Wang On Group (01222) reported FY26 revenue of HK$2.63 billion, down 4.00% year-on-year, as softer property sales in Mainland China offset higher Hong Kong completions. Gross profit fell 26.30% to HK$595.90 million, compressing margin from 29.5% to 22.6%.

Loss attributable to owners narrowed 12.80% to HK$804.37 million; basic loss per share improved to HK5.68 cents from HK6.51 cents. The Board proposed no dividend.

Balance-sheet metrics weakened: net asset value declined 17.60% to HK$5.58 billion and NAV per share slipped to HK$0.39. Net debt fell to HK$3.22 billion (FY25: HK$3.98 billion) on higher cash of HK$1.14 billion, trimming net gearing to 57.7% (-1.0 ppt).

Segment performance • Property Development: revenue HK$1.37 billion; segment loss reduced to HK$499.07 million (FY25: HK$822.43 million). • Property Investment: rental income HK$11.84 million; segment loss HK$317.99 million amid fair-value volatility. • Fresh Markets & Agricultural Produce Exchange: revenue HK$528.85 million (-11.8%); segment profit rose to HK$239.12 million, the Group’s largest contributor. • Pharmaceutical & Health Food: revenue HK$677.95 million (-8.6%); segment loss HK$13.54 million. • Treasury Management: revenue HK$46.60 million; segment loss HK$61.20 million after fair-value and impairment charges.

Operating expenses and charges Selling and distribution expenses fell 15.60% to HK$473.35 million, while administrative costs dropped 8.80% to HK$422.42 million. Net impairment on financial assets decreased sharply to HK$36.99 million (FY25: HK$112.11 million). Other expenses surged to HK$285.61 million, driven by a HK$206.70 million loss on partial disposal of the “Sunny House” student accommodation joint venture.

Finance costs eased 6.90% to HK$330.07 million on lower average borrowings and a decline in HIBOR. Interest-bearing debt stood at HK$4.36 billion; 37.20% is fixed-rate.

Liquidity and commitments Cash and short-term investments totalled HK$1.22 billion. Capital commitments were HK$1.15 billion, mainly for property development, while guarantees to joint-venture bank facilities totalled HK$368.90 million.

Dividend No interim or final dividend was declared.

Management comments highlighted disciplined cost control, stronger cash generation and the resilience of non-property businesses as key factors in narrowing the loss despite continued softness in Hong Kong real-estate margins and fair-value swings.