WDEAG records HK$1.85 million interim loss; maintenance contracts slow, renovation segment expands

Bulletin Express
Mar 25

World Digital Economy Asset Group Limited (WDEAG) reported a net loss of HK$1.85 million for the six months ended 31 December 2025, reversing a HK$1.97 million profit in the prior-year period. The swing was mainly driven by a 21.10% rise in administrative expenses to HK$20.80 million and a jump in finance costs to HK$0.84 million following higher borrowings.

Revenue slipped 3.85% year on year to HK$302.47 million. Building maintenance, the core activity, generated HK$253.67 million, down 10.20%, as the Group operated three district term contracts versus four in the comparable period. Renovation services rose 53.00% to HK$48.80 million on increased contract volume.

Gross profit was broadly stable at HK$17.40 million, with overall margin improving to 5.8% from 5.6%. Renovation margin expanded to 6.3%, while maintenance margin held at 5.6%. Other income declined 42.70% to HK$1.09 million.

Cash and bank balances increased to HK$51.10 million from HK$32.75 million at 30 June 2025, bolstering liquidity. The gearing ratio edged up to 3.7% (30 June 2025: 2.0%) on additional borrowings. Net assets stood at HK$143.31 million.

Operationally, WDEAG held three building-maintenance contracts with an aggregate value of HK$1.40 billion; no new public-sector awards were secured during the period. The renovation backlog expanded to 26 contracts worth HK$262.40 million after the company won 14 new private-sector deals totalling HK$134.30 million, two of which commenced work within the period.

No interim dividend was declared.

Corporate actions included a ten-for-one share consolidation, an increase in authorised share capital to HK$200.00 million, a change in board-lot size to 10,000 consolidated shares, and the formal adoption of the new company name “World Digital Economy Asset Group Limited,” replacing “China Supply Chain Holdings Limited.”

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