中证国际(00943) - 2025 - 年度业绩

Preliminary Results Announcement This section presents the preliminary financial results and key operational highlights for the reporting period Consolidated Financial Statements This section presents the consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial position for China Securities International Limited for the year ended June 30, 2025, providing an overview of the Group's financial performance and asset-liability position during the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended June 30, 2025, the Group's revenue from continuing operations increased, but gross profit declined, with a significant narrowing of the annual loss primarily due to a substantial reduction in losses from discontinued operations | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue (Continuing Operations) | 116,785 | 100,578 | | Total Revenue | 117,295 | 101,835 | | Cost of Sales | (90,706) | (69,938) | | Gross Profit | 26,589 | 31,897 | | Operating Loss | (26,451) | (27,472) | | Loss before Tax from Continuing Operations | (94,404) | (90,269) | | Loss for the Year from Continuing Operations | (94,495) | (90,269) | | Loss for the Year from Discontinued Operations | (55,670) | (777,851) | | Loss for the Year | (150,165) | (868,120) | | Loss for the Year Attributable to Owners of the Company | (146,703) | (699,345) | | Total Comprehensive Loss for the Year | (38,531) | (868,515) | | Basic Loss Per Share (Continuing and Discontinued Operations) | (22.88) HK cents | (111.10) HK cents | | Basic Loss Per Share (Continuing Operations) | (14.74) HK cents | (14.34) HK cents | | Basic Loss Per Share (Discontinued Operations) | (8.14) HK cents | (96.76) HK cents | - Revenue from continuing operations increased by 16.1% from 100,578 thousand HKD in 2024 to 116,785 thousand HKD in 2025[4] - Gross profit decreased by 16.7% from 31,897 thousand HKD in 2024 to 26,589 thousand HKD in 2025[4] - Loss for the year significantly narrowed from 868,120 thousand HKD in 2024 to 150,165 thousand HKD in 2025, primarily due to a reduction in loss from discontinued operations from 777,851 thousand HKD to 55,670 thousand HKD[4] Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and liabilities significantly decreased, net current liabilities notably improved, and net assets and total equity increased, reflecting the impact of business restructuring and asset disposals | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current Assets | 656,462 | 628,002 | | Current Assets | 88,506 | 1,665,703 | | Current Liabilities | (188,625) | (2,139,421) | | Net Current Liabilities | (100,119) | (473,718) | | Total Assets Less Current Liabilities | 556,343 | 154,284 | | Non-current Liabilities | (297,249) | (39,235) | | Net Assets | 259,094 | 115,049 | | Equity Attributable to Owners of the Company | 259,094 | 293,066 | | Total Equity | 259,094 | 115,049 | - Current assets significantly decreased from 1,665,703 thousand HKD in 2024 to 88,506 thousand HKD in 2025, mainly due to the disposal of properties under development for sale and properties held for sale[7] - Net current liabilities improved from (473,718) thousand HKD in 2024 to (100,119) thousand HKD in 2025[7] - Net assets increased from 115,049 thousand HKD in 2024 to 259,094 thousand HKD in 2025[8] Notes to the Consolidated Financial Statements This section provides detailed notes to the consolidated financial statements, covering the company's basic information, accounting policies, specific composition and changes in various financial data, and information on discontinued operations, offering a deeper context for understanding the Group's financial position and operating results General Information China Securities International Limited is a Bermuda-registered listed company, with principal activities including manufacturing and sales of health and household products, coal mining, and has discontinued its property development and primary land development businesses in China - The company's principal place of business changed on August 28, 2025[9] - The Group discontinued its property development and primary land development businesses in China following the disposal of its wholly-owned subsidiary, Hong Kong China Securities City Investment Limited[9] Adoption of Accounting Standards This year, the Group adopted all new and revised Hong Kong Financial Reporting Standards, but these adoptions did not result in significant changes to accounting policies, financial statement presentation, or reported amounts - The adoption of new and revised Hong Kong Financial Reporting Standards did not result in significant changes to the Group's accounting policies, presentation of consolidated financial statements, or reported amounts for the current and prior years[10] Revenue Analysis The Group's total revenue decreased in 2025, primarily due to zero revenue from property development in discontinued operations. In continuing operations, both health and household product sales and coal mining royalty income increased | Revenue Source | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Continuing Operations | | | | Manufacturing and Sales of Health and Household Products | 115,183 | 100,278 | | Coal Mining Royalty Income | 1,602 | 300 | | Discontinued Operations | | | | Property Development | – | 46,664 | | Total Revenue | 117,295 | 148,499 | Revenue