Lap Kei Engineering (Holdings) Limited (LAP KEI ENGRG) reported unaudited results for the six months ended 30 June 2026 (1H26).
Financial Highlights • Revenue: HK$118.64 million, down 11.8% year-on-year (1H25: HK$134.46 million). • Gross profit: HK$14.26 million, up 61.7% (1H25: HK$8.82 million); gross margin expanded to 12.0% from 6.6%. • Profit attributable to shareholders: HK$5.27 million, vs. HK$0.42 million in 1H25. • Basic EPS: HK0.36 cent (1H25: HK0.032 cent). • Interim dividend declared: HK$0.01 per share, totalling HK$14.45 million; record date 16 Sep 2026, payment on or around 9 Oct 2026. • Final dividend of HK$28.90 million for FY25 was paid during the period.
Segment Performance • Building services engineering work generated HK$110.62 million (93.3% of total), while maintenance, repair and other services contributed HK$8.01 million. • Segment gross profit reached HK$14.26 million, with higher-margin projects driving the uplift.
Cost & Expenses • Cost of revenue fell 16.9% to HK$104.37 million, outpacing the revenue decline and supporting margin expansion. • Administrative expenses decreased 9.5% to HK$8.90 million, aided by reversals of impairment losses.
Balance Sheet & Liquidity • Net assets: HK$126.23 million (31 Dec 2025: HK$149.86 million) after dividend payout. • Cash and bank balances: HK$70.02 million, modestly higher than year-end 2025. • Net current assets: HK$117.30 million; current ratio improved to 2.4x (31 Dec 2025: 2.2x). • Gearing ratio remains nil; the Group carries no interest-bearing borrowings. • Pledged bank deposits and leased property secure performance bonds totalling HK$49.60 million; unutilised banking facilities stood at HK$84.10 million.
Operational Notes Management attributes profit growth to a richer project mix and lower project costs. The board continues to pursue larger-scale engineering contracts, broader licensing and talent strengthening to sustain growth.
No material acquisitions, disposals, capital commitments or contingent liabilities were recorded during the period, and no significant post-period events have been announced.