AB Builders Group (AB Builders) reported unaudited interim results for the six months ended 30 June 2026, showing resilient profitability despite a sharp fall in revenue.
Revenue and Profitability • Top-line declined 25.1% year on year to MOP 127.90 million, reflecting the completion of a Hong Kong fitting-out project in 2025 and early-stage progress on newly awarded Macau contracts. • Gross profit climbed 32.0% to MOP 13.42 million; gross margin widened to 10.5% (1H25: 6.0%) on higher-margin variation orders and project mix improvements. • Profit for the period edged up 1.1% to MOP 0.48 million. Basic and diluted EPS were MOP 0.07 cents (1H25: MOP 0.05 cents). • No interim dividend was declared.
Segment Performance • Construction services remained dominant, contributing 98.9% of total revenue at MOP 126.54 million, down 24.3% year on year. • Sales of construction materials generated MOP 1.25 million (-66.3% YoY). • Investment management and advisory services, a new line, recorded MOP 0.10 million.
Order Book and Operations • Nine new fitting-out contracts were secured during the period, lifting outstanding contract value to MOP 224.86 million, expected to be recognised through 2026-2027. • At 30 June 2026 the Group had 18 active fitting-out projects in various stages of execution.
Balance Sheet and Liquidity • Cash, bank balances and pledged deposits totalled MOP 133.08 million (31 Dec 2025: MOP 145.68 million). • Bank borrowings rose to MOP 58.23 million (31 Dec 2025: MOP 13.27 million), pushing the gearing ratio to 29.5% (31 Dec 2025: 6.7%). • Net current assets stood at MOP 112.27 million, while unutilised banking facilities amounted to MOP 117.00 million. • Current ratio declined to 1.7x (31 Dec 2025: 2.1x).
Cost and Expense Trends • Administrative expenses increased 17.7% to MOP 15.90 million, driven by expansion in Hong Kong and Malaysia. • Expected credit loss provisions swung to a MOP 0.45 million charge from a MOP 0.74 million reversal in 1H25, reflecting higher receivables and contract assets.
Strategic Developments and Outlook • A Malaysian subsidiary has been established to explore construction and materials trading opportunities in Southeast Asia; no revenue was recorded during the Review Period. • Management will focus on executing the MOP 224.9 million backlog, cost control, and cash collection. • The company continues to pursue tenders linked to Macau integrated-resort refurbishments and government/private projects, while developing its construction materials trading and nascent Hong Kong-based financial services (SFC Type 4 & 9 licences).
Corporate Updates • No interim dividend proposed. • No share repurchases, issuances, or major acquisitions/disposals during the period. • Pledged assets comprised MOP 33.00 million of office premises and MOP 74.41 million in bank deposits securing banking facilities.
AB Builders states compliance with Hong Kong’s Corporate Governance Code, except for combining Chair and CEO roles in one individual, which the Board views as appropriate for operational continuity.