Unity Group FY2026: Profit Surges 68% Despite 24.6% Revenue Contraction

Bulletin Express
Jul 01

Unity Group Holdings International Limited released audited results for the year ended 31 March 2026.

Revenue fell 24.6% year on year to HK$118.69 million, driven mainly by a 46.1% drop in income from the Malaysia LED finance-lease project and softer demand in trading of energy-saving products. Licensing fees for energy-saving products more than doubled to HK$19.42 million, cushioning the overall decline.

Gross profit declined 14.5% to HK$79.94 million, yet the margin widened to 67.4% (FY2025: 59.3%) on a richer mix of high-margin licensing revenue and lower cost of sales.

EBITDA more than doubled to HK$101.28 million, while EBIT rose to HK$97.71 million, helped by HK$15.94 million of gains from restructuring trade receivables and HK$25.22 million from modification of a consideration payable.

Net profit increased 68.2% to HK$66.63 million. Basic and diluted EPS advanced to 1.94 HK cents (FY2025: 1.04 HK cents basic; 1.03 HK cents diluted). Excluding major extraordinary items, adjusted profit before tax grew 7.3% to HK$36.97 million; adjusted basic EPS declined to 0.62 HK cent due to a larger share base.

Total assets rose 6.2% to HK$600.78 million, lifted by higher finance-lease and trade receivables. Total liabilities fell 14.9% to HK$316.85 million, following reclassification of a HK$83.89 million consideration payable to non-current status. Net assets strengthened 46.6% to HK$283.94 million.

Liquidity metrics improved markedly: the current ratio moved to 1.5 times (FY2025: 0.9 times), while the gearing ratio (total debt / total equity) eased to 59.9% (FY2025: 66.8%). Cash and cash equivalents stood at HK$1.56 million; total undrawn banking facilities amounted to HK$26.48 million.

Segment review • Provision of energy-saving systems: revenue HK$46.74 million (-45.1% YoY); segment profit HK$27.59 million. • Trading of energy-saving products: revenue HK$52.53 million (-19.2% YoY); segment profit HK$12.95 million. • Licensing fees: revenue HK$19.42 million (+169.6% YoY); segment profit HK$20.40 million.

Finance costs more than doubled to HK$15.40 million, reflecting higher bank borrowings and accrued interest under the creditor restructuring scheme.

No dividend was declared for the year.

Post-year-end, the company issued US$0.5 million of convertible bonds to fund expansion of its energy-management-contract business.

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