Coastal Greenland Limited (COASTAL GL, 01124) reported a HK$478.90 million loss attributable to shareholders for the year ended 31 March 2026, widening 25.40% from the HK$381.86 million deficit recorded in FY2025. The decline was driven by large impairment charges and a substantial write-down on property assets amid continued weakness in Mainland China’s real-estate market.

Revenue and Profitability • FY2026 revenue slipped 7.28% year on year to HK$107.41 million, almost entirely generated from property sales (HK$107.15 million). • Gross profit rebounded to HK$1.89 million from a HK$104.90 million gross loss a year earlier, as the sale of two Shenzhen units (Rooms 38A & 38B, Nord Financial Centre) generated a slim margin. • Significant charges included HK$278.32 million write-down of land for development in Shenyang, HK$120.36 million impairment on prepayments, deposits and other receivables, and HK$29.16 million remeasurement loss on financial guarantee contracts. • Finance costs fell 33.82% to HK$20.40 million due to lower average borrowing levels.

Segment Performance • Property development posted a HK$462.74 million loss (FY2025: HK$282.75 million loss). • Property investment recorded a HK$1.30 million loss on reduced rental income of HK$0.26 million (FY2025 rental: HK$2.13 million). • Project management services generated no revenue and booked a HK$0.35 million loss following cessation of operations.

Financial Position and Liquidity • Cash and bank balances, including pledged deposits, contracted to HK$0.76 million (31 Mar 2025: HK$2.19 million). • Interest-bearing bank and other borrowings decreased to HK$140.45 million (31 Mar 2025: HK$224.21 million), yet total obligations including shareholder loans reached HK$422.83 million. • Net debt stood at HK$422.06 million, pushing the net-debt-to-equity ratio to 105% (FY2025: 58%). • Net current assets dropped 68.12% to HK$235.27 million; cash cover for short-term borrowings was less than 1%. • Net assets fell 52.47% to HK$398.27 million following the year’s losses and asset impairments.

Going-Concern Uncertainty The auditor, Prism Hong Kong Limited, issued an unqualified opinion with a “Material Uncertainty Related to Going Concern,” citing recurring losses, minimal cash (HK$0.7 million), overdue borrowings of HK$63.77 million and HK$73.56 million, and significant debt repayable on demand to a substantial shareholder (HK$282.40 million). Management is negotiating extensions with lenders, pursuing asset disposals, accelerating property sales and has secured shareholder support, but the auditor cautions these conditions create significant doubt over the Group’s ability to continue as a going concern.

Dividend No dividend was declared for FY2026 (unchanged from FY2025).

Outlook Management expects the Mainland property sector to remain in an adjustment phase despite supportive government measures. The Group plans to pursue urban redevelopment opportunities and maintain stringent cost and liquidity management while monitoring market conditions.

The Annual General Meeting is scheduled for 11 September 2026; the share register will be closed from 8–11 September 2026.