Zhongzi International Holdings (Zhongzi International) released audited results for the year ended 30 April 2026, showing a markedly reduced net loss but continued top-line pressure as weak global demand weighed on its LED decorative-lighting business.

Financial Highlights (FY ended 30 April 2026 versus FY 2025) • Revenue: HK$24.47 million, down 7.2% from HK$26.44 million, driven chiefly by softer mainland China sales (-37.9% to HK$2.47 million). Canada remained the dominant market, contributing HK$19.19 million, or 78% of group turnover. • Gross profit: HK$3.50 million, a 5.4% decline; gross margin edged up to 14.3% from 14.0% as cost of sales fell slightly faster than revenue. • Net loss attributable to equity holders: HK$4.37 million, sharply narrower than the HK$44.89 million loss a year earlier. The swing reflected the absence of a HK$19.20 million inventory write-down and a reversal from a HK$25.32 million net loss in other income/losses to a modest HK$0.03 million gain. • Basic and diluted loss per share: 0.87 HK cents (FY 2025: 8.98 HK cents). • Administrative expenses jumped 44.4% to HK$7.77 million on higher staff, legal and professional costs. • Finance costs decreased 28.6% to HK$0.45 million, aided by the full repayment of HK$15.54 million in bank borrowings during the year. • Cash and bank balances fell to HK$0.89 million from HK$16.11 million; current ratio softened to 1.61x (FY 2025: 1.75x). • Net assets stood at HK$10.50 million, down from HK$15.96 million a year earlier. No dividend was declared.

Operational Snapshot The Group continues to operate a single business segment—designing, manufacturing and trading LED decorative lighting. Revenues are concentrated, with one Canadian customer (Customer A) representing 78% of sales. Non-current assets were trimmed to HK$0.13 million after depreciation of right-of-use assets; property, plant and equipment carried no book value at year-end.

Management Commentary & Outlook Management cited subdued global demand, post-pandemic uncertainties and higher US interest rates as headwinds in FY 2026. While Canadian sales were relatively stable (-3.0%), mainland Chinese revenue fell amid ongoing weakness in property and construction markets. The company plans to maintain a “prudent yet flexible” strategy, exploring diversification through potential acquisitions and partnerships to broaden its revenue base and enhance resilience.

Capital Structure & Liquidity • Equity: 500 million shares in issue; no change since GEM listing in 2017. • Net cash position following repayment of all bank borrowings; gearing ratio not applicable. • No asset pledges, capital commitments or contingent liabilities reported.

Governance & Other Matters The Audit Committee reviewed the FY 2026 financial statements; the company states full compliance with Hong Kong’s Corporate Governance Code. No purchase, sale or redemption of listed securities occurred during the year, and there were no post-balance-sheet events up to 31 August 2026.

Zhongzi International remains exposed to foreign-exchange fluctuations due to US-dollar-denominated sales against RMB and HK-dollar costs, recording a HK$0.37 million exchange gain in FY 2026.