Central Development Holdings Limited released audited results for the year ended 31 March 2026, showing a markedly weaker top line but a firmer liquidity profile following capital-structure adjustments.
Revenue and Profitability • Group revenue fell 54.0% year on year to HK$104.85 million (FY25: HK$228.11 million). • Energy operations—chiefly refined oil and LNG sales—contributed HK$101.87 million, down 54.0%, while jewellery sales slipped 56.0% to HK$2.98 million. • Gross profit contracted 32.2% to HK$7.65 million; gross margin improved to 7.3% (FY25: 4.9%) on tighter cost control and scaled-back lower-margin LNG volumes. • Loss attributable to shareholders widened 35.1% to HK$25.90 million; basic loss per share rose to 6.04 HK cents (FY25: 4.79 HK cents). No dividend was declared.
Operating Highlights • Other income more than halved to HK$2.60 million, reflecting a temporary rental gap after early termination of a factory lease. • Net other gains declined to HK$2.84 million (FY25: HK$6.32 million) amid a smaller fair-value gain on derivative liabilities and a HK$0.56 million revaluation loss on investment properties; these were partially offset by a HK$1.72 million gain on disposal of a 35% stake in associate Chengdu Huahan. • Selling and distribution costs fell 16.8% to HK$2.16 million; administrative expenses eased 10.4% to HK$19.16 million following cost-saving initiatives. • Finance costs edged down 1.7% to HK$16.47 million, with lower imputed interest on shareholder loans partly offset by higher interest on those loans.
Balance-Sheet Turnaround • Net current assets reached HK$34.93 million versus a net current liability position of HK$26.93 million a year earlier, mainly due to the automatic cancellation of HK$52.00 million convertible bonds on 1 December 2025. • Cash and cash equivalents increased to HK$23.62 million (FY25: HK$16.97 million); bank borrowings declined to HK$18.14 million (FY25: HK$30.83 million). • Total assets slipped to HK$215.80 million (-18.2%), but total liabilities fell faster to HK$192.25 million (-23.7%), lifting equity to HK$23.56 million (FY25: HK$11.88 million). • Gearing ratio (total bank borrowings / total equity) improved sharply to 77.0% from 259.6% a year earlier. • In January 2026, a HK$35.00 million loan from controlling shareholder Mr. Hu was capitalised into 87.50 million new shares, further easing leverage.
Segment Performance Energy Business: Revenue drop mirrored softer LNG demand amid industry volatility, partially offset by refined-oil sales resilience. Cost pressure from international oil price swings and intense domestic competition compressed margins. Jewellery Business: Revenue fell to HK$3.0 million on weak consumer sentiment and high gold-price volatility; no Hong Kong sales were recorded during the year.
Strategic Outlook Management plans to: 1) optimise LNG procurement and expand customer coverage while tightly controlling credit risk; 2) enhance refined-oil station efficiency and consider conversion to a comprehensive energy hub; 3) monitor policy shifts under China’s “Dual Carbon” agenda for potential clean-energy opportunities; 4) broaden jewellery sales via e-commerce and other channels while maintaining cost discipline.
No major capital commitments or contingent liabilities were reported post year-end, and the company confirms that public float requirements remain satisfied.