Lapco Holdings Reports HK$6.20 Million Interim Loss on Lower Revenue; Online Game Segment Adds HK$11.89 Million

Lapco Holdings released unaudited results for the six months ended 30 June 2026. Revenue fell 11.5% year-on-year to HK$124.45 million, driving gross profit down 25.5% to HK$3.36 million and widening the net loss attributable to shareholders to HK$6.20 million (2025 interim loss: HK$2.83 million).

Gross margin slipped to 2.7% from 3.2% a year earlier as service costs remained elevated. Administrative expenses declined 31.6% to HK$11.03 million following the removal of costs linked to supportive services for a former subsidiary. Finance costs eased 17.1% to HK$0.76 million on a lighter borrowing profile.

Segment performance showed cleaning services stayed the largest contributor with HK$58.26 million revenue, while waste management and recycling generated HK$51.07 million. The newer online game integrated services arm delivered HK$11.89 million in revenue and HK$1.11 million in segment profit, partially offsetting declines elsewhere. Pest management and landscaping services provided HK$0.01 million and HK$3.23 million respectively.

Cash and cash equivalents stood at HK$24.69 million at period-end (31 December 2025: HK$35.82 million). Bank borrowings totaled HK$6.40 million, all secured and at floating rates, leaving the Group in a net cash position. Current ratio measured 3.0x (31 December 2025: 3.6x). Pledged bank balances increased to HK$23.70 million from HK$17.70 million. Net cash used in operating activities was HK$7.55 million; investing activities absorbed HK$5.56 million, mainly due to additional pledged deposits; financing activities generated HK$1.99 million, reflecting new factoring loans.

Total assets declined to HK$199.67 million (31 December 2025: HK$196.73 million) while equity attributable to owners fell to HK$136.41 million from HK$142.61 million, primarily on the interim loss. No interim dividend was declared.

Management cited continued labour shortages and high operating costs as sector headwinds but intends to focus on quality management and competitive pricing to rebuild profitability. The company will also continue marketing its licensed online games to diversify revenue streams.

No material events occurred after the reporting date up to 31 August 2026.