NE Electric (HK:00042) recorded revenue of RMB 164.17 million for the year ended 31 December 2025, up 4.9% from 2024, driven by stronger sales of enclosed busbars (RMB 107.99 million; +8.8%) that offset a slight 1.7% dip in hotel and catering income to RMB 56.18 million.

Gross profit improved 9.0% to RMB 50.24 million, lifting the gross margin to 31.36% (2024: 30.06%). However, a litigation-related provision of RMB 63.97 million and a RMB 9.04 million loss on the disposal of a subsidiary pushed “other gains and losses” to a negative RMB 72.07 million (2024: +RMB 1.76 million). As a result, loss attributable to shareholders widened sharply to RMB 82.70 million from RMB 10.11 million a year earlier; basic loss per share increased to RMB 9.47 cents (2024: 1.16 cents).

Cash outflow from operations was RMB 16.76 million versus a RMB 5.60 million outflow in 2024. Cash and cash equivalents fell to RMB 8.95 million (2024: RMB 15.22 million), while short-term bank borrowing stood at RMB 1.38 million. The Group ended the year with net current liabilities of RMB 277.63 million and total net liabilities of RMB 276.26 million.

Management highlighted material uncertainties over going-concern status, citing the adverse court ruling that obliges the Company to pay approximately RMB 63.97 million, potential enforcement risks, and accumulated losses. The auditor, Wilson & Partners CPA, issued a disclaimer of opinion, unable to conclude on the appropriateness of the going-concern basis given multiple uncertainties.

No dividend was declared for 2025. NE Electric plans to seek strategic investors, negotiate new financing, and continue cost controls and product development to stabilise operations during 2026.