Chinlink International Holdings Limited (“Chinlink”) released its audited results for the financial year ended 31 March 2026 (FY26), reporting a deepened operational downturn across both property investment and financial services segments.

Revenue and profit performance • Total revenue fell 16.40% year-on-year to HK$66.29 million, driven by a 14.70% slide in property-related income to HK$64.83 million and a 54.50% fall in financial services income to HK$1.46 million. • Gross profit contracted 17.47% to HK$45.18 million; gross margin slipped to 68.2% (FY25: 69.1%). • The Group booked a HK$118.73 million fair-value loss on investment properties (FY25: HK$322.03 million) and a HK$43.81 million write-down on properties under development. • Finance costs eased 11.86% to HK$137.06 million after refinancing certain high-interest facilities. • Net loss narrowed to HK$265.25 million from FY25’s HK$345.59 million; basic and diluted loss per share came in at HK22.61 cents (FY25: HK29.54 cents).

Segment highlights • Property investment remained the core revenue contributor (97.7% of total), centred on the Daminggong Construction Materials and Furniture Shopping Centre in Xi’an. Lower occupancy and rent concessions weighed on the top line. • Financial guarantee and other financing services generated HK$1.46 million, reflecting the Group’s cautious stance amid weak credit conditions in Mainland China and Hong Kong.

Balance-sheet and liquidity pressures • Net current liabilities ballooned to HK$1.76 billion (31 Mar 2025: HK$573.23 million) on the back of HK$1.41 billion of bank and other borrowings re-classified as current after covenant breaches and repayment defaults. • Total bank and other borrowings rose to HK$1.81 billion, while 6.5% coupon bonds outstanding amounted to HK$119.11 million. • Cash and pledged deposits stood at HK$14.47 million; cash and bank balances alone were HK$5.78 million. • Gearing ratio (total liabilities/total assets) increased to 0.94 (31 Mar 2025: 0.86). • Auditors issued a “material uncertainty related to going concern” paragraph citing recurring losses, net current liabilities and defaulted borrowings that grant lenders the right to demand immediate repayment.

Debt restructuring and litigation • Management is negotiating with lenders and bondholders to restructure HK$1.39 billion of defaulted borrowings and HK$119.11 million of overdue bonds. • Two bondholders have sued the Company in Hong Kong for HK$18.50 million of principal plus interest. • A PRC bank has revived enforcement proceedings against a Chinlink subsidiary over a RMB117.39 million loan; the pledged assets have been ordered for auction.

Asset base • Total assets dipped to HK$3.06 billion (-2.15% YoY) after property revaluations; investment properties accounted for HK$2.34 billion. • Capital commitments of HK$26.19 million relate mainly to the Phase Two development of the Xi’an commercial complex, now targeted for completion in 4Q 2026.

Auditor and dividend • ZHONGHUI ANDA CPA Limited issued an unmodified opinion with a going-concern emphasis. • The Board recommended no final dividend for FY26 (FY25: nil).

Outlook Management will focus on: 1. Accelerating completion and pre-sales of the Phase Two loft apartments to generate cash; 2. Continuing debt-restructuring talks with financial institutions and bondholders; 3. Exploring asset disposals and potential investor introductions to shore up liquidity; 4. Tightening cost controls and maintaining a conservative approach to new financial services business.