MEXAN Limited reported a sharp earnings reversal for the year ended 31 March 2026, booking HK$374.90 million in profit attributable to shareholders versus a HK$32.02 million loss a year earlier. The swing was fuelled by a HK$377.04 million post-tax gain from the April 2025 disposal of the 800-room Winland 800 Hotel, which ended the Group’s hospitality operations and reclassified them as discontinued.
Continuing operations—now centred on the trading of furniture, building materials and fit-out construction services—generated HK$44.14 million in revenue, a 17.4% year-on-year increase. Gross profit jumped 171.8% to HK$18.83 million, lifting the gross margin to 42.66% (FY 2025: 18.43%) as several projects reached final stages and cost controls took hold. Core profit from continuing operations improved to HK$3.47 million, compared with a HK$7.05 million loss previously. After booking a HK$5.82 million impairment on investment properties, the segment recorded a narrowed net loss of HK$2.35 million, down 94.0% year on year.
Total assets nearly halved to HK$263.90 million following the hotel sale, while net assets stood at HK$248.68 million (FY 2025: HK$347.87 million). Proceeds from the disposal enabled full repayment of HK$86.95 million in bank loans, leaving the Group debt-free at fiscal year-end and reducing its gearing ratio to 0% from 24.7%. Cash, bank balances and short-term deposits totalled HK$197.86 million.
Operating expenses continued to fall: administrative and other operating costs declined 10% to HK$14.53 million; selling and distribution expenses decreased to HK$3.12 million. Finance costs dropped to HK$0.08 million due to the absence of borrowings.
No final dividend was proposed for FY 2026. During FY 2025, the Group paid special dividends totalling HK$0.241 per share following the hotel sale. On 4 June 2026, MEXAN’s board announced a planned 50-into-1 share consolidation, pending shareholder approval on 2 July 2026.
Management flagged persistent headwinds in Hong Kong’s construction and property markets—key demand drivers for Winland Firmstone, the Group’s trading and fit-out subsidiary—but emphasised ongoing cost discipline and a search for new investment opportunities to diversify revenue streams.