Hoe Leong Corporation (H20) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 12.4% YoY to $38.532m; profit before tax rose to $672k from $597k, while net profit was $473k versus $727k.

• Gross margin improved to 24.9% from 22.7%; operating cash flow increased to $4.582m from $1.628m, supported mainly by lower receivables.

• FY2026 priorities are to deepen Oceania presence and build North American business development, while diversifying revenue and rebuilding KBJ brand confidence.

Financial highlights

• Revenue was $38.532m, down 12.4% YoY; cost of sales fell 14.9% to $28.928m and gross profit was $9.604m versus $10.007m.

• Operating result was $1.180m versus $1.163m; PBT was $672k versus $597k, and net profit was $473k versus $727k.

• Net impairment reversal was $189k versus an $111k allowance; FY2025 included a $272k trade-receivable impairment reversal, versus a $602k allowance in FY2024.

• Total assets were $41.491m, equity $25.823m and liabilities $15.668m at 31 Dec 2025; cash and cash equivalents were $3.338m.

Outlook and guidance

• FY2026 focus: deepen Oceania presence and strengthen North American business development to create a more diversified, resilient revenue base.

• Continue improving execution and rebuilding KBJ brand confidence; proven product quality is helping restore market confidence.

• Strategic aims include strengthening the Australian business, engaging more top- and mid-tier customers, and pursuing long-term sustainable growth.