Cherish Sunshine International Limited reported a HK$46.89 million revenue for the 12 months ended 31 March 2026, down 52.3% from HK$98.25 million a year earlier. The contraction reflected weaker demand for procurement and IT projects as well as lower rental receipts after outsourcing its Wuhan property leasing operations.
Gross profit slipped 32.4% to HK$19.06 million, yet gross margin widened 11.9 percentage points to 40.6% as fewer low-margin EPC procurement contracts were executed. Administrative expenses fell 22.2% to HK$31.48 million under cost-control measures.
Bottom-line impact was tempered by sharply reduced non-cash charges: impairment losses on receivables and contract assets dropped to HK$8.42 million (FY2024/25: HK$47.95 million) and fair-value loss on investment properties narrowed to HK$9.61 million (FY2024/25: HK$56.36 million). Finance costs, however, rose 24.8% to HK$9.66 million on higher borrowings. Resulting net loss attributable to shareholders decreased 76.8% year-on-year to HK$28.67 million (FY2024/25: HK$123.89 million).
Segment performance • Procurement & IT services: Revenue HK$17.55 million (-71.3%), contributing 37.4% of group turnover. Completion of two major EPC contracts in the prior period and continued market competition drove the decline. • Trading: Revenue HK$20.00 million (+5.2%), 42.7% of turnover; margins remained thin, posting a small loss after receivable impairment. • Rental: Revenue HK$5.90 million (-56.2%), 12.6% of turnover, following the five-year outsourcing agreement signed in early 2025. • Energy management contracting: Revenue HK$3.45 million (-26.8%), 7.4% of turnover; management is pursuing new contracts to stabilise this business.
Balance-sheet and liquidity Total assets slipped to HK$511.07 million (31 March 2025: HK$538.01 million) while total equity fell to HK$164.59 million (31 March 2025: HK$193.04 million). Cash and restricted deposits contracted to HK$4.57 million from HK$21.43 million, leaving a current ratio of 0.71 and net current liabilities of HK$98.08 million.
Interest-bearing bank and other borrowings edged up to HK$147.93 million, with HK$145.81 million repayable within 12 months. Two loan facilities (HK$117.48 million in aggregate) were reclassified as current after covenant breaches triggered lenders’ rights to demand immediate repayment. Group gearing (debt plus convertible bonds to equity) rose to 1.05x (31 March 2025: 0.89x).
Capital activities • Rights issue (Feb 2023): HK$117.10 million net raised; HK$97.10 million deployed mainly to procurement, trading and R&D; HK$20.00 million remains earmarked for energy-management business acquisitions. • Share placement (Sep 2024): HK$42.40 million net raised; HK$8.60 million used for working capital; HK$33.80 million allocated to new-energy and intelligent-service projects remains unutilised.
Litigation and contingencies Outstanding claims include supplier and employee disputes and a lender lawsuit; the Group has recognised HK$9.61 million litigation provisions and continues recovery efforts on overdue receivables, particularly from photovoltaic-sector customers affected by industry oversupply and policy shifts.
Going-concern considerations Auditors highlighted material uncertainty over liquidity; management cites tighter cost control, an undrawn RMB150 million standby facility (5% p.a.) and potential equity financing as mitigating measures.
Strategic outlook The Group is exploring photovoltaic inverter, energy-storage and intelligent-service opportunities while strengthening risk management to navigate credit pressures along its supply chain.