OneConstruction Group Limited reported a six‑month revenue of $27.8 million, a 3.4 % decline from $28.7 million in the same period a year earlier. The drop is largely attributable to a slowdown in Hong Kong’s private‑sector construction market, while the company’s mix shifted toward higher‑margin public‑sector projects, which partially offset the revenue decline.
Gross profit fell to $2.26 million from $2.39 million year‑ago, compressing the gross‑profit margin from 8.3 % to 8.1 %. The margin squeeze reflects the lower mix of public‑sector work and the higher cost base associated with the company’s recent Nasdaq listing and related professional fees.
Operating expenses surged 94.9 % to $1.7 million, driven by increased payroll, office leasing, and professional fees incurred during the Nasdaq listing process. Share‑based payment expenses of $0.67 million were recorded for the issuance of 3 million equity‑incentive‑plan shares, adding to the cost pressure.
The company posted a net loss of $0.1 million for the six months, compared with a net income of $1.2 million a year earlier. The loss is primarily the result of the sharp rise in administrative and share‑based expenses, which outweighed the modest gross‑profit decline. Cash and cash equivalents stood at $4.8 million, and the current ratio of 3.4 indicates a solid liquidity position.
The results highlight a strategic pivot toward public‑sector contracts, which offer higher margins but also increase concentration risk. Management’s focus on controlling administrative costs and leveraging the Nasdaq listing’s benefits will be critical as the private‑sector slowdown continues. The company’s ability to maintain profitability will depend on balancing the higher‑margin public‑sector mix with disciplined cost management and a recovery in private‑sector demand.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.