ISP Holdings Limited released its unaudited results for the six months ended 30 June 2026. Consolidated revenue climbed 47.7% year-on-year to HK$91.88 million, driven mainly by new contracts in the interiors and special projects (“ISP”) segment. Despite the top-line growth, gross profit fell 19.8% to HK$7.75 million as the group’s overall gross margin narrowed to 8.4% from 15.4%, reflecting intensified competition and lower cost savings from subcontractors.

\n\nOperating expenses declined 14.8% to HK$35.02 million, aided by lower legal fees and tighter staff-cost controls, yet remained elevated due to ongoing arbitration and litigation costs related to completed projects. After including reduced other income of HK$0.63 million (1H25: HK$8.89 million), the group recorded an operating loss of HK$27.27 million, compared with HK$31.49 million a year earlier.

\n\nBottom-line performance weakened, with the net loss attributable to shareholders widening 18.1% to HK$26.68 million. Basic and diluted loss per share improved to 3.5 HK cents from 4.1 HK cents, reflecting the larger share base following the 2025 rights issue.

\n\nSegmentally, ISP Business contributed 97.5% of group revenue, up 49.3% year-on-year to HK$89.55 million. Segment gross profit dropped 24.4% to HK$5.92 million, while the operating loss narrowed to HK$23.36 million (1H25: HK$27.98 million). New ISP contracts secured during the period totalled HK$99.90 million, and the outstanding order book stood at HK$161.60 million as at 30 June 2026.

\n\nProperty and facility management in China generated HK$2.33 million in revenue, a 4.5% increase. Gross profit was flat at HK$1.84 million, though the segment slipped to a HK$1.04 million net loss on higher administrative expenses.

\n\nLiquidity improved following the release of restricted cash tied to surety bonds. Cash and cash equivalents rose to HK$34.86 million (31 Dec 2025: HK$12.32 million). The group remained debt-free and held HK$67.92 million in pledged deposits plus HK$3.88 million still subject to surety restrictions.

\n\nCapital expenditure was minimal at HK$0.06 million. No interim dividend was declared. Management expects the local construction market to stay challenging but stable in 2H26, with selective private-sector demand in high-end residential renovations offsetting margin pressure from labour shortages and compliance costs.