Sinofortune Financial Holdings Limited reported FY2025 revenue of HK$29.05 million, down 9.90% from HK$32.15 million in FY2024. The Group’s net loss from continuing operations narrowed sharply to HK$14.68 million (FY2024: HK$101.31 million), while loss attributable to shareholders contracted to HK$14.65 million from HK$98.75 million. Basic loss per share fell to 0.19 HK cents (FY2024: 1.27 HK cents). No dividend was declared.

The smaller deficit was mainly driven by two non-recurring items: 1. Reversal of HK$18.82 million in previously recognised impairment on advance payments for trading motor vehicles (FY2024: HK$75.81 million impairment). 2. Gain of HK$14.28 million from the disposal of subsidiary Sinofortune Property Limited in October 2025, accompanied by a two-year leaseback at HK$0.13 million per month.

These positive effects were partly offset by a HK$25.11 million impairment loss on other receivables.

Expenses remained tightly controlled: employee benefits were HK$10.42 million (FY2024: HK$10.61 million) and other expenses HK$8.41 million (FY2024: HK$9.71 million). Finance costs decreased to HK$2.30 million from HK$3.45 million after full repayment of HK$28.00 million in borrowings in October 2025.

Liquidity improved, with cash and bank balances rising to HK$20.44 million (FY2024: HK$13.53 million). Current assets increased to HK$107.40 million, balancing current liabilities of HK$109.01 million for a current ratio of 1.0 (FY2024: 0.5). Net assets fell to HK$0.90 million (FY2024: HK$14.77 million) as accumulated losses rose, pushing the gearing ratio to 10,735.80% (FY2024: 692.60%).

Auditors issued an unmodified opinion but highlighted a material uncertainty relating to going concern, noting net current liabilities of HK$1.61 million and ongoing reliance on chairman-provided credit facilities totalling HK$13.14 million.

Operationally, revenue from trading of motor vehicles declined to HK$28.88 million (FY2024: HK$30.80 million), facing intense industry price competition, especially in China’s new-energy vehicle market. Accessories sourcing agency fees dropped to HK$0.17 million from HK$1.35 million.

Post-year-end, the Board proposed a capital reorganisation entailing a 60-to-1 share consolidation, capital reduction and share subdivision, alongside a change in board-lot size to 5,000 shares, aimed at improving trading efficiency and restoring capital flexibility.

Headcount stood at 35 employees (FY2024: 38) with total staff costs of HK$10.40 million. No assets were pledged at year-end, and the Group reported no contingent liabilities. The company continues to explore asset-light growth avenues, including potential ventures in artificial intelligence and digital marketing, while monitoring certification processes for additional China 6 Standard motor-vehicle models.