New Concepts Holdings forecasts deeper losses, reveals loan defaults

New Concepts Holdings Limited expects a net loss attributable to owners of not more than HK$21.00 million for the six months ended September 30, 2025, an increase from HK$14.85 million in the corresponding period. This rise is mainly due to a HK$7.4 million loss in the construction segment, up from HK$0.7 million, with higher-margin projects completed and ongoing projects yielding lower margins. A HK$3.5 million one-off gain from a capital injection partially mitigated the impact.

The company has also provided supplemental information on its loan portfolio, including details on the RMB19,000,000 Dingxin Loan. Shenzhen Dingxin has defaulted on this loan, leading to a full impairment recognition of HK$17,820,000. Additionally, the RMB10,000,000 Yihuan Loan has defaulted, with a full impairment of HK$9,720,000 recognized, while the RMB8,500,000 Jiusheng Loans are not yet due. The company has taken remedial actions to enhance internal controls and ensure compliance after a late announcement regarding the Dingxin Loan.

Unutilised net proceeds as at April 1, 2024, amounted to approximately HK$22.7 million from convertible bonds and new shares, which were applied during the year ended March 31, 2025, across graphene-based anode material development and construction of production facilities, including Xuancheng Plant, Hefei Plant, and Yixing Plant.