New Concepts Holdings Limited (2221) provided additional information regarding its loan receivables and certain financial arrangements in a supplemental announcement to its annual report for the year ended 31 March 2025. The primary focus is on three sets of loan receivables—extended to Shanxi Yihuan Biotechnology Co., Ltd., Shanxi Jiusheng Technology Energy Co., Ltd., and Shenzhen Dingxin Holding Group Co., Ltd.—and the basis of impairment assessments conducted under HKFRS 9.

The announcement indicates that loans to Shanxi Yihuan and Shenzhen Dingxin were classified under Stage 3 of the impairment model, as these borrowers defaulted and showed no signs of prompt repayment. Court judgments have been obtained in relation to the Shanxi Yihuan loan, and New Concepts Holdings Limited is monitoring a prospective third-party purchase of Shanxi Yihuan in order to safeguard and recover the outstanding balance.

Loans to Shanxi Jiusheng remain under Stage 1 of the HKFRS 9 assessment, as the principal amounts are not yet due and the company remains a potential supplier of waste oil. The announcement notes that management believes these loans may be offset by future collaboration and acquisitions of waste oil, subject to upcoming project developments in Shanxi Province.

Regarding the allocation of previously raised proceeds from convertible bonds and share issuances, the announcement details that approximately HK$22.7 million of unutilized proceeds as of 1 April 2024 were fully applied during the reporting period, primarily for the development of graphene-based anode materials and the construction of production facilities in Xuancheng, Hefei, and Yixing.

According to the announcement, no other information in the 2025 annual report is affected, and all original disclosures in the annual report remain unchanged.