Introductory Information Disclaimer and GEM Characteristics This announcement contains information required by the GEM Listing Rules of the Hong Kong Stock Exchange, for which the Board assumes full responsibility for its accuracy, completeness, and non-misleading nature. The GEM market is designed for small and medium-sized companies, carrying higher investment risks, potential market volatility, and no guarantee of liquidity - The Board assumes full responsibility for the accuracy, completeness, and non-misleading nature of this announcement's content45 - The GEM market is positioned for small and medium-sized companies, entailing higher investment risks, potential for significant market volatility, and no guarantee of high liquidity235 Financial Highlights For the financial year ended June 30, 2025, the Group's revenue increased by 2.9% year-on-year to approximately HKD 502.4 million, but net loss widened to approximately HKD 7.3 million. The Board does not recommend a final dividend Key Financial Data for FY2025 | Metric | 2025 (HKD Million) | 2024 (HKD Million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 502.4 | 488.1 | +2.9% | | Net Loss | (7.3) | (4.8) | Loss widened | | Final Dividend | None | None | No change | Consolidated Financial Statements Consolidated Statement of Profit or Loss For the year ended June 30, 2025, the Group's revenue grew to HKD 502.4 million, but loss before taxation and loss for the year both widened due to increased other losses and impairments Consolidated Statement of Profit or Loss Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 502,430 | 488,074 | | Cost of services | (466,461) | (454,486) | | Gross profit | 35,969 | 33,588 | | Other income, other gains and other losses and impairments | (13,059) | (9,023) | | Selling and marketing expenses | (2,682) | (3,041) | | Administrative expenses | (25,644) | (24,271) | | Finance costs | (666) | (818) | | Loss before taxation | (6,082) | (3,565) | | Income tax expense | (1,219) | (1,195) | | Loss for the year | (7,301) | (4,760) | | Loss attributable to owners of the Company | (6,851) | (4,396) | | Basic and diluted loss per share (HK cents) | (1.27) | (0.81) | Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended June 30, 2025, the Group's total comprehensive loss for the year widened to HKD 6.175 million, primarily impacted by the loss for the year and exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the year | (7,301) | (4,760) | | Exchange differences on translation of financial statements of overseas operations | 1,126 | (1,064) | | Total comprehensive loss for the year | (6,175) | (5,824) | | Total comprehensive loss attributable to owners of the Company | (5,725) | (5,460) | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly decreased, non-current assets reduced, while net current assets remained robust. Total equity decreased due to the loss for the year Consolidated Statement of Financial Position Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 56,752 | 66,498 | | Current assets | 242,711 | 231,291 | | Liabilities | | | | Current liabilities | 107,164 | 100,306 | | Non-current liabilities | 1,665 | 674 | | Equity | | | | Total equity | 190,634 | 196,809 | | Net current assets | 135,547 | 130,985 | Notes to Consolidated Financial Statements Company Information Poly Holdings Limited was incorporated in the Cayman Islands, with shares listed on GEM of the Hong Kong Stock Exchange since June 17, 2013. Its principal business is investment holding, with subsidiaries primarily engaged in environmental and cleaning services and money lending - The Company is an investment holding company, with its shares listed on GEM of the Hong Kong Stock Exchange since June 17, 2013161722 - The Group's principal businesses include environmental and cleaning services and money lending business1722 Material Accounting Policies The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, primarily on a historical cost basis, except for financial assets at fair value through profit or loss and interests in leasehold land and buildings. Changes in accounting policies adopted this year did not have a significant impact on the Group's financial position - The consolidated financial statements are primarily prepared on a historical cost basis, except for financial assets at fair value through profit or loss and interests in leasehold land and buildings, which are stated at fair value2528 - Certain amendments to accounting standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the first time in the current accounting period but did not have a significant impact on the Group's consolidated financial position and performance2931 Statement of Compliance - The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the GEM Listing Rules1923 Basis of Preparation of the Consolidated Financial Statements - The preparation of consolidated financial statements involves management's judgments, estimates, and assumptions, which are based on historical experience and reasonable factors, and actual results may differ from these estimates262728 Changes in Accounting Policies - The Group has adopted amendments to HKFRS 16, HKAS 1, HKAS 7, and HKFRS 7 issued by the Hong Kong Institute of Certified Public Accountants, but these changes have not had a significant impact on the Group's financial position and performance2931 Possible Impact of Amendments, New Standards and Interpretations Issued But Not Yet Effective for the Year Ended 30 June 2025 The HKICPA has issued several new standards and amendments not yet effective, among which HKFRS 18 'Presentation and Disclosure in Financial Statements' is expected to impact future financial statement presentation and disclosure, and the Group is currently assessing its specific effects - HKFRS 18 'Presentation and Disclosure in Financial Statements' will replace HKAS 1, introducing presentation requirements for designated categories and subtotals in the statement of profit or loss and improving disclosure information3639 - HKFRS 18 will be effective for annual periods beginning on or after January 1, 2027, and the Group is currently assessing its specific impact on the consolidated financial statements3739 Revenue and Segment Reporting The Group's revenue primarily derives from environmental and cleaning services and money lending business. The Group is divided into three reportable segments: environmental and cleaning, money lending, and investment, based on business nature, with revenue and assets also segmented by geographical region Revenue Sources (HKD Thousand) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Environmental and cleaning services income | 497,523 | 485,387 | | Interest income from money lending business | 4,907 | 2,687 | | Total Revenue | 502,430 | 488,074 | - The Group's operating segments include environmental and cleaning, money lending, and investment, with each segment offering different products and services and employing distinct business strategies4749 Revenue Breakdown - Environmental and cleaning services income is the Group's primary revenue source, with interest income from the money lending business also showing growth43 Segment Reporting Details 2025 Reportable Segment Revenue and Profit/(Loss) (HKD Thousand) | Segment | Revenue | Profit/(Loss) | | :--- | :--- | :--- | | Environmental and cleaning | 497,523 | 10,023 | | Investment | – | 149 | | Money lending | 4,907 | (4,081) | | Total | 502,430 | 6,091 | 2025 Segment Assets and Liabilities (HKD Thousand) | Segment | Assets | Liabilities | | :--- | :--- | :--- | | Environmental and cleaning | 186,136 | (79,510) | | Investment | 1,520 | (18) | | Money lending | 73,917 | (10,280) | | Total | 299,463 | (108,829) | Geographical Information and Major Customers Revenue by Geographical Region (HKD Thousand) | Region | 2025 Revenue | 2024 Revenue | | :--- | :--- | :--- | | Hong Kong | 480,568 | 468,208 | | PRC | 21,862 | 19,866 | | Total | 502,430 | 488,074 | Major Customer Revenue (HKD Thousand) | Customer | 2025 Revenue | 2024 Revenue | | :--- | :--- | :--- | | Customer A | 66,283 | 54,266 | | Customer B | 51,851 | 55,302 | | Customer C | 50,867 | 49,057 | Other Income, Other Gains and Other Losses and Impairments In FY2025, the Group recorded other income of HKD 0.334 million and other gains of HKD 0.143 million, but other losses and impairments amounted to HKD 13.536 million, primarily from impairment losses on loans and interest receivables and revaluation losses on property, plant and equipment Other Income, Gains and Losses (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Other income | 334 | 258 | | Other gains | 143 | 1,508 | | Other losses and impairments | (13,536) | (10,789) | | Total | (13,059) | (9,023) | - Impairment loss on loans and interest receivables shifted from a reversal of HKD 1.471 million in 2024 to a loss of HKD 7.823 million in 202563 - Revaluation loss on property, plant and equipment decreased from HKD 10.752 million in 2024 to HKD 5.704 million in 202563 Loss Before Taxation The Group's loss before taxation for FY2025 was HKD 6.082 million, widening from HKD 3.565 million in 2024, primarily impacted by finance costs, staff costs, and other operating expenses Finance Costs (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 586 | 689 | | Interest on lease liabilities | 80 | 129 | | Total | 666 | 818 | Staff Costs (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, wages and other benefits | 244,553 | 250,458 | | Contributions to defined contribution retirement schemes | 7,631 | 8,549 | | Provision for long service payments | 778 | 919 | | Total | 252,962 | 259,926 | Other Items (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Auditor's remuneration | 888 | 863 | | Cost of consumables | 7,250 | 8,315 | | Depreciation of property, plant and equipment | 2,835 | 3,064 | | Depreciation of right-of-use assets | 1,782 | 1,851 | | Short-term lease related expenses | 263 | 924 | | Net