Metaspacex Limited (Metaspacex) reported a markedly smaller net loss for the year ended 31 March 2026, as disciplined cost management offset a sharp contraction in top-line growth.

Revenue and Profitability • Revenue declined 30.4% year on year to HK$183.78 million, reflecting fewer large-scale fitting-out projects amid heightened market competition. • Gross profit rose 20.7% to HK$6.66 million, and gross margin improved to 3.6% (FY2025: 2.1%) on stricter cost control. • Net loss attributable to shareholders narrowed to HK$13.03 million from HK$32.18 million, trimming the loss by 59.5%. Basic and diluted loss per share improved to 2.71 HK cents (FY2025: 6.70 HK cents).

Cost and Expense Trends • Direct costs fell 31.5% to HK$177.12 million, broadly in line with the revenue decline. • Administrative and other operating expenses dropped 25.3% to HK$14.22 million. • Expected credit loss (ECL) allowances contracted sharply to HK$3.54 million from HK$13.63 million, aided by the reversal of HK$1.65 million in retention receivables. • Finance costs decreased 20.4% to HK$4.03 million, supported by lower average borrowings.

Balance Sheet and Liquidity • Cash and bank balances remained stable at HK$43.08 million. • Net current assets stood at HK$118.77 million, yielding a current ratio of roughly 7.7x (FY2025: 6.5x). • Total borrowings declined to HK$40.90 million, yet a higher interest-bearing payables balance lifted the gearing ratio to about 89.0% (31 March 2025: 82.8%). • Net assets totalled HK$63.54 million, down 17.0% from a year earlier, primarily on the back of the annual loss.

Operational Highlights • The residential and non-residential fitting-out contractor generated all revenue in Hong Kong and continued to rely heavily on a single client group (Customer A: 95.7% of FY2026 revenue). • Unfinished contract value (remaining performance obligations) increased to HK$140.95 million, providing a visible pipeline into FY2027. • A HK$3.73 million gain on disposal of listed equity investments partially offset a HK$1.64 million fair-value loss on remaining holdings. • No income tax was recorded due to the loss position; no dividend was declared for FY2026. • Headcount fell to 42 from 55, reducing staff costs to HK$18.17 million (–22.9% y-o-y).

Corporate Developments • Metaspacex prepaid RMB0.30 million (HK$0.34 million) for a 100% stake in a newly established PRC company; completion occurred post year-end on 22 April 2026. • A proposed issuance of 16.70 million new shares was terminated on 12 March 2026 following a writ of summons; related legal costs remain pending court determination. • No material pledges of assets, significant investments, or major acquisitions/disposals occurred during the period.

Outlook Management expects Hong Kong’s property and renovation markets to remain subdued but sees potential upside from government housing initiatives and talent-attraction policies. The Group intends to preserve cash, monitor project opportunities closely, and maintain stringent cost discipline to navigate the competitive environment.