CITD 2025 Results: Revenue Down 16.9% to HK$34.46 Million, Net Loss Expands to HK$99.46 Million

Bulletin Express
Mar 26

China Information Technology Development Limited (“CITD”, 08178) released its audited results for the year ended 31 December 2025.

• Revenue fell 16.9% year-on-year to HK$34.46 million, driven by a HK$5.36 million drop in property rental income and softer demand for IT solutions and maintenance services. • Loss attributable to equity holders widened to HK$99.46 million (2024: HK$37.63 million), translating into a basic and diluted loss per share of HK(110.77) cents. • Key drag factors:  – Fair-value loss on PRC investment properties surged to HK$54.23 million (2024: HK$20.62 million).  – Impairment losses under the expected-credit-loss model jumped to HK$20.33 million (2024: HK$0.99 million), mainly linked to a rent dispute with the Guangzhou property tenant.  – Administrative expenses increased 16.2% to HK$39.59 million, reflecting higher legal, professional and staff costs.

Segment performance • IT solutions & maintenance generated HK$28.63 million revenue (–5.5% YoY), booking a segment loss of HK$1.54 million. • Property rental contributed HK$5.83 million revenue (–47.9% YoY) and a segment loss of HK$68.99 million following the fair-value write-down. • Securities investments recorded a HK$0.13 million loss.

Financial position • Cash and bank balances increased to HK$14.93 million (2024: HK$5.37 million) after a HK$35.44 million rights issue (completed 8 Oct 2025) and a HK$3.92 million share placing (5 Dec 2025). • Total borrowings stood at HK$60.91 million; gearing ratio rose to 0.36 (2024: 0.25). • Net assets declined to HK$170.46 million (2024: HK$245.00 million) after recognising the wider loss and fair-value adjustments.

Capital & corporate actions • October rights issue: 27.47 million new shares issued, raising HK$32.05 million net. • December placing: 14.00 million shares placed, raising HK$3.88 million net. • August 2025 proposal to subscribe 12.35 million new shares by a UAE investor lapsed due to non-completion. • June 2025 proposed RMB150 million Guangzhou property disposal terminated in July by mutual agreement. • December 2025 disposal of subsidiary Rosy Depot Limited for HK$4.0 million (net cash HK$1.0 million) realised an HK$1.99 million loss.

Outlook & strategy Management targets prudent financial management, continued expansion in AI, cloud and Web 3.0 solutions, and overseas opportunities, notably in the UAE. The Group plans to allocate remaining rights-issue proceeds to working capital in Hong Kong and the Middle East, and will seek additional funding for technology development and market expansion as needed.

The Board did not recommend a final dividend for FY2025.

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