REM Group (Holdings) Limited reported a net profit of HK$0.50 million for the six months ended 30 June 2026, down 30.6% from HK$0.72 million a year earlier. Revenue was broadly unchanged at HK$68.48 million (–0.5% year-on-year).
Gross margin edged down to 26.2% from 26.4% as gross profit slipped 1.3% to HK$17.93 million. Cost of sales declined marginally in line with top-line movement, while the expense mix shifted:
• Selling and distribution expenses rose 18.2% to HK$2.27 million, reflecting higher transportation costs. • Administrative and other expenses stayed flat at HK$15.69 million. • Net other income fell 7.8% to HK$0.91 million, despite a HK$0.67 million agency fee contribution. • Finance costs increased to HK$0.09 million (+23.3%) due to higher lease-related interest.
Operating profit before tax fell 43.6% to HK$0.79 million. A 57.5% drop in income-tax expense, attributable to the absence of Hong Kong profits tax and an over-provision reversal in Mainland China, tempered the bottom-line decline.
Basic EPS decreased to HK0.03 cent from HK0.04 cent. The board did not declare an interim dividend.
Balance-sheet highlights (30 June 2026 vs 31 December 2025):
• Cash and cash equivalents: HK$68.27 million (–8.9%). • Inventories: HK$50.16 million (+42.9%) amid project-delivery delays. • Trade receivables: HK$37.20 million (–28.4%), while contract assets rose 17.6% to HK$19.37 million. • Net current assets: HK$144.18 million (–2.3%); current ratio held at 5.3x. • Total equity: HK$174.82 million (+0.4%); the group remains ungeared, with no interest-bearing borrowings on record.
Capital expenditure reached HK$2.84 million, mainly for plant and machinery upgrades, and right-of-use asset additions totalled HK$1.99 million for new workshop and staff-quarter leases.
Management noted persistent supply-chain disruptions, labour shortages and rising logistics costs across Hong Kong, Macau and Mainland China. Government infrastructure pipelines and labour-import schemes were cited as potential sector tailwinds, while the group maintained a focus on balance-sheet strength and cost control.
No significant post-balance-sheet events, capital commitments or contingent liabilities were reported.