Easy Smart Group Holdings published unaudited interim results for the six months ended 31 Dec 2025.

Revenue and Profitability • Revenue declined 24.2% year-on-year to HK$138.77 million, reflecting the completion or near-completion of several large public-sector projects. • Gross profit fell 51.7% to HK$6.79 million; gross margin narrowed to 4.9% from 7.7%, pressured by higher subcontractor fees and keen tender competition. • The bottom line turned to a net loss of HK$5.09 million versus a profit of HK$2.24 million in the comparable period.

Cost Structure • Cost of services fell 22.0% to HK$131.98 million, broadly in line with reduced project volume. • Administrative expenses dropped 10.6% to HK$10.05 million, mainly on lower staff costs. • Net impairment on receivables and contract assets was HK$2.28 million, little changed year-on-year. • Other income plunged to HK$0.01 million from HK$1.91 million due to lower interest income.

Cash Flow and Balance Sheet • Operating activities used HK$39.10 million of cash; cash and cash equivalents ended the period at HK$20.65 million, down from HK$59.45 million at 30 Jun 2025. • Total assets stood at HK$226.41 million; net current assets were HK$210.37 million. • Gearing (lease liabilities to equity) remained low at 0.3% (30 Jun 2025: 0.6%). • Outstanding order book (original contract sum) amounted to HK$480.70 million as of 31 Dec 2025, versus HK$687.00 million six months earlier.

Capital Management and Use of Proceeds • Since listing in May 2023 the company raised net proceeds of HK$89.10 million; HK$84.10 million had been deployed by 31 Dec 2025, leaving HK$5.00 million earmarked mainly for IT system upgrades by Dec 2026. • No interim dividend was declared.

Business Outlook Management expects Hong Kong’s construction market to remain challenging amid intense competition, cost fluctuations and regulatory tightening following a major fire incident in late 2025. The Group will adopt a cautious tendering approach, emphasise cost control and explore diversification opportunities, including potential entry into Mainland China’s healthcare and pharmaceutical sectors.

Post-Period Event On 13 Jan 2026, mandatory unconditional cash offer by controlling shareholder Ever Genius International Group Limited closed with acceptances for 0.000000245% of issued shares. Public float temporarily fell below the 25% threshold but was restored on 21 Jan 2026 after Ever Genius placed 2,000 shares on-market, leaving it with 305.998 million shares (75% stake).

Corporate Governance During the period, Easy Smart complied with the Corporate Governance Code except that Chairman and CEO roles remain combined under Mr Ng Wing Woon Dave, which the Board believes ensures consistent leadership. The Audit Committee, comprising three independent non-executive directors, has reviewed the interim results.