毅兴行(01047) - 2025 - 年度业绩

Consolidated Financial Statements Consolidated Income Statement The Group achieved revenue growth and turned profitable in FY2025, with profit attributable to company shareholders and basic earnings per share both turning positive Consolidated Income Statement Key Data | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 1,348,511 | 1,276,350 | | Gross profit | 218,491 | 199,263 | | Operating profit | 30,142 | 18,098 | | Profit/(Loss) before tax | 9,470 | (4,638) | | Profit/(Loss) for the year | 1,349 | (16,833) | | Profit/(Loss) attributable to company shareholders | 339 | (18,041) | | Basic earnings/(loss) per share (HK cents per share) | 0.09 | (4.89) | Consolidated Statement of Comprehensive Income The Group's total comprehensive income turned profitable in FY2025, reversing the loss in FY2024, primarily due to the profit for the year turning positive Consolidated Statement of Comprehensive Income Key Data | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the year | 1,349 | (16,833) | | Other comprehensive income for the year | — | 340 | | Total comprehensive income/(loss) for the year | 1,349 | (16,493) | | Total comprehensive income/(loss) attributable to company shareholders | 339 | (17,796) | Consolidated Balance Sheet As of June 30, 2025, the Group's total assets and total equity increased, with current and total liabilities also rising, reflecting business expansion and financing structure changes Consolidated Balance Sheet Key Data | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total assets | 1,068,579 | 1,016,883 | | Total equity | 528,030 | 519,297 | | Total liabilities | 540,549 | 497,586 | | Current liabilities | 532,353 | 491,314 | Notes to the Financial Statements Basis of Preparation Financial statements are prepared in accordance with HKFRS and the Hong Kong Companies Ordinance, using the historical cost convention, and disclose adopted and unadopted new accounting standards and their impact - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Hong Kong Companies Ordinance (Cap. 622)[6] - The historical cost convention is adopted, with certain financial assets and liabilities (such as financial assets at fair value through other comprehensive income, financial assets at fair value through profit or loss, and derivative financial instruments) and investment properties measured at fair value[7] - HKFRS 18 "Presentation and Disclosure in Financial Statements", not yet adopted, is expected to impact the presentation of the income statement and future financial statement disclosures, effective for annual periods beginning on or after January 1, 2027[10] Revenue and Segment Information The Group's primary revenue is from the sale of goods, with external customer revenue growing by 5.7% in FY2025, mainly driven by the Trading segment, and Mainland China being the largest market FY2025 External Customer Revenue (by Business Segment) | Business Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Trading | 857,240 | 771,942 | +11.1% | | Colourants | 358,179 | 367,439 | -2.5% | | Engineering Plastics | 133,092 | 136,969 | -2.8% | | Others | — | — | — | | Total | 1,348,511 | 1,276,350 | +5.7% | FY2025 External Customer Revenue (by Region) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 291,923 | 341,160 | | Other regions (primarily Mainland China) | 1,056,588 | 935,190 | - Revenue recognition policy dictates recognition when control of goods is transferred to the customer, products are accepted, no unfulfilled obligations exist, sales amounts are reliably measurable, and future economic benefits are probable to flow to the entity[21] Other Income and Gains/Losses Other income in FY2025, primarily rental income, slightly decreased, while net other losses were mainly impacted by fair value losses on investment properties, partially offset by government grants and foreign exchange gains Other Income | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Rental income | 6,397 | 6,641 | | Other income | — | 10 | | Total | 6,397 | 6,651 | Other (Losses)/Gains - Net | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fair value (loss)/gain on investment properties | (3,942) | 2,807 | | Fair value gain/(loss) on financial assets at fair value through profit or loss | 217 | (1,398) | | Fair value (loss)/gain on derivative financial instruments | 360 | 10 | | Government grants | 1,506 | 1,595 | | Foreign exchange gain/(loss) | 259 | (380) | | Total | (1,499) | 2,634 | - In FY2025, the Group received government grants of approximately HK$1,506 thousand from Mainland China to support operations, with no attached conditions[23] Expense Analysis Total cost of sales, distribution costs, and administrative expenses increased in FY2025, with materials and trading inventories and employee benefits being major components, while net finance expenses decreased due to lower borrowing interest Total Cost of Sales, Distribution Costs and Administrative Expenses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Materials and inventories cost for trading business | 1,046,956 | 984,384 | | Employee benefit expenses | 140,476 | 134,934 | | Cost of sales | 1,130,020 | 1,077,087 | | Distribution costs | 84,040 | 81,723 | | Administrative expenses | 110,753 | 109,227 | | Total | 1,324,813 | 1,268,037 | Finance Income and Expenses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Finance income | 1,016 | 865 | | Finance expenses | (21,688) | (23,601) | | Net finance expenses | (20,672) | (22,736) | Tax Expense Tax expense significantly decreased in FY2025, mainly due to reduced PRC Enterprise Income Tax and the reversal of prior year over-provision, with the Group subject to taxes in Hong Kong and Mainland China, where some subsidiaries enjoy preferential