Zhong Hua International Holdings Limited reported FY 2025 revenue of HK$31.29 million, up 9.7% year-on-year, driven entirely by rental income from its Chongqing investment property.

A HK$31.10 million fair-value gain on the Group’s 25% indirect stake in Guangzhou Zheng Da Real Estate Development Co. offset a HK$34.99 million downward revaluation of the Chongqing property and lifted consolidated profit before tax to HK$0.36 million (FY 2024: loss of HK$71.35 million). After a HK$12.63 million deferred-tax credit, profit for the year reached HK$12.98 million, versus a HK$78.67 million loss a year earlier.

Loss attributable to ordinary shareholders narrowed to HK$14.96 million (FY 2024: HK$46.13 million), as most of the turnaround benefit accrued to non-controlling interests.

Key operating metrics • Administrative expenses were broadly stable at HK$27.41 million. • Adjusted EBITDA improved to HK$4.59 million from HK$1.61 million. • Cash and cash equivalents stood at HK$59.41 million, representing 4.2% of total assets. • The equity investment in GZ Zheng Da was valued at HK$1.01 billion, equal to 72% of total assets and 101% of net assets. • Gearing, measured as amounts due to a director over total assets, eased to 0.09 (FY 2024: 0.10).

Balance-sheet snapshot Total assets were largely unchanged at HK$1.40 billion, while net assets edged up 2.1% to HK$998.45 million. Net current assets declined to HK$2.30 million (FY 2024: HK$20.29 million) after a HK$8.68 million reduction in trade receivables.

Dividend The Board did not recommend a final dividend, in line with the previous year.

Qualified audit opinion Auditor Ernst & Young issued a qualified opinion for a second consecutive year, citing insufficient evidence to determine the ultimate allocation of residual assets in GZ Zheng Da, which is under court-ordered liquidation. The uncertainty could affect the HK$1.01 billion carrying value of the Group’s equity interest. Management maintains that its subsidiary HK Zheng Da is entitled to 100% of the residual assets and is pursuing legal remedies to resolve the matter.

Outlook Management expects the Chongqing property to continue generating stable rental income and plans to progress the Guangzhou redevelopment once liquidation issues are resolved, with full-scale construction targeted for late 2027. The Group is also piloting an integrated photovoltaic power and charging-station venture in the Greater Bay Area, aiming for commercial contributions within two years.