GC Construction Holdings (1489) H2 24/25 earnings summary

Executive summary

• FY2025 revenue fell 9.3% YoY to HK$530.7m; gross profit dropped to HK$2.1m and the year ended with a HK$53.5m loss attributable to owners.

• Results were pressured by lower-margin contracts, delayed project progress and payments, and sharply higher impairment losses on trade receivables and contract assets.

• Backlog stood at HK$343.3m across 32 projects at 31 March 2025, down from HK$564.8m across 61 projects a year earlier.

Financial highlights

• Revenue was HK$530.7m, down HK$54.5m or 9.3% YoY; cost of services fell 2.7% to HK$528.5m.

• Gross profit declined to HK$2.1m from HK$41.8m; operating loss was HK$53.9m versus operating profit of HK$20.6m.

• Loss before tax was HK$53.2m; net loss attributable to owners was HK$53.5m versus prior-year profit of HK$19.1m.

• Basic and diluted loss per share was HK5.3 cents versus earnings per share of HK1.9 cents; no final dividend was recommended.

Outlook and guidance

• Strategy is to avoid higher-risk projects and prioritize work with stable payment terms and trusted developers and main contractors with strong payment records.

• Business development outside Hong Kong continued, including a construction project secured in Cambodia during FY2025.