Great World Swings to HK$22.21 Million FY26 Profit as Property Disposal Offsets 24% Revenue Slide

Bulletin Express
Jun 29

Great World Company Holdings Ltd (GREAT WORLD, 08003) reported FY26 (year ended 31 Mar 2026) audited results showing a sharp turnaround to a HK$22.21 million net profit attributable to shareholders, versus a HK$8.45 million loss a year earlier. The positive outcome was driven primarily by a HK$36.12 million gain from the disposal of its loss-making property business, completed on 30 September 2025.

Revenue from continuing operations fell 23.84% year on year to HK$34.50 million as China’s property-sector downturn weighed on the core intelligent advertising segment. Within the revenue mix: • Intelligent advertising contributed HK$31.82 million, down 26.40%. • Agricultural, forestry & consumer products rose 29.83% to HK$2.68 million. • The supply-chain unit booked no sales during the period.

Gross profit declined 24.02% to HK$8.67 million, keeping margin broadly stable at 25.15%. Continuing operations posted a HK$22.20 million pre-tax loss (FY25: HK$3.38 million loss), hit by a HK$8.04 million fair-value loss on biological assets and a HK$6.05 million impairment on receivables.

Balance-sheet metrics show mixed signals: • Cash and bank deposits fell to HK$1.39 million (31 Mar 2025: HK$7.06 million). • Net current liabilities narrowed to HK$9.29 million (FY25: HK$63.95 million). • Net assets turned positive at HK$12.59 million, recovering from a HK$11.31 million deficit. • Gearing stood at 500.04%, reflecting limited equity cushion.

Management flagged material uncertainty over going-concern status amid a HK$40.34 million short-term liability burden and minimal cash. Mitigation plans include cost controls, director loan deferrals, a HK$7 million facility from major shareholder Win Bless, a proposed share subscription to raise up to HK$2.40 million by September 2026, and intensified receivables collection.

No dividend was declared for the year. The company continues to pivot towards data-driven advertising, supply-chain initiatives in beauty and personal care, and agricultural off-shoots leveraging Chinese medicine demand, while the property segment has been fully exited.

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