CBK Holdings FY2026: Revenue +44.9% to HK$44.62 Million, Loss Narrows to HK$9.93 Million amid Margin Squeeze and Auditor Qualification

Bulletin Express
06/29

CBK Holdings Limited released its audited results for the year ended 31 March 2026, showing solid top-line growth but continued bottom-line pressure and a qualified audit opinion.

Revenue and Profitability • Group revenue from continuing operations climbed 44.9% year on year to HK$44.62 million, driven by HK$16.20 million in new food-sales income and HK$28.42 million from restaurant services. • Gross profit improved 7.0% to HK$20.79 million; however, group gross margin contracted to 46.6% (FY2025: 63.1%) primarily due to the low-margin food-sales segment, which recorded a 3.9% margin versus 70.9% for restaurant operations. • Loss attributable to shareholders narrowed 27.9% to HK$9.93 million, reflecting higher revenue and lower depreciation, advertising and finance costs. Basic and diluted loss per share improved to HK$0.09 (FY2025: HK$0.12).

Cost and Expense Trends • Cost of inventories sold nearly doubled to HK$23.84 million, lifting the cost-to-sales ratio to 53.4% (FY2025: 36.9%). • Employee expenses rose 24.4% to HK$15.68 million on mainland China expansion and talent retention efforts. • Depreciation and amortisation fell 57.4% to HK$2.37 million following asset disposals and restaurant closures. • Other operating expenses declined 32.3% to HK$5.63 million, aided by reduced advertising and promotion outlays. • Finance costs decreased 41.1% to HK$0.38 million after repayment of a HK$1.00 million bond and a HK$0.25 million loan.

Balance-Sheet Highlights and Liquidity • Total assets rose to HK$26.75 million (31 Mar 2025: HK$11.08 million), propelled by a HK$11.13 million jump in deposits, prepayments and other receivables and a HK$5.24 million increase in cash. • Total liabilities expanded to HK$37.58 million (31 Mar 2025: HK$16.84 million), reflecting higher accruals and payables (+HK$10.74 million), contract liabilities (+HK$2.87 million) and director-level loans (+HK$8.36 million). • Net liabilities widened to HK$10.83 million, while the gearing ratio (total liabilities/total assets) stood at 140.5% (FY2025: 152.1%). • Cash and cash equivalents amounted to HK$6.88 million; no dividend was proposed.

Going-Concern and Auditor’s View • The auditors issued a qualified opinion, citing scope limitations on prior-year comparative figures and insufficient records for disposed or ceased subsidiaries. • They also highlighted material uncertainty related to going concern, given FY2026’s net loss and negative equity. The Board is pursuing additional financing, cost controls and shareholder support to address liquidity risk.

Operational Developments • Mainland China expansion accelerated with three new Chengdu restaurants—“鴕膳私房菜”, “漢諾會館” and other ventures—launched between December 2025 and March 2026 via newly formed subsidiaries. • In Hong Kong, the Group’s flagship “Lantern” restaurant remained a key revenue contributor, while the loss-making “一韓燒” outlet was closed in May 2025. • A Hong Kong-based supply-chain entity started sourcing frozen food and seafood products to support restaurant operations.

Outlook Management plans to maintain a “dual-engine” strategy: deepen the premium dining footprint in Hong Kong and scale multi-brand catering operations on the Mainland, with an emphasis on operational synergies and cost optimisation.

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