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易纬集团(03893) - 2025 - 年度业绩
CROSSTECCROSSTEC(HK:03893)2025-09-30 14:29

Annual Results Announcement Consolidated Financial Results The Group's consolidated financial results for the year ended June 30, 2025, reveal significant declines in revenue and gross profit, a substantial increase in net loss, and deteriorating financial health, raising material uncertainty about its going concern ability Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,409 | 73,811 | -24.9% | | Gross Profit | 9,501 | 14,764 | -35.6% | | Net Other Gains and Losses | 511 | 7,236 | -92.9% | | Finance Costs | (11,498) | (9,169) | +25.4% | | Loss for the Year and Attributable to Owners of the Company | (28,211) | (13,044) | +116.3% | | Basic and Diluted Loss Per Share (HK cents) | (16.82) | (9.74) | +72.7% | Consolidated Statement of Financial Position | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 8,466 | 10,310 | -17.9% | | Current Assets | 58,727 | 53,303 | +10.2% | | Total Assets | 67,193 | 63,613 | +5.6% | | Current Liabilities | 125,470 | 72,276 | +73.6% | | Net Current Liabilities | (66,743) | (18,973) | +251.8% | | Total Liabilities | 132,871 | 108,040 | +23.0% | | Capital Deficiency | (65,678) | (44,427) | +47.8% | - The Group's revenue, gross profit, and net loss all showed unfavorable changes in FY2025, with revenue decreasing by 24.9% year-on-year, gross profit by 35.6%, and net loss expanding by 116.3%3421 Consolidated Financial Performance Summary | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,409 | 73,811 | -24.9% | | Direct Costs | (45,908) | (59,047) | -22.3% | | Gross Profit | 9,501 | 14,764 | -35.6% | | Loss Before Income Tax | (27,899) | (13,044) | +113.9% | | Loss for the Year and Attributable to Owners of the Company | (28,211) | (13,044) | +116.3% | | Basic and Diluted Loss Per Share (HK cents) | (16.82) | (9.74) | +72.7% | | Total Assets | 67,193 | 63,613 | +5.6% | | Net Current Liabilities | (66,743) | (18,973) | +251.8% | | Total Liabilities | 132,871 | 108,040 | +23.0% | | Capital Deficiency | (65,678) | (44,427) | +47.8% | | Cash and Cash Equivalents | 9,718 | 16,765 | -42.0% | Notes to the Consolidated Financial Statements This section details the basis of preparation, accounting policies, principal business segments, revenue composition, breakdown of expenses and liabilities, as well as subsequent events and share capital changes, providing supplementary information for understanding the company's financial position and operating performance 1. General Information - The Company was incorporated in the Cayman Islands on March 18, 2016, and its shares are listed on the Main Board of the Hong Kong Stock Exchange5 - The Group's principal businesses include providing integrated interior solutions services and online game integrated services5 - The consolidated financial statements are presented in Hong Kong dollars, with all values rounded to the nearest thousand5 2. Basis of Preparation and Going Concern Assumption - The Group recorded a loss of approximately HK$28.2 million, net current liabilities of approximately HK$66.7 million, a capital deficiency of approximately HK$65.7 million, and cash and cash equivalents of approximately HK$9.7 million in FY2025, which constitute a material uncertainty regarding its ability to continue as a going concern7 - The Board has prepared cash flow forecasts up to December 2026, considering the effectiveness of shareholder-guaranteed loan financing and operating cash flow generation ability to support the going concern assumption8 - The Group has entered into subscription agreements with HIL and MKI to issue convertible bonds totaling HK$95.5 million to discharge part of its loan obligations and secured an additional HK$20 million financing facility from shareholders9 2.1 Application of New and Revised Hong Kong Financial Reporting Standards - The Group first applied several new and revised Hong Kong Financial Reporting Standards this year, including amendments to HKFRS 16, HKAS 1, HKAS 7, and HKFRS 710 - The application of these revised standards had no significant impact on the Group's financial position and performance for the current and prior years10 - The Board anticipates that new and revised Hong Kong Financial Reporting