Financial Highlights Annual Results for the Year Ended 31 March 2025 For the financial year ended 31 March 2025, the company's revenue slightly decreased, turning from profit to loss, with a basic loss per share of 1.87 HK cents and a reduction in equity attributable to owners of the company Key Financial Data for FY2025 | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 457,782 | 459,848 | (0.4) | | Operating (Loss)/Profit | (8,810) | 14,477 | (160.9) | | (Loss)/Profit Before Income Tax | (11,876) | 10,862 | (209.4) | | (Loss)/Profit Attributable to Owners of the Company | (13,440) | 8,543 | (257.2) | | Basic (Loss)/Earnings Per Share (HK cents) | (1.87) | 1.19 | (257.1) | | Equity Attributable to Owners of the Company (as at 31 March) | 465,923 | 495,493 | (6.0) | | Proposed Final Dividend Per Share (HK cents) | – | – | - | Corporate Information Registered Office and Head Office The company is registered in the Cayman Islands, with its head office and principal place of business located at First Commercial Building, 33 Leighton Road, Causeway Bay, Hong Kong - The company's registered office is located at Cricket Square, Cayman Islands10 - The head office and principal place of business are located on 16-18/F, First Commercial Building, 33 Leighton Road, Causeway Bay, Hong Kong10 Directors and Committees The Board of Directors comprises executive and independent non-executive directors, with established audit, nomination, remuneration, and investment committees to ensure effective corporate governance - Executive Directors include Mr. Tse San Fat (Chairman), Mr. Tse San Wai (Vice Chairman), Mr. Tse San Po (Managing Director), Mr. Tse Hon Kit (Deputy Managing Director), and Mr. Lau Siu Sun10 - Independent Non-executive Directors include Mr. Wong Wah, Mr. Wan Sze Chung, Dr. Luk Hung Kwong, and Ms. Man Yuk Fun11 - The company has an Audit Committee, Nomination Committee, Remuneration Committee, and Investment Committee, each chaired by an Independent Non-executive Director1112 Auditor and Legal Advisers The company's auditor is PricewaterhouseCoopers, Hong Kong legal adviser is Pang, Wan & Choi, Solicitors, and principal bankers include Fubon Bank (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, and Nanyang Commercial Bank Limited - The auditor is PricewaterhouseCoopers12 - The Hong Kong legal adviser is Pang, Wan & Choi, Solicitors13 - Principal bankers include Fubon Bank (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, and Nanyang Commercial Bank Limited16 Group Structure Subsidiaries and Ownership The group structure shows several wholly-owned subsidiaries primarily engaged in import/export, wholesale, retail, and installation of building materials, sanitary ware, kitchen equipment, and furniture, along with interior design and project management services - The Group owns several wholly-owned subsidiaries including Sunny Building and Decoration Materials Company Limited, ViA (Shanghai) Limited, and Massford (Shanghai) Limited18 - Subsidiary businesses cover import/export, wholesale, retail, and installation of architectural hardware, sanitary ware, kitchen equipment, and furniture, as well as interior design and project management18 Chairman's Statement Macroeconomic Environment and Challenges The Chairman's report highlights that the unstable global macroeconomic environment, currency fluctuations, geopolitical tensions, and US-China tariff conflicts in FY2025 posed severe challenges to Hong Kong's property market and company operations, leading to a depreciating US dollar, high inflation, and increased financing costs - In 2025, the global economy faced significant volatility and geopolitical tensions, particularly high US interest rates, tariff-induced inflation, rising global energy costs, and instability in the Middle East2022 - The US Dollar Index fell by 7.5% since early 2025, exacerbating global currency volatility and increasing import costs for dollar-pegged economies like Hong Kong2527 - The Hong Kong government's total revenue for FY2024-25 decreased by 11.6% to HK$559.6 billion, with a projected deficit of HK$162.9 billion for FY2025-26, though fiscal reserves of HK$647.3 billion provide a buffer2933 - Hong Kong's GDP is projected to grow by 2.0% to 3.0%, driven mainly by exports and investment, but weak local consumption, high interest rates, and geopolitical issues continue to affect capital flows3033 Impact on Hong Kong Property Market and Group Performance Hong Kong's residential property market faces structural oversupply and continuous price declines, leading to property revaluation losses and decreased gross profit for the company, though core business operations remain stable - Hong Kong's private residential market faces severe oversupply, with new annual supply expected to exceed demand by approximately 4,000 to 6,000 units in the coming years3538 - In Q1 2025, Hong Kong's residential property price index fell by 7.7% year-on-year, with a cumulative decline exceeding 30.0% since mid-20233739 - The company recorded a non-cash loss of HK$44.4 million from property revaluation, with HK$13.3 million recognized in the consolidated statement of comprehensive income and HK$19.4 million in other comprehensive income3739 - Sales turnover remained stable, but a 6.0% increase in cost of goods sold led to an 11.0% decrease in gross profit, primarily due to higher import costs, HKD depreciation against the Euro, and rising logistics expenses3739 Future Outlook and Strategies Facing an uncertain economic outlook, the company will focus on capital preservation, cost control, and market diversification, leveraging its market insights, industry expertise, and partnerships to actively address challenges and pursue sustainable long-term growth - The Board confirms that global and local economic prospects remain highly uncertain, with persistent inflation, high interest rates, geopolitical tensions, and US tariff policies being key influencing factors4447 - In the short term, the company will focus on capital preservation, prudent cost control, and market diversification, continuing to provide quality building materials, sanitary ware, and interior solutions for private and subsidized housing sectors4851 - The company will leverage its deep market insights, industry expertise, and strong partnerships with property developers, suppliers, and customers to proactively respond to market changes4951 - The company remains optimistic about overcoming current challenges and achieving sustainable long-term growth, especially after geopolitical stabilization5052 [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis%20I%20%E7%AE%A1%20%E7%90%86%20%E5%B1%
怡邦行控股(00599) - 2025 - 年度财报