from Contracts with Customers by Geographical Market | Geographical Market | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | United States of America | 94,164 | 75,620 | | People's Republic of China | 20 | 46,669 | | Germany | 5,926 | 8,826 | | France | 231 | 1 | | United Kingdom | – | 373 | | Indonesia | 1,602 | 300 | | Hong Kong and Others | 14,842 | 15,453 | | Total | 116,785 | 147,242 | - Revenue from health and household products business increased by 14.9% to 115,183 thousand HKD, and coal mining royalty income significantly grew by 434% to 1,602 thousand HKD[11] - Property development business revenue was zero in 2025, compared to 46,664 thousand HKD in 2024, reflecting the discontinuation of this business[11] Other Income and Gains The Group's total other income and gains significantly decreased from 12,837 thousand HKD in 2024 to 2,605 thousand HKD in 2025, mainly due to reduced interest income from associates and other income from discontinued operations | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Scrap Material Sales Income | 412 | 314 | | Interest Income | 16 | 93 | | Net Exchange Gain | 1,082 | 1,260 | | Interest Income from Associates | 874 | 10,403 | | Others | 223 | 770 | | Total | 2,605 | 12,837 | | From Continuing Operations | 1,731 | 2,380 | | From Discontinued Operations | 874 | 10,457 | - Interest income from associates significantly decreased from 10,403 thousand HKD in 2024 to 874 thousand HKD in 2025[17] Segment Information The Group's reporting segments decreased from three to two (health and household products, coal mining), property development business was discontinued, and lending business is no longer presented separately. Health and household products revenue grew but recorded a loss, while coal mining revenue significantly increased but turned into a loss - For the year ended June 30, 2025, the Group had two reportable segments: manufacturing and sales of health and household products and coal mining business, with property development and primary land development businesses discontinued[18] - The financial performance of the lending business segment is no longer presented separately but is included under 'Corporate and unallocated losses'[18] Overview of Segment Profit or Loss from Continuing Operations | Segment | 2025 Revenue (thousand HKD) | 2025 Segment Loss (thousand HKD) | 2024 Revenue (thousand HKD) | 2024 Segment (Loss)/Profit (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Health and Household Products Business | 115,183 | (14,804) | 100,278 | (6,109) | | Coal Mining Business | 1,602 | (4,982) | 300 | 31,274 | | Lending Business (Interest Income) | 510 | N/A | 1,257 | (5,676) | | Total | 117,295 | (19,786) | 101,835 | 19,489 | Revenue by Region | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | USA | 94,164 | 75,620 | | China | 20 | 46,669 | | Germany | 5,926 | 8,826 | | France | 231 | 1 | | United Kingdom | – | 373 | | Indonesia | 1,602 | 300 | | Hong Kong and Others | 15,352 | 16,710 | | Total | 117,295 | 148,499 | - Health and household products business revenue grew by 14.9%, but segment loss expanded from 6,109 thousand HKD to 14,804 thousand HKD[19] - Coal mining business revenue significantly grew by 434%, but segment profit turned into a loss of 4,982 thousand HKD, primarily impacted by impairment losses[19] - The USA remains the primary revenue source, contributing 94,164 thousand HKD in 2025, accounting for approximately 80% of total revenue[21] Finance Costs The Group's total finance costs significantly decreased from 191,647 thousand HKD in 2024 to 22,111 thousand HKD in 2025, primarily due to a substantial reduction in finance costs from discontinued operations | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest on Other Loans | 2,863 | 37,358 | | Interest on Bank Loans | 5,936 | 141,441 | | Interest on Shareholder Loans | 13,243 | 12,689 | | Interest on Leases | 69 | 159 | | Total | 22,111 | 191,647 | | From Continuing Operations | 14,951 | 14,143 | | From Discontinued Operations | 7,160 | 177,504 | - Finance costs from discontinued operations significantly decreased from 177,504 thousand HKD in 2024 to 7,160 thousand HKD in 2025[23] Income Tax The Group's income tax expense shifted from a 24,258 thousand HKD credit in 2024 to a 125 thousand HKD expense in 2025, mainly due to changes in PRC enterprise income tax and land appreciation tax | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current Tax — PRC Enterprise Income Tax | (60) | (2,769) | | Land Appreciation Tax | – | (3,989) | | Deferred Tax | – | 31,016 | | Hong Kong Profits Tax — Underprovision in Prior Years | (65) | – | | Total | (125) | 24,258 | | From Continuing Operations | (91) | – | | From Discontinued Operations | (34) | 24,258 | - Continuing operations generated 91 thousand HKD in income tax expense in 2025, compared to zero in 2024[23] Components of Loss for the Year The composition of the annual loss shows that exploration and evaluation assets shifted from impairment reversal to impairment loss, impairment of other receivables significantly decreased, and staff costs increased | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 90,706 | 69,938 | | Impairment Loss on Exploration and Evaluation Assets / (Reversal of Impairment Loss) | 5,752 | (31,761) | | Impairment of Loans Receivable | 3,381 | 5,756 | | Impairment