#Hong Kong #Cayman Islands #fiscal results #OneConstruction Group #structural steelwork

OneConstruction Group Announces Annual Financial Results

On August 12, 2025, OneConstruction Group Limited (NASDAQ: ONEG) unveiled its audited financial results for the fiscal year concluding on March 31, 2025. As a limited liability company based in the Cayman Islands, OneConstruction operates through its subsidiary, OneConstruction Engineering Projects Limited, established in Hong Kong. The Company specializes in structural steelwork contracting for various construction endeavors within both the public and private sectors.

Financial Performance

Revenue

The overall revenue for FY2025 saw a notable decline of 16.2%, dropping to $53.2 million compared to $63.5 million from FY2024. This downturn was largely driven by a 14.1% decrease from the public sector and a substantial 27.3% fall from private sector revenues. However, it’s worth highlighting that revenue from residential construction in the public sector experienced an uptick of 23.1%, rising from $32.2 million in FY2024 to $39.7 million in FY2025.

Gross Profit

In fiscal year 2025, gross profit stood at $3.9 million, down from $4.4 million in FY2024, indicating a decrease of 11.9%. Interestingly, the gross profit margin experienced a slight improvement of 0.4 percentage points, reaching 7.4% compared to 7.0% from the previous year. This margin enhancement resulted from securing higher-margin construction projects within the public sector.

Net Income

Net income for the fiscal year plummeted to $0.9 million from $1.8 million in FY2024. This decline stemmed from a $0.5 million drop in operational profit, in addition to higher finance costs and an increase in tax obligations, totaling around $0.33 million.

Cash Flow and Cash Position

Cash and cash equivalents reported a net decrease of $0.8 million. The operational activities incurred a cash outflow of $5.1 million, countered by inflows of $4.3 million from financing activities. As a result, the cash balance as of March 31, 2025, fell to $0.7 million from $1.6 million the prior year.

Administrative Expenses

A significant growth in administration expenses marked FY2025, exploding by 153.9% to $2.2 million from only $0.9 million in FY2024. This surge was mainly linked to increased legal fees and associated administrative charges in relation to the Company's initial public offering (IPO).

Operational Highlights

Leading Steelwork Service Provider

OneConstruction Group retains its status as a premier player in the Hong Kong structural steelwork sector, boasting a solid reputation and an impressive operational history. A strong service offering enables the company to deliver custom steelwork solutions tailored specifically to client demands, effectively navigating tight schedules while handling supplementary orders.

OneConstruction is strategically focused on public sector projects that are projected to experience consistent growth, showcasing a compound annual growth rate (CAGR) of 4.5% according to forecasts from the Construction Industry Council of Hong Kong. Despite some contraction in the private sector's construction expenditures, the anticipated growth signals an overall optimistic outlook.

Leadership and Operational Strategy

The management team at OneConstruction Group is comprised of seasoned professionals possessing a wealth of both technical and managerial expertise. This leadership fosters a robust collaborative environment, laying the groundwork for adapting to market evolution and meeting client requirements efficiently.

Recent Developments

As of January 2, 2025, the Company executed its initial public offering of 1,750,000 ordinary shares priced at $4.00 each, generating a total gross of $7 million before deductions. This influx of capital is earmarked for project commencement, expansion of operational teams, and enhancement of working capital.

In February 2025, OneConstruction adopted an equity incentive plan intending to attract and retain key personnel while promoting long-term success, with 3 million shares allocated for issuance. Subsequently, in May 2025, these shares were distributed to select employees at a nominal value, underscoring the Company's commitment to incentivizing its workforce.

Future Outlook

OneConstruction Group aims to heighten its market position, especially within the public sector, emphasizing operational efficiencies and sustainable growth despite challenging economic conditions. The Company's ongoing commitment to its clients and responsiveness to market dynamics positions it favorably as it navigates the evolving landscape of construction in Hong Kong.

Conclusion

OneConstruction Group Limited's recent annual financial results showcase both the challenges it faces and the positive developments in specific areas, reflecting resilience in a fluctuating market. As it looks towards the future, OneConstruction is well-positioned to adapt and thrive in the ever-evolving construction industry landscape.