Tak Lee Machinery Holdings Limited reported unaudited interim results for the six months ended 31 January 2026.

Revenue and Earnings • Revenue slipped 1.4% year on year to HK$149.39 million, weighed by a 12.0% retreat in heavy-equipment leasing income to HK$50.74 million. • Sales of heavy equipment and spare parts rose 3.9% to HK$92.27 million, while repair, logistics and ancillary services added 24.4% to HK$6.38 million. • Gross profit contracted 16.8% to HK$31.20 million; the margin narrowed to 20.9% from 24.8%, reflecting a softer leasing mix and thinner sales margin. • Profit attributable to shareholders declined 4.3% to HK$13.41 million. Basic EPS came in at HK1.34 cents versus HK1.40 cents a year earlier.

Costs and Expenses • Cost of revenue climbed 3.7% to HK$118.19 million, mainly due to higher machinery and parts costs. • Administrative and other operating expenses dropped 18.3% to HK$18.27 million, helped by lower professional fees and general operating costs. • Finance costs were minimal at HK$0.05 million, all related to lease liabilities.

Balance Sheet and Cash Flow • Cash and bank balances stood at HK$137.80 million, up from HK$118.52 million at the July-end year-end. • Net cash generated from operations amounted to HK$38.46 million; free cash flow after capex and lease repayments was HK$17.97 million. • The group remains debt-free, with a gearing ratio of 0.4% (lease liabilities only) and unutilised banking facilities of HK$90 million. • Current ratio improved to 14.0x (31 July 2025: 12.2x).

Dividend The board declared an interim dividend of HK1.5 cents per share, payable on or about 29 April 2026 to shareholders on record as of 15 April 2026.

Operational Notes Management attributed the earnings decline to the completion of major infrastructure leasing projects (Three-Runway System and landfill extension) and lower gross margins. It remains confident that Hong Kong’s planned capital works—particularly Northern Metropolis and San Tin Technopole—will sustain demand for heavy equipment.

There were no material acquisitions, disposals, charges on assets, or contingent liabilities during the period, and no events after the reporting date requiring disclosure.