Chi Ho Development Holdings Ltd. (Chi Ho Development) reported audited results for the year ended 31 Mar 2026 showing a sharp swing deeper into loss on the back of a property-market-driven impairment and weaker construction demand.
• Revenue fell 41.5% year on year to HK$290.77 million, reflecting slower order intake after the Tai Po Fire incident and subdued Hong Kong commercial real-estate sentiment.
• Gross profit declined 65.2% to HK$11.00 million; gross margin slid to 3.8% from 6.4%.
• The group booked a HK$40.29 million impairment on its loan to a 50%-owned joint-venture redevelopment in Tsim Sha Tsui and HK$10.57 million in additional expected-credit-loss provisions, pushing the bottom line to a HK$63.34 million net loss (FY 2025: HK$12.29 million loss).
• Stripping out these non-recurring charges, management estimates an adjusted loss of HK$12.50 million.
Balance-sheet and liquidity metrics weakened:
• Cash and bank balances: HK$13.20 million (FY 2025: HK$25.66 million). • Total borrowings (bank, factoring and other): HK$121.28 million; gearing ratio rose to 154.8% from 71.7%. • Current ratio edged down to 1.1x from 1.3x.
Operations:
• 41 construction projects generated revenue during the year (FY 2025: 48). • New wins: 12 projects worth HK$181.10 million (FY 2025: HK$59.00 million). • Backlog at 31 Mar 2026 stood at HK$300.50 million (FY 2025: HK$386.90 million).
Strategic moves:
• In January 2026 the group agreed to dispose of its Tsim Sha Tsui redevelopment project; completion is expected in FY 2027 and aims to cut exposure to the depressed commercial property segment and improve liquidity.
• Cost-control measures trimmed administrative expenses by HK$3.07 million to HK$18.14 million; workforce reduced to 58 from 77.
Other highlights:
• No final dividend was declared. • Auditor drew attention to material uncertainty over going-concern; management is seeking shareholder financial support and tighter cash controls. • Capital commitments to the joint venture remain at HK$40 million, fully funded as of year-end.
Looking ahead, Chi Ho Development will focus on selective bidding, risk management and redeploying resources to core renovation and construction operations while it waits for a gradual recovery in Hong Kong’s building sector.