Lapco Holdings Limited reported a sharp earnings reversal for the year ended 31 December 2025, delivering a net loss attributable to shareholders of HK$8.85 million versus a profit of HK$3.39 million in 2024. Basic loss per share stood at HK$0.08.
Revenue contracted 55.8% to HK$253.54 million (2024: HK$573.39 million), primarily reflecting the disposal of a subsidiary in June 2024 and lower government cleaning contracts.
Key operating data • Cleaning services: HK$93.54 million, down 79.1% year-on-year. • Waste management & recycling: HK$98.05 million, broadly flat. • Online-game integrated services: HK$55.73 million, up 335% following the segment’s full-year contribution. • Combined pest management, landscaping and other services: HK$6.23 million.
Cost of services declined 54.9% to HK$242.37 million, roughly in line with the topline drop, yet gross profit fell 68.8% to HK$11.17 million. Gross margin narrowed to 4.4% from 6.3%, weighed by labour, insurance and vehicle costs.
Administrative expenses eased 18.2% to HK$29.26 million, while finance costs fell 55.1% to HK$1.73 million on lower bank borrowings. A net tax credit of HK$0.14 million (2024: HK$1.90 million expense) partially offset operating pressure.
Balance sheet and liquidity • Cash and cash equivalents: HK$35.82 million. • Pledged bank balances: HK$17.70 million. • Interest-bearing bank borrowings: HK$0.02 million (secured, full-recourse factoring). • Lease liabilities: HK$11.65 million. • Net current assets: HK$117.36 million; current ratio 3.6x. • Gearing ratio: 0.1x.
Capital moves • Rights issue (March 2024) raised net HK$41.70 million; HK$15.80 million remains unutilised, earmarked mainly for performance guarantees and vehicle purchases. • Share placing (May 2025) added net HK$5.08 million, fully deployed for working capital.
No final dividend was proposed.
Operational outlook from management centres on improving profitability in core environmental hygiene services, pursuing synergistic acquisitions and expanding the emerging online-game promotion business. No material post-balance-sheet events were disclosed.