ISP Holdings released its audited results for the year ended 31 December 2025, reporting a notable top-line rebound but a wider bottom-line deficit.
Revenue and Profitability • Revenue rose 45.5% year on year to HK$153.48 million, driven mainly by a larger project base in the Interiors & Special Projects (ISP) Business. • Gross profit more than doubled to HK$20.63 million; gross margin improved to 13.4% from 8.8% in 2024, helped by cost savings on subcontracted works. • Substantial legal, professional and credit-provision charges—most linked to arbitration and litigation on legacy projects—pushed operating expenses up 64.0% to HK$80.19 million. • The Group posted a loss attributable to shareholders of HK$48.96 million, 46.3% higher than the HK$33.54 million loss a year earlier. Basic and diluted loss per share widened to 7.9 HK cents (2024: 6.3 HK cents).
Segment Performance • ISP Business contributed HK$149.19 million in revenue (+51.2%), representing 97% of the Group total. Gross profit surged to HK$16.99 million, but an 80.9% rise in operating expenses—stemming from litigation costs and credit-loss provisions—led to a HK$53.03 million segment loss (2024: HK$33.66 million loss). • Property & Facility Management (PFM) China Business recorded HK$4.29 million in revenue (-36.8%) and a HK$0.59 million loss, reflecting the expiry of a major Shanghai contract and challenging sector conditions.
Cost and Other Income Dynamics • Staff costs stood at HK$44.92 million (-8.7%). • Professional and legal fees ballooned to HK$49.99 million, underpinning the surge in operating costs. • Other income and gains increased 73.8% to HK$10.66 million, supported by HK$5.95 million of bank interest on restricted cash and a HK$4.05 million fair-value gain on listed equity investments.
Balance Sheet and Liquidity • Cash and cash equivalents totalled HK$12.32 million; restricted cash deposits earmarked for performance-bond obligations rose to HK$68.03 million. • The Group remains debt-free; no gearing ratio is disclosed. • Net assets declined to HK$128.92 million (2024: HK$150.31 million), while the current ratio moderated slightly to 1.9x (2024: 2.0x).
Capital Movements • Following an April 2025 capital reorganisation that reduced par value to HK$0.01, the Company executed: – A rights issue in May, raising HK$10.10 million net and issuing 212.43 million shares. – A share placing in October, raising HK$16.90 million net and issuing 127.45 million shares. The total issued ordinary shares increased to 764.72 million.
Dividend No dividend was declared for FY 2025 (FY 2024: nil).
Management Outlook The Board expects Hong Kong’s construction market to remain broadly steady, buoyed by public-sector projects and the Northern Metropolis development. However, labour shortages, compliance costs and developer liquidity constraints are likely to persist. ISP Holdings plans to maintain disciplined bidding, strengthen cost control, and focus on luxury residential, high-end fitting-out and rehabilitation projects. In mainland China, the PFM segment will pursue selective new contracts amid cautious market conditions.
Post-Year Event On 13 January 2026 the Company renewed its ISP Works Master Agreement with controlling shareholder Mrs Chu, setting annual caps of HK$30.00 million for 2026-2028, subject to independent shareholders’ approval.
No other material post-balance-sheet events were noted.