Sanbase Corporation Limited (Sanbase; HKEX: 08501) released audited results for the fiscal year ended 31 March 2026.

Financial Highlights • Revenue declined 17.7% year-on-year to HKD 344.71 million, driven mainly by a 22.5% drop in bare-shell fit-out income (HKD 276.63 million; 80.2% of total revenue). • Gross profit contracted 81.8% to HKD 3.56 million; gross margin slipped to 1.0% from 4.7% in FY25. • Net loss widened to HKD 16.20 million (FY25 restated: HKD 13.54 million). • Loss attributable to owners narrowed slightly to HKD 13.59 million; basic loss per share was 6.80 HK cents (FY25: 8.02 HK cents). • No final dividend proposed.

Operating & Segment Detail • Hong Kong projects contributed 98.2% of revenue (HKD 338.60 million). • Revenue from mainland China fell to HKD 6.10 million following the disposal of the PRC subsidiary in September 2025. • New orders: 37 bare-shell fit-out contracts worth HKD 214.40 million were secured during the year.

Cost & Expenses • Cost of sales decreased 14.5% to HKD 341.15 million, broadly in line with lower revenue. • Administrative expenses were stable at HKD 19.53 million. • Staff costs rose 2.8% to HKD 44.14 million. • Finance income dropped to HKD 1.84 million (FY25: HKD 2.99 million); finance costs remained low at HKD 0.07 million.

Balance Sheet & Liquidity • Total assets fell 18.3% to HKD 220.50 million, mainly after derecognising PRC assets and a prior-year fair-value adjustment on an unlisted fund. • Cash and cash equivalents increased to HKD 124.94 million (FY25: HKD 103.62 million); pledged bank deposits declined to HKD 1.02 million after a reduction in surety bonds. • Net current assets stood at HKD 104.39 million; current ratio improved to 2.0x (FY25: 1.8x). • Gearing ratio edged down to 1.5% (FY25: 2.0%). • Equity attributable to owners decreased to HKD 107.66 million due to the annual loss and disposal-related movements.

Corporate Actions • Completed sale of 100% interest in Sanbase China Holding Limited for HKD 1.80 million, booking a disposal gain of HKD 0.23 million; transaction resulted in a HKD 7.59 million net cash outflow after de-consolidating HKD 9.39 million cash. • Prior-year figures were restated after a HKD 12.06 million downward revaluation of an unlisted Cayman fund investment, now deemed negligible.

Risk Factors & Outlook Management flags persistent headwinds in Hong Kong’s Grade-A office market, citing a 13.5% vacancy rate and expectations of further rental declines in 2026. Cost-driven tenant relocations are compressing project budgets and margins. The group plans to:

1. Intensify subcontractor cost controls to defend margins. 2. Diversify into retail, education, residential and NGO segments to broaden its client base. 3. Monitor government-led Northern Metropolis and Loop development projects for new opportunities.

No significant post-balance-sheet events were reported.

Regulatory & Governance All directors complied with Hong Kong’s required standards of dealings. The company maintained compliance with the Corporate Governance Code, apart from the continued combination of chairman and CEO roles.

Key Dates • Register of members closes: 11–14 August 2026. • Annual General Meeting: 14 August 2026.