foreign exchange (gain)/loss | (46) | 13 | | Written off of property, plant and equipment | 1 | 36 | Income Tax The Group's income tax expense for FY2025 was HKD 1.219 million, primarily from Hong Kong profits tax and PRC enterprise income tax. Hong Kong profits tax is calculated at 16.5%, with a two-tiered tax rate applicable to some subsidiaries. PRC subsidiaries are subject to a 25% enterprise income tax Income Tax Expense (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 1,025 | 1,196 | | Current tax – PRC enterprise income tax | 100 | 68 | | Deferred tax deduction/(credit) | 94 | (69) | | Income Tax Expense | 1,219 | 1,195 | - Hong Kong profits tax is calculated at 16.5%, with the first HKD 2 million of assessable profits for certain eligible subsidiaries taxed at 8.25%6970 - PRC subsidiaries are subject to a 25% enterprise income tax, and unremitted profits generated from January 1, 2008, onwards are subject to a 5% or 10% withholding income tax, though no deferred tax liability is currently recognized72737476 Dividend The Board does not recommend the payment of any dividend for the year ended June 30, 2025, consistent with the previous year - The Board does not recommend a final dividend for FY2025 (FY2024: none)68083 Loss Per Share For the year ended June 30, 2025, basic loss per share was 1.27 HK cents, widening from 0.81 HK cents last year. Diluted loss per share is the same as basic loss per share due to the absence of potential dilutive ordinary shares Loss Per Share (HK cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (1.27) | (0.81) | - Loss per share is calculated based on the loss attributable to owners of the Company of HKD 6.851 million and a weighted average of 540 million ordinary shares outstanding8184 - As the Company had no potential dilutive ordinary shares during the reporting year, diluted loss per share is the same as basic loss per share8285 Property, Plant and Equipment As of June 30, 2025, the Group's carrying amount of property, plant and equipment was HKD 41.338 million, a decrease from the previous year. A revaluation loss of HKD 5.704 million was recorded during the year, primarily due to declining commercial property prices in Hong Kong Carrying Amount of Property, Plant and Equipment (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Carrying amount | 41,338 | 47,290 | - A revaluation loss on property, plant and equipment of HKD 5.704 million (2024: HKD 10.752 million) was recorded during the year, primarily reflecting the decline in Hong Kong commercial property market prices8790175 - The Group has pledged land and buildings with a carrying amount of HKD 35.72 million to secure bank financing and performance guarantees9798 Trade Receivables As of June 30, 2025, the Group's net trade receivables amounted to HKD 99.966 million, an increase from the previous year. Most receivables are due within 30 days Trade Receivables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net trade receivables | 99,966 | 94,366 | Ageing Analysis of Trade Receivables (HKD Thousand) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | 0–30 days | 73,187 | 68,660 | | 31–60 days | 24,879 | 16,993 | | 61–90 days | 379 | 7,696 | | Over 90 days | 1,521 | 1,017 | Loans and Interest Receivables As of June 30, 2025, the Group's net loans and interest receivables were HKD 30.519 million, a decrease from the previous year. During the year, the Group recognized an impairment loss of HKD 7.823 million, reflecting defaults by some borrowers due to economic challenges Net Loans and Interest Receivables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total loans and interest receivables | 90,048 | 88,180 | | Less: Loss allowance | (59,529) | (51,576) | | Net loans and interest receivables | 30,519 | 36,604 | - Loans receivable bear interest at annual rates ranging from 6.00% to 24.00%107108 - The Group recognized an impairment loss on loans and interest receivables of HKD 7.823 million in FY2025, compared to a reversal of HKD 1.471 million in FY2024, primarily due to defaults by some borrowers facing economic difficulties63160168 Ageing Analysis Ageing Analysis of Loans and Interest Receivables (HKD Thousand) | Ageing | 2025 Loan Portion | 2025 Interest Portion | 2024 Loan Portion | 2024 Interest Portion | | :--- | :--- | :--- | :--- | :--- | | Current (not overdue) | 19,647 | 1,598 | 35,423 | 1,479 | | Overdue less than one month | 5,476 | 316 | – | – | | Overdue one to twelve months | 10,952 | 679 | 4,983 | 249 | | Overdue over twelve months | 49,281 | 2,099 | 44,201 | 1,845 | | Less: Loss allowance | (56,433) | (3,096) | (49,478) | (2,098) | | Net | 28,923 | 1,596 | 35,129 | 1,475 | Credit Quality Analysis - The credit-impaired loans receivable show a larger proportion of amounts overdue for over 12 months, reflecting the impact of economic downturns on borrowers' repayment capabilities115 Trade Payables As of June 30, 2025, the Group's trade payables were HKD 28.233 million, a decrease from