Chi Kan Holdings' revenue halves as e-commerce drives profit despite construction slump

Chi Kan Holdings Limited announced interim results for the six months ended September 30, 2025, revealing a significant decrease in consolidated revenue to HK$371,760,000, down from HK$867,001,000 in the corresponding period of 2024. This decline was primarily attributed to a sharp reduction in construction business revenue, which fell to HK$64,238,000 from HK$589,531,000.

Despite the revenue drop, the company's gross profit increased to HK$211,445,000 (2024: HK$190,709,000), resulting in a higher gross profit margin of 56.9% (2024: 22.0%). This improvement was largely driven by strong performance in the E-Commerce business, which saw revenue grow to HK$307,522,000 from HK$277,470,000. However, selling and administrative expenses rose to HK$192,255,000 (2024: HK$151,067,000), leading to a loss attributable to owners of the company of HK$(14,725,000), compared to a profit of HK$17,538,000 last year. Basic loss per share was HK$(1.47) cents.

The group’s liquidity position remains stable, with current ratio increasing from 8.8 to 10.7 times. Cash and cash equivalents stood at HK$141,343,000 as of September 30, 2025 (March 31, 2025: HK$228,236,000). The directors did not recommend an interim dividend.