Hao Tian International Construction Investment Group (1341) investor relations material

Executive summary

• Revenue for the six months ended 30 September 2025 was HK$41 million, down from HK$86 million year-over-year, mainly due to a sharp decline in construction machinery rental demand and utilization rates falling to 50%.

• Loss before tax narrowed to HK$39 million from HK$80 million year-over-year, while net loss attributable to owners was HK$36 million, compared to HK$71 million in the prior period.

• Gross profit dropped significantly to HK$1 million from HK$31 million, reflecting the inability to reduce costs in line with revenue decline.

• No interim dividend was declared for the period.

Financial highlights

• Revenue decreased by HK$45 million year-over-year, primarily from lower construction machinery rental and sales.

• Gross profit margin contracted sharply due to fixed costs in the rental business.

• Administrative expenses rose 30% to HK$35 million, mainly from higher staff costs.

• Finance costs increased to HK$9 million, reflecting higher borrowings.

• Net income tax credit of HK$3 million was recorded, compared to a HK$1 million expense previously.

Outlook and guidance

• Management is cautiously optimistic about long-term prospects, expecting the Northern Metropolis infrastructure initiative in Hong Kong to drive future demand.

• The Group is preparing to launch virtual asset dealing services, pending regulatory approval, to diversify revenue streams.

• Ongoing disposal of underutilized machinery aims to improve cash flow and align the fleet with market conditions.