Zhongzi International Holdings Limited

All figures in HK$ M, fiscal years ending 30 April. Sources: etnet compiled financials (FY2022–FY2026, drawn from annual results), FY2025 annual results announcement (31 Jul 2025), and MarketScreener/S&P CIQ (FY2026 headline). The full FY2026 annual report (published c.

Income statement

Notes: EBIT = pre-tax income + net finance cost; EBITDA = EBIT + D&A (derived). These reconcile exactly to etnet's EBITDA-margin series. FY2026 directors' emoluments are not publicly disclosed in the sources reviewed (the 0 in that column is a placeholder; do not chart it). Diluted EPS equals basic because no potential ordinary shares were outstanding (FY2025 note 10).

Margins and growth

Revenue CAGR: FY2022→FY2026 (4 years): –36.4% p.a. FY2021→FY2026 (5 years, from HK$200.91M): –34.4% p.a.

Commentary.

FY2022–FY2023 inflection: Revenue halved in FY2023 as pandemic-era décor demand normalised. The profit warning cited lower revenue, inventory write-downs and higher ECL provisions (HKEX, 24 Jul 2023). The swing from a HK$5.7M profit to a HK$69.9M loss was driven by impairments: etnet shows HK$14.0M of "other fair-value changes and impairment", HK$2.0M of asset impairment and HK$22.6M of other non-operating charges.

FY2024: Revenue halved again. Management wrote PP&E down to nil (HK$5.5M), wrote off HK$5.1M of prepayments and booked HK$9.0M of inventory write-downs. The FY2024 cost base was a fixed-cost structure built for a business 6× larger.

FY2025: The Group liquidated obsolete stock. Inventory fell from HK$54.9M to HK$12.1M, at the cost of a HK$28.0M loss on scrap sales and a HK$19.2M write-down. Management states that excluding ECL and inventory write-downs, the loss was HK$28.6M (FY2025 MD&A). Administrative expenses fell 45% on lower staff and professional fees.

FY2026: Revenue declined 7.5% to HK$24.47M. The net loss narrowed 90% to HK$4.37M, mainly because FY2025's scrap-sale loss did not recur (Sina/Sohu summary of the FY2026 annual report). Gross margin was flat at 14.3%. H1 showed a 25.7% gross margin and a small profit (~HK$0.1M attributable), but the implied H2 gross loss erased the gain. The improvement is therefore non-operational; the core business remains loss-making at the EBITDA line (–HK$3.2M).

Balance sheet

Data provenance: - FY2024 and FY2025 are audited figures (FY2025 annual results).

• FY2022, FY2023 and FY2026 totals are derived from etnet ratios (book value per share × shares; debt/equity; debt/assets; liabilities/assets). They should be treated as approximations (±HK$0.5M).

• FY2026 inventory days of 183 imply year-end inventory of roughly HK$10M (derived from etnet's turnover-days ratio).

Key balance-sheet observations (FY2025 audited):

• Gross trade receivables of HK$33.0M carry an ECL allowance of HK$32.4M; HK$32.0M is aged over 365 days (FY2025 note 11).

• PP&E is carried at nil. The only non-current asset is an HK$0.82M right-of-use asset in the PRC.

• Deposits, prepayments and other receivables of HK$22.3M were the largest current asset at 30 Apr 2025, falling to HK$18.1M at 31 Oct 2025 (interim). Their recoverability is a key audit sensitivity.

• No charges over assets; no capital commitments or contingent liabilities (FY2025 MD&A).

Cash flow

Source: etnet cash-flow statement (FY2022–FY2026). Capex is not separately disclosed in the sources reviewed; net investing flows are de minimis because PP&E is fully impaired. No buybacks occurred (FY2025 annual results: no purchase or redemption of listed securities). No dividends were declared in any year shown.

Commentary. FY2025's positive OCF (HK$18.4M) was a one-off inventory-liquidation inflow, not recurring earnings power. In FY2026, the Group used HK$17.3M of financing outflows, essentially repaying ~HK$15.5M of bank borrowings plus leases. Cash fell to HK$0.89M at 30 April 2026. The September–October 2026 placing (net HK$4.83M) was explicitly earmarked for general working capital, which indicates liquidity strain.

Ratios

Source: etnet financial ratios (FY2022–FY2026). Interest coverage for FY2023–FY2026 and asset turnover are derived. Net debt/EBITDA is not meaningful (negative EBITDA in FY2023–FY2026; FY2022 was a net cash position). ROIC is not disclosed; ROCE is shown as a proxy.

Ratio commentary. Working-capital efficiency improved sharply in FY2026: the cash conversion cycle fell from 539 to 167 days as obsolete stock was cleared and receivables were collected or written off. This is the one genuinely positive operational trend. Leverage collapsed to near zero after bank-loan repayment, but this was achieved by draining cash rather than through earnings. The balance sheet is now small (≈HK$27.6M of assets), illiquid in composition (dominated by prepayments and inventory), and cash-poor.

Management guidance: None quantified. The FY2025 "Prospect" section was macro-oriented (an expected PRC manufacturing and infrastructure pick-up; volatile equity markets on US rates).

Bull case (grounded in the data):

1. Clean-up complete. Inventory and receivables have been largely written down: inventory days fell from 538 to 183, and the cash conversion cycle fell from 539 to 167 days. Future P&Ls should be free of FY2024–FY2025-scale impairments, and H1 FY2026's 25.7% gross margin shows profitable seasons are achievable.

