Regal Partners Holdings Limited reported a 45.0% year-on-year fall in 2025 revenue to RMB65.70 million, citing the shutdown of its loss-making Zhejiang factory and continued trade headwinds from U.S. tariffs as key factors.

Gross profit contracted 89.60% to RMB2.90 million, driving the gross margin down to 4.4% from 23.3% a year earlier. The company’s annual net loss edged lower by 0.30% to RMB88.35 million, equivalent to a basic loss per share of 2.80 cents (2024: 3.28 cents). Excluding a RMB19.28 million litigation provision, the adjusted net loss would have been about RMB69.06 million, implying an underlying improvement of 22.1%.

Cost of sales declined 31.50% to RMB62.85 million, largely mirroring the revenue drop. Operating cost controls helped trim selling and distribution expenses by 72.70% to RMB9.01 million and administrative expenses by 18.10% to RMB37.49 million. Nevertheless, other expenses rose to RMB20.76 million, reflecting new litigation provisions linked to a PRC subsidiary.

Finance costs increased 11.20% to RMB22.12 million, driven by higher interest expenses and default interest on certain borrowings and a convertible loan. As of 31 December 2025 Regal Partners carried RMB237.01 million in interest-bearing borrowings and shareholder loans, of which RMB97.81 million were in default.

The balance sheet shows net current liabilities of RMB239.00 million and total net liabilities of RMB295.41 million. Cash and cash equivalents stood at just RMB3.17 million, prompting the company’s auditor to highlight a material uncertainty over its ability to continue as a going concern. The auditor also issued a qualified opinion due to inability to verify RMB117.38 million of receivables and RMB44.28 million of payables involving entities controlled by a substantial shareholder.

Management is pursuing several measures to address liquidity pressures, including: • an unsecured HK$200 million shareholder loan facility, with HK$51.62 million undrawn at year-end; • a completed share placement in February 2026 that raised HK$27.71 million (RMB24.55 million) net; • ongoing talks with banks to restructure RMB14.79 million in defaulted borrowings; and • legal actions to recover RMB176.58 million due from related companies.

No final dividend was declared for 2025.

Looking ahead, Regal Partners plans to expand production capacity at its Cambodia plant and invest in Southeast Asian showrooms to mitigate tariff exposure and tap regional demand, while maintaining cost controls and pursuing broader recovery of related-party receivables.