China Castson 81 Finance posts sharply narrower FY25 loss on investment rebound; plans HK$51.93 million rights issue

China Castson 81 Finance Company Limited reported a HK$6.89 million net loss for the year ended 31 December 2025, a marked improvement from the HK$21.60 million loss recorded in 2024. The turnaround was driven by a HK$5.38 million net gain on financial assets at fair value through profit or loss (FVTPL), reversing the prior-year HK$10.45 million loss.

Total revenue was stable at HK$0.35 million, comprising dividend income from the Group’s Hong Kong-listed equity portfolio. Gross proceeds from disposal of investments fell 45.9% year on year to HK$12.68 million, reflecting lower trading volume in non-constituent stocks despite an active broader market.

Operating metrics improved but remained negative. Administrative expenses increased 8.1% to HK$11.44 million, while other operating costs were steady at HK$1.18 million. Finance costs dropped to zero following the repayment of a small secured bank loan. Loss per share narrowed to HK3.56 cents from HK13.73 cents.

At end-2025, total assets stood at HK$29.82 million (2024: HK$33.10 million). Net asset value (NAV) declined 10.2% to HK$28.61 million, translating into NAV per share of HK$0.14 (2024: HK$0.19). Listed equity investments were valued at HK$20.42 million, with 54% classified as non-current. Bank and cash balances fell to HK$0.96 million from HK$4.27 million, and the Group ended the year debt-free, lowering its gearing ratio to nil from 0.2%.

Financing activities bolstered equity during the year. An October 2025 share placement of 33.94 million new shares raised net proceeds of HK$3.61 million, earmarked mainly for new investments and working capital. In December 2025 the Board proposed a rights issue on the basis of five rights shares for every two existing shares, targeting gross proceeds of up to HK$51.93 million (net approximately HK$49.24 million). Completion is expected by 20 April 2026.

No dividend was declared for 2025. Looking ahead, management intends to maintain a diversified investment strategy focused on listed and unlisted securities, particularly in artificial intelligence, digital assets and new-energy sectors, while noting potential market volatility from geopolitical tensions, inflation and valuation risks.