China First Capital Group FY2025: Revenue Surges 57.6% but Equity Deficit Widens; Auditor Issues Going-Concern Disclaimer

China First Capital Group (the “Group”) reported FY2025 revenue of RMB 3.45 billion, up 57.6% YoY, driven chiefly by a 59.2% jump in automotive-parts sales to RMB 3.34 billion. Education management and consultation income grew 7.0% to RMB 62.44 million, while financial-services revenue increased 43.8% to RMB 45.26 million.

Gross profit expanded 80.3% to RMB 617.62 million, lifting the Group gross margin to 17.9% (FY2024: 15.7%). Automotive-parts margin improved 2.8 ppts to 17.0%, education services reached 34.8% (+4.8 ppts), whereas financial-services margin contracted to 61.8% (-25.5 ppts).

Loss attributable to owners narrowed 13.1% to RMB 341.68 million; basic and diluted loss per share reduced to RMB 0.18 (FY2024: RMB 0.21). Expected credit-loss provisions climbed to RMB 295.80 million (+61.9%), while finance costs edged down 2.8% to RMB 227.56 million.

Balance-sheet pressures persist: total assets rose 28.6% to RMB 3.97 billion, but equity attributable to owners showed a deeper deficit of RMB 2.13 billion (FY2024: RMB 1.88 billion). Net liability per share increased to RMB 1.15. Net current liabilities reached RMB 2.62 billion, and 91% of the RMB 3.60 billion in borrowings and convertible bonds are classified as current. Approximately RMB 2.09 billion of these obligations were in default at year-end.

Auditor Linksfield CPA issued a disclaimer of opinion, citing “multiple uncertainties relating to going concern”, including sustained losses, negative equity, large short-term debt, and a pending winding-up petition. The petition, admitted by Hong Kong’s High Court on 8 April 2025, is scheduled for hearing on 20 April 2026.

Management has outlined mitigation plans: 1) progressing a debt restructuring via a Hong Kong scheme of arrangement— a restructuring support agreement with initial creditors was signed on 2 January 2026; 2) negotiations to renew or extend overdue borrowings; 3) continued operation of core business units; 4) pursuit of new investors and asset disposals.

Operating cash rose to RMB 293.48 million (+99.1%) but remains modest relative to short-term obligations. Inventories increased 118.1% to RMB 309.33 million amid higher production, and trade receivables expanded 31.7% to RMB 1.28 billion.

No dividend is proposed for FY2025. Capital expenditure reached RMB 116.06 million, mainly for automotive-parts capacity, with outstanding commitments of RMB 65.49 million.

Subsequent to year-end, the Group formalised the restructuring support agreement with creditors; no other material events were reported.