Du Du Holdings Limited released its audited results for the year ended 30 June 2026, detailing a sharp contraction in top-line performance and a swing to a significantly wider loss.

Revenue and Margin • Group revenue from continuing operations fell 44.09% to HK$3.00 billion (FY25: HK$5.36 billion), driven mainly by a 50.89% decline in the fresh produce and agricultural trading segment to HK$2.26 billion. • Gross profit dropped 37.89% to HK$19.79 million, although the overall gross margin inched up to 0.66% (FY25: 0.59%) on a higher revenue mix from meat processing. • Segment gross margins: meat processing 1.19% (FY25: 1.39%); fresh produce trading 0.35% (FY25: 0.39%).

Earnings • Loss from continuing operations widened to HK$51.43 million (FY25: HK$13.13 million). • Including a HK$2.39 million gain from the discontinued heating supply unit, the Group recorded a net loss attributable to owners of HK$49.04 million (FY25: HK$13.14 million). • Basic and diluted loss per share stood at 14.02 HK cents; loss per share from continuing operations was 14.70 HK cents.

Impairment and Fair-Value Movements • Impairment losses on financial assets surged to HK$47.39 million (FY25: HK$20.43 million), of which HK$38.48 million related to trade, bill and other receivables and HK$8.91 million to loan and interest receivables. • Net fair-value and realised movements on listed securities resulted in a HK$0.34 million combined loss (FY25: HK$2.07 million net gain).

Segment Results • Fresh produce and agricultural trading recorded a HK$43.72 million loss (FY25: HK$5.86 million loss). • Meat processing delivered HK$5.97 million profit (FY25: HK$8.65 million). • Money lending posted a HK$5.92 million loss (FY25: HK$7.63 million loss) on higher expected credit losses; year-end loan and interest receivables net of ECL stood at HK$28.30 million.

Balance Sheet and Liquidity • Cash and cash equivalents: HK$36.89 million (FY25: HK$55.92 million). • Net current assets: HK$268.94 million; current ratio 5.42 x (FY25: 14.33 x). • Gearing ratio (total liabilities/total assets): 0.18 (FY25: 0.07). • The Group had no bank borrowings or material pledges of assets.

Capital Management • In October 2025 the Company repurchased 20.42 million shares, reducing issued shares to 344.21 million. • Net assets at 30 June 2026 were HK$287.82 million.

Operational Moves • The heating supply business has been discontinued and its subsidiary deregistered; a HK$2.39 million gain was recognised. • Management is downsizing low-margin food trading and plans to enter the Hong Kong construction sector to diversify income.

Dividend • The Board has not recommended a dividend for FY26 (FY25: Nil).

Outlook Management remains optimistic about mainland China’s food-consumption fundamentals but intends to focus resources on higher-margin activities—particularly the growing meat-processing operation—and on the newly announced construction initiative. Ongoing credit-risk management and cost controls are identified as near-term priorities.