GC Construction Holdings (1489) H2 25/26 earnings summary

Executive summary

• Revenue fell 51.1% YoY to HK$259.6m as fewer projects were awarded and tendering focused on financially secure, stable-margin work.

• Gross profit rose to HK$4.1m and gross margin improved to 1.6%; net loss widened to HK$60.8m, largely reflecting higher impairment losses.

• Backlog increased to HK$690.1m across 37 projects, supported by public and institutional work and selected premium residential contracts.

Financial highlights

• Revenue was HK$259.6m, down HK$271.1m or 51.1% YoY; cost of services fell 51.7% to HK$255.5m.

• Gross profit increased HK$2.0m to HK$4.1m; gross margin was 1.6%, versus 0.4% in FY2025.

• Operating loss was HK$60.7m; loss attributable to owners was HK$60.8m versus HK$53.5m in FY2025.

• Basic and diluted loss per share was HK6.1 cents, compared with HK5.3 cents in FY2025.

Outlook and guidance

• Strategy remains focused on core wet trades, selective tenders for government-led public housing and infrastructure, and stringent cost management.

• Priorities include delivering existing projects, protecting margins and navigating short-term construction-sector volatility and economic uncertainty.

• Management cited a healthy financial position and solid backlog as support for stabilizing operations and pursuing sustainable long-term returns.