China Huajun Group Limited reported its audited results for the year ended 31 December 2025, highlighting a narrower net loss and an 18.1% increase in revenue, alongside a disclaimer of opinion from the independent auditor due to going-concern uncertainties.
Financial Highlights • Revenue reached RMB1.36 billion, up 18.1% year on year, driven mainly by the Trading & Logistics segment, which contributed RMB933.12 million (68.4% of total). Printing remained stable at RMB318.71 million, while Property Development & Investments rose to RMB93.69 million. • Gross loss stood at RMB105.30 million, reversing a RMB13.99 million gross profit in 2024. The swing was chiefly attributable to a RMB117.06 million write-down on properties held for sale. • Net loss attributable to shareholders narrowed sharply to RMB234.10 million from RMB1.26 billion in the prior year, aided by several one-off gains: – RMB670.13 million gain from deconsolidation/liquidation of insolvent subsidiaries – RMB423.11 million gain from a Hong Kong court-sanctioned debt restructuring scheme effective 26 June 2025 – RMB393.47 million fair-value gain on investment properties • Countering these gains were a RMB707.21 million impairment on trade and other receivables and RMB690.26 million in finance costs, including penalty interest on defaulted borrowings. • Basic and diluted loss per share improved to RMB3.80 from RMB20.53.
Balance Sheet and Liquidity • Total assets: RMB3.07 billion; total liabilities: RMB10.78 billion, resulting in net liabilities of RMB7.70 billion (31 December 2024: RMB7.59 billion). • Current ratio remained weak at 0.15. • Interest-bearing borrowings stood at RMB3.48 billion, of which RMB3.47 billion are in default. Related interest and penalties total RMB2.68 billion. • New scheme liabilities recorded at fair value: Option A RMB38.63 million and Option B RMB10.72 million; amount due to immediate holding company RMB41.68 million. • Cash and cash equivalents were RMB34.80 million.
Auditor’s Disclaimer Prism Hong Kong Limited issued a disclaimer of opinion, citing multiple uncertainties over the Group’s ability to continue as a going concern, including significant net liabilities, extensive loan defaults, litigation, and reliance on successful asset disposals, cost reductions and new funding.
Segment Update • Trading & Logistics: Revenue climbed 21.8% to RMB933.12 million on higher volumes and prices for base oil and rubber products. • Printing: Revenue held steady at RMB318.71 million as demand from beauty and cosmetics clients offset a challenging environment. • Property Development & Investments: Revenue surged to RMB93.69 million, reflecting asset disposals and judicial auctions amid an ongoing strategy to exit or offload insolvent projects.
Capital Commitments and Staffing • Capital commitments totalled RMB409.39 million, mainly for property projects and equipment. • Headcount reduced to 1,212 from 1,367.
Post-Balance-Sheet Event On 20 January 2026, a subsidiary obtained a RMB1.50 million loan secured by operational rights to Baohua Wangyuan for ten years; non-repayment would trigger a debt-to-equity swap transferring the subsidiary’s entire equity to the lender.
Dividend No final dividend was proposed.
AGM The annual general meeting is scheduled for 26 June 2026, with the register closed from 23 June to 26 June 2026 (both days inclusive).
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