K W Nelson Interior Design and Contracting Group Limited (K W Nelson GP, 08411) has reported a strong turnaround for the six months ended 30 June 2026.

Financial Performance • Revenue climbed 67.04% year on year to HK$20.48 million, propelled by higher contributions from office and medical-centre projects. • Gross profit more than doubled to HK$9.02 million, lifting the gross margin to 44.0% (H1 2025: 32.8%). • Profit attributable to shareholders reached HK$2.44 million, versus a HK$2.27 million loss a year earlier, translating into basic earnings of HK0.26 cents per share (H1 2025: loss of HK0.24 cents). • Selling and distribution expenses rose to HK$1.30 million (H1 2025: HK$0.82 million) largely on higher headcount, while administrative expenses eased slightly to HK$5.59 million (H1 2025: HK$5.90 million).

Dividend The board declared an interim dividend of HK0.3 cents per share, payable on 9 October 2026 to shareholders on record as of 22 September 2026.

Segment & Margin Dynamics All revenue was generated in Hong Kong. – Design & decoration projects contributed HK$15.57 million, up HK$6.87 million. – Decoration projects (mainly medical centres) added HK$4.27 million, absent in the prior-year period, and delivered a 55.9% margin. – Other services declined to HK$0.63 million. The margin expansion reflects a richer project mix, notably higher-specification medical-centre work.

Balance Sheet & Liquidity • Cash and cash equivalents stood at HK$17.26 million (31 Dec 2025: HK$17.15 million). • Net current assets totalled HK$41.87 million; current ratio improved to 17.3x (31 Dec 2025: 7.3x) after trade payables fell to HK$1.66 million. • No interest-bearing borrowings; gearing remains at zero. • Total equity attributable to owners was HK$42.90 million. • HK$2.00 million of bank deposits are pledged for banking facilities; no performance bonds outstanding as at 30 June 2026.

Cash Flow Operations used HK$1.57 million, mainly due to working-capital movements. Investment activities generated HK$7.66 million as time deposits matured, while dividends and lease payments led to a HK$6.07 million financing outflow. Net cash rose marginally to HK$17.26 million.

Outlook Management anticipates a stabilising market and gradual recovery in demand for commercial interior projects, especially office renovations and medical-centre fit-outs. The group will continue to focus on cost control, project execution and client expansion to sustain growth.

Corporate Updates • Remaining headroom under the 2021 share-award scheme totals 49.60 million shares (4.96% of issued share capital); no new awards were granted in the period. • Headcount remained at 14 employees. • No material capital commitments, borrowings or contingent liabilities were reported.

The board views the first-half rebound and margin gains as evidence of improving operating conditions and effective cost management.