Lai Si Enterprise Holding Posts MOP14.19 Million Interim Loss on Steep Revenue Slide

Lai Si Enterprise Holding reported a sharp reversal into the red for the six months ended 30 June 2026, as revenue contracted and margins deteriorated across its core operations in Macau and Hong Kong.

Revenue fell 35.9 per cent year-on-year to MOP71.24 million, dragged by a 71.3 per cent plunge in fitting-out income to MOP29.76 million. Construction revenue rose more than seven-fold to MOP38.53 million on the back of a government project, while repair and maintenance turnover grew 32.6 per cent to MOP2.95 million.

The revenue mix shift failed to protect profitability. Group gross profit narrowed 73.1 per cent to MOP5.16 million, and the gross margin compressed to 7.2 per cent from 17.2 per cent a year earlier. Margins on construction works dropped to 5.7 per cent (1H 2025: 35.2 per cent) and fitting-out margins fell to 5.8 per cent (1H 2025: 16.7 per cent).

Loss attributable to shareholders totalled MOP14.19 million versus a MOP1.09 million profit in 1H 2025. Basic loss per share was 3.5 Macau cents, compared with earnings of 0.3 Macau cents a year earlier. The board declared no interim dividend, in line with the prior-year decision.

Operating expenses remained broadly stable at MOP16.94 million (+2.3 per cent), but impairment charges on receivables and contract assets rose to MOP1.48 million (1H 2025: MOP0.30 million). Finance costs increased to MOP0.75 million amid higher bank borrowings.

Cash and bank balances stood at MOP15.86 million at end-June, down from MOP33.99 million at last year-end. Net current assets declined to MOP8.87 million (31 December 2025: MOP21.65 million). Interest-bearing bank loans expanded to MOP73.74 million from MOP38.49 million, pushing the gearing ratio to 0.70 (end-2025: 0.30). Equity attributable to owners slipped 11.2 per cent to MOP112.53 million.

Order-book indicators showed mixed trends: newly awarded fitting-out contracts totalled MOP36.90 million in the period (1H 2025: MOP46.70 million), while aggregate backlog for fitting-out and construction projects rose to MOP162.50 million, more than triple the MOP50.90 million recorded a year earlier.

On the legal front, the Macau court in January 2026 dismissed compensation claims related to the 2012 Sin Fong Garden Building collapse. Plaintiffs have appealed; management does not anticipate a material financial impact.

Looking ahead, Lai Si Enterprise Holding highlighted continued public-sector infrastructure spending in Macau and refurbishment demand from integrated resorts and hotels, but cautioned that intensified competition and project scheduling could weigh on industry margins in the second half of 2026.