rates Tax Expense in Consolidated Income Statement | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 372 | 335 | | PRC Enterprise Income Tax | 10,897 | 14,144 | | Over-provision in prior year | (3,562) | (234) | | Deferred tax | 414 | (2,050) | | Total | 8,121 | 12,195 | - Hong Kong Profits Tax rate is 16.5%, while the PRC Enterprise Income Tax rate is 25%, with some high-tech enterprises enjoying a preferential rate of 15%[25] Dividends The Board decided not to declare any interim or final dividends for the second half of 2023, FY2024, the second half of 2024, and FY2025, to retain sufficient funds for business development - The Board resolved not to declare any interim dividend for the six months ended December 31, 2023[27] - The Board resolved not to declare any final dividend for the year ended June 30, 2024[27] - The Board resolved not to declare any final dividend for the year ended June 30, 2025[27] Earnings/(Loss) Per Share Basic earnings per share turned positive in FY2025, from a loss of 4.89 HK cents per share in FY2024 to a profit of 0.09 HK cents per share, reflecting improved profitability Basic Earnings/(Loss) Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) attributable to company shareholders (HK$ thousand) | 339 | (18,041) | | Weighted average number of ordinary shares in issue during the year | 369,200,000 | 369,200,000 | | Basic earnings/(loss) per share (HK cents per share) | 0.09 | (4.89) | - There were no potentially dilutive ordinary shares in FY2025 and FY2024, thus diluted earnings/(loss) per share was equal to basic earnings/(loss) per share[30] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables increased, with a significant rise in bills receivables, primarily denominated in RMB and mostly within 90 days aging Trade and Bills Receivables | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 200,215 | 202,720 | | Bills receivables | 62,246 | 41,113 | | Total | 262,461 | 243,833 | Trade Receivables (by Currency) | Currency | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | HKD | 19,750 | 37,404 | | RMB | 167,588 | 157,213 | | USD | 13,603 | 12,291 | - Trade receivables are generally payable within 30 to 90 days and primarily denominated in RMB[31] - As of June 30, 2025, the Group discounted approximately HK$44,426 thousand of bank acceptance bills to banks for cash, classified as pledged bank advances[31][32] Trade and Bills Payables As of June 30, 2025, total trade and bills payables significantly increased, primarily denominated in USD and RMB, with most falling within the 90-day aging period Trade and Bills Payables | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0-90 days | 81,405 | 49,774 | | 91-180 days | 287 | 2,479 | | Over 180 days | 948 | 1,225 | | Total | 82,640 | 53,478 | Trade and Bills Payables (by Currency) | Currency | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | HKD | — | 30 | | RMB | 15,631 | 35,152 | | USD | 67,009 | 18,296 | Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant, and equipment amounted to HK$1,441 thousand, a decrease from the previous year Capital Commitments | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 1,441 | 2,300 | Management Discussion and Analysis Business Review In FY2025, the Group achieved a 5.7% increase in total turnover and a 9.6% rise in gross profit, successfully turning losses into profits amidst a complex political and economic environment, with all business segments showing improvement or resilience through cost control, market expansion, and policy alignment FY2025 Key Financial Indicators | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Turnover | 1,348,511 | 1,276,350 | +5.7% | | Gross Profit | 218,491 | 199,263 | +9.6% | | Gross Profit Margin | 16.2% | 15.6% | +0.6pp | | Profit/(Loss) attributable to company shareholders | 339 | (18,041) | Turned profitable | | Profit/(Loss) before tax | 9,470 | (4,638) | Turned profitable | Overall Performance Despite complex global political and economic challenges and weak demand, the Group achieved a 5.7% increase in total turnover and a 9.6% rise in gross profit, successfully turning losses into profits through product optimization, customer structure refinement, and diversified strategies - The global political and economic environment remains complex and uncertain, with weak end-user demand and cautious customer ordering due to an unfavorable market consumption sentiment[37] - The Group maintained stable operations, optimized its product portfolio, refined its customer structure, seized policy opportunities, and pursued diversified strategic initiatives[37] - The Board recommended no final dividend payment to retain sufficient funds for business development[38] Plastics Raw Material Trading Business Benefiting from national automotive and home appliance subsidy policies, improved domestic turnover efficiency led to steady sales growth, an 11.1% increase in turnover, slight gross margin improvement, and a 56.3% reduction in loss before tax - Turnover: HK$857,240 thousand (2025) vs HK$771,942 thousand (2024), a year-on-year increase of 11.1%[39] - Gross profit margin slightly improved by 1.1 percentage points[39] - Loss before tax narrowed by 56.3% to HK$15,893 thousand (2025) vs HK$36,382 thousand (2024)[39] Colourants, Colour Masterbatches and Compounding Business Despite domestic overcapacity and rising production costs, this business showed resilience, supported by automotive industry subsidies and traditional food packaging, maintaining production scale and slightly decreasing turnover by 2.5%, with a minor decline in profit before tax - Turnover: HK$358,179 thousand (2025) vs HK$367,439 thousand (2024), a slight decrease of 2.5%[40] - Gross profit margin remained similar to the prior year[40] - Profit