Sheung Yue Group Holdings Limited reported audited results for the year ended 31 March 2026 (FY26) with revenue down 17.7% year-on-year to HK$217.94 million, reflecting fewer foundation-work projects during the period.

Gross profit fell 75.9% to HK$4.58 million, causing gross margin to contract to 2.1% from 7.2% in FY25. The decline primarily stemmed from higher subcontracting costs and lower profitability of newly commenced projects.

Administrative expenses dropped 21.4% to HK$17.84 million, aided by lower depreciation of right-of-use assets. Finance costs decreased 45.4% to HK$3.11 million following a reduction in bank loans and lease liabilities.

The Group recorded a net loss attributable to shareholders of HK$21.56 million, widening from the FY25 loss of HK$9.65 million. Basic and diluted loss per share expanded to HK3.15 cents from HK1.41 cents.

Cash and cash equivalents stood at HK$3.42 million as of 31 March 2026, compared with HK$13.11 million a year earlier. Interest-bearing debts (bank loans plus lease liabilities) declined to HK$56.09 million from HK$69.49 million, reducing the gearing ratio to 37.3% from 40.5%.

Total equity slipped to HK$150.17 million (31 March 2025: HK$171.73 million), while net current assets remained largely stable at HK$76.08 million. The Group’s banking facilities continue to be secured by pledged deposits of HK$2.00 million.

Order book momentum remains firm: four projects with an aggregate contract value of HK$474.23 million were on hand at fiscal year-end, all scheduled for completion in the next financial year. The outstanding transaction price allocated to remaining performance obligations amounted to HK$347.34 million.

No final dividend was proposed for FY26. The Board cited the competitive construction landscape, prevailing economic uncertainty and cost fluctuations in outlining a strategy focused on prudent bidding, cost control and financial flexibility.