CN CULTURE GP (00745) released its audited results for the year ended 31 March 2026, reporting a turnaround to a net profit attributable to shareholders of HK$12.60 million, versus a HK$4.78 million loss in FY 2025.
Revenue and Profitability • Group revenue rose 14.3% year on year to HK$49.97 million, underpinned by gains in both core segments. • Gross profit expanded nearly three-fold to HK$11.90 million, lifting gross margin to 23.8% (FY 2025: 9.0%). • Segment performance: – Advertising revenue increased 18.5% to HK$16.23 million, generating segment profit of HK$12.63 million. – E-commerce revenue grew 12.4% to HK$33.74 million, though the segment posted a HK$6.45 million loss. • Net profit improvement was aided by HK$15.22 million in net other gains, mainly fair-value gains on listed investments, offset by HK$8.04 million in trade-receivable impairment provisions.
Balance Sheet and Liquidity • Total assets doubled to HK$100.44 million; total equity climbed 32.1% to HK$58.84 million. • Cash and cash equivalents stood at HK$5.25 million (31 Mar 2025: HK$15.04 million). • No interest-bearing borrowings were reported, leaving gearing at zero; net current assets rose to HK$56.10 million. • Trade receivables (net) increased to HK$50.40 million, with HK$11.94 million past due but considered collectible.
Investments • Financial assets held for trading more than doubled to HK$32.29 million, representing 32.2% of total assets. • Largest positions include Capital VC (HK$3.44 million) and Asia Grocery Distribution (HK$1.37 million). • Equity instruments at FVTOCI rose to HK$2.74 million, buoyed by a HK$1.66 million fair-value gain, mainly from Luxxu Group Limited.
Capital Structure and Cash Flows • Issued share capital remained at 234.37 million shares. • Net proceeds of HK$15.10 million from the March 2025 rights issue have been fully deployed to develop the e-commerce platform and for working capital. • No dividend was declared for FY 2026.
Post-Year-End Event On 28 April 2026 the company agreed to issue 46.80 million warrants at HK$0.10 each to four independent subscribers, subject to shareholder approval at an upcoming EGM.
Outlook Management expressed “cautious optimism,” citing opportunities from media–technology convergence and potential strategic collaborations, particularly following the planned warrant issuance that could enhance capital resources for future initiatives.
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