Wai Chun Group released its audited results for the year ended 31 March 2026, showing a modest top-line decline but a sharp deterioration in profitability and a further weakening of its balance-sheet position.

Revenue and Margin Pressure • Group revenue slipped 0.82 % year on year to HK$264.15 million, as sales from the higher-margin Sales & Integration Services segment halved to HK$31.10 million (FY 2025: HK$63.39 million). • General Trading revenue rose 14.8 % to HK$233.05 million but carries materially lower margins. • Group gross profit fell 49.9 % to HK$1.08 million; gross margin narrowed to 0.41 % from 0.81 %.

Operating Performance • Other income edged up to HK$0.60 million (FY 2025: HK$0.06 million). • A swing from HK$23.41 million in other gains to HK$0.65 million in other losses, coupled with a HK$5.38 million impairment charge on receivables (FY 2025: HK$1.37 million reversal), weighed on results. • Administrative expenses expanded 16.4 % to HK$10.60 million, driven partly by HK$1.98 million in share-based payment costs. • Finance costs increased 5.5 % to HK$29.72 million following a HK$45 million convertible-bond issue in June 2025.

Bottom-Line Impact • Loss before tax widened to HK$44.67 million (FY 2025: HK$10.30 million). • Net loss attributable to shareholders rose more than fourfold to HK$42.52 million, translating to a basic and diluted loss per share of 15.90 HK cents (FY 2025: 3.86 HK cents).

Balance-Sheet Strain • Net liabilities deepened to HK$231.17 million (31 Mar 2025: HK$203.67 million). • Net current liabilities stood at HK$34.17 million, though the current ratio improved to 0.71x (2025: 0.48x) on higher trade receivables and cash. • Total debt climbed to HK$214.12 million, including HK$196.88 million in convertible bonds (up 40.2 %) and HK$16.59 million in shareholder loans. • Cash and cash equivalents fell to HK$2.57 million (2025: HK$11.01 million), putting the net-debt-to-total-assets ratio at 254.7 % (2025: 324.6 %).

Going-Concern Warning The auditor, McMillan Woods (Hong Kong) CPA Limited, issued an unqualified opinion but drew attention to material uncertainty over the Group’s ability to continue as a going concern, citing recurring losses and sizeable net current liabilities. Management is relying on shareholder loan deferments, potential fund-raising, and cost-control measures to support liquidity.

Dividend and Post-Balance-Sheet Event No dividend was declared for FY 2026. Post year-end, on 10 April 2026, Wai Chun Group signed a cooperation agreement with Xavvi US Inc. to form platform companies targeting the global influencer-economy and traffic-monetisation markets; detailed terms remain pending.

Outlook Management plans to streamline operations, tighten budgetary controls, and seek new investment opportunities or capital-raising exercises to restore profitability and strengthen the balance sheet.