Financial Performance - The total revenue for the year ended June 30, 2025, was HKD 60,749,000, a decrease of 26.7% compared to HKD 82,817,000 for the year ended June 30, 2024[4]. - The gross profit for the year was HKD 13,252,000, down 25.1% from HKD 17,724,000 in the previous year[4]. - The operating loss for the year was HKD 39,292,000, significantly improved from a loss of HKD 75,877,000 in the prior year, indicating a reduction of 48.2%[4]. - The net loss attributable to the owners of the company was HKD 40,305,000, compared to HKD 67,660,000 in the previous year, reflecting a decrease of 40.5%[5]. - The total comprehensive loss for the year was HKD 38,437,000, down from HKD 73,264,000, marking a reduction of 47.5%[4]. - The company reported a comprehensive loss of HKD (42,940,000) in 2025, an improvement from HKD (72,084,000) in 2024, indicating a reduction in overall losses by about 40.5%[24]. - The company reported a pre-tax loss of HKD 45,281,000 for 2025, compared to a loss of HKD 82,678,000 in 2024, reflecting a 45% improvement year-over-year[31]. - Basic loss per share for the year was approximately HKD 40,305,000, down from HKD 67,660,000 in the previous year, indicating a reduction of 40%[33]. - The loss for the year reduced to approximately HKD 42,940,000, down from a loss of HKD 72,084,000 in the previous year[81]. - Basic and diluted loss per share was HKD 0.08, compared to HKD 0.16 in 2024[81]. Assets and Liabilities - The company's cash and cash equivalents as of June 30, 2025, were HKD 1,920,000, a significant decrease from HKD 22,857,000 in the previous year[6]. - The total assets less current liabilities amounted to HKD 489,742,000, down from HKD 530,631,000 in the previous year[7]. - The company's non-current assets decreased to HKD 518,481,000 from HKD 541,554,000, indicating a decline of 4.3%[6]. - The total assets decreased to HKD 607,732,000 in 2025 from HKD 661,398,000 in 2024, reflecting a decline of approximately 8.1%[24]. - Total liabilities increased slightly to HKD 227,147,000 in 2025 from HKD 242,376,000 in 2024, showing a decrease of about 6.3%[24]. - The total equity attributable to the owners of the company was HKD 374,043,000, down from HKD 409,944,000, reflecting a decrease of 8.8%[7]. - The group’s net asset value was approximately HKD 380,585,000, down from HKD 419,022,000 in 2024[84]. - Total borrowings amounted to approximately HKD 68,099,000, a decrease from HKD 84,841,000 in 2024[83]. Revenue Sources - The group reported customer contract revenue of HKD 51,868,000 for the year ending June 30, 2025, down from HKD 73,794,000 in the previous year[16]. - Revenue from Hong Kong decreased to HKD 48,485,000 in 2025 from HKD 68,093,000 in 2024, a decline of approximately 28.9%[25]. - Revenue from major customer B was HKD 34,512,000 in 2025, slightly increasing from HKD 34,019,000 in 2024, maintaining a significant contribution to total revenue[26]. - The metal recycling business recorded a significant revenue decline to approximately HKD 2,831,000 for the year ending June 30, 2025, down from HKD 9,822,000 in 2024, indicating a decrease of about 71.2%[67]. - The automotive and automotive parts business saw revenues drop to approximately HKD 48,769,000 for the year ending June 30, 2025, compared to HKD 63,726,000 in 2024, reflecting a decline of about 23.5%[69]. - Sales of automotive tires in Hong Kong and Taiwan decreased from approximately HKD 53,057,000 to HKD 38,143,000, a reduction of 28.1%[69]. - The hotel leasing business generated revenue of approximately HKD 4,924,000 for the year ending June 30, 2025, compared to HKD 4,784,000 in 2024, showing an increase of about 2.9%[77]. - The lending business generated interest income of approximately HKD 368,000 for the year, up from HKD 307,000 in 2024, representing an increase of about 19.9%[72]. Operational Changes and Strategies - The group has committed to measures aimed at improving operational cash flow, including cost-saving initiatives[10]. - The group anticipates sufficient cash resources to meet future operational funding and financing needs for at least the next 12 months from June 30, 2025[10]. - The company is engaged in various businesses, including metal recycling, automotive parts, and green market solutions, indicating a diversified operational strategy[50]. - The group continues to explore new business opportunities and is committed to developing sustainable existing operations[50]. - The company is considering the feasibility, costs, and returns of installing electric vehicle charging facilities in parking spaces to enhance competitiveness and increase usage rates[56]. - The company has not appointed a maintenance operator for the planting land since July 2018, which has affected the optimization of biological asset usage[62]. - The company is actively seeking lower-risk countries for metal recycling operations due to the challenging conditions in the Chinese market[68]. - The automotive sector is facing challenges due to weakened consumer purchasing power in Greater China, impacting sales and market dynamics[70]. - The company aims to maintain market share in the premium tire segment while exploring potential markets with demand for quality automotive tires[71]. Impairment and Valuation - The company reported a significant impairment loss on biological assets of HKD 5,373,000, compared to HKD 38,595,000 in the previous year, showing a substantial improvement[4]. - The impairment loss provision for accounts receivable decreased significantly from HKD 8,884,000 in 2024 to HKD 1,188,000 in 2025, a reduction of 86%[43]. - The fair value loss on investment properties was HKD (15,680,000) in 2025, compared to HKD (17,294,000) in 2024, showing a slight improvement in property valuations[24]. - The fair value of biological assets as of June 30, 2025, is approximately RMB 172,756,000, down from RMB 177,731,000 in 2024[62]. - The fair value of unharvested timber as of June 30, 2025, was HKD 189,080,000, down from HKD 190,958,000 in 2024, reflecting a decrease of 1%[36]. - The discount rate used for the valuation of operational rights is 15.6%, up from 14.3% in the previous year[65]. - The company’s management has assessed valuation techniques and discussed valuation processes with independent valuers to ensure accurate reporting of biological assets[39]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is currently held by the same individual[93]. - The audit committee consists of three independent non-executive directors, ensuring appropriate financial management expertise[96]. - The group's financial statements for the year ending June 30, 2025, have been reviewed by the external auditor, confirming consistency with the preliminary announcement[97]. - The board comprises six executive directors and three independent non-executive directors as of the announcement date[100]. - There are no significant contingent liabilities known to the board as of June 30, 2025[91]. - As of June 30, 2025, the group has minimal foreign currency risk, primarily conducting transactions in functional currencies of respective entities[90]. Shareholder Information - The company did not declare any dividends for the years ended June 30, 2025, and June 30, 2024[35]. - No dividends were recommended or declared for the year ended June 30, 2025[88]. - The company will hold its annual general meeting on December 4, 2025, with a record date of December 1, 2025, during which share transfer registration will be suspended[89].
中国环境资源(01130) - 2025 - 年度业绩