of Other Receivables | 13,696 | 65,934 | | Staff Costs | 61,801 | 55,941 | - Exploration and evaluation assets shifted from a 31,761 thousand HKD impairment reversal in 2024 to a 5,752 thousand HKD impairment loss in 2025[26] - Impairment of other receivables significantly decreased from 65,934 thousand HKD in 2024 to 13,696 thousand HKD in 2025[26] - Staff costs (including directors' emoluments) increased from 55,941 thousand HKD in 2024 to 61,801 thousand HKD in 2025[26] Dividends The Board does not recommend the payment of any dividend for the year ended June 30, 2025 - The Directors do not recommend the payment or declaration of any dividend for the year ended June 30, 2025 (2024: nil)[27] Loss Per Share For the year ended June 30, 2025, the basic loss per share attributable to owners of the Company significantly narrowed, primarily due to a substantial reduction in losses from discontinued operations | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share (Continuing and Discontinued Operations) | (22.88) | (111.10) | | Basic Loss Per Share (Continuing Operations) | (14.74) | (14.34) | | Basic Loss Per Share (Discontinued Operations) | (8.14) | (96.76) | - Loss for the year attributable to owners of the Company decreased from 699,345 thousand HKD in 2024 to 146,703 thousand HKD in 2025[28] - Diluted loss per share is not presented as the Company had no unissued ordinary shares with dilutive potential in both years[31] Exploration and Evaluation Assets The carrying amount of exploration and evaluation assets decreased in 2025, mainly due to impairment losses from suspended mining activities, despite a prior reversal of impairment due to the restoration of mining rights | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Exploration and Mining Rights (Carrying Amount) | 25,623 | 31,700 | | Reversal of Impairment Loss (2024) | – | (31,761) | | Impairment Loss (2025) | 5,752 | – | | Amortization | 325 | 61 | - In April 2022, the Indonesian government revoked the coal mining concession, leading to a full impairment of 462,031 thousand HKD[33] - In August 2023, mining rights were restored, and actual coal production and sales commenced in the first half of 2024, leading to a reversal of impairment loss of 31,761 thousand HKD in 2024[33] - In 2025, mining activities were suspended for several months due to falling global coal prices and adverse weather, resulting in an impairment loss of 5,752 thousand HKD[33][34] Interests in Associates The Group's interests in associates increased, but Chengde Jinyu is no longer included due to disposal, while Pacific Memory Sdn Bhd recorded an annual loss | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Share of Net Assets | 564,430 | 530,967 | | Goodwill | – | 86,994 | | Impairment | – | (86,994) | - Chengde Jinyu Investment Development Co., Ltd. (Chengde Jinyu) was disposed of on July 22, 2024, with its carrying amount of interest being zero as of June 30, 2024[39] - Pacific Memory Sdn Bhd (Malaysia property development) net assets increased from 1,517,049 thousand HKD in 2024 to 1,612,656 thousand HKD in 2025, but annual loss increased from 21,577 thousand HKD to 84,678 thousand HKD[38] Loans and Interest Receivables The Group's net loans and interest receivables continued to decrease, mainly due to impairment allowances and write-offs during the year, and the Group no longer grants new loans | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Loans Receivable | 37,953 | 40,739 | | Impairment Allowance (Loans Receivable) | (36,857) | (36,476) | | Interest Receivable | 7,985 | 9,128 | | Impairment Allowance (Interest Receivable) | (7,847) | (8,511) | | Total Net | 1,234 | 4,880 | | Impairment Allowance at Beginning of Year | 44,987 | 38,058 | | Impairment During the Year | 3,917 | 6,929 | | Written Off During the Year | (4,200) | – | - Net loans and interest receivables decreased from 4,880 thousand HKD in 2024 to 1,234 thousand HKD in 2025[40] - Impairment allowance of 4,200 thousand HKD was written off during the year[41] - The Group no longer allows its lending business to grant new loans[40] Inventories The Group's total inventories increased in 2025, primarily due to an increase in raw materials | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Raw Materials | 11,126 | 6,458 | | Work in Progress | 1,779 | 3,065 | | Finished Goods | 7,908 | 8,881 | | Total | 20,813 | 18,404 | - Raw materials increased by 72.3% from 6,458 thousand HKD in 2024 to 11,126 thousand HKD in 2025[41] Properties Under Development for Sale and Properties Held for Sale The Group's properties under development for sale and properties held for sale were both sold in 2025, reflecting the discontinuation of its property development business in China | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Properties Under Development for Sale | – | 1,049,592 | | Properties Held for Sale | – | 154,822 | - Properties under development for sale and properties held for sale were both sold in 2025, with write-downs recognized in 2024 due to the disposal of a subsidiary[42][44] Trade and Other Receivables The Group's total trade and other receivables significantly decreased, mainly due to reductions in prepayments and deposits, consideration receivable, and amounts due from related companies, as well as further impairment of consideration receivable | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Receivables | 30,213 | 30,025 | | Prepayments and Deposits | 729 | 43,800 | | Prepaid Tax | 743 | 9,759 | | Consideration Receivable | – | 20,466 | | Amounts Due from Related Companies | – | 32,170 | | Other Receivables | 1,541 | 24,948 | | Total | 33,226 | 161,168 | - Consideration receivable decreased from 20,466 thousand HKD in 2024 to zero in 2025, with a further impairment loss of 13,696 thousand HKD recognized in 2025[47] - Amounts due from related companies decreased from 32,170 thousand HKD in 2024 to zero in 2025[45] Amounts Due from Associates The Group's amounts due from associates significantly decreased, primarily due to the disposal of amounts due from Chengde Jinyu | Associate | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Pacific Memory SDN BHD | 21,881 | 21,881 | | Chengde Jinyu | – | 235,993 | | Total | 21,881 | 257,874 | - Amounts due from Chengde Jinyu were disposed of during the year ended June 30, 2025[48] Trade and Other Payables The Group's total trade and other payables significantly decreased, mainly due to reductions in trade payables, accruals and other payables, interest payable on loans, and contract liabilities | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade Payables | 27,441 | 59,285 | | Accruals and Other Payables | 62,579 | 125,752 | | Amounts Due to Related Companies | – | 10,748 | | Interest Payable on Loans | 17,457 | 306,485 | | Amounts Due to Directors | 1,848 | 999 | | Contract Liabilities | – | 171,922 | | Total | 109,325 | 675,191 | - Interest payable on loans significantly decreased from 306,485 thousand HKD in 2024 to 17,457 thousand HKD in 2025[49] - Contract liabilities (property development) decreased from 171,922 thousand HKD in 2024 to zero in 2025, reflecting the discontinuation of the property development business[50] Discontinued Operations The Group completed the disposal of Hong Kong China Securities City Investment Limited on July 22, 2024, discontinuing its property development and primary land development businesses in China, which led to a substantial reduction in the annual loss from discontinued operations - On May 6, 2024, the Group entered into an agreement with its major shareholder, Mr. Lim Kim Chai, to dispose of its entire equity interest in Hong Kong China Securities City Investment Limited for a consideration of 53,700 thousand HKD, which was completed on July 22, 2024[51] | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Loss from Discontinued Operations | (7,619) | (777,851) | | Loss on Disposal of Discontinued Operations | (48,051) | – | | Total | (55,670) | (777,851) | - Loss for the year from discontinued operations significantly decreased from 777,851 thousand HKD in 2024 to 7,619 thousand HKD in 2025[52] - A loss on disposal of discontinued operations of 48,051 thousand HKD was recognized in 2025[52] Related Party Transactions Aside from transactions and balances disclosed elsewhere in the consolidated financial statements, there were no other transactions or balances between the Group and its related parties during the year - Except as disclosed, there were no other transactions or balances between the Group and its related parties during the year[54] Summary of Independent Auditor's Report The independent auditor issued a qualified opinion on the Group's consolidated financial statements, primarily concerning exploration and evaluation assets, interests in associates, amounts due from associates, properties under development for sale, other receivables, borrowings, and loss on disposal of discontinued operations. Management, the Board, and the Audit Committee reviewed the qualifications, deeming most addressed, but the qualification regarding exploration and evaluation assets remains unresolved Qualified Opinion The auditor believes that, except for the possible effects of the matters described in the Basis for Qualified Opinion section, the consolidated financial statements present fairly, in all material respects, the financial position and performance of the Group, and have been properly prepared in compliance with disclosure requirements - The auditor believes that, except for the possible effects of the matters described in the Basis for Qualified Opinion section, the consolidated financial statements present fairly, in all material respects, the Group's consolidated financial position as of June 30, 2025, and its consolidated financial performance and cash flows for the year then ended, and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[58] Basis for Qualified Opinion The auditor's qualified opinion is primarily based on insufficient audit evidence regarding the recoverability of exploration and evaluation assets, accuracy of interests in associates and amounts due from associates, write-down amount of properties under development for sale, impairment of other receivables, and the existence, completeness, and accuracy of bank borrowings - The auditor could not confirm the appropriateness of the 2024 reversal of impairment loss on exploration and evaluation assets, nor the recoverability of the 25,623 thousand HKD exploration and evaluation assets and the appropriateness of the 5,752 thousand HKD impairment in 2025, due to suspended mining activities and uncertain negotiation outcomes[59][60] - The auditor was unable to obtain sufficient