2. Debt-free with fresh equity. Debt/equity is ~1% after loan repayment. The HK$4.83M placing funds the FY2027 Christmas working-capital cycle, and a finance-qualified ED (On Ka Shing) strengthens controls.

3. Platform optionality. The rename to "Zhongzi International", the entry of new ~20% holders and placees, and the logistics-partnership link suggest a potential new business or asset injection. That could re-rate a stock trading at ≈HK$47M market cap.

Bear case (grounded in the data):

1. Structural decline with no moat. Revenue has fallen 34% a year over five years. EBITDA was still negative (–HK$3.2M) in FY2026, gross margin is ~14% versus ~40% at Neo-Neon, and three-quarters of sales depend on one customer.

2. Liquidity and dilution spiral. Year-end cash was only HK$0.89M. The HK$4.9M raise at HK$0.049 (37% below today's price) covers barely one year of administrative cost, so further dilutive raises are likely.

3. Governance breakdown. The board is left with one INED and a non-compliant audit committee after an apparently contested AGM. The FY2026 results were late. These raise regulatory, control and minority-shareholder risks.

Concluding analyst verdict. Zhongzi International Holdings, formerly Bortex Global, is no longer best analysed as an LED lighting company. The operating franchise has shrunk from HK$200.9M of revenue in FY2021 to HK$24.5M in FY2026, and gross margins are stuck near 14%. A single Canadian customer supplied three-quarters of FY2025 revenue. Four consecutive years of losses have cut shareholders' equity from roughly HK$170M (FY2022) to about HK$10.5M (FY2026, derived). The headline 90% loss reduction in FY2026 is an accounting artefact: FY2025's HK$28M scrap-sale loss did not recur. The implied second-half gross loss shows that the core economics have not turned. Working-capital efficiency and debt reduction did improve materially, but they were funded by liquidating inventory and draining cash to under HK$1M, not by profits.

What now drives the equity is corporate control and platform value. Within twelve months, the company was renamed twice, a new holder accumulated about 20%, a 20% dilutive placing was struck at HK$0.049, and shareholders removed three directors, leaving a board with a single independent director in breach of GEM requirements. The market values the company at about 3× pro forma book and about 1.9× sales, despite losses. That premium is explicable only by expected strategic change.

For institutional investors, the stock is uninvestable on fundamental grounds. Liquidity is negligible, there is no coverage, governance is non-compliant, and the cash runway is short. It is suitable only for special-situation capital that underwrites a control outcome or an asset injection. Verdict: Avoid / Speculative-only. The key de-risking signals would be: credible independent board appointments; transparent disclosure of the shareholder relationships behind the AGM outcome; an H1 FY2027 print showing sustained gross margins above 20% with a diversified customer base; and a clearly articulated, fully funded strategy for the "Zhongzi" platform.

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SOURCES CONSULTED (primary first)

• HKEX: Bortex Global Ltd — Annual Results Announcement FY ended 30 Apr 2025 (31 Jul 2025): https://www1.hkexnews.hk/listedco/listconews/gem/2025/0731/2025073101934.pdf

• HKEX: Interim Results H1 FY2026, six months to 31 Oct 2025 (31 Dec 2025): https://www1.hkexnews.hk/listedco/listconews/gem/2025/1231/2025123102147.pdf

• HKEX: Interim reports H1 FY2021–H1 FY2025; Q1 FY2021 and Q1 FY2023 reports (hkexnews.hk, 2020–2024)

• HKEX: Profit warning FY2023 (24 Jul 2023); HQ address changes (29 Sep 2021, 28 Dec 2022, 5 Jun 2026); CEO supplemental (11 Mar 2022); company secretary changes (2 Dec 2024, 3 Nov 2025)

• HKEX: Change of company name and stock short name (23 Feb 2026); HKEX trading arrangement notice (24 Feb 2026)

• HKEX: INED resignation/appointment (18 Jun 2026); ED appointment, On Ka Shing (27 Aug 2026); List of directors (27 Aug 2026); Form G (27 Aug 2026; 16 Oct 2026); monthly returns (Jun and Sep 2026)

• MarketScreener / S&P Capital IQ: FY2026 results summary (31 Aug 2026); AGM board changes (16 Oct 2026); quote and valuation page (accessed 18 Oct 2026)

• etnet: 8118 income statement, cash flow and ratios, FY2022–FY2026 (accessed 18 Oct 2026)

• Caiwen News / 10jqka: placing agreement (12 Sep 2026); placing completion (8 Oct 2026); Form G shareholder summary (16 Oct 2026)

• Sina/Sohu: FY2026 annual report summary (22 Sep 2026)

• Tiger Brokers bulletins: proposed name change (30 Oct 2025); interim results (31 Dec 2025)

• Stockopedia (FY2021–FY2025 revenue); Stockanalysis; Investing.com; Simply Wall St; Yahoo Finance; PitchBook; Morningstar; moomoo (IPO data; Zhongzi Logistics headline); lixinger (director biographies)

• ACN Newswire press releases: 1 Nov 2017, 20 Nov 2017, 12 Sep 2019, 27 Sep 2019

• Peers: Signify FY2025 results (30 Jan 2026) and TrendForce summary; Neo-Neon data via Stockanalysis, Simply Wall St, TipRanks, Morningstar

• Market sizing: Deep Market Insights; Technavio; Marketintelo; Reportprime; Market Reports World