the previous year. Most payables are due within 30 days Trade Payables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Trade payables | 28,233 | 35,707 | Ageing Analysis of Trade Payables (HKD Thousand) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | 0–30 days | 27,811 | 30,751 | | 31–60 days | 208 | 853 | | 61–90 days | – | 2,849 | | Over 90 days | 214 | 1,254 | Bank Loans As of June 30, 2025, the Group's total bank loans amounted to HKD 18.315 million, a decrease from the previous year. These loans are secured by the Group's land and buildings and corporate guarantees Bank Loan Maturity (HKD Thousand) | Maturity | 2025 | 2024 | | :--- | :--- | :--- | | Within one year | 1,104 | 1,023 | | After one year but within two years | 1,136 | 1,059 | | After two years but within five years | 3,611 | 3,409 | | Over five years | 12,464 | 13,875 | | Total | 18,315 | 19,366 | - Bank loans are secured by the Group's land and buildings with a carrying amount of HKD 35.72 million and corporate guarantees from the Company and a subsidiary118 Share Capital As of June 30, 2025, the Group's authorized share capital was HKD 100 million, and issued and fully paid share capital was HKD 5.4 million, with a par value of HKD 0.01 per share, and the number of shares remained unchanged Share Capital Structure (HKD Thousand) | Metric | Number of Shares ('000) | Amount (HKD Thousand) | | :--- | :--- | :--- | | Authorised ordinary shares (HKD 0.01 per share) | 10,000,000 | 100,000 | | Issued and fully paid ordinary shares (HKD 0.01 per share) | 540,000 | 5,400 | Business Review Business Overview The Group's principal businesses include environmental and cleaning services in Hong Kong and the PRC, money lending in Hong Kong and the PRC, and investments in financial assets of companies listed on the Stock Exchange - Environmental and cleaning services cover a range of areas including public spaces, offices, kitchen cleaning, exterior wall cleaning, pest control, waste management, and housekeeping services121125 - The money lending business operates in Hong Kong and the PRC, aiming to enhance capital returns and generate income for shareholders122126 - Investments in financial assets primarily include shares of companies listed on the Stock Exchange, recognized at fair value through profit or loss123127 Environmental and Cleaning Services in Hong Kong Revenue from Hong Kong environmental and cleaning services grew by 2.6% to HKD 479.8 million, primarily driven by new service contracts in commercial and government sectors. This business recorded a net profit of HKD 6.9 million, an increase from the previous year Revenue from Hong Kong Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 479,772 | 467,462 | | YoY growth | +2.6% | | - New service contracts in the commercial and government sectors were the primary drivers of revenue growth135136 Net Profit from Hong Kong Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net profit | 6,900 | 5,400 | | YoY growth | +27.8% | | Revenue by Service Sector Revenue by Service Sector (HKD Thousand) | Service Sector | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Commercial | 155,484 | 32.4% | 148,872 | 31.8% | | Residential | 137,346 | 28.6% | 134,525 | 28.8% | | Hotel | 15,105 | 3.2% | 14,441 | 3.1% | | Transportation | 90,433 | 18.8% | 91,975 | 19.7% | | Government | 75,156 | 15.7% | 68,715 | 14.7% | | Others | 6,248 | 1.3% | 8,934 | 1.9 | | Total | 479,772 | 100.0% | 467,462 | 100.0% | - Commercial and residential service contracts are the main revenue sources for Hong Kong environmental and cleaning services, with government service contracts showing significant growth in contribution135136 Results - The increase in net profit for Hong Kong environmental and cleaning business was primarily due to new service projects during the year, although some client service contracts saw price reductions upon renewal138143 Environmental and Cleaning Services in Shanghai, PRC Shanghai operations revenue slightly decreased to HKD 17.8 million and recorded a net loss of HKD 0.2 million. Despite maintaining profit margins on existing contracts, no new service contracts were secured due to intense low-price bidding competition Financial Performance of Shanghai Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 17,800 | 17,900 | | Net loss | (200) | (200) | - Shanghai operations faced intense low-price bidding competition for cleaning service contracts, failing to secure new service contracts139144 Money Lending Business The money lending business aims to enhance capital returns, primarily providing secured and unsecured loans to individual and corporate clients in Hong Kong and the PRC. The Group adopts a prudent approach, strengthening credit risk assessment and post-loan monitoring. During the year, both interest income and operating profit increased, but higher impairment losses were also recognized due to economic challenges - The Group primarily provides term loans, loan financing, and mortgage