Rongzun International Holdings Group Limited reported audited results for the year ended 31 March 2026, highlighting a decline in revenue, a sharp swing to gross loss and a significantly wider bottom-line deficit.
Revenue and Margins • Group revenue fell 6.5% year on year to HK$82.67 million. • Direct costs rose 18.1% to HK$99.37 million, driving the gross margin from +4.7% in FY 2025 to –20.2% in FY 2026, or a gross loss of HK$16.70 million (FY 2025: HK$4.18 million gross profit).
Segment Performance • Alteration & addition works revenue dropped 30.0% to HK$33.14 million, contributing 40.1% of total sales (FY 2025: 53.6%). • Civil engineering works revenue rose 20.7% to HK$49.53 million, accounting for 59.9% of sales (FY 2025: 46.4%).
Earnings • Loss before tax expanded to HK$34.07 million (FY 2025: HK$9.55 million loss). • Net loss matched at HK$34.07 million; basic loss per share deteriorated to HK5.49 cents from HK1.54 cents. • No income tax was payable due to absence of assessable profits.
Dividend • The Board will not declare a final dividend (FY 2025: HK4.0 cents per share).
Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$94.97 million (31 March 2025: HK$129.91 million). • Current ratio remained strong at 4.7x (31 March 2025: 5.5x). • Net assets totalled HK$105.68 million; gearing ratio stayed low at 0.1%. • Both a HK$6.50 million land-use deposit and a US$1.20 million bidding escrow were refunded during the year, reducing non-current assets from HK$16.89 million to HK$1.31 million.
Operational Highlights Management attributed the margin reversal to intensified competition, higher subcontracting and material costs, and accelerated project timelines. Staff costs declined 23.9% to HK$19.19 million as headcount fell to 28 from 49. Administrative expenses were broadly stable at HK$19.12 million.
Post-Balance-Sheet Event On 7 May 2026, a mandatory conditional cash offer at HK$0.52 per share was triggered following the acquisition of a 13.55% stake by Mr. Yang Jingyao. Offer details were set out in the joint announcement of 7 May 2026 and the composite document of 18 June 2026.
Outlook Management will continue cost-control measures, pursue selective project bids and evaluate potential expansion into AI-related infrastructure and technologies, though no definitive plans have been finalised.
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