Dowway Holdings (Stock Code: 08403) released its audited results for the year ended 31 December 2025.
• Revenue declined 32.56% year on year to RMB94.52 million, driven by reduced exhibition and event activity from major clients Haier and China Unicom.
• Gross profit edged up 5.10% to RMB17.26 million, lifting the gross margin to 18.26% (2024: 11.72%) on improved project mix and cost controls.
• Net loss expanded to RMB17.35 million from RMB6.32 million in 2024; basic loss per share widened to RMB11.93 cents (2024: RMB4.69 cents).
• Administrative expenses increased 46.67% to RMB26.84 million, reflecting higher personnel and professional costs tied to the Group’s digital transformation initiatives.
• Cash and bank balances stood at RMB17.09 million, up from RMB6.21 million a year earlier, while total interest-bearing borrowings rose to RMB31.00 million. The gearing ratio decreased to 243.39% (2024: 774.27%) following several share subscriptions and a placing that raised approximately HK$28.43 million.
• The Board proposed no final dividend.
Operational highlights • 125 exhibition and event projects, 37 showroom mandates and 65 one-stop value-chain service orders were executed during the year. • Revenue breakdown: exhibition and event services RMB78.42 million; showroom services RMB8.92 million; IT solutions RMB6.47 million; one-stop value-chain services RMB0.62 million; SaaS platform services RMB0.10 million. • Acquisition of Yi-commerce Holding Limited completed in April 2025 for HK$8.00 million (RMB7.52 million), adding IT solutions and SaaS capabilities and generating RMB2.99 million revenue post-acquisition.
Balance-sheet and financing • Total assets rose to RMB114.86 million (2024: RMB131.12 million) with goodwill of RMB7.65 million recognised from the Yi-commerce acquisition. • Net current assets stood at RMB2.51 million. • No pledged deposits at year-end; prior-year RMB1.00 million restricted balance released. • Interest on bank and other borrowings ranged from 2.30%–12.00% per annum.
Going-concern considerations The auditor highlighted material uncertainties related to cash outflows from operations and the concentration of short-term borrowings. Management plans to negotiate repayment schedules, seek loan renewals, pursue new income streams and rely on financial support from controlling shareholder Mr Sun Wei.
Strategic developments and outlook • The Board has proposed rebranding the Company to “Defeng Solife Holdings Limited” to signal expansion beyond traditional exhibition services into digital agriculture, cultural tourism and SaaS-based supply-chain solutions. • A SaaS procurement platform for agri-food products is under testing with commercial launch targeted for Q2 2026. • Management intends to consolidate premium exhibition mandates, scale digital agricultural operations and leverage the July 2025 upgrade of its ADRs to the OTCQX market to enhance access to global capital.
No material capital commitments, contingent liabilities or dividends were reported for FY2025.