GKE Corporation has reported lower earnings of $1.87 million for the 1HFY2026 ended Nov 30, 2025, down 57.5% y-o-y.

 

Revenue for the period grew 5.3% y-o-y to $66.53 million, while gross profit declined 9.2% y-o-y to $17.67 million.

 

Earnings per share for 1HFY2026 declined 57.9% y-o-y to 0.24 cents.

 

The group&rsquo s revenue increase was due to contribution from the retail and distribution segment and a slight growth in agriculture. This was partially offset by a decrease in revenue from the infrastructural materials & services segment due to lower sales volume of ready-mix concrete.

 

The group&rsquo s gross profit decline is due to the business nature of the retail and distribution segment and a decrease in gross margin of the warehousing & logistics segment due to start-up expenses in Dubai and the temporary reduction in storage capacity.

 

CEO and executive director of the group Neo Cheow Hui said that the group anticipated lower profits during this phase due to its planned expansions which required substantial investments and efforts resulting in temporary decline in financial performance.

 

The group&rsquo s warehousing & logistics segment has been affected by the import tariff imposed by the US has caused a slowdown in manufacturing industries along with the start-up expenses incurred in Dubai and the temporary reduction in storage capacity due to ongoing additions and alterations work at 7 Kwong Min Road of GKE Marquis.

 

Furthermore, the unexpected unusually heavy rainfall in Guangxi, China, where the group operates its infrastructural materials & services business, had adversely affected its performance in 1HFY2026.

GKE Corporation has further expanded its presence in Dubai, United Arab Emirates (UAE) through entering a head of terms document for a 20-year lease of premises.

 

The group&rsquo s wholly-owned subsidiary incorporated in Dubai entered the document on Dec 30, 2025 with JAFZA Enterprises, a subsidiary of DP World.

 

DP World is a Dubai-based global logistics giant specialising in end-to-end supply chain solutions, managing ports, terminals, economic zones, and offering freight forwarding, contract logistics and tech-driven trade facilitation.

 

It handles about 10% of global trade and connects businesses across over 80 countries with integrated sea, land and air services.

 

GKE Corporation has expanded its warehousing and logistics services into Dubai in 2024, and sees this proposed lease as a means for long-term operational stability for its core warehousing and logistics activities in the country.

 

GKE says that the lease rent payable to JAFZA over 20 years will amount to about $120 million, financed by internal resources and proceeds raised from placement of shares in October 2025, as well as external funding sources including borrowings.

 

The head of terms document includes the option to extend the lease for another five years.