Eternity Investment reports HK$343.22 million loss for 2025; revenue edges up, going-concern risk highlighted

Bulletin Express
Mar 31

Eternity Investment Limited announced audited results for the year ended 31 December 2025, recording a net loss attributable to shareholders of HK$343.19 million, down 17.4% from the HK$415.70 million loss in 2024. Basic and diluted loss per share narrowed to HK$0.93 from HK$1.12.

Revenue rose 4.7% to HK$234.49 million, lifted by: • A HK$10.76 million trading gain on listed securities versus a HK$7.64 million loss in 2024. • Golf club turnover increasing 1.5% to HK$134.19 million. These gains offset a HK$3.22 million drop in rental income and a HK$6.90 million fall in interest income from money lending.

Segment performance (pre-tax) showed: • Golf club profit HK$36.24 million (2024: HK$14.05 million). • Sale of financial assets profit HK$17.09 million (2024: loss HK$24.82 million). • Money lending profit HK$1.04 million (2024: loss HK$20.16 million). • Property investment loss HK$268.48 million (2024: HK$278.12 million), hit by HK$111.93 million impairment on Shun Tak property and HK$37.95 million fair-value loss on investment properties. • Jewellery sales profit HK$1.82 million (2024: HK$0.43 million).

Key cost and balance-sheet items • Administrative expenses fell 7.6% to HK$122.80 million. • Finance costs climbed 26.2% to HK$90.62 million, mainly from higher borrowing rates and default interest on guaranteed secured notes. • Total impairments and fair-value losses under “other gains and losses” reached HK$225.13 million (2024: HK$288.31 million). • Net current liabilities widened to HK$618.04 million, and the gearing ratio (total borrowings to equity) rose to 87% from 60%. • Cash and cash equivalents stood at HK$32.13 million.

Liquidity and default status The Group defaulted on guaranteed secured notes of about HK$218 million that matured on 23 September 2025. Negotiations with the noteholder for a repayment or forbearance plan are ongoing. Auditors issued a material-uncertainty paragraph regarding the Group’s ability to continue as a going concern.

Management actions to bolster liquidity include planned asset disposals, loan-collection efforts, debt extension talks, potential equity fundraising and cost-saving measures.

Post-balance-sheet event On 13 January 2026 the Company completed a placing of 20 million new shares at HK$1.00 each, raising net proceeds of approximately HK$19.60 million for general working capital.

No final dividend was declared for 2025.

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