Hao Tian International Construction Investment Group (1341) H1 2026 earnings summary

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 utilization to 50% amid a slowdown in Hong Kong infrastructure projects.

• Loss before tax narrowed to HK$39 million from HK$80 million in the prior period; net loss for the period was HK$36 million, compared to HK$81 million or HK$71 million previously.

• Gross profit dropped significantly to HK$1 million from HK$31 million year-over-year, as cost reductions could not offset revenue declines.

• The Group completed several fundraisings and a major disposal, and is pursuing a virtual asset dealing license to diversify its financial services.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$41 million (2024: HK$86 million), a 52% decrease year-over-year.

• Net loss: HK$36 million (2024: HK$81 million), loss per share HK$0.44 (2024: HK$0.93).

• Gross profit: HK$1 million (2024: HK$31 million).

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

• Finance costs rose to HK$9 million (2024: HK$6 million) due to increased borrowings.

Outlook and guidance

• Cautiously optimistic on long-term prospects for construction machinery rental and sales, with potential demand from the Northern Metropolis infrastructure initiative in Hong Kong.

• Plans to streamline the rental fleet and dispose of underutilized machinery to improve cash flow.

• If approved, virtual asset dealing services are expected to expand the customer base and diversify revenue streams.