Hoe Leong Corporation (H20) H1 2025 earnings summary

Executive summary

• Revenue rose 1.4% YoY to $20.9m, while profit fell to $23k from $862k as clearance sales cut gross margin and foreign-exchange losses weighed on results.

• Operating cash flow improved to $1.5m from a $264k outflow; cash ended June at $1.4m after debt repayments and other financing outflows.

Financial highlights

• Revenue was $20.933m, up 1.4% YoY; cost of sales rose 20.6% to $18.920m and gross profit declined to $2.013m from $4.952m.

• Operating result was $454k versus $1.104m; profit before tax was $165k versus $815k, and net profit attributable to owners was $23k versus $862k.

• Other expenses included a $745k foreign-exchange loss in 1H 2025, versus a $444k foreign-exchange gain in other income in 1H 2024.

• Total assets were $42.3m at 30 June 2025 versus $44.7m at 31 December 2024; total equity was $25.4m at both dates.

Outlook and guidance

• Outlook for the next 12 months remains cautious amid geopolitical uncertainty; focus is on prudent risk reduction, cost management, market diversification and sustainable growth.

• Australia’s service-focused model and track-frame expertise continued to support strong performance; further market exploration is intended to diversify revenue streams.