loans to individual and corporate clients in Hong Kong and the PRC141145 - The Group implements stringent credit risk assessment procedures, including background checks, anti-money laundering assessments, client creditworthiness evaluations, and post-loan monitoring147148149150151 - In case of delayed payments, the Group will immediately contact borrowers and take legal action, including applying for winding-up to recover loans152154164 Size and Diversity of Borrowers - As of June 30, 2025, the Group had 8 outstanding loans with a total principal amount of approximately HKD 85.4 million, primarily distributed among Hong Kong corporate, Hong Kong individual, and PRC individual borrowers153155 Summary of Outstanding Loans (HKD Thousand) | Borrower | Identity | Location | Outstanding Principal Amount | Impairment | Net Outstanding Principal Amount | Percentage of Total Net Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Borrower B | Individual | PRC | 10,952 | (7,118) | 3,834 | 13.3% | | Borrower C | Individual | Hong Kong | 6,500 | – | 6,500 | 22.5% | | Borrower D | Individual | PRC | 5,476 | – | 5,476 | 18.9% | | Borrower E | Individual | PRC | 5,082 | (5,082) | – | 0.0% | | Borrower F | Individual | Hong Kong | 22,000 | (22,000) | – | 0.0% | | Borrower G | Corporate | Hong Kong | 22,200 | (22,200) | – | 0.0% | | Borrower I | Individual | PRC | 3,286 | (6) | 3,280 | 11.3% | | Borrower J | Individual | PRC | 9,860 | (27) | 9,833 | 34.0% | | Total | | | 85,356 | (56,433) | 28,923 | | - Due to economic challenges in Hong Kong and the PRC, some borrowers faced financial difficulties, leading to failure to repay loans and interest on time, prompting the Group to recognize impairment losses on these loans159160168 Expected Credit Loss (ECL) Allowances Analysis Changes in Expected Credit Loss (ECL) Allowances (HKD Thousand) | Stage | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Stage 1 | 34 | 298 | | Stage 2 | – | – | | Stage 3 | 59,495 | 51,278 | | Total | 59,529 | 51,576 | - Expected credit loss allowances for Stage 3 (credit-impaired) significantly increased, reflecting the Group's prudent assessment and full impairment recognition for overdue loans168170 Financial Performance Financial Performance of Money Lending Business (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Interest income | 4,900 | 2,700 | +81.5% | | Operating profit (excluding ECL allowance) | 3,100 | 1,100 | +181.8% | - The increase in interest income and operating profit was primarily due to an increase in average loan balances and higher average interest rates upon renewal of some loans171174 Properties in Hong Kong Due to a gradual decline in Hong Kong commercial property market prices since 2023, the Group recorded a revaluation loss of approximately HKD 5.7 million on commercial properties as of June 30, 2025 Revaluation Loss on Commercial Properties (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revaluation loss | (5,700) | (10,800) | - Hong Kong commercial property market prices and confidence have gradually declined since 2023, leading to revaluation losses172175 Investments in Financial Assets The Group continuously reviews its investment portfolio to generate reasonable returns. In FY2025, a net unrealized fair value gain of approximately HKD 0.144 million was recorded, primarily from investments in shares of companies listed on the Stock Exchange Market Value of Financial Asset Investments (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Market value of financial assets | 548 | 405 | Unrealized Fair Value Gain on Financial Assets (HKD) | Share Name (Stock Code) | Unrealized Fair Value Gain | | :--- | :--- | | Alibaba Group Holding Limited (9988) | 11,790 | | Meituan (3690) | 1,420 | | Tencent Holdings Limited (700) | 130,600 | - The Group's investment strategy involves continuously reviewing its investment portfolio and making adjustments based on market conditions to generate reasonable returns173176 Outlook Environmental and Cleaning Services in Hong Kong Outlook Increased competition in Hong Kong's labor market and a rise in the statutory minimum wage have led to higher labor costs and increased turnover. The Group will address these challenges by passing on costs, improving efficiency, strengthening marketing and expanding service offerings - The increase in the statutory minimum wage has intensified labor market competition, leading to higher labor costs and increased turnover rates180181 - The Group plans to pass on increased labor costs to clients, implement more efficient work processes, and enforce stringent cost controls181 - The Group will strengthen marketing efforts, expand its market share in commercial and residential sectors, and explore new environmental and cleaning services to offer one-stop solutions182186 Environmental and Cleaning Services in the PRC Outlook Shanghai operations are not expected to significantly improve in the next financial year, but management will enhance marketing