Standards effective in the future will not have a significant impact on the consolidated financial statements11 3. Revenue and Segment Information Revenue by Category | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Interior Solutions Project Revenue | 49,513 | 61,408 | -19.4% | | Maintenance Services Revenue | 18 | 366 | -95.1% | | Design and Project Consultancy Services Revenue | 25 | 23 | +8.7% | | Online Game Integrated Services | 4,066 | 0 | N/A | | Sales of Wood Products and Furniture | 1,787 | 12,014 | -85.2% | | Total Revenue | 55,409 | 73,811 | -24.9% | - The Group commenced online game integrated services in FY2025, contributing HK$4.1 million in revenue1444 Revenue by Region | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 18,697 | 32,296 | -42.1% | | China (excluding Hong Kong) | 32,796 | 37,871 | -13.4% | | Australia | 3,916 | 3,644 | +7.5% | | Total | 55,409 | 73,811 | -24.9% | 4. Other Income and Net Other Gains and Losses Other Income and Net Other Gains and Losses Summary | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 316 | 225 | +40.4% | | Bank Interest Income | 19 | 166 | -88.6% | | Rental Income | 0 | 24 | -100.0% | | Miscellaneous Income | 297 | 35 | +748.6% | | Net Other Gains and Losses | 511 | 7,236 | -92.9% | | Gain on Early Termination of Leases | 606 | 4,645 | -86.9% | | Gain on Forgiveness of Trade Payables | 0 | 2,006 | -100.0% | | Net Exchange (Loss)/Gain | (95) | 585 | -116.2% | - Gain on early termination of leases was HK$4.6 million in FY2024, related to office property lease termination, with a significant reduction in FY202524 - Gain on forgiveness of trade payables of HK$2.0 million was recognized in FY2024, with no such gain in FY202524 5. Finance Costs Finance Costs Summary | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on Other Borrowings | 6,925 | 5,112 | +35.5% | | Interest on Shareholder Loans | 4,500 | 3,890 | +15.7% | | Interest on Lease Liabilities | 73 | 167 | -56.3% | | Total | 11,498 | 9,169 | +25.4% | 6. Loss Before Income Tax Loss Before Income Tax Adjustments | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Reversal of Expected Loss on Onerous Contracts | 0 | (6,366) | -100.0% | | Reversal of Accumulated Contract Costs | 0 | (5,760) | -100.0% | | Depreciation of Property, Plant and Equipment | 666 | 494 | +34.8% | | Depreciation of Right-of-Use Assets | 169 | 12 | +1308.3% | | Amortisation of Intangible Assets | 783 | 0 | N/A | | Auditor's Remuneration | 730 | 580 | +25.9% | | Total Employee Benefit Expenses | 13,406 | 11,015 | +21.7% | - In FY2024, a reversal of accumulated contract costs of approximately HK$5.8 million and a reversal of expected loss on onerous contracts of approximately HK$6.4 million were recognized due to project termination, with no such items in FY20252545 7. Income Tax Expense Income Tax Expense Breakdown | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Current Tax | 41 | 0 | | PRC Enterprise Income Tax | 271 | 0 | | Total | 312 | 0 | - The Company is incorporated in the Cayman Islands and exempt from income tax, with no provision made in FY2024 due to no assessable profits in Hong Kong26 8. Loss Per Share Loss Per Share Calculation | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loss for Calculation of Basic and Diluted Loss Per Share (HK$ thousand) | (28,211) | (13,044) | +116.3% | | Weighted Average Number of Ordinary Shares (thousand shares) | 167,706 | 133,933 | +25.2% | | Basic and Diluted Loss Per Share (HK cents) | (16.82) | (9.74) | +72.7% | - The Group had no ordinary shares with potential dilutive effects outstanding in both reporting years28 9. Dividends - The Company neither paid nor declared any dividends for the year ended June 30, 2025 (2024: nil)31 10. Trade and Other Receivables Trade and Other Receivables Aging Analysis | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 1,438 | 797 | +80.4% | | 1 to 3 months | 1,298 | 379 | +242.5% | | 3 to 6 months | 257 | 0 | N/A | | Over 6 months but within 1 year | 48 | 0 | N/A | | Over 1 year | 80 | 172 | -53.5% | | Total | 3,121 | 1,348 | +131.5% | - Credit terms for integrated interior solutions services are generally 30-60 days, and for online game integrated services, 150 days32 11. Trade and Other Payables Trade and Other Payables Aging Analysis | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 0 | 1,433 | -100.0% | | 1 to 3 months | 1,087 | 0 | N/A | | 3 to 6 months | 820 | 137 | +498.5% | | Over 6 months but within 1 year | 1,648 | 659 | +150.1% | | Over 1 year | 2,986 | 2,622 | +13.9% | | Total | 6,541 | 4,851 | +34.8% | - The Group's trade payables are non-interest bearing, with repayment terms typically ranging from 31 to 90 days33 12. Other Borrowings and Shareholder Loans Borrowings Breakdown | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Borrowings | 55,000 | 53,450 | +2.9% | | Current | 50,000 | 48,450 | +3.2% | | Non-current | 5,000 | 5,000 | 0.0% | | Shareholder Loans | 30,000 | 30,000 | 0.0% | | Current | 30,000 | 0 | N/A | | Non-current | 0 | 30,000 | -100.0% | | Total | 85,000 | 83,450 | +1.9% | - In FY2025, HK$30.0 million of shareholder loans were reclassified from non-current to current, leading to a significant increase in current liabilities34 13. Share Capital Share Capital Summary | Metric | 2025 (thousand shares) | 2024 (thousand shares) | Change (%) | | :--- | :--- | :--- | :--- | | Number of Issued and Fully Paid Shares | 186,624 | 155,520 | +20.0% | | Issued and Fully Paid Share Capital (HK$ thousand) | 1,866 | 1,555 | +20.0% | - A placing of 31,104,000 ordinary shares at HK$0.20 per share was completed in February 2025, raising net proceeds of approximately HK$6.01 million3651 - Approximately HK$3.0 million of the net proceeds from the placing was used to pay for integrated interior solutions project subcontracting expenses, with the remaining approximately HK$3.01 million for general working capital51 14. Events After the Reporting Period - Subsequent to the reporting period, the Company entered into subscription agreements with Hexing Investment Limited (HIL) and MK Investment Group Limited (MKI) for the issuance of convertible bonds with principal amounts of HK$57.1 million and HK$38.4 million, respectively37 - These convertible bonds will be settled by discharging part of the Company's obligations to pay loans and related interest to HIL and MKI37 - The subscription agreements were completed on September 22, 202538 Summary of Independent Auditor's Report The independent auditor believes the consolidated financial statements fairly present the Group's financial position, performance, and cash flows in accordance with HKFRS and the Hong Kong Companies Ordinance, while highlighting a material uncertainty regarding the Group's going concern ability, but without modifying their opinion Opinion - The auditor believes the consolidated financial statements fairly present the Group's consolidated financial position, performance, and cash flows as at June 30, 202539 - The financial statements have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance39 Material Uncertainty Related to Going Concern - The Group recorded a loss of approximately HK$28.2 million, net current liabilities of approximately HK$66.7 million, a capital deficiency of approximately HK$65.7 million, and cash and cash equivalents of approximately HK$9.7 million in FY202540 - These conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern40 - The auditor's opinion on this matter is not modified40 Management Discussion and Analysis This section reviews the Group's FY2025 business performance, highlighting decreased revenue and gross profit, and expanded net loss, while outlining future strategies including market focus, online gaming expansion, and potential acquisitions for strategic growth, alongside details on capital liquidity, borrowings, human resources, and risk management Business Review - The Group's principal businesses are integrated interior solutions services and online game integrated services, with operations expanded to China, Australia, the US, Europe, the Middle East, and other Asian countries41 Key Financial Highlights | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55.4 | 73.8 | -24.9% | | Gross Profit | 9.5 | 14.8 | -35.6% | | Net Loss | 28.2 | 13.0 | +116.3% | - The increase in consolidated net loss is primarily attributable to a HK$5.3 million decrease in gross profit, a HK$4.0 million reduction in gain on early termination of leases, the absence of a HK$2.0 million gain on forgiveness of trade payables from FY2024, and a HK$2.3 million increase in finance