Madison Holdings Group Limited (Madison Holdings) reported a net loss of HK$22.67 million for the financial year ended 31 March 2026, widening from HK$15.25 million in FY25. The decline stemmed chiefly from weaker loan-financing income and a higher impairment charge on lending assets.
Revenue fell 18.6% year-on-year to HK$57.90 million. Loan Financing—Madison Holdings’ largest business—contributed 69.2% of total revenue, slipping 20.3% to HK$40.08 million and turning to a segment loss of HK$8.53 million (FY25: HK$6.96 million profit). Wine sales generated HK$17.83 million, down 14.4%, with a segment loss of HK$3.07 million. The Financial Services segment recorded no revenue.
Gross profit decreased 20.5% to HK$43.72 million; group gross margin edged down to 75.5% from 77.3%. A HK$32.56 million net impairment on loan and interest receivables—equivalent to 11.6% of total revenue—was the single largest expense item, up 23% from FY25.
Cost reductions partly cushioned the impact: • Staff costs fell 9.9% to HK$26.51 million. • Depreciation dropped 52.5% to HK$1.73 million following lease reductions. • Finance costs declined 32.2% to HK$4.38 million as borrowing levels eased.
Other income more than doubled to HK$5.13 million, buoyed by a HK$4.30 million net exchange gain.
Balance-sheet metrics weakened but remained positive. Cash and bank balances stood at HK$23.10 million (FY25: HK$22.32 million); net current assets contracted to HK$95.95 million from HK$127.70 million. Total equity was HK$146.76 million, while non-trade interest-bearing debt (borrowings and shareholder loans) totalled HK$79.85 million, producing a gearing ratio of 54.4% (FY25: 63.6%).
The loan book—after a HK$50.46 million allowance—amounted to HK$279.50 million, with 27.9% secured by collateral. The average monthly interest rate on new loans fell to 1.15% from 1.45% in the prior year.
In May 2026 Madison Holdings completed a 10-into-1 share consolidation, reducing its share count to 62.31 million and increasing nominal share value to HK$0.10 each. No final dividend was proposed.
Management highlighted continued economic headwinds in Hong Kong and mainland China and said it will maintain a cautious strategy, focusing on cash preservation, tighter credit controls and potential strategic partnerships.