strategies, attract new clients, and implement more efficient workflows and cost controls - Shanghai operations are not expected to significantly improve in the next financial year, but management will enhance marketing strategies and implement stricter cost controls183187 Money Lending Business Outlook Facing the threat of economic recession in Hong Kong and the PRC, the Group will continue to strengthen risk management policies, streamline its loan portfolio, and adopt a prudent and conservative approach, approving only borrowers with sound financial capabilities - The Group will strengthen risk management policies and streamline its loan portfolio to mitigate risks associated with high-risk loans184188 - A prudent and conservative approach will continue to be adopted, considering and approving only borrowers with sound financial capabilities in the future184188 Investments in Financial Assets Outlook The Group will continue to adopt a prudent and conservative investment strategy, only considering and investing in Stock Exchange-listed companies with promising value prospects in the future - The Group will continue to adopt a prudent and conservative investment strategy, only considering and investing in Stock Exchange-listed companies with promising value prospects in the future185189 Financial Review Revenue In FY2025, the Group's total revenue was approximately HKD 502.4 million, a 2.9% year-on-year increase, primarily driven by growth in Hong Kong environmental and cleaning services and increased interest income from the money lending business Revenue Overview (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total revenue | 502,400 | 488,100 | +2.9% | - Revenue growth primarily stemmed from the Hong Kong environmental and cleaning services business (an increase of HKD 12.3 million) and interest income from the money lending business (an increase of HKD 2.2 million)190196 Other Income, Other Gains and Other Losses and Impairment The Group's other income, gains, and losses were primarily affected by revaluation losses on commercial properties (HKD 5.7 million) and impairment losses on loans and interest receivables from the money lending business (HKD 7.8 million) - Primarily includes revaluation losses on commercial properties of approximately HKD 5.7 million (2024: HKD 10.8 million)191197 - Impairment losses on loans and interest receivables from the money lending business of approximately HKD 7.8 million (2024: net reversal of approximately HKD 1.5 million)191197 Selling, Marketing Expenses and Administrative Expenses In FY2025, selling, marketing, and administrative expenses increased by approximately HKD 1 million to HKD 28.3 million, mainly due to increased advertising, promotion, travel, and general office expenses at the Group's headquarters Selling, Marketing and Administrative Expenses (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Selling, marketing and administrative expenses | 28,300 | 27,300 | +1,000 | - The increase was primarily due to higher advertising and promotion expenses, travel expenses, and general office expenses at the Group's headquarters192198 Dividend The Board does not recommend the payment of any dividend for the year ended June 30, 2025 - The Board does not recommend a dividend for FY2025193199 Capital Structure and Fund Raising Activities The Company's shares are listed on GEM of the Stock Exchange, and its share capital comprises solely ordinary shares - The Company's shares are listed on GEM of the Stock Exchange, and its share capital comprises solely ordinary shares194200 Liquidity and Financial Resources The Group's liquidity position is strong and robust, with increased cash and cash equivalents, and healthy net current assets and current ratio. The gearing ratio slightly increased Liquidity Overview (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 110,900 | 103,200 | | Net current assets | 135,500 | 131,000 | | Current ratio | 2.3 times | 2.3 times | Gearing Ratio | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total interest-bearing borrowings | 20,638 | 20,941 | | Total equity | 190,633 | 196,809 | | Gearing ratio | 10.83% | 10.64% | - The Board believes the Group's financial position is strong and robust, with sufficient resources to support operations and meet capital expenditures205208 Charges on the Group's Assets As of June 30, 2025, approximately HKD 5.8 million in bank deposits and HKD 35.7 million in properties were pledged to banks as collateral for bank guarantees and bank financing - Approximately HKD 5.8 million in bank deposits has been pledged to banks as collateral for bank guarantees for performance bonds and bank financing206209 - Properties with a carrying amount of approximately HKD 35.7 million have been pledged to banks as collateral for bank loans, bank guarantees for performance bonds, and bank financing207209 Foreign Exchange Exposure The Group's primary operations are in Hong Kong, with most transactions denominated in