Dufu Liquor Group Limited reported a net loss of HK$17.66 million for the financial year ended 31 March 2026, reversing from a HK$30.39 million profit a year earlier. The swing was driven primarily by a HK$49.92 million net allowance for expected credit losses (ECL) on trade, loan and interest receivables, compared with a HK$16.32 million reversal in FY25.

Revenue fell 18.34% year on year to HK$54.94 million, as the Design and Marketing of Jewelry segment declined 44.70% to HK$19.04 million amid weaker Asian jewellery demand. The Money Lending segment, however, grew 9.28% to HK$35.91 million on increased lending volumes.

Despite lower top-line sales, gross profit rose 7.18% to HK$37.01 million, lifting the gross margin to 67.36% (FY25: 51.32%), reflecting the higher contribution from the higher-margin Money Lending business. Selling, distribution and administrative expenses were trimmed by 7.45% to HK$15.16 million, while finance costs inched up 10.83% to HK$2.79 million, mainly due to higher interest on loan payables and imputed interest on unconvertible bonds.

Segment results highlighted diverging trends: • Jewelry: Operating loss widened to HK$5.38 million (FY25 loss: HK$1.13 million) on revenue contraction. • Money Lending: Shifted to a HK$13.02 million loss (FY25 profit: HK$47.50 million) after significant ECL charges. Year-end loan receivables increased 12.46% to HK$385.61 million, with the ECL allowance rising to HK$95.45 million, equivalent to a 24.75% provision ratio (FY25: 13.57%).

Balance-sheet metrics showed tighter liquidity. Net current assets dropped to HK$90.49 million (FY25: HK$259.73 million) and cash declined to HK$0.14 million. Total interest-bearing borrowings rose to HK$36.16 million, nudging the gearing ratio to 9.71% (FY25: 8.42%). Financial assets at fair value through other comprehensive income fell to HK$3.87 million from HK$16.89 million, and net assets decreased 7.01% to HK$341.38 million.

No dividend was declared for the year. Subsequent to year-end, the company completed a 10-for-1 share consolidation effective 27 May 2026, prompting a retrospective adjustment of earnings-per-share figures; basic and diluted EPS stood at a loss of HK$0.1364 versus a profit of HK$0.2347 in FY25.

Management intends to continue reviewing the business portfolio and seek new investment opportunities while reinforcing risk controls in the money-lending operations.