Wecon Holdings reported a solid set of results for the fiscal year ended 31 March 2026, with profitability improving despite largely flat top-line growth.

Revenue and Profitability • Revenue edged up 0.4% year-on-year to HK$1.06 billion, driven by stronger contributions from building construction contracts that offset a sharp decline in RMAA (repair, maintenance, alteration and addition) work. • Gross profit rose 3.6% to HK$38.90 million, lifting gross margin by 0.2 percentage point to 3.7%. • Profit attributable to shareholders increased 28.4% to HK$9.46 million, translating into basic EPS of HK1.2 cents (FY25: HK0.9 cents). Net margin improved to 0.9% from 0.7% a year earlier.

Segment Performance • Building construction revenue grew 14.9% to HK$1.06 billion, reflecting progress on several existing jobs and one new contract. Segment gross profit fell 10.5% to HK$38.55 million, with margin contracting to 3.6% (FY25: 4.7%) due to a loss-making project. • RMAA revenue plunged 95.5% to HK$6.27 million following completion of two major contracts, yet the segment swung to a HK$0.33 million gross profit from a HK$5.55 million loss in FY25 as underperforming projects concluded.

Cost Structure and Expenses • Cost of sales increased 0.3% to HK$1.02 billion, broadly in line with revenue growth. • Administrative expenses contracted 3.0% to HK$39.14 million, mainly from lower consultancy fees. • Finance costs were stable at HK$0.45 million.

Cash Flow and Balance Sheet • Cash and bank balances more than doubled to HK$216.25 million; total available funds including pledged and time deposits reached HK$246.75 million. • Current ratio improved slightly to 2.0x (FY25: 1.9x). • Bank borrowings stood at HK$2.12 million, lifting the gearing ratio to 3.9% (FY25: 1.7%). • Net assets were broadly unchanged at HK$276.13 million.

Dividend The board proposed a final dividend of HK1.2 cents per share, matching the prior year and representing a payout ratio of approximately 102%. The distribution is subject to shareholder approval at the AGM on 20 August 2026.

Operational Highlights and Outlook During the year, Wecon completed two major projects each exceeding HK$1 billion and secured two new contracts worth over HK$1 billion in aggregate. Management remains “prudently optimistic” on Hong Kong’s construction outlook and aims to diversify its client base, enhance cost efficiency and invest further in building information modelling capabilities to differentiate its service offering.

Financial Position and Risk The group’s banking facilities are secured by HK$30.50 million in pledged deposits, a life insurance policy valued at HK$10.10 million and a corporate guarantee. Foreign-currency exposure is minimal as operations are largely Hong Kong-dollar denominated.

Subsequent Event A proposed privatisation by major shareholder Triple Arch Limited via scheme of arrangement lapsed on 24 June 2026 after failing to secure requisite approvals; the company will remain listed on the Hong Kong Stock Exchange.

With improved profitability, stronger liquidity and a steady dividend, Wecon Holdings enters FY27 focused on executing its project pipeline and expanding value-added construction services amid evolving industry conditions.