Easy Smart Group (2442) H2 2026 earnings summary

Executive summary

• FY26 revenue fell to HK$209.2m from HK$314.5m; gross result shifted to a HK$0.3m loss from HK$26.1m profit.

• Net loss widened to HK$30.6m from HK$0.5m; loss per share was HK7.49 cents vs HK0.12 cents.

Financial highlights

• Revenue declined 33.5% YoY as several large public-sector projects were completed or neared completion and fewer new projects were awarded.

• Cost of services fell 27.3% to HK$209.5m, less than the revenue decline; gross margin was -0.1% vs 8.3%.

• Administrative expenses rose 30.9% to HK$29.2m, mainly on higher right-of-use asset depreciation and professional expenses.

• Net impairment losses and write-offs were HK$2.2m vs HK$5.5m; finance costs increased to HK$0.8m from HK$0.1m.

Outlook and guidance

• Outstanding contracts totaled HK$346.3m at 30 June 2026, down from HK$687.0m a year earlier.

• Government-led projects are expected to support Hong Kong construction demand in coming years, including Northern Metropolis development; private-sector activity remained weak.

• New tenders will be assessed prudently and costs optimized amid squeezed margins; diversification opportunities include AI technology and communications-related businesses.