Cornerstone Financial Holdings Limited (Cornerstone Financial) released its audited results for the year ended 31 December 2025.
Revenue and Profitability • Group revenue declined 11.0% year-on-year to HK$48.09 million. • Net loss narrowed to HK$17.91 million from HK$21.87 million a year earlier; loss attributable to shareholders was HK$18.66 million. • Gross profit fell 34.7% to HK$22.48 million, with gross margin contracting to 46.7% (2024: 63.8%). • EBITDA remained negative at HK$20.90 million, improving from a HK$35.21 million loss in 2024.
Segment Performance • Advertising & media remained the main contributor, generating HK$40.70 million (-12% YoY). • Financial services contributed HK$7.40 million (-6% YoY), of which margin-financing interest accounted for 93%. • Disposal of the loss-making Singapore advertising operations in September 2025 reduced segment revenue but delivered a disposal gain of HK$4.47 million and lifted profitability.
Balance Sheet and Cash Flow • Total assets stood at HK$174.09 million; net assets were HK$112.78 million. • Cash and cash equivalents amounted to HK$52.90 million; net current assets were HK$112 million. • Gearing ratio improved to 4.2% (2024: 11.4%). • Margin loan receivables decreased to HK$39.60 million after a HK$2.12 million impairment reversal; loan book is secured by pledged securities valued at HK$47.84 million.
Costs and Provisions • Administrative expenses dropped 24.6% to HK$55.97 million, reflecting lower professional fees and operating costs. • Impairment charges totalled HK$6.72 million, mainly HK$8.43 million on property, plant, equipment and right-of-use assets, partly offset by reversals on margin loans and trade receivables.
Capital Expenditure and Cash Flow • Capital spending was HK$0.10 million. • Net operating cash inflow reached HK$6.63 million, reversing last year’s HK$37.81 million outflow. • Total lease liabilities rose to HK$8.75 million following renewal of billboard and office leases.
Dividend • The Board does not recommend a final dividend for FY2025 (FY2024: nil).
Outlook Management will focus on strengthening the Hong Kong advertising network, expanding the client base of Cornerstone Securities, and exploring new investment opportunities while maintaining a prudent capital structure.
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