Dragon Rise Group Holdings released FY2026 (year ended 31 March 2026) results showing a sharp rebound in profitability for equity holders despite a lower top line and higher costs.
Key Financials • Revenue: HK$929.90 million, down 29.2% from HK$1,314.14 million in FY2025, reflecting fewer sizeable construction contracts. • Gross profit: HK$63.13 million, up 30.6%; gross margin widened to 6.8% (FY2025: 3.7%) as project mix improved. • Profit attributable to equity holders: HK$15.65 million, up 73.3% from HK$9.03 million. • Net profit (after NCI): HK$4.07 million, versus HK$7.15 million a year earlier, after a HK$11.59 million loss attributable to non-controlling interests. • Basic/Diluted EPS: HK 5.44 cents (FY2025: HK 3.98 cents). • Dividend: No final dividend declared (unchanged year-on-year).
Cost & Expense Dynamics • Direct costs fell 31.5% to HK$866.76 million, outpacing the revenue decline and underpinning the margin recovery. • Administrative expenses rose 59.0% to HK$58.52 million, driven by higher staff, consulting, marketing and depreciation charges linked to new-energy initiatives. • Finance costs halved to HK$1.91 million, helped by lower borrowing rates. • Net reversal of expected credit loss allowances totalled HK$3.10 million versus HK$0.25 million in FY2025, reflecting improved customer credit profiles.
Balance Sheet & Liquidity • Cash, bank balances and pledged deposits: HK$80.78 million (31 March 2025: HK$92.73 million). • Net current assets: HK$288.75 million; current ratio improved to 2.6x (31 March 2025: 2.5x). • Total borrowings and lease liabilities: HK$67.22 million; gearing ratio rose to 22.3% (31 March 2025: 12.0%) on higher debt drawn for working capital and expansion. • Net assets: HK$327.43 million.
Operational Developments • Construction business (foundation works via Kit Kee Engineering) remained the primary revenue contributor amid a recovering Hong Kong infrastructure market. • New-energy segment advanced with the launch of Hong Kong’s first CATL “Choco-Swap” battery-swapping station in Fanling and initial delivery of Hongqi E-QM5 battery-swapping taxis. Over 10 stations are slated for completion city-wide by end-2027. • Post-year-end, the Group signed an MoU with a major automotive trader to co-develop battery-swapping solutions for electric commercial vehicles, broadening its addressable market.
Outlook Management expects the nascent battery-swapping business to begin contributing materially in FY2027, leveraging construction expertise for rapid station deployment. The traditional foundation segment is positioned to benefit from sustained public infrastructure spending and a gradual recovery in private development.
No significant investments, acquisitions, disposals, or dividends were announced during the period. The company maintained compliance with Hong Kong Listing Rules, with public float requirements met throughout the year.