Easy Smart Group (2442) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell to HK$314.5m from HK$352.9m; gross margin dropped to 8.3% from 18.0%, and results shifted to a HK$0.5m loss from HK$35.8m profit.

• Outstanding contracts totaled HK$687.0m at 30 June 2025, versus HK$670.7m a year earlier; outlook remained cautiously optimistic over the medium to long term.

Financial highlights

• Revenue declined 10.9% YoY to HK$314.5m; service costs edged down 0.3% to HK$288.3m.

• Gross profit fell 59.0% to HK$26.1m; gross margin contracted to 8.3% from 18.0%, reflecting higher subcontractor fees and lower margins on new tenders.

• Loss before tax was HK$0.1m versus FY2024 profit before tax of HK$43.0m; net loss was HK$0.5m versus net profit of HK$35.8m.

• Basic and diluted loss per share was HK0.12 cents, compared with earnings per share of HK8.78 cents in FY2024.

Outlook and guidance

• Directors were cautiously optimistic for the medium to long term; government-initiated projects are expected to remain a key industry driver over the coming few years.

• Tendering strategy and cost management are being optimized amid lower new-project margins; efforts to broaden revenue sources include development of new business segments.

• Outstanding contract sums were HK$687.0m at 30 June 2025, up from HK$670.7m in FY2024.