Hong Kong – 29 June 2026 – LISI Group (Holdings) Limited (LISI Group, 00526) reported a sharp rebound in profitability for the financial year ended 31 March 2026, driven largely by a drastic reduction in investment-property valuation losses and lower impairment provisions, offsetting a double-digit decline in top-line revenue.

Revenue and Profitability • Group revenue fell 18.9% year on year to RMB 2.18 billion, reflecting weaker contributions from the Manufacturing & Trading and Wholesale segments. • Gross profit dropped 25.3% to RMB 450.55 million; gross margin slipped to 20.7% from 22.5% a year earlier. • Net profit attributable to shareholders surged to RMB 122.69 million (FY25: RMB 35.69 million), buoyed by a sharp contraction in fair-value and impairment charges. Basic and diluted EPS rose to RMB 1.39 cents from RMB 0.43 cents.

Expense and Other Income Dynamics • Net valuation loss on investment properties narrowed to RMB 6.23 million (FY25: RMB 210.25 million). • Impairment losses on financial and contract assets decreased 22.7% to RMB 90.85 million. • Selling & distribution and administrative expenses were cut by 17.2% and 19.8% respectively, while finance costs eased 15.6% to RMB 25.06 million. • Other net income slipped 18.0% to RMB 23.44 million amid lower government grants.

Segment Performance • Manufacturing & Trading revenue fell 31.5% to RMB 963.15 million, pressured by US tariff impacts and softer export demand. • Wholesale revenue dipped 5.7% to RMB 962.39 million; HVAC orders lagged amid China’s sluggish property market, partly offset by wine and beverage stock clearances. • Retail sales were stable at RMB 231.64 million, accounting for 10.6% of group turnover. • Investment-holding income declined 21.6% to RMB 20.96 million. • The Chinese Mainland and Hong Kong contributed 58.8% of revenue; the US and Europe provided 37.4%.

Balance-Sheet Highlights • Cash and cash equivalents rose 25.9% to RMB 1.23 billion; restricted cash stood at RMB 197.95 million. • Bank and other loans contracted 8.7% to RMB 725.78 million, cutting the debt-to-equity ratio to 27.8% (FY25: 32.0%). • Net assets increased 5.2% to RMB 2.61 billion, equal to RMB 29.5 cents per share. • Investment properties were re-valued at RMB 276.98 million (6.6% of total assets). Financial assets at fair value through profit or loss totalled RMB 771.53 million (18.5% of total assets). • Capital commitments for plant and machinery were minimal at RMB 0.10 million.

Dividend • The Board proposed no final dividend for FY26 (FY25: Nil).

Outlook Management anticipates persistent headwinds from geopolitical tensions, high interest rates and cost inflation. Strategic priorities include: 1. Diversifying export markets and adjusting supply chains for the Manufacturing & Trading arm; 2. Enhancing digital solutions and selective promotions in Retail; 3. Maintaining cautious expansion and vigilant credit control in the HVAC-focused Wholesale division.

The Group will continue to monitor policy shifts, market demand and foreign-exchange developments while evaluating disciplined investment opportunities to bolster shareholder value.