WING LEE DEV (09639) 2025 Mid-term Performance: Steady growth driven by dual wheels, new energy business leads in new directions.

It was learned that on November 26th, WING LEE DEV (09639) announced its interim performance for the period ending September 30, 2025, with a revenue of 252 million Hong Kong dollars and a net profit of 19.21 million Hong Kong dollars. Overall, the performance has undergone a periodic adjustment due to the project cycle and financial receivable account affecting the billing period. The data in the report deviates from the actual business progress in the short term, but the stable core business and growth potential continue to manifest. The core reasons for the performance adjustment are mainly twofold: on the one hand, some large-scale projects in the civil engineering sector are nearing completion, resulting in a gradual natural contraction of revenue, while new projects that have won bids are still in the early preparation and initiation stages, without substantial revenue confirmation, causing a short-term "gap" in the financial statements. On the other hand, the trade accounts receivable increased from approximately 24.545 million Hong Kong dollars at the end of March to approximately 44.674 million Hong Kong dollars at the end of September, with the additional amounts mainly concentrated in the "within 30 days" short aging interval, with very low repayment risk. The difference in these receivables can fully cover the adjustment of excess profit. It is worth noting that the company's diversified business structure has shown optimization effects, with steady growth in cable engineering, new energy business, and leasing machinery business, becoming important supports for performance. The company's three major business sectors have seen abundant new projects, and the layout continues to deepen. In the new energy business sector, they successfully undertook the construction of the Blue Island Stone Mixing Station project at Hong Kong, providing full-process civil engineering and installation services. This project is planned to have seven production lines and will become the largest intelligent mixing station in the country after completion. They have also won multiple new energy equipment orders and have seen a steady increase in profit scale. In addition, the company, together with leading companies such as Sany Group and Contemporary Amperex Technology, established the "Zero-Carbon Intelligent Alliance," creating a full industry chain solution for light storage, charging, and recycling, and has already built a "Zero-Carbon Intelligent Space" demonstration base. These developments will be gradually reflected in future performance reports. With its professional advantages, the civil engineering sector has won several key projects in public entities such as the number five car park at the Hong Kong International Airport, the Kowloon District Road Project, and the supporting project for the Lamma Island Power Plant, solidifying its position in the Hong Kong infrastructure market. In the electromechanical engineering sector, they have won the main contract for the installation of power cables in Kowloon and the New Territories for eight years, and have secured relevant projects from the China Power Company. They are an important partner of the company for major electric power maintenance and upgrade projects, enhancing business stability. Looking ahead, the "New Energy + Green Building" dual-drive strategy will release sustained growth momentum. As the core engine, the new energy business will promote integrated service solutions, deepen cooperation with alliance members, and undertake more green infrastructure projects. Benefiting from the "Dual Carbon" target and Hong Kong's carbon neutral plan, it is expected to enter a period of scalable growth. The civil engineering sector will seize the Hong Kong infrastructure opportunities, with the Special Administrative Region Government spending 120 billion Hong Kong dollars annually on basic projects and an additional 30 billion Hong Kong dollars in reserved funds, along with the advancement of key projects in the northern metropolis area, providing a stable profit space for the company. The electromechanical engineering sector will expand its market share by relying on the China Power Company's 52.9 billion Hong Kong dollar five-year infrastructure investment and the demand for the Innovation and Technology Center in the northern metropolis area, expanding cable upgrades and smart grid projects. Overall, the company's core business is stable, with sufficient order backlog, and the initial effects of strategic transformation are beginning to show. With the confirmation of new project revenue, the scaling up of the new energy business, and the release of policy dividends, the company is expected to achieve steady growth in revenue and profit, bringing long-term sustainable returns to shareholders.