Wei Yuan Holdings Limited reported solid top-line and bottom-line growth for the six months ended 30 June 2026, supported by stronger progress on power-cable installation projects and higher ancillary service income.

Revenue and Profitability • Group revenue advanced 66.0% year on year to S$70.13 million, driven mainly by a S$25.34 million surge in contract works. Power-cable projects contributed S$58.29 million, up S$31.18 million, while revenue from telecommunications projects fell S$5.84 million to S$0.60 million. • Gross profit expanded 87.4% to S$9.63 million; gross margin improved to 13.7% from 12.2%, reflecting project mix and cost control. • Net profit attributable to shareholders increased to S$3.49 million compared with S$0.27 million a year earlier. Basic earnings per share rose to 0.3275 Singapore cents from 0.0256 cents.

Cost Structure and Expenses • Cost of sales climbed 63.1% to S$60.49 million, tracking higher project activity. • Administrative expenses increased 30.2% to S$5.73 million, mainly on higher staff costs. • Finance costs rose 39.0% to S$0.96 million, reflecting greater utilisation of project financing. • A net reversal of impairment on receivables and contract assets of S$0.31 million contrasted with a S$0.26 million allowance in the prior-year period.

Balance Sheet and Liquidity • Total assets reached S$167.19 million, up from S$129.96 million at end-2025, as contract assets rose to S$74.13 million. • Bank borrowings increased to S$75.80 million (31 Dec 2025: S$44.23 million); gearing ratio climbed to 118.8%. • Cash at banks and on hand stood at S$9.42 million, with net current assets of S$19.76 million. The group held undrawn banking facilities of S$103.40 million. • Capital expenditure during the period totalled S$8.75 million, primarily for plant, equipment and vehicles.

Operational Highlights • Order book measured about S$533.00 million as at 30 June 2026, covering 45 ongoing projects scheduled through 2029. • The construction sector in Singapore grew 5.8% year on year in Q2 2026, supporting demand for the group’s civil-engineering services, though management cited pressures from labour costs, regulatory compliance and higher financing expenses.

Dividends and Outlook • No interim dividend was declared for the period. • Management will focus on cost control, cash conservation and disciplined bidding while monitoring economic conditions and potential redevelopment of its Chin Bee Drive premises, pending acceptance of JTC’s consent terms.

Audit and Governance • The interim results are unaudited but reviewed by the Audit Committee, which raised no disagreements. All directors complied with the Model Code for securities transactions.

WEI YUAN HLDG remains positioned to capitalise on its S$533.00 million project pipeline amid a supportive, though cost-challenged, Singapore construction market.