audit evidence to be satisfied with the accuracy of the 2024 interests in associate Chengde Jinyu, its share of loss, exchange differences, and impairment, as well as the accuracy of amounts due from Chengde Jinyu and the appropriateness of the impairment loss[62][63] - The auditor could not determine the accuracy of the carrying amount and write-down amount of properties under development for sale in 2024, as it relates to the accuracy of interests in Chengde Jinyu, receivables, and bank borrowings[64] - The auditor could not confirm the appropriateness of impairment losses on receivables in 2024 and 2025 due to insufficient audit evidence regarding the recoverability of 2024 receivables[65] - The auditor could not determine the existence, completeness, and accuracy of bank borrowings in 2024, nor the completeness and accuracy of related finance costs, due to inability to contact the bank and the buyer of non-performing loans[66] - The auditor could not determine the accurate recording of the 2025 loss on disposal of discontinued operations, as it relates to the accuracy of carrying amounts of interests in associates, receivables, properties under development for sale, and bank borrowings[67] Management's, Board's and Audit Committee's Views on Auditor's Opinion Management and the Audit Committee reviewed the auditor's qualified opinion. They believe five qualifications related to the disposal of Hong Kong China Securities City Investment Limited have been adequately addressed. However, the qualification regarding exploration and evaluation assets remains unresolved, mainly due to production uncertainties caused by external factors like coal prices and weather, with the Group actively negotiating remedies and monitoring market conditions - Qualifications related to the disposal of Hong Kong China Securities City Investment Limited (items 2, 3, 5, 6) have been adequately addressed, as the company and its subsidiaries are no longer Group members, and their financial impact was accounted for on the completion date[70] - The qualification regarding other receivables (item 4) has been adequately addressed, as the Group entered into a deed of settlement with the counterparty and settled the receivable through share transfer[71] - The qualification regarding exploration and evaluation assets (item 1) remains unresolved, primarily due to falling global coal prices, adverse weather, and the contractor's failure to meet production levels, preventing the auditor from assessing the reasonableness of cash flow forecasts[72] - Management and the Audit Committee concur with the auditor's basis for the qualified opinion on exploration and evaluation assets and are negotiating remedies with the contractor, considering engaging subcontractors or taking over mining activities, while closely monitoring market conditions[73][74][75] Subsequent Significant Events After the reporting period, the company implemented a series of capital market operations, including debt capitalization, share consolidation, share premium reduction, and rights issue, aimed at debt repayment, business strategy adjustment, and working capital replenishment - The Company entered into debt capitalization agreements with two major shareholders to offset approximately 100,900 thousand HKD in shareholder loans by issuing shares at 0.20 HKD per share, completed on July 15, 2025[55] - The Company proposed a rights issue, issuing 572,899,170 rights shares at 0.20 HKD per share on the basis of one rights share for every two consolidated shares held, raising a maximum gross proceeds of approximately 114,600 thousand HKD, completed on August 20, 2025[55] - Net proceeds from the rights issue of approximately 112,000 thousand HKD will be used for debt repayment (48,000 thousand HKD), strategic adjustments and business transformation for the health and household products business (40,000 thousand HKD), and general working capital purposes (24,000 thousand HKD)[77] - Other proposed matters, including share consolidation (1 share for every 20 shares), share premium reduction (approximately 899,100 thousand HKD transferred to contributed surplus account to offset accumulated losses), and change in board lot size, were all completed between July and August 2025[76][78] Results for the Year Ended 30 June 2025 This section provides a detailed review of the Group's overall performance for the 2024/25 financial year, outlining operating performance and future outlook by business segment. Despite increased total revenue, gross profit margin declined, and the annual loss significantly narrowed primarily due to the disposal of discontinued operations. Each business segment faces different challenges, with corresponding strategic adjustments and development plans in place Overall Performance Overview The Group's total revenue grew by 15.2% in the 2024/25 financial year, but gross profit margin decreased to 22.7%. The consolidated loss attributable to owners of the Company significantly reduced, mainly due to a substantial narrowing of losses from discontinued operations | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Revenue | 117,295 | 101,835 | | Gross Profit | 26,589 | 31,897 | | Gross Profit Margin | 22.7% | 31.3% | | Consolidated Loss Attributable to Owners of the Company | (146,703) | (699,345) | | Loss from Continuing Operations | (94,495) | (90,269) | | Loss from Discontinued Operations | (52,208) | (609,076) | - Total revenue increased by 15.2% year-on-year, primarily attributable to a rebound in sales orders for the health and household products business[79] - Gross profit margin decreased from 31.3% to 22.7%, reflecting rising costs and pressure on profit margins[79] - Loss from continuing operations increased moderately by 4.7%, mainly impacted by declining gross profit margin, impairment loss on exploration and evaluation assets, and increased associate losses, partially offset by reduced impairment of other receivables and administrative expenses[80] Health and Household Products Business Health and household products business revenue grew by 14.9%, primarily due to replenishment by key customers. However, gross profit margin decreased to 21.3%, affected by rising material costs, escalating labor costs, and pricing pressure. The Group is actively expanding online business, developing private labels and new products, and seeking geographical market diversification to address challenges | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 115,200 | 100,300 | | Gross Profit Margin | 21.3% | 30.3% | - Revenue grew by 14.9%, primarily due to key customers accelerating inventory replenishment, reversing the destocking trend of the previous financial year[82] - The decline in gross profit margin was primarily driven by significantly rising material costs, escalating labor costs, and pricing pressure from key customers negotiating lower unit prices[84] - The Group is actively expanding into online B2B and B2C e-commerce markets and plans to invest more resources in developing private labels, already owning two electric toothbrush brands and developing new products[85][86] - US-China trade tensions and supply chain restructuring may exert negative pressure on future revenue, and the Group is actively expanding its customer base in other geographical markets[83] Coal Mining Business Coal mining royalty income increased, but due to falling coal prices and adverse weather, mining activities were suspended for several months, resulting in a loss and recognition of impairment loss on exploration and evaluation assets | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Royalty Income | 1,602 | 300 | | Segment Loss | (4,982) | 31,274 (Profit) | | Impairment Loss on Exploration and Evaluation Assets | 5,752 | (31,761) (Reversal) | - Royalty income increased by 434%, but the segment shifted from profit to loss, primarily due to an impairment loss on exploration and evaluation assets of 5,752 thousand HKD[88] - Mining activities were suspended for several months due to falling coal prices and adverse weather, with the contractor failing to meet agreed production levels[88] Coal Resources Estimate (thousand tonnes) | JORC Category | 2025年6月30日 | 2024年6月30日 | Change Percentage | | :--- | :--- | :--- | :--- | | Proved | 8,575 | 8,675 | -1.15% | | Controlled | 11,537 | 11,537 | 無 | | Inferred | 6,097 | 6,097 | 無 | | Total | 26,209 | 26,309 | | Lending Business The lending business no longer grants new loans, with the primary focus on recovering outstanding loans receivable, and the net amount continues to decrease | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Outstanding Loans Receivable | 41,268 | 44,054 | | Total Loans Receivable, Net | 1,096 | 4,263 | - The Group no longer allows its lending business to grant new loans, with the primary focus on recovering outstanding loans receivable[91] - Total loans receivable, net, decreased from 4,263 thousand HKD in 2024 to 1,096 thousand HKD in 2025[91] Investment in Malaysia Port Dickson Property Development Project The Group holds a 35% equity interest in Pacific Memory Sdn Bhd, which is engaged in commercial development in Port Dickson, Malaysia. Due to funding shortages and market challenges, the project has not been developed for years, leading the Group to recognize impairment and an increased share of associate losses - The Group holds a 35% equity interest in Pacific Memory Sdn Bhd, which is engaged in commercial development in Port Dickson, Malaysia[92] - Due to funding shortages and market challenges, the Port Dickson project has not been developed for years, leading the Group to recognize an impairment (net of tax) of 82,208 thousand HKD in 2025[93] - The Group's share of associate results recorded a loss that increased from 7,552 thousand HKD in 2024 to 29,637 thousand HKD in 2025[93] Discontinued China Property Projects The Group completed the disposal of Hong Kong China Securities City Investment Limited on July 22, 2024, discontinuing its property development and primary land development businesses in China - On May 6, 2024, the Group entered into a disposal agreement with its major shareholder, Mr. Lim Kim Chai, to sell Hong Kong China Securities City Investment Limited for 53,700 thousand HKD, completed on July 22, 2024[94] - Following the completion of the disposal, the Group discontinued its property development and primary land development businesses in China[94] Outlook The Group maintains a cautious outlook for its health and household products business, planning to expand into the health industry, develop private labels, diversify geographical markets, and adopt a flexible production system. The coal mining business environment remains challenging, requiring