Hong Kong-listed Winto Group (Holdings) Limited released its audited results for the year ended 31 December 2025, showing a marked recovery in top-line performance but continuing balance-sheet pressure and an audit disclaimer on going concern.
Revenue and Profitability • Revenue rose 30.0% year on year to HK$27.08 million, driven mainly by a rebound in the publications and advertising segment, which contributed HK$19.85 million (73% of total revenue). • Gross profit edged up 7.3% to HK$9.86 million; the gross margin contracted to 36.4% from 44.1% as indirect costs grew faster than sales. • Operating expenses increased 21.0% to HK$14.13 million, while impairment losses on receivables fell sharply to HK$0.98 million (2024: HK$15.81 million). • Loss attributable to shareholders narrowed to HK$6.59 million from HK$19.79 million a year earlier; basic loss per share improved to HK7.56 cents (2024: HK28.48 cents).
Segment Performance (Revenue, HK$ million) • Publications & advertising: 19.85 (up 50%) • Luxury product sales: 7.12 (up 2%) • Online beauty & cosmetics: 0.11 (down 84%) • Exhibition & trade show: nil (unchanged)
Financial Position • Cash and cash equivalents declined to HK$5.15 million (2024: HK$9.59 million). • Net current liabilities widened to HK$46.76 million; total net liabilities stood at HK$45.93 million. • Gearing ratio (total borrowings to shareholders’ funds) rose to 15% from 7%, while the current ratio remained weak at 0.4x. • Trade receivables net of provisions increased to HK$18.16 million; impairment allowance reduced to HK$22.05 million.
Auditor’s Disclaimer Global Link CPA Limited issued a disclaimer of opinion, citing material uncertainties over Winto Group’s ability to continue as a going concern. Key concerns include recurring losses, a working-capital deficit and negative equity.
Liquidity Measures and Post-year-end Event To address liquidity pressure, Winto completed a rights issue on 13 March 2026, raising net proceeds of HK$49.44 million. The company intends to allocate HK$32.27 million to debt repayment, HK$9.75 million to the Qingmao Port Project and HK$7.42 million to general working capital.
Risk Highlights Management identifies ongoing risks in credit recovery, customer concentration, market volatility and the group’s financial sustainability. Efforts to negotiate extended payment terms with lenders, tighten cost controls and explore further financing avenues are underway.
Dividend No final dividend was proposed for 2025, consistent with the prior year.
Outlook The board will monitor economic conditions and refine strategies to stabilise operations, with a focus on the advertising and luxury-goods segments, while maintaining cost discipline amid persisting uncertainties.
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