Alpha Professional Turns to HK$82.11 Million FY26 Profit on One-Off Gains; Core Business Still in Loss

Bulletin Express
Jun 30

Alpha Professional Holdings Limited reported a HK$82.11 million profit for the year ended 31 March 2026, reversing the HK$198.50 million loss recorded in FY25. The sharp turnaround was driven by HK$133.82 million of one-off gains from the disposals of Shenyang Jinyi Group and Alice Trading. Stripping out these exceptional items, the Group registered an underlying loss of HK$51.71 million.

Revenue surged 158.3% year on year to HK$104.68 million, supported by: • Milk Products Business: Sales jumped to HK$64.63 million, aided by the launch of the “WDOM” adult-formula brand in Mainland China and Hong Kong. Segment adjusted EBITDA rebounded to HK$109.25 million (FY25: –HK$188.80 million), reflecting higher volumes and lower marketing and staff costs. • Services Business (logistics and new cleaning services): Revenue rose to HK$40.05 million (FY25: HK$24.95 million) with segment adjusted EBITDA improving to HK$17.75 million (FY25: HK$9.07 million). After recognising HK$18.00 million of depreciation on right-of-use assets, the segment recorded a HK$0.30 million loss. • Property Investment was discontinued following the forced sale of the Australian warehouse property; the segment contributed HK$0.34 million profit (FY25: HK$2.01 million).

Key expense items moved favourably: • Selling and distribution costs fell 56.0% to HK$6.52 million. • Administrative expenses declined 47.9% to HK$21.23 million, reflecting reduced legal fees after arbitration proceedings and lower staff costs.

Balance-sheet highlights: • Cash and cash equivalents: HK$21.36 million (FY25: HK$10.70 million). • Current borrowings: HK$29.44 million (FY25: HK$41.08 million). • Net current assets improved to HK$3.56 million from a HK$173.17 million deficit. • Gearing ratio narrowed to 186.6% (FY25: –313.2%). • Current ratio strengthened to 1.05x (FY25: 0.13x).

The independent auditor drew attention to a material uncertainty over going concern: despite the headline profit, the Group’s underlying loss and tight liquidity—cash below short-term borrowings—pose risks. Management is negotiating loan extensions, has secured an interest-free HK$80 million credit line from controlling shareholder Ms. Chong Sok Un (undrawn as of approval date), and targets stricter cost controls.

Corporate actions: • November 2025: Placing and top-up subscription raised HK$6.36 million net via issuance of 28 million new shares at HK$0.24 each. • March 2026: Debt capitalisation issued 35 million shares to settle HK$9.80 million of borrowings with AP Diamond, generating a HK$0.70 million accounting loss on extinguishment. • April 2026: Creditors’ voluntary liquidation of Willis Trading initiated; the Group paid HK$2.30 million in May 2026 to fully discharge Willis Trading’s remaining loan obligations.

Other notable items: • Loss on financial assets at fair value: HK$4.69 million due to Australian Dairy share price decline. • Impairment of goodwill: HK$2.00 million following weaker logistics demand. • No dividend declared for FY26.

Strategic outlook focuses on expanding adult-formula milk sales, leveraging third-party e-commerce platforms, and broadening services into comprehensive facilities management—including security and elevator maintenance—while maximising warehouse utilisation to bolster recurring income.

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