Smart City Development Holdings Limited (“SMART CITY DEV”) released its audited results for the year ended 31 March 2026, reporting a modest top-line increase but a smaller bottom-line deficit.

Revenue and Profitability • Consolidated revenue rose 1.2% year on year to HK$405.74 million (FY25: HK$400.85 million). • Net loss attributable to shareholders narrowed to HK$22.36 million from HK$35.28 million a year earlier. • Basic and diluted loss per share improved to HK7.76 cents (FY25: HK13.24 cents). • Gross profit fell 41.7% to HK$15.00 million, trimming the gross profit margin to 3.7% (FY25: 6.4%).

Segment Performance • Construction business contributed HK$401.03 million in revenue, a 0.2% increase. – Building construction works: HK$84.32 million (-55.4% YoY) after asset disposal. – Electrical & mechanical works: HK$275.40 million (+44.9%). – Interior fitting-out works: HK$41.31 million (+94.6%). • Securities investment recorded a HK$1.06 million loss (FY25: HK$4.97 million loss). • Property investment generated HK$0.41 million in rental income (-24.4% YoY). • Money lending interest income rose 8.3% to HK$5.36 million.

Cost Structure • Other income and gains declined 53.0% to HK$1.90 million. • Administrative expenses dropped 29.5% to HK$33.73 million, reflecting a reduced headcount post-disposal. • Net other operating expenses fell 68.6% to HK$4.13 million.

Balance Sheet and Cash Flow • Total assets stood at HK$201.84 million; net assets were HK$89.24 million. • Cash and cash equivalents amounted to HK$35.16 million; pledged deposits totalled HK$8.11 million. • Interest-bearing bank and other borrowings were HK$14.84 million, giving a gearing ratio of 31%.

Dividend • The board does not recommend a final dividend for FY26 (FY25: Nil).

Outlook Management expects the Hong Kong construction market to remain competitive and will continue focusing on electrical & mechanical and interior fitting-out projects, expanding AI-related solutions, and prudently managing costs and liquidity.