Life Concepts Holdings Limited released its audited results for the year ended 31 March 2026. Group revenue surged 319% year on year to HK$30.97 million, driven by the launch of two new restaurants that lifted catering income to HK$30.51 million, now accounting for 98.5% of total sales. However, profit attributable to shareholders slumped 79.0% to HK$10.42 million (FY2025: HK$49.67 million), reflecting rising costs, elevated impairment charges and higher finance expenses.

Cost of sales and inventories consumed rose to HK$9.12 million, equal to 29.4% of revenue versus 85.8% a year earlier, as higher volumes offset prior-year underutilisation. Employee benefit expenses more than doubled to HK$7.28 million, and other operating expenses climbed 6.4% to HK$7.26 million, mainly due to staffing and setup costs for the new outlets. Net impairment losses on financial instruments and contract assets widened sharply to HK$8.96 million from HK$0.01 million, while a HK$2.20 million provision for guarantee liabilities further pressured earnings.

Finance costs net of income rose to HK$8.99 million (FY2025: HK$1.65 million), largely because of imputed interest on extended, non-interest-bearing borrowings from former and current directors as well as related parties. The group also recognised a HK$22.61 million gain on disposal of loss-making PRC subsidiaries, partially cushioning the bottom-line decline.

By segment, the catering division generated HK$6.08 million in segment profit, reversing last year’s HK$3.05 million loss. The financial institution intermediation services unit swung to a HK$12.75 million segment loss, reflecting a lack of new loan facilitation deals amid a subdued mainland credit environment.

Total assets inched up 1.0% to HK$129.28 million. Nonetheless, Life Concepts ended the year with a shareholders’ deficit of HK$57.49 million and negative working capital of HK$27.04 million. Net debt stood at HK$105.54 million, translating into a high gearing ratio of 237.6%. The auditor drew attention to material uncertainties over the group’s ability to continue as a going concern, citing the sizeable deficit and short-term liquidity gap.

Management is negotiating loan extensions, seeking new funding sources and has secured an interest-free HK$30 million facility from a director, of which HK$5.20 million was utilised during the year. No final dividend was declared.

The board expressed confidence that recent restaurant openings and planned business revamps can stabilise operations, but acknowledged the need to execute financing and restructuring measures to address ongoing liquidity pressures.