prudent management and market monitoring. The lending business continues to focus on recovering existing loans Health and Household Products Business Outlook The health and household products business faces challenges including US-China trade tensions, potential tariff escalations, and supply chain disruptions. The Group plans to strategically expand into higher-margin health industries, develop private labels, focus on mainland China as a primary growth area, and diversify into European, Middle Eastern, and other Asian markets. It will adopt a flexible production system and drive cost efficiency - The market environment is highly challenging, facing US-China trade tensions, potential tariff escalations, and geopolitical uncertainties[95] - Strategically shifting business focus from traditional oral care and hair grooming products to health industries such as beauty, skincare, and other personal care products, to capture market opportunities with higher profit margins and faster turnover[96] - Accelerating the development of private labels for personal care and health products, already owning two electric toothbrush private labels, and planning to launch sonic electric toothbrushes and other new products in the China e-commerce market in Q4 2025[96] - Placing high importance on geographical diversification, planning to focus on mainland China as a primary growth area, and expanding into European, Middle Eastern, and other Asian markets to reduce reliance on the US market[97] - Achieving a flexible and scalable production system by utilizing suitable subcontractors, reducing capital intensity, and enhancing operational flexibility[97] - Driving cost efficiency, improving labor productivity and operational efficiency, including moderate workforce streamlining and enhanced monitoring of labor cost structures[98] Coal Mining Business Outlook The coal mining business environment remains challenging, affected by weak coal prices and adverse weather. The Group will manage this segment cautiously; the ability to restore production capacity highly depends on coal price recovery, and it will continue negotiating remedies with contractors or consider engaging subcontractors - The business environment remains challenging, affected by both weak coal prices and adverse weather, with mining activities suspended for several months[99] - The ability to restore production capacity to a certain level highly depends on whether coal prices can recover to a level sufficient to support mining costs[99] - The Group will continue to negotiate with the contractor regarding the resumption of production levels, while also considering engaging subcontractors to work with the contractor, or taking over mining activities where feasible[99] Lending Business Outlook The primary focus of the lending business remains on recovering existing loans receivable, and the Group will continue these efforts relentlessly - The primary focus of this business is to recover existing loans receivable, and the Group will continue these efforts relentlessly[100] Liquidity and Financial Resources The Group's cash position decreased, but net current liabilities significantly improved, and the gearing ratio substantially reduced. The Group's borrowings are primarily at fixed interest rates, resulting in very low interest rate risk, and currently has no foreign exchange hedging policy. Fundraising activities were completed after the reporting period, with no major investments or acquisitions, and some assets are pledged Cash Position As of June 30, 2025, the Group's cash and bank balances decreased, primarily denominated in USD | Currency | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | RMB | 1,612 | 16,131 | | USD | 7,548 | 2,411 | | Other Currencies | 1,000 | 160 | | Total | 11,352 | 20,135 | - Cash and bank balances decreased from 20,135 thousand HKD in 2024 to 11,352 thousand HKD in 2025[101] Current Ratio The Group's net current liabilities significantly improved, while the current ratio decreased | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Current Liabilities | (100,119) | (473,718) | | Current Ratio | 0.47 | 0.78 | - Net current liabilities improved from (473,718) thousand HKD in 2024 to (100,119) thousand HKD in 2025[102] - Current ratio decreased from 0.78 in 2024 to 0.47 in 2025[102] Debts and Borrowings The Group's total debts and borrowings significantly decreased, primarily comprising shareholder loans, unsecured third-party loans, and pledged bank loans | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Debts and Borrowings | 356,094 | 1,344,401 | - Total debts and borrowings significantly decreased from 1,344,401 thousand HKD in 2024 to 356,094 thousand HKD in 2025[103] Gearing Ratio The Group's gearing ratio significantly decreased, reflecting an improvement in financial leverage | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Gearing Ratio | 137.4% | 1,168.5% | - Gearing ratio significantly decreased from 1,168.5% in 2024 to 137.4% in 2025[104] FX and Interest Rate Fluctuation Risks and Hedging Arrangements The Group is exposed to a certain degree of foreign exchange risk but currently has no foreign exchange hedging policy. As borrowing interest rates are primarily fixed, interest rate risk is very low, and thus no interest rate risk is hedged - The Group is exposed to a certain degree