Daido Group Limited reported a consolidated net loss attributable to shareholders of HK$72.12 million for the year ended 31 December 2025, widening from the HK$40.23 million loss recorded in 2024. Basic and diluted loss per share deteriorated to HK$2.28 from HK$1.39 (restated).
\n\nRevenue fell 31.5% year on year to HK$149.73 million, reflecting a 26% contraction in the core cold-storage and related services business to HK$132.83 million and a 57% drop in trading and sales of food and beverage to HK$16.65 million. Overall gross profit slipped 22.1% to HK$7.71 million, while finance costs almost tripled to HK$42.54 million, primarily due to lease-related interest and higher borrowing expenses.
\n\nDaido’s statement of financial position shows net liabilities of HK$66.06 million (2024: HK$22.88 million). Cash and bank balances declined to HK$13.12 million from HK$59.77 million. Current liabilities totalled HK$147.10 million, driving the current ratio down to 0.36 (2024: 0.51). Bonds payable stood at HK$67.50 million, all due within twelve months, while newly issued convertible bonds were recorded at HK$35.99 million under non-current liabilities.
\n\nFund-raising activities during the year comprised: • July 2025 issuance of HK$45.00 million convertible bonds, yielding HK$40.67 million net proceeds (fully applied to repay a HK$35.00 million bank loan and general working capital). • Two equity subscriptions: 5.80 million new shares in July generated HK$2.52 million net proceeds, fully utilised for debt repayment and working capital; and 10.00 million new shares in December raised HK$19.72 million, earmarked for debt settlement (HK$15.00 million) and working capital (HK$4.72 million).
\n\nFollowing year-end, the Company: • Settled a High Court writ related to HK$10.00 million bonds, with discontinuance filed on 13 March 2026. • Continues due diligence on a non-binding letter of intent, signed 30 December 2025, to acquire two US data centres through a prospective joint venture.
\n\nNo dividend was declared for 2025. The auditors drew attention to material uncertainty over going concern, citing net current liabilities of HK$94.45 million and upcoming bond maturities, though management plans include debt renegotiation, additional financing and operational initiatives.
\n\nKey financial ratios as at 31 December 2025: total liabilities-to-assets 1.14× (2024: 1.04×); gearing (total borrowings excluding leases to total deficits) –156.7% (2024: –524.6%); assets turnover 0.28× (2024: 0.52×). The Board foresees continued focus on Greater Bay Area logistics expansion and selective diversification, subject to prudent capital management.
Comments