Prosperous Future Holdings Limited (Prosperous Future, 01259) reported a wider net loss for the year ended 31 December 2025, even as gross profitability improved and an exceptional uplift in other comprehensive income pushed overall comprehensive earnings sharply higher.

Revenue and Profitability • Revenue slipped 2.9% year on year to HK$493.73 million (2024: HK$508.48 million), reflecting an 8.0% contraction in the core food & beverage (F&B) division. • Group gross profit rose 12.8% to HK$147.28 million, driving gross margin up 4.1 percentage points to 29.8% on healthier contribution from the financial services arm. • Loss attributable to equity holders expanded to HK$73.21 million (2024: HK$53.73 million), translating into a basic loss per share of HK3.32 cents (2024: HK2.42 cents). • A HK$655.27 million fair-value gain on financial assets at FVOCI propelled total comprehensive income to HK$585.61 million (2024: HK$96.23 million).

Segment Performance • F&B: Revenue fell 8.0% to HK$373.11 million; segment profit reduced to HK$5.91 million (2024: HK$9.93 million). Gross margin in this segment eased to 11.3% (2024: 12.4%) amid intense market competition and softer demand. • Financial Business: Revenue rose 17.3% to HK$119.25 million, supported by growth in credit-card handling charges and new insurance & wealth management fees. Segment loss remained heavy at HK$41.47 million (2024: HK$41.81 million). – Securities investment portfolio reached HK$838.76 million, including HK$801.38 million in an unlisted fund (HS Plus Global Investment Fund SPC – APLUS Asset Growth SP). – The group managed HK$1.32 billion of segregated fund assets for policyholders at year-end. • Properties Holding: Rental income held steady at HK$1.37 million; however, a HK$11.80 million fair-value loss on investment properties led to a segment loss of HK$12.49 million (2024: HK$19.47 million loss).

Cost Structure and Expenses • Selling & distribution expenses fell 7.3% to HK$38.12 million, aided by lower storage and logistics costs. • Administrative expenses rose 22.3% to HK$164.83 million, mainly on higher headcount and staff costs in the money-lending and credit-card units. • Other expenses dropped sharply to HK$2.22 million (2024: HK$12.45 million) as no new impairments were recorded on properties or right-of-use assets.

Cash Flow and Balance Sheet • Cash and bank balances stood at HK$319.60 million (2024: HK$389.39 million). • The group remained debt-free; gearing ratio (total liabilities/total assets) increased to 56.0% (2024: 35.8%) due to recognition of policyholder-linked liabilities. • Net assets almost doubled to HK$1.28 billion (2024: HK$696.95 million), bolstered by fair-value gains on FVOCI investments. • Current ratio declined to 1.2 from 1.9, while inventories tightened 40.7% to HK$22.27 million.

Capital Expenditure and Investments • Capex was modest at HK$0.05 million, mainly for office upgrades. • No new bank borrowings, no share issuances, and no material acquisitions beyond the previously reported HK$27 million disposal of Apex Magic International Limited in November 2024.

Dividend The Board recommended no final dividend for FY 2025, consistent with the prior year.

Outlook Management plans to maintain a cautious stance amid global economic volatility, focus on product diversification in F&B, and pursue growth opportunities in financial and wealth-management services while continuing disciplined capital deployment.