of foreign exchange risk but currently has no foreign exchange hedging policy[105] - The Group's borrowings are primarily at fixed interest rates, and operating cash flows are largely unaffected by market interest rate fluctuations, resulting in very low interest rate risk with no hedging of interest rate risk[105] Fundraising Activities The Company did not undertake any fundraising activities for the year ended June 30, 2025, but proposed fundraising activities were completed after the year-end - The Company did not undertake any fundraising activities for the year ended June 30, 2025[106] - Proposed fundraising activities were completed after the year ended June 30, 2025; details can be found in the 'Subsequent Significant Events' section[106] Major Investments Held, Major Acquisitions and Disposals of Subsidiaries Aside from the disposal of discontinued operations, the Group held no major investments and undertook no significant acquisitions or disposals during the reporting period - Aside from the disposal, the Group held no major investments and undertook no significant acquisitions or disposals for the year ended June 30, 2025[107] Pledge of Assets As of June 30, 2025, certain of the Group's land and buildings were pledged as collateral for bank financing - As of June 30, 2025, certain of the Group's land and buildings, amounting to approximately 55,932 thousand HKD, were pledged as collateral for bank financing granted to the Group[108] Significant Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[109] Employees and Remuneration Policy As of June 30, 2025, the Group had 582 employees globally, with remuneration determined by market standards, individual performance, and experience | Region | 2025 Number of Employees | 2024 Number of Employees | | :--- | :--- | :--- | | Hong Kong | 18 | 20 | | China | 563 | 567 | | Indonesia | 1 | 1 | | Total | 582 | 588 | - Employee remuneration is determined and reviewed based on market standards, individual performance, and experience, with bonuses and incentives contingent on the Group's business results and individual employee performance[110] Future Plans for Major Investments or Capital Assets As of June 30, 2025, there were no future plans for major investments or capital asset acquisitions - As of June 30, 2025, there were no future plans for major investments or capital asset acquisitions[111] Dividends The Board does not recommend the payment of any dividend for the current year - The Board does not recommend the payment of any dividend for the current year (for the year ended June 30, 2024: nil)[112] Purchase, Sale or Redemption of Listed Securities of the Company Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended June 30, 2025[113] Other Information This section provides other important information regarding the composition of the Audit Committee, auditor's scope of work, compliance with the standard code for directors' securities transactions, corporate governance code, and Board composition Audit Committee The Audit Committee, comprising four independent non-executive directors, has reviewed the financial information contained in this announcement - The Audit Committee comprises Mr. Hou Zhijie, Mr. Liang Zhixiong, Mr. Li Hanquan, and Ms. Yang Rintong (all independent non-executive directors), with Mr. Li Hanquan as Chairman[114] - The Audit Committee has reviewed the financial information contained in this announcement[114] Auditor's Scope of Work The auditor has agreed that the consolidated financial statement figures in this preliminary announcement align with the audited consolidated financial statements, but their work does not constitute an assurance engagement, thus no opinion or assurance conclusion is provided for the preliminary announcement - ZHONGHUI ANDA CPA Limited, the auditor, has agreed that the figures in this preliminary announcement relating to the Group's consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and their related notes for the year ended June 30, 2025, are consistent with the amounts in the Group's audited consolidated financial statements for the year ended June 30, 2025[115] - The work performed by the auditor does not constitute an assurance engagement, and therefore no opinion or assurance conclusion is provided for the preliminary announcement[115] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and confirms that all directors have complied with the code throughout the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[116] - Following specific inquiries made to all Directors, the Company confirms that all Directors have complied with the required standards set out in the Standard Code for the year ended June 30, 2025[116] Corporate Governance Code For the year ended June 30, 2025, the Company has complied with all requirements of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - For the year ended June 30, 2025, the Company has complied with all requirements of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[117] Board Composition As of the announcement date, the Board of Directors comprises two executive directors, one non-executive director, and four independent non-executive directors - As of the date of this announcement, the Board of Directors comprises two executive directors, one non-executive director, and four independent non-executive directors[118]