Alco Holdings Limited released its audited results for the year ended 31 March 2026. Revenue from continuing operations increased 23% year on year to HK$122.50 million, driven entirely by notebook sales in Asia. Despite the top-line growth, the Group’s loss attributable to owners widened to HK$97.24 million (FY25: HK$58.08 million) as rising costs and finance charges offset the higher sales.
Gross profit improved marginally to HK$5.61 million, equating to a gross margin of 4.6% (FY25: 5.2%). Operating pressure stemmed from: • Selling and administrative expenses rising 15.9% to HK$69.99 million. • Impairment losses on receivables jumping to HK$6.64 million from HK$1.31 million. • Finance costs surging 60.9% to HK$16.03 million, reflecting new high-interest borrowings.
Other income, mainly disposal gains, fell to HK$0.17 million from HK$2.48 million in FY25, removing a non-recurring buffer to earnings.
Balance-sheet reshaping was evident: • Disposal of a property generated HK$90.00 million, enabling full repayment of HK$47.53 million secured bank debt and elimination of a HK$108.47 million financial guarantee. • Proceeds from the November 2025 rights issue (HK$148.00 million) cleared HK$38.05 million of shareholder loans. • A further rights issue, with 44.97% take-up by 12 June 2026, delivered HK$56.67 million in new cash.
As at 31 March 2026, cash stood at HK$10.17 million, while total bank and other borrowings amounted to HK$84.00 million. Net borrowing dropped sharply to HK$31.83 million (FY25: HK$183.94 million) after removal of the guarantee liability. Current assets exceeded current liabilities by HK$19.53 million, reversing the HK$142.65 million shortfall a year earlier. Nevertheless, the Group remained in an equity deficit of HK$18.97 million.
Global Link CPA Limited issued an unmodified opinion but drew attention to a material uncertainty related to going concern, citing the continuing losses and negative equity. Management’s mitigation plan hinges on debt restructuring and additional capital-market funding.
No dividend was declared for FY26 (FY25: nil).
The Group employed 25 staff at year-end (FY25: 20) and continues to pursue operational optimisation, cost control and strategic partnerships to stabilise performance.
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