Easy Smart Group (2442) H1 2026 earnings summary

Executive summary

• H1 FY2025 revenue fell 24.2% YoY to HK$138.767m; gross margin contracted to 4.9% from 7.7%, and the period swung to a HK$5.089m loss from HK$2.235m profit.

• Lower revenue and gross profit reflected completion or near-completion of sizeable public projects, while higher subcontractor fees and competitive pricing pressured margins.

Financial highlights

• Revenue was HK$138.767m vs HK$183.166m YoY; service costs were HK$131.980m vs HK$169.106m.

• Gross profit declined to HK$6.787m from HK$14.060m; gross margin was 4.9% vs 7.7%.

• Loss before tax was HK$5.567m vs profit before tax of HK$2.408m; basic and diluted loss per share was HK1.25 cents vs earnings of HK0.55 cents.

• Other income fell to HK$6,000 from HK$1.909m, mainly due to lower interest income; administrative expenses declined 10.6% to HK$10.052m.

Outlook and guidance

• Outstanding contract sums were HK$480.7m at 31 December 2025 vs HK$687.0m at 30 June 2025.

• Prudent tendering and tighter cost management are planned to address squeezed margins; government-initiated projects are expected to support Hong Kong construction over coming years.

• Plans include exploring PRC healthcare and medicine opportunities to diversify and reduce reliance on construction.