HKD. Fluctuations in RMB against HKD from PRC operations pose foreign exchange risk, but volatility was moderate during the period, and the Group will review and hedge currency risks periodically - The Group's principal operations are located in Hong Kong, with most transactions, assets, and liabilities denominated in Hong Kong Dollars210214 - Fluctuations in the RMB against HKD arising from PRC environmental and cleaning services and money lending businesses pose foreign exchange risk, but volatility was moderate during the period210214 - The Group will review and monitor currency risks from time to time and hedge when appropriate210214 Information on Employees As of year-end, the Group had 1,262 employees, a decrease from the previous year. The Group offers competitive remuneration and benefits, along with training, with total staff costs for FY2025 amounting to approximately HKD 253 million Number of Employees and Staff Costs (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 1,262 | 1,329 | | Total staff costs | 253,000 | 260,000 | - The Group's remuneration practices are market-aligned, determined by performance, qualifications, and experience, and include competitive compensation plans and training211215 Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, and Future Plans for Material Investments or Capital Assets & Capital Expenditure As of June 30, 2025, the Group held no significant investments, nor did it undertake any material acquisitions or disposals of subsidiaries. Capital expenditure for FY2025 primarily involved the acquisition of plant and equipment totaling approximately HKD 2.6 million, funded by operating activities - As of June 30, 2025, the Group held no significant investments, nor did it undertake any material acquisitions or disposals of subsidiaries212216 - Capital expenditure for FY2025 primarily involved the acquisition of plant and equipment totaling approximately HKD 2.6 million, funded by operating activities213217 Other Information Contingent Liabilities As of June 30, 2025, the Group's contingent liabilities primarily included performance guarantees for environmental and cleaning service contracts, secured by bank deposits, property pledges, and corporate guarantees. Additionally, employee personal injury lawsuits involving the Group have been accounted for in the financial statements and are covered by insurance Performance Guarantee (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Performance guarantee | 26,264 | 23,569 | - Performance guarantees are secured by restricted bank deposits of approximately HKD 5.8 million, properties of approximately HKD 35.7 million, and corporate guarantees220223 - Employee personal injury lawsuits involving the Group have been accounted for in the consolidated financial statements and are covered by insurance, with the Directors believing there are no significant contingent liabilities222224 Purchase, Sale or Redemption of Shares For the year ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares - In FY2025, neither the Company nor its subsidiaries engaged in any share purchases, sales, or redemptions226230 Corporate Governance Practices The Company is committed to maintaining high standards of corporate governance and complies with the GEM Listing Rules' Corporate Governance Code, with two deviations: the roles of Chairman and Chief Executive are not segregated, and non-executive directors do not have specific terms of appointment - The Company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive are held by the same individual, and non-executive directors do not have specific terms of appointment228231233 - The Board believes the existing oversight mechanisms are sufficient to protect shareholders' interests, and non-executive directors are subject to retirement by rotation and re-election233 Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's accounting principles, practices, and consolidated financial statements, deeming them compliant with applicable accounting standards and GEM Listing Rules - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's accounting principles and consolidated financial statements229232 - The Audit Committee believes the consolidated financial statements comply with applicable accounting standards and GEM Listing Rules, and adequate disclosures have been made229232 Review of Preliminary Announcement The Group's auditor, TMF Hong Kong CPA Limited, has agreed that the data in the preliminary announcement is consistent with the audited consolidated financial statements, but their work does not constitute an assurance engagement, thus no assurance is provided on the preliminary announcement - The Group's auditor has agreed that the preliminary announcement data is consistent with the audited consolidated financial statements234236 - The auditor's work does not constitute an assurance engagement, therefore no assurance is provided on the preliminary announcement234236
宝联控股(08201) - 2025 - 年度业绩