concern uncertainties Disclaimer of Opinion The independent auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended March 31, 2025, due to insufficient appropriate audit evidence - The independent auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended March 31, 2025[50] - The basis for the auditor's disclaimer of opinion was the inability to obtain sufficient appropriate audit evidence[50] Basis for Disclaimer of Opinion The auditor's disclaimer is based on significant uncertainties regarding the Group's going concern ability and insufficient audit evidence for a substantial prepayment's opening balance Material Uncertainty Related to Going Concern The Group recorded substantial losses, has significant overdue debts, and insufficient cash, leading the auditor to question the appropriateness of the going concern basis - The Group's continuing operations recorded a net loss of approximately RMB 1,958,240,000[51] - The Group has approximately RMB 1,117,899,000 in bank borrowings and RMB 184,811,000 in guaranteed notes due within the next 12 months, while cash and cash equivalents are only RMB 10,498,000[51] - The auditor could not obtain sufficient audit evidence to be satisfied with the reasonableness of management's plans and measures supporting the Group's cash flow forecasts, including plans for successful renewal or extension of defaulted loans and securing new financing sources[52] Opening Balance of Other Receivables The auditor could not obtain sufficient evidence regarding the impairment of a significant prepayment as of March 31, 2024, potentially impacting prior and current year results - As of March 31, 2024, prepayments to a supplier amounted to approximately RMB 1,556,578,000[54] - The auditor could not obtain sufficient audit evidence to be satisfied whether any impairment should be recognized for the carrying amount of this prepayment as of March 31, 2024[54] Management Discussion and Analysis This section reviews the Group's operational and financial performance, strategic outlook, and liquidity position for the year ended March 31, 2025 Business Review The Group's 2025 fiscal year saw a significant decline in turnover and expanded losses, primarily due to substantial impairment losses on prepayments and trade receivables Group Performance The Group's 2025 fiscal year turnover significantly decreased, and loss after tax expanded, mainly due to substantial impairment losses on prepayments and trade receivables - For the year ended March 31, 2025, the Group's turnover was approximately RMB 808,000,000, a significant decrease from approximately RMB 4,970,000,000 in 2024[55] - Loss after tax was approximately RMB 1,993,000,000, a significant increase from approximately RMB 522,000,000 in 2024[55] - The unfavorable performance was primarily attributable to a substantial increase in impairment losses on prepayments (approximately RMB 1,340,000,000) and trade receivables (approximately RMB 446,000,000)[56] Production and Sale of Liquefied Natural Gas LNG production increased, but sales revenue decreased due to market competition, though segment gross margin improved, with efforts to stabilize profitability - LNG production increased by 9.5% to approximately 484,000,000 cubic meters[57] - LNG sales revenue decreased by 46.6% to approximately RMB 525,000,000, accounting for approximately 65.0% of total turnover[57] - Segment gross margin increased from approximately 5.4% to 7.8%, but gross profit decreased by approximately RMB 12,000,000[57] Sale of Piped Natural Gas The piped natural gas sales business was terminated in August 2022, generating no revenue in fiscal year 2025, and is now classified as a discontinued operation - The piped natural gas sales business was terminated in August 2022, with no sales revenue in fiscal year 2025[58] - The piped natural gas business was classified as a discontinued operation due to the deconsolidation of Huaheng Energy[58] Oil and Gas Trading Oil and gas sales contracts sharply declined in 2025, with gross profit and margin significantly reduced due to market competition, leading to reduced trading volume to mitigate risk - Total oil and gas sales contracts decreased by 94.1% to approximately RMB 231,000,000, accounting for approximately 28.6% of total turnover[59] - Gross profit decreased from approximately RMB 24,000,000 to approximately RMB 1,000,000, with gross margin declining from approximately 0.6% to 0.4%[59] - The Group has reduced its trading volume to mitigate business risks and enhance working capital efficiency[59] Material Investments and Material Acquisitions and Disposals There were no significant M&A activities this year, but Huaheng Energy's deconsolidation resulted in a one-off loss and financial guarantee liabilities for the Group Discontinued Operations Huaheng Energy was deconsolidated due to license issues and disputes, leading to a recognized unaudited loss for the Group, including a one-off gain offset by financial guarantee liabilities - Huaheng Energy was deconsolidated as the Group lost accounting control due to its inability to renew licenses and strained relations with Guizhou Gas[60][61] - The Group recognized an unaudited loss of approximately RMB 35,000,000 from discontinued operations during the period[62] - This loss includes a one-off gain of approximately RMB 32,000,000 from the deconsolidation of Huaheng Energy, offset by a loss of approximately RMB 67,000,000 from the recognition of financial guarantee contract liabilities[62] Outlook Despite market instability, the Group's other operations remain normal, with expectations