v3.26.1
Operating Lease Right-of-Use Assets and Operating Lease Liabilities
 12 Months Ended
Dec. 31, 2025
Right-of-Use Assets and Lease Liabilities [Abstract]  
OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

13. OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

 

Operating lease:

 

Our operating leases primarily consist of leases of plants and staff dormitory for lease terms range from three to six years. The recognition of whether a contract arrangement contains a lease is made by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all the economic benefits from and has the ability to direct the use of the asset.

 

Operating lease assets and liabilities are included in the items of operating lease ROU assets, net, operating lease liabilities, current portion, and operating lease liabilities, non-current portion on the consolidated balance sheets.

Supplemental balance sheet information related to operating leases was as follows:

 

   As of December 31, 
   2024   2025   2025 
   HK$   HK$   US$ 
             
Operating lease right-of-use assets, net   6,960,066    25,679,797    3,299,346 
                
Current operating lease liabilities   2,270,289    5,113,112    656,934 
Non-current operating lease liabilities   4,689,777    20,566,685    2,642,412 
Total operating lease liabilities   6,960,066    25,679,797    3,299,346 

 

Operating lease expenses for the years ended December 31, 2023, 2024 and 2025 were HK$4,506,615, HK$4,677,773 and HK$5,145,080 (approximately US$661,041), respectively.

 

Maturities of operating lease liabilities as of December 31, 2024 and 2025 were as follows:

 

For the years ending December 31,  HK$   US$ 
2026   6,135,527    788,294 
2027   5,954,189    764,995 
2028   5,113,884    657,033 
2029   5,266,904    676,693 
2030   4,796,315    616,232 
Thereafter   1,349,182    173,343 
Total   28,616,001    3,676,590 
Less: imputed interest   (2,936,204)   (377,244)
Present value of operating lease liabilities   25,679,797    3,299,346 
Less: current portion of lease obligation   (5,113,112)   (656,934)
    20,566,685    2,642,412 

 

Other supplemental information about our operating lease as of December 31, 2024 and 2025:

 

   As of December 31, 
   2024   2025 
Weighted average discount rate   4.4%   4.5%
Weighted average remaining lease term (years)   4.17    4.7