Joyas International Holdings Limited: FY2025 Financial Review & Investor Insights

Joyas International Holdings Limited, a company listed on the Singapore Exchange Catalist board, has released its condensed consolidated financial statements for the second half and full year ended 31 December 2025. The company primarily operates a financing business in Hong Kong and the PRC, with all revenues derived from these regions.

Key Financial Metrics

Historical Performance Trends

• Revenue: Revenue was stable, decreasing marginally by 0.4% YoY in FY2025 to HK\$3.501 million. The business remains highly concentrated in financing activities, with interest income as the main contributor.
• Profitability: Net loss deepened from HK\$370,000 in FY2024 to HK\$641,000 in FY2025, reflecting higher impairment charges, lower other income, and a slight increase in administrative expenses.
• EPS: Loss per share widened to (0.03) HK cents from (0.02) HK cents year-on-year.
• Net Asset Value: NAV per share declined to 0.41 HK cents as at end-2025 from 0.44 HK cents a year earlier, reflecting ongoing losses.

Cash Flow and Financial Position

• Operating Cash Flow: The Group generated HK\$536,000 in operating cash flow in FY2025, up from HK\$108,000 in FY2024, mainly due to working capital improvements and lower advances.
• Cash and Cash Equivalents: Cash and bank balances dropped significantly to HK\$395,000 at year-end (from HK\$10.1 million), mainly due to repayment of bank overdrafts and a decrease in pledged deposits.
• Borrowings: Total borrowings fell to HK\$5.65 million (from HK\$14.95 million), as the bank overdraft was repaid in full.

Dividends

• No dividends were proposed or declared for FY2025 or FY2024, as the company remains loss-making and carries accumulated losses.

Segmental and Customer Analysis

• All revenue is generated from the PRC (including Hong Kong).
• The business is highly concentrated, with the majority of revenue coming from a small number of financing customers. The top five customers contributed approximately 65% of total sales in FY2025.

Exceptional Items and Notable Events

• Impairment Losses: The company increased its loss allowance on loans and advances to HK\$1.59 million, reflecting heightened credit risk and slow repayments by key borrowers.
• Receivables from Mr. Wang De Zhou: Repayments have slowed due to weak nickel prices and the borrower’s cash flow issues. No repayment was received in 2H2025, and future payments depend on the borrower’s surplus cash.

Related Party Transactions

• Administrative expenses of HK\$65,000 were paid to related parties, and advances from a related party remain outstanding at HK\$26,000. All such transactions are unsecured, interest-free, and repayable on demand.

Corporate Actions and Capital Structure

• No changes to issued share capital, no share buybacks, and no outstanding convertible securities.
• No asset sales, IPOs, or fundraising occurred during the period.

Macroeconomic and Business Outlook

The management commentary notes:

• No material updates on the nickel-related receivable, with repayments dependent on the borrower’s cash flow and ability to raise funds.
• The financing business is expected to continue contributing to revenue over the next 6–12 months, but no growth is projected in the absence of new capital or significant opportunities.
• The company is exploring opportunities in artificial intelligence, fintech, and blockchain, but no concrete developments have occurred.
• Liquidity is currently sufficient for the next 12 months, assuming no collection problems in the financing portfolio.

Chairman’s Statement

The Board is of the opinion that the current approach by the management is in the best interest of the Company and shareholders under the current circumstances.

Tone: The statement is cautious, reflecting a lack of growth catalysts and acknowledging ongoing collection risks from key borrowers.

Conclusion and Investment Recommendations

Overall Financial Performance and Outlook: The Group’s performance remains weak, with stable but minimal revenue, persistent losses, and a significant reliance on a few borrowers. Credit risk remains elevated, and the company’s cash position has deteriorated following the repayment of bank overdrafts. No dividends are expected until profitability is restored and accumulated losses are cleared. The outlook is neutral to negative, with no clear growth path and continued exposure to slow repayments and sector risks.

Investor Recommendations

• If you currently hold this stock: Consider reducing your position or exiting unless you have a high risk tolerance and are willing to wait for a potential turnaround, which presently lacks visibility. The lack of dividends, slow collection on major loans, and ongoing losses are key concerns.
• If you do not currently hold this stock: Avoid initiating a position until there is evidence of sustained profitability, improved collections, or tangible progress in diversification and new business development.

Disclaimer: This article is based strictly on the data and disclosures provided in the company’s official financial report for FY2025. It does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consider their own financial circumstances before making investment decisions.

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