for stable natural gas market growth and ongoing efforts to restructure business and debt for long-term value creation - The Group's other operations remain normal, and the natural gas market in mainland China is expected to maintain stable growth[63] - The Group is restructuring its business and debt to lay a solid foundation for long-term growth[63] - Management will continue to adopt prudent measures, implement various strategies, and explore new business opportunities to create value for shareholders[63] Financial Review The Group's 2025 fiscal year saw significant declines in turnover and gross profit, reduced other income, increased impairment losses, and slightly higher administrative and finance costs Revenue The Group's 2025 fiscal year revenue significantly decreased, primarily due to reduced oil and gas trading volume - Fiscal year 2025 turnover was approximately RMB 808,000,000, a significant decrease from approximately RMB 4,970,000,000 in 2024[64] - The decrease in turnover was primarily due to reduced oil and gas trading, which recorded turnover of approximately RMB 231,000,000 (2024: approximately RMB 3,943,000,000)[64] Gross Profit The Group's 2025 fiscal year gross profit decreased, but the gross profit margin improved from 1.6% to 5.5% - Fiscal year 2025 gross profit was approximately RMB 44,000,000, a decrease from approximately RMB 82,000,000 in 2024[65] - Gross profit margin increased from approximately 1.6% in fiscal year 2024 to approximately 5.5% in fiscal year 2025[65] Other Income The Group's other income in 2025 fiscal year decreased by approximately 50% compared to the previous year - Fiscal year 2025 other income was approximately RMB 2,000,000, a decrease of approximately 50.0% from approximately RMB 4,000,000 in 2024[66] Other Gains and Losses The Group recorded a net loss in other gains and losses in 2025, a reversal from a gain in 2024, mainly due to foreign exchange losses - Fiscal year 2025 net loss was approximately RMB 200,000, compared to a net gain of approximately RMB 35,000,000 in 2024[67] - This decrease was primarily due to net exchange gains reducing to net exchange losses of approximately RMB 200,000 (2024: net exchange gains of approximately RMB 30,000,000)[67] Impairment Losses under Expected Credit Loss Model Impairment losses under the ECL model significantly increased in 2025, primarily due to increased provisions for trade receivables amidst a global economic slowdown - Fiscal year 2025 recognized impairment losses under ECL model were approximately RMB 1,866,000,000, a significant increase from approximately RMB 508,000,000 in 2024[68] - The increase in losses was mainly due to the continued global economic slowdown, leading to extended debt recovery periods and overdue trade receivables[68] Administrative Expenses The Group's administrative expenses in 2025 fiscal year increased by approximately 8.2% compared to the previous year - Fiscal year 2025 administrative expenses were approximately RMB 92,000,000, an increase of approximately 8.2% from approximately RMB 85,000,000 in 2024[69] Share of Results of Associates The Group's share of results from associates decreased in 2025 fiscal year compared to the previous year - Fiscal year 2025 share of results of associates recorded a gain of approximately RMB 21,000,000, a decrease from approximately RMB 33,000,000 in 2024[70] Finance Costs The Group's finance costs in 2025 fiscal year slightly increased by approximately 1.5% compared to the previous year - Fiscal year 2025 finance costs were approximately RMB 69,000,000, an increase of approximately 1.5% from approximately RMB 68,000,000 in 2024[71] Income Tax Credit The Group's income tax credit increased in 2025 fiscal year, primarily due to an increase in tax refunds - Fiscal year 2025 income tax credit was approximately RMB 7,000,000, an increase from approximately RMB 3,000,000 in 2024[72] - The increase in tax credit was primarily due to an increase in tax refunds of approximately RMB 4,000,000[72] Liquidity, Financial Resources and Capital Structure As of March 31, 2025, the Group's cash balances decreased, net current liabilities surged, and liquidity ratios deteriorated, with significant bank loan defaults and cross-defaults Key Liquidity and Capital Structure Indicators | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash (RMB thousands) | 10,000 | 11,000 | | Net current (liabilities) assets (RMB thousands) | (1,634,000) | 293,000 | | Current ratio | 0.41 | 1.15 | | Gearing ratio | -1.20 | 1.54 | | Total borrowings (RMB thousands) | 1,118,000 | 1,196,220 | | Guaranteed notes (RMB thousands) | 185,000 | 169,094 | - The Group defaulted on approximately RMB 1,043,000,000 of bank borrowings and triggered cross-defaults on approximately RMB 72,000,000 of other bank borrowings[73] - The Group is actively negotiating with existing lenders to renew and extend bank loans and seeking potential strategic investors to increase capital reserves and liquidity[74] Capital Expenditure on Property, Plant and Equipment The Group's capital expenditure on property, plant and equipment significantly decreased in 2025 fiscal year - Fiscal year 2025 capital expenditure on property, plant and equipment was approximately RMB 1,300,000, a significant decrease from approximately RMB 7,000,000 in 2024[75] Pledge of Assets As of March 31, 2025, the Group pledged assets totaling approximately RMB 241 million to banks for financing - As of March 31, 2025, the Group pledged assets totaling approximately RMB 241,000,000 to banks for financing[76] Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended March 31, 2025 - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[77] Capital Commitments As of March 31, 2025, the Group had no significant capital commitments - As of March 31, 2025, the Group had no significant capital commitments[78] Treasury Policy The Group primarily operates in China with transactions denominated in RMB, HKD, and USD, continuously monitoring currency risk without liquidity issues from exchange fluctuations - The Group primarily operates in China, with most transactions denominated and settled in RMB, HKD, and USD[79] - The Group continuously monitors overall currency risk but has not encountered any liquidity issues due to exchange rate fluctuations[79] Employee Information As of March 31, 2025, the Group had approximately 271 employees, with remuneration reviewed annually based on market conditions and employee qualifications - As of March 31, 2025, the Group had approximately 271 employees (2024: approximately 280)[80] - Remuneration packages are generally determined by reference to market conditions and employee qualifications, and are reviewed annually based on performance appraisals and other relevant factors[80] Events After Reporting Period The Company is unaware of any significant subsequent events occurring after March 31, 2025, up to the date of this announcement - The Company is unaware of any significant subsequent events occurring after March 31, 2025, and up to the date of this announcement[81] Corporate Governance and Other Information This section details the Company's corporate governance practices, compliance with codes, auditor's role, and other relevant information for the reporting period Corporate Governance The Company complied with Appendix C1 of the Listing Rules' Corporate Governance Code in 2025, with noted deviations regarding the Chairman and CEO roles, AGM attendance, and company secretary appointment - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules in fiscal year 2025, with noted deviations[82] Code Provision C.2.1 Mr. Wang Jianqing holds both Chairman and CEO roles, a deviation from Code Provision C.2.1, but the Board believes this structure is suitable with adequate oversight - Mr. Wang Jianqing holds both the Chairman and Chief Executive Officer positions, deviating from Code Provision C.2.1[83] - The Board believes the current structure is most suitable for the Company, with oversight from the Board and Audit Committee ensuring a balance of power[83] Code Provision F.2.2 Chairman Mr. Wang Jianqing did not physically attend the 2024 AGM due to health reasons, attending by phone, a deviation from Code Provision F.2.2 - Chairman Mr. Wang Jianqing did not physically attend the 2024 Annual General Meeting due to health reasons but attended by phone, deviating from Code Provision F.2.2[84] - Executive Director Mr. Bao Jun chaired the 2024 Annual General Meeting[84] Code Provision C.6.2 The company secretary's appointment was handled via written resolution instead of a physical board meeting, a deviation from Code Provision C.6.2, but deemed adequately consulted - The company secretary's appointment was handled via written resolution instead of a physical board meeting, deviating from Code Provision C.6.2[85] - The Board believes that all directors were individually consulted before signing the written resolution, with no objections to the matter[85] Audit Committee The Audit Committee, comprising four independent non-executive directors, reviewed the Group's consolidated financial statements and annual results announcement for the year ended March 31, 2025 - The Audit Committee, comprising four independent non-executive directors, reviewed the Group's consolidated financial statements and annual results announcement[86] Auditor's Scope of Work The financial figures in this announcement align with the audited consolidated financial statements as agreed by the auditor, BDO Limited, but the auditor did not issue a certification for the announcement - The financial figures in this results announcement have been agreed by the auditor, BDO Limited, to be consistent with the audited consolidated financial statements[87] - The auditor did not issue a certification for the results announcement[87] Compliance with Directors' Securities Transactions Code The Company adopted the Model Code in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the 2025 fiscal year - The Company adopted the Model Code in Appendix 10 of the Listing Rules and confirmed that all directors complied with the code in fiscal year 2025[88] Purchase, Sale or Redemption of Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the 2025 fiscal year - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year[89] Publication of Annual Results and Annual Report This results announcement is available on the HKEX and Company websites, with the annual report to be published in due course - This results announcement is available on the websites of Hong Kong Exchanges and Clearing Limited and the Company[90] - The Company will publish its annual report, containing all information required by the Listing Rules, in due course[90] By Order of the Board This announcement was issued by Mr. Wang Jianqing, Chairman and CEO, on June 30, 2025, listing the Board members - This announcement was issued by Mr. Wang Jianqing, Chairman and Chief Executive Officer, on June 30, 2025[91] - The Board members include Executive Directors Mr. Wang Jianqing and Mr. Bao Jun, and Independent Non-executive Directors Dr. Liang Haiming, Mr. Wong Chi Keung, Mr. Wong Siu Hung, and Ms. Lam Wing[91]