MODERN INNO DT reported a HK$258.30 million net loss for the financial year ended 31 March 2026, sharply wider than the HK$88.96 million loss a year earlier. The deterioration was driven primarily by a HK$215.0 million jump in impairment provisions across trade, factoring, finance lease and loan receivables.
Revenue fell 40.4% year on year to HK$43.90 million, while cost-of-sales declined at a slower pace, compressing gross profit by 38.1% to HK$12.69 million. Basic and diluted loss per share widened to HK6.13 cents from HK2.16 cents.
Segment performance showed: • Trading revenue dropped to HK$31.46 million (-41.4%), recording a HK$103.89 million loss after HK$101.67 million of trade-receivable impairments. • Money lending and factoring generated HK$10.64 million in interest income but posted a HK$76.68 million loss following HK$89.34 million of loan and factoring ECL charges. • Finance leasing reported no revenue and a HK$10.84 million loss, weighed down by HK$7.06 million of lease-receivable impairments. • Financial services contributed HK$1.80 million revenue and a HK$25.09 million loss amid soft brokerage and underwriting demand.
Total assets contracted to HK$479.87 million from HK$677.41 million, reflecting the heavy loss and asset write-downs. Equity declined to HK$431.59 million. Cash and bank balances stood at HK$29.98 million, while total borrowings (lease liabilities) increased to HK$11.67 million, lifting the gearing ratio to 2.7%. The liquidity ratio remained strong at 9.15x, down from 16.91x a year earlier.
Held-for-trading investments were valued at HK$25.86 million, producing a fair-value loss of HK$6.32 million and a disposal loss of HK$2.77 million. The portfolio comprises 16 Hong Kong and Mainland-listed equities; the largest single position, Horizon Robotics (Huaxin), represented 1.65% of group net assets.
Management attributed the earnings setback to a prolonged downturn in China’s economy, subdued consumer demand, and tightened credit conditions, which heightened default risks and prompted substantial impairment provisions. No dividend was declared. Trading in the company’s shares is scheduled to resume on 2 July 2026 following the results release.
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