costs42 Business Strategies and Outlook - The Group will intensify efforts to restore business development in China and overseas, while expanding local competitive advantages, particularly exploring integrated interior solutions project opportunities in China, Hong Kong, and Australia43 - The Group has established new business relationships with internationally renowned brands and property owners to drive its expansion projects43 - The Group launched its online gaming business this year and plans to identify suitable business partners for strategic collaborations and seek potential acquisition targets that can generate synergies with existing businesses for sustained growth43 Financial Performance Review Revenue - The Group's revenue decreased by approximately 24.9% from approximately HK$73.8 million in FY2024 to approximately HK$55.4 million in FY202544 - The decrease in revenue was primarily due to fewer large-scale projects undertaken during the year44 Direct Costs - Direct costs decreased by approximately 22.3% from approximately HK$59.0 million in FY2024 to approximately HK$45.9 million in FY202545 - The primary reason was the reversal of accumulated contract costs of approximately HK$5.8 million and reversal of expected loss on onerous contracts of approximately HK$6.4 million in FY202445 Gross Profit and Gross Margin | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit (HK$ million) | 9.5 | 14.8 | -35.8% | | Gross Margin | 17.1% | 20.0% | -14.5% | - The decrease in gross profit and gross margin was mainly related to the reversal of accumulated contract costs and expected loss on onerous contracts in FY202446 Net Other Gains and Losses - Net other gains and losses were approximately HK$0.6 million in FY2025, compared to approximately HK$4.6 million in FY2024, primarily due to a reduction in gain on early termination of leases47 Administrative Expenses | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 22.1 | 21.2 | +4.2% | - Administrative expenses, primarily comprising employee benefits, marketing expenses, and legal and professional fees, remained stable during the year48 Income Tax Expense - Income tax expense primarily refers to current tax paid/payable for Hong Kong and PRC profits tax49 Capital Liquidity, Financial Resources, and Capital Structure - The Group's cash inflows primarily stem from operating activities in integrated interior solutions services and online game integrated services, as well as financing activities such as borrowings and equity fundraising50 Cash and Bank Balances | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 9.7 | 16.8 | -42.3% | - The 2025 placing raised net proceeds of approximately HK$6.01 million, with approximately HK$3.0 million used for integrated interior solutions project subcontracting expenses and the remaining approximately HK$3.01 million for general working capital51 Borrowings and Gearing Ratio Total Borrowings | Category | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Borrowings | 55.0 | 53.5 | +2.8% | | Shareholder Loans | 30.0 | 30.0 | 0.0% | | Total Borrowings | 85.0 | 83.5 | +1.8% | - As at June 30, 2025, and 2024, the gearing ratio was negative due to the Group's equity being in a deficit position53 Pledge of Assets - As at June 30, 2025, a subsidiary provided a corporate guarantee to an independent lender for HK$5.0 million in borrowings, pledging buildings valued at approximately HK$5.0 million54 Contingent Liabilities - As at June 30, 2025, and 2024, the Group had no significant contingent liabilities55 Material Investments Held and Future Plans for Material Investments or Capital Assets - As at June 30, 2025, the Group held no material investments and had no plans for material investments or capital assets56 Material Acquisitions and Disposals - On June 19, 2024, the Group obtained a five-year exclusive license to reproduce, distribute, and publish a licensed game in China, involving a minimum guarantee of US$500,00057 - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year58 Share Option Scheme - The Company adopted a share option scheme on August 22, 201659 - As at June 30, 2025, the Company had not granted any share options under the share option scheme59 Human Resources and Employee Remuneration Employee Statistics | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 35 | 30 | +16.7% | | Total Employee Benefits (HK$ million) | 13.4 | 11.0 | +21.8% | - The Group offers competitive remuneration packages, including salaries, medical insurance, discretionary bonuses, and MPF schemes, and encourages employees to attend training courses60 Capital Commitments - As at June 30, 2025, and 2024, the Group had no significant capital commitments61 Foreign Exchange Risk - The Group's foreign exchange risk primarily arises from sales and purchases denominated in Thai Baht, Singapore Dollars, US Dollars, Renminbi, Euros, Australian Dollars, and British Pounds62 - Management will closely monitor the impact of RMB and AUD fluctuations and will adopt hedging policies when appropriate, with no hedging policies currently in place62 Events After Reporting Period - Details of events after the reporting period are provided in Note 14 to this announcement63 Other Information This section covers other important information regarding the Group's corporate governance, securities transactions, auditor's scope of work, audit committee operations, dividend policy, and the publication of annual results and reports Compliance with Corporate Governance Code - The Group has adopted and fully complied with the Corporate Governance Code in Appendix 14 of the Listing Rules during the year, except for code provision C.2.1 where the roles of Chairman and Chief Executive Officer are combined6465 - The Board believes Mr. Wang Rong's dual role as Chairman and Chief Executive Officer benefits the Group's business prospects, provides strong and consistent leadership, and enables more effective planning and management65 - The Board believes the balanced composition of executive and independent non-executive directors and the oversight of various committees provide sufficient safeguards to ensure a balance of power and authority65 Standard Code for Securities Transactions - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules as its code of conduct for directors' dealings in company securities67 - All Directors confirmed compliance with the required standards set out in the Model Code during the year67 Purchase, Sale or Redemption of the Company's Listed Securities - During the year, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities68 Scope of Work of Rongcheng (Hong Kong) CPA Limited - The figures in the Group's annual results announcement for the year, as agreed with the auditor Rongcheng (Hong Kong) CPA Limited, are consistent with the amounts set out in the consolidated financial statements69 - The work performed by the auditor in this regard does not constitute an assurance engagement, and therefore no assurance is provided on this announcement69 Audit Committee - The Audit Committee was established on August 22, 2016, comprising three independent non-executive directors: Mr. Xie Guoxing (Chairman), Ms. Li Gui Chang, and Mr. Ma Jian70 - The Committee's primary responsibilities include reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems70 - The Audit Committee has reviewed the consolidated annual results for the year and considers their preparation to be in compliance with applicable accounting standards and Listing Rules requirements70 Dividends - The Board resolved not to recommend the payment of any dividends for the year (2024: nil)71 Publication of Annual Results and Annual Report - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.crosstec.com.hk)[72](index=72&type=chunk) - The Company's annual report for the year, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX website and the Company's website in due course72 Acknowledgements and Board Composition The Company expresses gratitude to shareholders, stakeholders, and all employees for their support and contributions, with the Board of Directors comprising an executive director and three independent non-executive directors as of the announcement date - The Company extends its gratitude to all shareholders, stakeholders, and employees for their support and contributions73 - As of the announcement date, the Board of Directors comprises Mr. Wang Rong (Executive Director), Ms. Li Gui Chang (Independent Non-executive Director), Mr. Xie Guoxing (Independent Non-executive Director), and Mr. Ma Jian (Independent Non-executive Director)74