China Ever Grand Financial Leasing Group Co., Ltd. (abbreviated as EG LEASING) released its audited results for the year ended 31 December 2025.
Revenue and Profitability • Revenue fell 5.7 % to HK$95.20 million (2024: HK$100.98 million) as softer manufacturing sales and lower rental income outweighed relatively stable distribution turnover. • Gross profit contracted 28.2 % to HK$15.31 million, slicing gross margin to 16.1 % from 21.1 %. • Loss attributable to shareholders widened 6.2 % to HK$85.85 million, translating into a basic and diluted loss per share of HK5.09 cents (2024: HK4.79 cents).
Key Operating Items • Other gains and losses recorded a net loss of HK$17.05 million (2024: HK$25.64 million), dominated by a HK$16.86 million fair-value drop in investment properties. • Impairment charges totaled HK$17.98 million, comprising goodwill (HK$10.21 million), property, plant and equipment (HK$5.69 million) and expected-credit-loss provisions (HK$2.08 million). • Share of losses from associates surged to HK$30.38 million (2024: HK$13.02 million), mainly reflecting a weaker performance at Top Insight Limited. • Administrative expenses decreased 20.7 % to HK$35.39 million following headcount rationalisation and lower professional fees.
Segment Performance • Distribution: Revenue slipped 1.0 % to HK$87.45 million; segment loss narrowed to HK$13.42 million (2024: HK$19.28 million) on a smaller goodwill impairment. • Manufacturing: Revenue dropped 57.2 % to HK$2.74 million amid intensified competition; segment loss widened to HK$12.82 million, including a HK$5.69 million asset impairment and a HK$1.79 million inventory write-down. • Investment: Rental and related income fell 19.5 % to HK$5.01 million; segment loss reduced to HK$11.80 million as fair-value losses on properties moderated.
Balance Sheet and Liquidity • Total assets contracted 14.9 % to HK$334.04 million, primarily due to the revaluation of investment properties and weaker associate contributions. • Total liabilities rose 9.2 % to HK$56.31 million, lifting the gearing ratio to 16.9 % (2024: 13.1 %). • Net assets stood at HK$277.73 million, down 18.5 % year-on-year. • Cash and cash equivalents increased to HK$49.20 million (2024: HK$13.22 million) on proceeds from Shanghai property disposals; short-term bank borrowings were HK$2.88 million. • The current ratio strengthened to 1.7 (2024: 1.4).
Capital Management and Dividends No dividend was declared for 2025 (2024: Nil).
Subsequent and Held-for-Sale Assets • An investment property in Shanghai with a carrying value of HK$6.19 million and 51.39 % of Beijing Ever Grand International Financial Leasing were classified as assets held for sale. A memorandum to dispose of the leasing stake was signed on 31 December 2025, followed by a conditional sale agreement on 3 February 2026.
Credit Exposure • Loan receivables totaled HK$4.50 million; expected-credit-loss allowance was HK$0.28 million, representing 6.2 % of the gross amount.
EG LEASING indicated that 2026 strategy will concentrate on product diversification in distribution, scaling healthy-food manufacturing, and expanding secured money-lending activities while continuing to streamline non-core or loss-making assets.