CHINA FORTUNE 2025 Results: Revenue +43.0%, Loss Narrows to HK$14.48 Million; Auditor Flags Going-Concern Risk

China Fortune Holdings Limited (CHINA FORTUNE) released its audited results for the year ended 31 December 2025.

Revenue and Operating Performance • 2025 revenue climbed 43.0% to HK$62.40 million, driven entirely by the mobile phone and electronic products segment after the exit from mining in 2024. • Gross profit rose 26.4% to HK$1.97 million, yet gross margin slipped to 3.1% (2024: 3.6%) amid lower-margin router sales in the PRC. • Operating loss before tax from continuing operations was HK$17.81 million, broadly flat versus HK$18.03 million a year earlier. • Loss attributable to shareholders shrank 54.1% to HK$14.48 million; basic loss per share narrowed to 5.73 HK cents from 13.91 HK cents.

Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$4.83 million (2024: HK$7.18 million). • Net current liabilities widened to HK$27.87 million (2024: HK$15.55 million); current ratio deteriorated to 0.52× from 0.79×. • Total equity remained negative at HK$21.37 million (2024: negative HK$11.72 million). • Short-term borrowings increased to HK$16.18 million, up 54.4% year-on-year. • Auditor ZSZH (HK) Fuson CPA Limited drew attention to material uncertainty regarding going concern, citing recurring losses and negative working capital.

Capital Management • A share placement completed in January 2025 raised net proceeds of approximately HK$4.12 million. • Another conditional placement announced on 31 March 2026 aims to raise about HK$6.46 million; completion is pending. • Major shareholder Mr. Lau provided an unsecured, non-interest-bearing loan of about HK$3 million in March 2026 and extended a HK$50 million loan facility for at least 12 months from 31 December 2025.

Operational Highlights • Post-disposal of its mining subsidiary in December 2024, the Group is now a single-segment distributor of mobile phones and electronic products. • Hong Kong contributed 79.4% of 2025 revenue (HK$49.55 million), while the PRC accounted for 20.6% (HK$12.85 million). • Customer concentration remained high; one customer generated 79.4% of total sales. • The Group is developing its own AI-driven router brand to expand distribution in the PRC and Hong Kong.

Dividend • The Board proposed no final dividend for 2025 (2024: nil).

Outlook Management cites macroeconomic headwinds and competitive pressures but expects continued demand for 5G devices and related electronics. The company plans to focus on product diversification and market expansion while prioritising liquidity management.