Harbour Equine Holdings Limited released its audited results for the year ended 31 December 2025. The group reported a markedly smaller net loss, driven by disposal gains, but continued to face liquidity pressure and a material going-concern uncertainty.

Revenue and Gross Profit

• Group revenue from continuing operations fell 67.60% to HK$21.71 million, mainly reflecting the January 2025 disposal of the Guangzhou sewing-threads units and a slowdown in interior design contracts.

• A gross loss of HK$2.89 million was recorded, widening from HK$2.23 million in FY2024. Gross loss margin deteriorated to 13.33% (FY2024: 3.33%).

Segment Performance

• Interior design and decoration remained the largest contributor, generating HK$20.40 million (85.80% of group revenue), down 61.10% year-on-year.

• Sewing-threads revenue dropped 84.70% to HK$1.23 million after the disposal of major subsidiaries.

• Equine services revenue decreased 98.80% to HK$0.08 million following the sale of all bloodstock.

Profitability

• Other income, gains and losses swung to a HK$18.62 million gain (FY2024: HK$13.61 million loss), mainly from a HK$16.14 million gain on subsidiary disposals and a HK$2.02 million waiver of payables.

• Operating expenses were sharply lower: selling and distribution expenses declined 92.82% to HK$0.14 million, and administrative expenses fell 45.89% to HK$7.43 million.

• Finance costs decreased 47.07% to HK$1.87 million on reduced borrowings.

• Loss before tax from continuing operations narrowed to HK$6.01 million (FY2024: HK$34.97 million).

• Including a HK$1.81 million profit from the discontinued financial-services arm, net loss attributable to shareholders shrank to HK$3.35 million, versus a HK$37.01 million loss a year earlier. Basic loss per share improved to HK0.78 cents (FY2024: HK9.05 cents).

Balance Sheet and Liquidity

• Cash and cash equivalents stood at HK$1.91 million. Current assets exceeded current liabilities by HK$0.99 million, giving a current ratio of 1.07 (FY2024: 1.01).

• Net liabilities widened to HK$18.03 million. The gearing ratio rose to 225.20% (FY2024: 173.10%) owing to continued losses and limited equity.

• Borrowings totaled HK$19.37 million, of which HK$16.49 million were secured.

Going-Concern Considerations

The auditors highlighted material uncertainty over the group’s ability to continue as a going concern, citing recurring losses, negative equity and constrained cash. Management’s mitigation plan includes HK$10 million in shareholder support, cost rationalisation, potential refinancing and new revenue initiatives.

Corporate Actions

• Equity financing: 81.80 million new shares were issued in October 2025 at HK$0.10 each, raising HK$8.18 million gross.

• Disposals: – Strat Tech Holdings (sewing-threads business) sold on 27 January 2025. – Hua Yu Investment Management (financial-services arm) classified as held-for-sale at year-end; disposal completed on 20 March 2026 for HK$0.80 million.

Dividend

No dividend was declared for FY2025 (FY2024: nil).

Outlook

Management plans to concentrate resources on the interior design and decoration segment, maintain a cautious stance toward equine services, and continue cost reductions while exploring new revenue streams.