REM Group (Holdings) Limited reported interim results for the six months ended 30 June 2026.
Financial Highlights • Revenue dipped 0.5% year-on-year to HK$68.48 million, reflecting softer demand across core low-voltage electrical power distribution and control products. • Gross profit decreased 1.3% to HK$17.93 million; gross margin held broadly steady at 26.2% (1H 2025: 26.4%). • Selling and distribution expenses rose 18.3% to HK$2.27 million, largely on higher transportation costs. Administrative and other expenses edged down 0.4% to HK$15.69 million. • Net finance costs increased to HK$0.09 million, primarily due to higher lease-related interest. • Net profit attributable to shareholders declined 30.6% to HK$0.50 million. Basic earnings per share fell to HK0.03 cent (1H 2025: HK0.04 cent). • The Board declared no interim dividend.
Cash Flow and Balance Sheet • Operations used HK$2.75 million of cash versus an inflow of HK$9.46 million a year earlier. • Cash and cash equivalents stood at HK$68.27 million at 30 June 2026 (31 Dec 2025: HK$74.95 million). • Working capital amounted to HK$144.18 million, while net assets reached HK$174.82 million. The Group remained ungeared, with no interest-bearing bank borrowings. • Capital expenditure totalled HK$2.84 million, focused on machinery and equipment upgrades; HK$1.99 million was invested in new right-of-use assets.
Revenue Breakdown • Product mix: low-voltage switchboards HK$29.91 million, local motor control panels HK$18.69 million, motor control centres HK$14.99 million, electrical distribution boards & control boxes HK$2.68 million, and electrical parts HK$2.22 million. • Geographic mix: Hong Kong contributed 89.8% of revenue (HK$61.47 million), Macau 6.6% (HK$4.55 million) and Mainland China 3.6% (HK$2.47 million).
Capital Management • Of the HK$75.00 million net proceeds from the May 2018 IPO, HK$71.10 million had been deployed by 30 June 2026. The remaining HK$1.50 million is earmarked for planned uses by year-end 2026. • No changes occurred to share capital during the period.
Operational Update Management cited labour shortages and supply-chain volatility in Hong Kong, Macau and Mainland China as factors extending project timelines and pressuring margins. The Group prioritised financial resilience, cost control and diversification into adjacent high-growth sectors to mitigate industry concentration risks.
Risk & Compliance • Currency and interest-rate exposures remain minimal; no hedging arrangements are currently in place. • The Group reported no contingent liabilities and no material post-period events. • Audit Committee has reviewed the interim results; the Group confirmed full compliance with Hong Kong corporate governance and directors’ dealing codes.
Outlook The Board reiterated its focus on safeguarding the balance sheet, maintaining operational discipline and pursuing selective expansion to drive sustainable, long-term shareholder value in an uncertain macroeconomic environment.