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<Results> Greater China Financial (00431.HK) Narrows Full-Year Loss to HKD26.32 Million; Auditor Unable to Express Opinion
Greater China Financial (00431.HK) announced its 2025 annual results, reporting revenue of HKD75.26 million, a year-on-year increase of 2.96 times. The loss narrowed from HKD113 mi...
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<Results> Greater China Financial (00431.HK) Narrows Full-Year Loss to HKD26.32 Million; Auditor Unable to Express Opinion
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Greater China Financial (00431.HK)  0.000 (0.000%)   announced its 2025 annual results, reporting revenue of HKD75.26 million, a year-on-year increase of 2.96 times. The loss narrowed from HKD113 million in the previous year to HKD26.315 million; the loss per share was HKD0.0034. No dividend was declared.

Dividend History
Announce DateEventParticular
2026/02/27InterimNo Dividend
2026/02/13FinalNo Dividend
2024/08/27InterimNo Dividend
2024/03/28FinalNo Dividend

The independent auditor was unable to express an opinion, citing insufficient appropriate audit evidence to provide a basis for an audit opinion on the consolidated financial statements.

Since July 2024, despite multiple attempts by the company's directors to contact the local management responsible for preparing and maintaining accounting books and records, as well as bank statements and operational data for nine indirect wholly-owned subsidiaries (collectively referred to as "Target Subsidiaries"), the directors have been unable to obtain the books and records due to certain remuneration-related disputes ("Disputes").

The Target Subsidiaries include Beijing Shengfenghui Consulting Co., Ltd. and its three wholly-owned subsidiaries Beijing Xinhefeng Holdings Co., Ltd., Beijing Anjia Shixing Financing Guarantee Co., Ltd., and Horgos Anjia Shixing Enterprise Consulting Services Co., Ltd.; and Beijing Dinghuitongmei Consulting Co., Ltd. and its four wholly-owned subsidiaries Beijing Xinnuo Micro Asset Management Co., Ltd., Shenzhen Xinnuo Micro Commercial Factoring Co., Ltd., Horgos Nuowei Enterprise Management Consulting Co., Ltd., and Horgos Nuoli Enterprise Consulting Services Co., Ltd.

The Target Subsidiaries are primarily engaged in providing financing guarantees, loan referrals, and consulting services in Beijing. The disputes over remuneration have led to non-cooperation from local management and staff, preventing the group from obtaining the books and records.

As disclosed in Note 3 to the consolidated financial statements, the directors primarily consolidated the financial information of the Target Subsidiaries based on the book value of assets and liabilities as of June 30, 2024, and the performance and cash flows for the six months ended June 30, 2024. The directors believe that there were no significant transactions for the Target Subsidiaries from July 1, 2024, to December 31, 2025.

However, the auditor was unable to obtain the books and records of the Target Subsidiaries to audit the consolidated financial statements. Therefore, the auditor could not obtain sufficient appropriate audit evidence to satisfy themselves that the book values of assets and liabilities included in the group's consolidated financial position as of December 31, 2024, and 2025, and the performance and cash flows included and presented in the group's consolidated income and other comprehensive income statements and consolidated cash flow statements for the years ended December 31, 2024, and 2025, were free from material misstatement.

As a result, the auditor was also unable to determine whether any adjustments were necessary for the recorded or unrecorded transactions that form part of the consolidated financial position, consolidated income and other comprehensive income statements, consolidated equity changes statements, and consolidated cash flow statements for the years ended December 31, 2024, and 2025.

The auditor was unable to perform any alternative audit procedures to obtain sufficient audit evidence regarding the above matters. Due to these issues, the auditor could not determine whether any adjustments were needed for the items and related disclosures in the consolidated financial statements.

The auditor noted that the group incurred a loss of HKD26.315 million in the previous year. As of the end of last year, the group's current liabilities exceeded its current assets by HKD904 million, and its total liabilities exceeded its total assets by HKD904 million. On the same date, the group's cash and cash equivalents were HKD24.193 million, while it recorded current borrowings of nearly HKD240 million, accrued interest payable of approximately HKD55.572 million, and convertible bonds of approximately HKD33 million. The group has provided guarantees for its clients' financing and loans to some of the clients' lenders, amounting to approximately HKD516 million, which have defaulted, with a litigation liability provision of approximately HKD7.927 million. Additionally, as of the date of this report, the current borrowings of approximately HKD213 million as of December 31, 2025, have defaulted. These circumstances indicate the existence of significant uncertainties that may cast serious doubt on the group's ability to continue as a going concern. (ec/da)(HK stocks quote is delayed for at least 15 mins.)
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