Art Group Holdings FY-2026: Revenue Jumps 43.9%, Shareholders Swing to HK$17.76 Million Loss, No Dividend Declared

Bulletin Express
Sep 30

Art Group Holdings released audited results for the year ended 30 June 2026.

Revenue and Margin • Group revenue rose 43.9 % year-on-year to HK$116.91 million, driven almost entirely by the property operating segment (HK$111.62 million). • Gross profit increased 21.4 % to HK$62.91 million; gross margin fell to 53.8 % from 63.8 % a year earlier due to a higher cost of sales mix (notably coal trading).

Earnings • Profit for the year decreased 57.8 % to HK$16.46 million. • Loss attributable to owners was HK$17.76 million versus a profit of HK$41.89 million in FY-2025, reflecting higher expected-credit-loss provisions and smaller valuation gains. • Basic and diluted loss per share from continuing and discontinued operations was HK0.66 cent (FY-2025: earnings of HK1.56 cents).

Segment Performance – Continuing Operations • Property operating: Segment result HK$68.90 million (-9.7 % year-on-year). • Coal trading (new in FY-2026): HK$5.30 million revenue, slight loss contribution of HK$0.02 million. • The cargo aircraft charter business remained discontinued; it recorded no revenue and a HK$0.03 million loss.

Key Non-cash Items • Gain on lease termination for Level 1 of Zone C Shopping Mall: HK$272.85 million. • Corresponding loss on derecognition of investment properties: HK$208.78 million. • Net fair-value gain on investment properties: HK$3.24 million (FY-2025: loss of HK$56.48 million). • Allowance for expected credit losses on rental deposits: HK$34.66 million charge (FY-2025: HK$12.35 million reversal). • Finance costs eased 6.3 % to HK$23.56 million, mainly lease-related interest.

Balance Sheet and Liquidity • Total assets increased 38.6 % to HK$839.05 million, reflecting new investment properties—particularly four floors of Longhu Shopping Centre. • Net current liabilities widened to HK$133.20 million (FY-2025: HK$103.40 million). • Cash and bank balances stood at HK$52.89 million; restricted cash was HK$20.09 million. • Interest-bearing debt comprised a HK$40.00 million short-term loan (12 % p.a.) and HK$7.90 million of privately placed bonds; gross debt-to-equity ratio was 91.9 %.

Capital Expenditure & Investments • Capex on property, plant and equipment was modest at HK$0.19 million. • Investment properties expanded to HK$694.48 million (FY-2025: HK$466.15 million). • In June 2026 the Group acquired a 17.9 % stake in Korea-based Edgeon Data Co., Ltd. and advanced a shareholder loan of US$8.99 million (HK$70.41 million) at 15 % p.a. to fund a 200 MW hyperscale data-centre project in Busan.

Post-balance-sheet Financing • Between July and September 2026 the Group secured HK$73.00 million equivalent of new facilities (HK$20 million, US$3 million, HK$10 million and HK$40 million) at interest rates of 8 %–12 %, extending maturities to 2028. • The outstanding HK$40 million borrowing at year-end has since been fully repaid using part of the new facilities.

Dividends • The Board recommended no final dividend (unchanged from FY-2025).

Outlook Management will prioritise optimisation of the shopping-mall and industrial-park portfolio, broaden tenant mix, and continue cost discipline. The Group also views the Edgeon data-centre investment as a new growth avenue, while monitoring liquidity through additional funding lines and shareholder support.

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