before tax: HK$24,059 thousand (2025) vs HK$25,500 thousand (2024)[40] Engineering Plastics Business Affected by tariff policies, customer ordering strategies tightened, impacting order volumes; however, through refined cost control and expanded customer bases, turnover slightly decreased, but gross margin improved by 2.8 percentage points, and profit before tax grew by 1.8% year-on-year - Turnover: HK$133,092 thousand (2025) vs HK$136,969 thousand (2024)[41] - Gross profit margin improved by 2.8 percentage points[41] - Profit before tax: HK$11,064 thousand (2025) vs HK$10,868 thousand (2024), a year-on-year increase of 1.8%[41] Outlook and Strategy Facing complex geopolitical and economic environments, the Group will adhere to a "seeking progress while maintaining stability" approach and a "balanced domestic and international, diversified synergy" strategy, focusing on national policy opportunities, expanding into overseas emerging markets, optimizing production flexibility, reducing reliance on single markets, and exploring high-value-added application scenarios to enhance risk resistance and sustainable development capabilities - Continuously uphold the "seeking progress while maintaining stability" strategic approach and implement a "balanced domestic and international, diversified synergy" layout strategy[42] - Focus on national policy trends, maintain the core customer base, and expand new customer sources; look to overseas emerging markets, build a diversified customer system, and mitigate risks from single-market policy fluctuations[42] - The Vietnam sales office is operating stably, with plans to systematically allocate profitable business resources and identify regions with stable investment environments and sufficient market potential for establishing overseas production bases[42] - Strengthen the development of end-customers in Southeast Asia and Europe, reduce reliance on the US export industry chain, and actively explore development opportunities in nationally supported industries such as automotive and home appliances, deepening innovation in high-value-added application scenarios[42] - Optimize cost management and production planning to enhance flexibility in capacity allocation; dynamically adjust inventory strategies to balance the cost advantages of bulk purchasing with the demand for urgent order stocking[43] Liquidity and Financial Resources The Group primarily uses internal cash flow and bank loans for working capital, possessing ample bank loan facilities, sufficient cash and cash equivalents, and a healthy gearing ratio as of June 30, 2025 - Available bank loan facilities of approximately HK$662,792 thousand, with approximately HK$355,619 thousand utilized as of June 30, 2025[44] - Cash and cash equivalents of approximately HK$193,161 thousand as of June 30, 2025[44] - Gearing ratio of approximately 28.2% as of June 30, 2025, calculated as net debt divided by total capital[44] Foreign Exchange Risk The Group's borrowings, bank balances, and purchases primarily involve HKD, RMB, and USD, with foreign exchange risk managed through close monitoring of exchange rate fluctuations and entering into forward foreign exchange contracts - The Group's borrowings and bank balances are primarily in HKD, RMB, and USD, while purchases are mainly denominated in USD[45] - Exchange rate fluctuation risk is managed through hedging forward foreign exchange contracts[45] Maximum Notional Amount of Outstanding Contracts | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sell HKD to buy USD | 257,400 | 304,200 | Employees Information As of June 30, 2025, the Group had approximately 628 full-time employees, with remuneration policies based on individual performance and regular review, offering bonus schemes, social/medical insurance, and provident fund plans - As of June 30, 2025, the Group had approximately 628 full-time employees[46] - Remuneration policies are formulated based on individual performance and regularly reviewed, including a bonus scheme[46] - Social or medical insurance and provident fund schemes are provided for employees in different regions[46] Criteria for Determining Directors' Remuneration Directors' remuneration levels are benchmarked against market standards, considering individual capabilities, contributions, and the company's affordability, while offering similar benefit plans to other Group employees - Directors' remuneration levels are benchmarked against market standards, considering individual capabilities, contributions, and the company's affordability[47] - Benefit plans similar to those offered to other Group employees are provided[47] Other Corporate Information Listed Securities Transactions Neither the Company nor any of its subsidiaries purchased, sold, or redeemed the Company's listed securities during the current year - The Company did not redeem its shares during the current year[48] - Neither the Company nor any of its subsidiaries purchased or sold the Company's listed securities during the current year[48] Compliance with Model Code for Securities Transactions by Directors The Company has adopted a code for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance with this code - The Company has adopted a code for directors' securities transactions no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[49] - All directors confirmed compliance with the Model Code and the Company's own code for directors' securities transactions during the period[49] Annual General Meeting The Annual General Meeting will be held on Thursday, November 20, 2025, with the relevant notice to be published and dispatched in accordance with the Listing Rules - The Annual General Meeting will be held on Thursday, November 20, 2025[50] - Share transfer registration