Frontier Services Group Limited reported a net loss of HK$206.01 million for the year ended 31 December 2025, widening from a HK$100.00 million loss in 2024. Loss attributable to equity holders reached HK$204.50 million, with basic and diluted loss per share expanding to 8.51 cents (2024: 4.32 cents).

Revenue from continuing operations fell 14.0% year-on-year to HK$651.47 million, driven by:

• Security & Insurance business: HK$484.71 million (-3.1% YoY). • Aviation & Logistics business: HK$163.87 million (-27.3% YoY). • Other services: HK$2.89 million (-74.9% YoY).

The discontinued Healthcare unit contributed no revenue in 2025 (2024: HK$16.42 million).

Key cost items included direct materials and subcontracting of HK$248.23 million (-21.7% YoY) and employee benefits of HK$306.60 million (flat YoY). Operating loss from continuing operations widened to HK$189.50 million (2024: HK$49.65 million).

Impairments and Provisions • Goodwill and other intangibles: HK$80.81 million, mainly against a Hong Kong security CGU following management change, customer loss and pricing pressure. • Financial assets: HK$24.48 million, reflecting slower customer payments. • Property, plant and equipment/right-of-use assets: HK$3.31 million. • Litigation provision (logistics arm, China): HK$15.40 million after court ruling.

Segment Results • Security & Insurance swung to an operating loss of HK$116.24 million (2024: +HK$9.94 million) on lower margins and impairments. • Aviation & Logistics posted a HK$44.25 million loss (2024: HK$7.09 million loss) after reduced volumes, aircraft disposal losses of HK$7.09 million and the litigation provision. • Healthcare exit led to a HK$6.00 million loss from discontinued operations (2024: HK$24.81 million loss).

Balance Sheet and Liquidity Total assets fell to HK$698.73 million (2024: HK$911.02 million) after impairment charges and lower receivables. Cash and cash equivalents stood at HK$152.59 million (2024: HK$163.86 million). Borrowings rose to HK$177.00 million, lifting the gearing ratio to 25.3% (2024: 15.4%). Current ratio improved to 1.61 (2024: 1.06) following removal of a lender’s unfettered repayment right, allowing HK$100 million of loans to be reclassified as non-current.

Net assets contracted to HK$209.32 million (2024: HK$397.25 million), with shareholders’ equity decreasing to HK$88.51 million. Net asset value per share fell to 3.68 cents (2024: 11.39 cents).

Other Highlights • Loss on deconsolidation of subsidiaries: HK$6.98 million after voluntary liquidation of the Healthcare unit and a security subsidiary. • Tax expense dropped to HK$0.64 million (2024: HK$8.99 million). • No dividend declared.

Management Outlook The board plans to concentrate resources on the security segment, expand overseas contracts, and leverage its Kenyan aviation platform. Cost controls include fleet rationalisation and further restructuring. A new Chief Executive Officer appointed in late-2025 is expected to accelerate the turnaround strategy.

Pending Matters FSG remains on the U.S. Department of Commerce Entity List; a petition for removal was filed in September 2024, and the company initiated legal action in March 2026 after receiving no response. In addition, appeals continue against the Shanghai court judgment related to the logistics claim.

Audit and Governance The results were reviewed by the Audit Committee and agreed with auditor PricewaterhouseCoopers. The company states full compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors.