Hong Kong – Wing Lee Development Construction Holdings Limited (WING LEE DEV) reported a sharp decline in full-year earnings for the 12 months ended 31 March 2026, as a contraction in civil-engineering activity and higher financing and marketing costs outweighed solid growth in electrical & mechanical (E&M) and new-energy segments.
Financial Performance • Revenue slid 13.4% year on year to HK$620.32 million, led by a 32.3% fall in civil-engineering sales to HK$344.41 million. • Gross profit contracted 36.6% to HK$91.52 million; gross margin narrowed to 14.8% from 20.2% a year earlier, pressured by higher material, labour and logistics costs on new projects. • Operating profit tumbled 61.6% to HK$27.09 million. • Net profit attributable to shareholders fell 66.8% to HK$18.42 million, driving earnings per share down to 1.8 Hong Kong cents (-71.9%). • Net margin slipped to 3.0% from 7.7% in FY2025.
Segment Highlights • Civil Engineering: Revenue HK$344.41 million (-HK$164.53 million), reflecting project completion and delayed revenue recognition on newly awarded contracts. • E&M Engineering: Revenue HK$225.51 million (+24.0%), bolstered by the eight-year master contract for transmission-cable works in Kowloon and the New Territories. • New Energy: Revenue HK$42.80 million, up 122.9%, fuelled by initial contributions from new-energy equipment sales.
Cost Structure • Selling & marketing expenses rose to HK$16.91 million (FY2025: nil), mainly tied to the “Zero Carbon Smart Space” new-energy initiative. • General & administrative expenses fell 22.3% to HK$47.14 million on lower staff costs. • Finance costs nearly doubled to HK$4.40 million due to higher borrowings.
Balance Sheet & Liquidity • Total assets expanded to HK$671.13 million (FY2025: HK$569.22 million); equity increased to HK$369.90 million. • Borrowings climbed to HK$104.19 million from HK$62.28 million, lifting the gearing ratio to 30.1% (FY2025: 20.5%). • Cash and cash equivalents fell to HK$54.28 million from HK$93.68 million; current ratio eased to 1.91x (FY2025: 2.10x). • Contract assets rose 38.5% to HK$374.80 million, reflecting work in progress. • Capital expenditure reached HK$48.50 million, with HK$9.90 million committed. • No final dividend declared.
Use of IPO Proceeds • Of the HK$150.00 million raised in October 2024, HK$112.30 million has been deployed, mainly for project costs and staff recruitment; HK$37.70 million remains earmarked for machinery purchases, targeted for full deployment by December 2026.
Post-Year Event • In June 2026, the Group secured a new HK$20.00 million loan facility from a financial institution.
Outlook Management plans to accelerate the “Green Building + New Energy” strategy, leveraging partnerships with industry leaders to scale battery-swap, charging and energy-storage solutions, while bidding for infrastructure works tied to Hong Kong’s Northern Metropolis and power-grid upgrades.