Champion Alliance International Holdings Limited (CHAMP ALLI INTL, 01629) released its audited results for the year ended 31 December 2025, revealing a swing to loss amid higher impairments and rising costs.

Revenue and Profitability • Revenue rose 14.8% year on year to RMB135.18 million, driven primarily by a 17.50% increase in household paper and hygiene product sales to RMB123.16 million. • Gross profit inched up 6.21% to RMB19.19 million, but the gross margin narrowed to 14.2% from 15.3% a year earlier as cost of sales climbed 16.42% to RMB115.99 million. • The Group posted a loss attributable to equity holders of RMB26.42 million, reversing the prior-year profit of RMB3.09 million. Basic loss per share stood at RMB4.84 cents versus earnings of RMB0.57 cent in FY2024. • Key pressure points included a RMB28.55 million impairment on other receivables and a RMB4.16 million impairment on trade receivables, together offsetting the topline growth.

Segment Performance • Household paper and hygiene products contributed 91.1% of total revenue. • Property leasing income declined 6.57% to RMB12.02 million, reflecting lower rental receipts.

Cost Structure and Expenses • Selling and distribution expenses jumped 51.10% to RMB3.73 million, mainly on higher transportation costs. • Administrative expenses rose 8.78% to RMB7.84 million, linked to increased staffing costs. • Finance costs escalated 65.38% to RMB1.28 million, reflecting additional borrowings and higher interest rates.

Balance Sheet and Liquidity • Cash and cash equivalents increased to RMB131.80 million from RMB119.21 million. • Net current assets improved to RMB175.56 million (2024: RMB160.09 million). • Total debt expanded to RMB26.42 million, lifting the gearing ratio to 8.7% (2024: 6.6%). • Capital expenditure reached RMB2.65 million, focused on plant, machinery and office equipment. • No significant contingent liabilities were reported.

Dividend The Board proposed no final dividend for FY2025.

Capital Allocation Since listing in 2016, the company has utilised RMB20.46 million of its RMB37.58 million net IPO proceeds. As at year-end 2025, RMB17.12 million remains earmarked for production and facility upgrades, with planned utilisation by 31 December 2026.

Operational Outlook Stated by Management Management expects China’s ongoing urbanisation and rising hygiene awareness to sustain demand growth in household paper and hygiene products. Strategic priorities include deepening regional penetration, launching eco-friendly product lines and optimising the supply chain.

Board and Governance The Audit Committee, comprising solely independent non-executive directors, reviewed the FY2025 results. The company affirmed full compliance with the HKEX Corporate Governance Code and reported no share repurchases or sales during the year.

The Annual General Meeting is scheduled for 25 June 2026, with the share register closed from 22 June to 25 June 2026 (both dates inclusive).