ISP Holdings (02340) announced its interim results for the six months ended June 30, 2025. The group recorded revenue of HK$62.2 million, representing a 30.9% year-on-year increase. The company reported a loss of HK$22.6 million during the period, marking a 115.2% increase compared to the same period last year, with a loss per share of HK$0.041.

Although the gross profit margin declined slightly by 1.2 percentage points from 16.6% in the same period last year to 15.4%, primarily due to intensified market competition that compressed profit margins, gross profit actually increased from approximately HK$7.9 million in the corresponding period to approximately HK$9.6 million in the reporting period.

The key factors affecting the company's performance were substantial expenses arising from arbitration cases and legal proceedings related to completed projects in the interior decoration and special projects business. The hearings for these arbitration cases and legal proceedings were conducted in 2025, generating significant costs for preparation work and court appearances.

Additionally, Hong Kong's business environment continues to deteriorate and remains uncertain, coupled with financial constraints faced by certain major property developers, leading to increased credit risk. Consequently, the group made substantial provisions for bad debts and expected credit losses during the reporting period to mitigate the rising risks it faces.