Hong Kong-listed XH NEWS MEDIA (00309) reported its audited results for the 12 months ended 31 March 2026.

Financial Highlights • Revenue edged down 0.48% year on year to HK$358.42 million (FY25: HK$360.13 million), sustained entirely by the cleaning and related services segment. • Loss attributable to owners expanded to HK$13.31 million from HK$7.44 million a year earlier; basic and diluted loss per share widened to HK$0.2757 (FY25: HK$0.1542, restated). • Staff costs rose 4.3% to HK$260.38 million, while other operating expenses fell 8.17% to HK$109.05 million. • Other income and gains dropped sharply to HK$1.81 million (FY25: HK$7.16 million) following the absence of a HK$4.45 million one-off write-back booked in the prior year. • Finance costs decreased to HK$0.22 million (FY25: HK$0.42 million).

Segment Performance • Cleaning and related services: revenue HK$358.42 million (-0.48% YoY); segment profit HK$2.03 million (FY25: HK$2.48 million). • Advertising media business: segment loss narrowed to HK$0.68 million (FY25: HK$0.99 million). • Waste treatment: segment swung to a HK$1.32 million loss (FY25: HK$3.29 million profit), reflecting the absence of prior-year write-backs.

Balance Sheet and Liquidity • Cash and bank balances plus pledged deposits stood at HK$57.55 million (31 March 2025: HK$63.35 million). • Net current assets were HK$63.46 million; current ratio 1.91 (FY25: 2.12). • Net assets totalled HK$70.99 million (FY25: HK$85.33 million). • Interest-bearing debts comprised HK$2.83 million lease liabilities, HK$0.86 million director loans and HK$3.00 million promissory notes in default since January 2025; gearing ratio was 4.20% (FY25: 3.50%). • Two major customers accounted for HK$236.13 million, representing 65.9% of total revenue.

Auditor’s Disclaimer External auditor Prism Hong Kong Limited issued a disclaimer of opinion, citing insufficient access to accounting records of two disposed PRC subsidiaries, which constrained audit evidence for the Group’s FY26 financial statements.

Litigation and Contingent Matters • A winding-up petition was filed on 16 June 2026 by Ngans Lawyers LLP seeking HK$0.59 million in outstanding fees. Hearing is scheduled for 9 September 2026; the Board intends to oppose the petition. • Promissory notes of HK$3.00 million remain in default. • Arbitration award of RMB5.20 million against two disposed subsidiaries by a former non-executive director; management is contesting enforceability. • Performance guarantee liabilities total HK$2.22 million, covered by pledged deposits.

Capital Moves Post Year-end • Completed share subscription of 153.00 million shares at HK$0.033 each, offsetting HK$5.05 million debt on 27 May 2026. • Forty-for-one share consolidation approved on 22 June 2026, effective 24 June 2026.

Dividend and Outlook No final dividend was proposed. Management will focus on expanding the cleaning services portfolio, integrating automation, and pursuing AI-driven marketing solutions while monitoring litigation outcomes and addressing the auditor’s concerns to restore financial robustness.