will be suspended from Monday, November 17, 2025, to Thursday, November 20, 2025[36] Corporate Governance The Company is committed to establishing sound corporate governance practices and complies with Appendix C1 of the Listing Rules, with an Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee ensuring effective internal control, risk assessment, and board operations - The Company is committed to establishing sound corporate governance practices and procedures, and complies with Appendix C1 "Corporate Governance Code" of the Listing Rules[51] - The functions of Chairman and Chief Executive Officer are not separated, with the CEO's responsibilities jointly undertaken by all executive directors (including the Chairman), an arrangement the Board believes is in the Group's best interest and will be regularly reviewed[51] Corporate Governance Practices The Company is committed to establishing sound corporate governance practices and complies with Appendix C1 of the Listing Rules; the Chairman and CEO functions are jointly held by executive directors, an arrangement the Board deems to be in the Group's best interest - The Company is committed to establishing sound corporate governance practices and procedures, and complies with Appendix C1 "Corporate Governance Code" of the Listing Rules[51] - The functions of Chairman and Chief Executive Officer should be separate, but currently, the CEO's responsibilities are jointly undertaken by all executive directors (including the Chairman)[51] Scope of Work of PricewaterhouseCoopers PricewaterhouseCoopers has reconciled the consolidated financial statement figures in the preliminary results announcement with the draft consolidated financial statements, but their work does not constitute an assurance engagement and no opinion or assurance conclusion has been issued - The auditor, PricewaterhouseCoopers, has reconciled the financial figures in the preliminary results announcement with the draft consolidated financial statements[52] - The auditor's work does not constitute an assurance engagement, and no opinion or assurance conclusion has been issued on the preliminary results announcement[52] Audit Committee The Audit Committee, comprising three independent non-executive directors, acts as a liaison between the Board and auditors, reviewing external audit work, internal control and risk assessment effectiveness, and annual financial statements - The Audit Committee comprises three independent non-executive directors[53] - Responsible for reviewing the Company's external audit work, internal control, and risk assessment effectiveness[53] - Reviewed the accounting principles and methods adopted by the Group with management, and discussed internal control and financial reporting matters with the directors, including the review of annual financial statements[53] Remuneration Committee The Remuneration Committee, consisting of three independent non-executive directors and one executive director, is responsible for establishing formal and transparent remuneration policies, overseeing the remuneration packages of executive directors and senior management, and meeting at least annually to evaluate performance and review remuneration - The Remuneration Committee comprises three independent non-executive directors and one executive director[54] - Responsible for ensuring formal and transparent remuneration policy formulation procedures to oversee the remuneration packages of executive directors and senior management[54] - Holds at least one meeting annually to evaluate performance and review the annual remuneration and bonuses of senior management[54] Nomination Committee The Nomination Committee, composed of three independent non-executive directors and one executive director, regularly reviews the Board's structure, size, and composition, identifies qualified director candidates, assesses the independence of independent non-executive directors, and advises on director appointments and succession planning, while considering Board diversity - The Nomination Committee comprises three independent non-executive directors and one executive director[55] - Responsible for regularly reviewing the Board's structure, size, and composition, identifying qualified director candidates, and assessing the independence of independent non-executive directors[55] - Considers Board diversity, including gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge, and length of service[55] Corporate Governance Committee The Corporate Governance Committee, composed of all independent non-executive directors, is responsible for developing and reviewing the Group's corporate governance policies, monitoring director and senior management training, reviewing legal compliance, and developing codes of conduct and compliance manuals - The Corporate Governance Committee comprises all independent non-executive directors[56] - Responsible for developing and reviewing the Group's corporate governance policies and implementation, and providing recommendations to the Board[56] - Reviews and monitors the training and continuous professional development of directors and senior management, as well as the Group's compliance with legal and regulatory requirements[56] Publication of Annual Results and Annual Report The annual results announcement has been published on the HKEX and Company websites, and the annual report will be dispatched to shareholders and posted on these websites at a later date - The annual results announcement has been published on the HKEX website (https://www.hkexnews.hk) and the Company website (https://www.nhh.com.hk)[57](index=57&type=chunk) - The annual report will be dispatched to shareholders and posted on the HKEX website and the Company website at a later date[57]