Unity Enterprise Holdings Limited reported interim results for the six months ended 30 June 2026 showing improved profitability despite softer top-line growth.
Financial highlights • Revenue fell 4.2% year on year to HK$114.13 million, reflecting project delays and heightened price competition in Hong Kong’s repair, maintenance, alteration and addition (RMAA) market. • Gross profit returned to positive HK$1.12 million (H1 2025: HK$3.25 million loss) on tighter cost control and reduced project overruns, lifting gross margin to 1.0%. • Loss attributable to shareholders narrowed 16.3% to HK$13.01 million (H1 2025: HK$15.54 million). • Basic loss per share improved to HK7.7 cents from HK12.1 cents. • No interim dividend was declared.
Segment performance • RMAA works remained the core business, generating HK$109.95 million (96% of group revenue). • Building-materials distribution contributed HK$2.11 million, while newly added EV advising & installation services delivered HK$2.07 million.
Order book and operations • Outstanding project backlog stood at HK$212.40 million at 30 June 2026, down from HK$234.40 million at end-2025, spread across 40 ongoing projects (31 December 2025: 86 projects). • Key contracts secured during the period include a logistics centre in Kwai Chung, refurbishment at Mei Foo residential estate and a hotel project in Kwun Tong.
Balance sheet and liquidity • Net current position reversed to liabilities of HK$2.01 million (31 Dec 2025: HK$11.18 million net assets) following higher trade payables and accrued contract costs. • Cash and bank balances were HK$12.67 million (31 Dec 2025: HK$13.04 million). • Bank borrowings declined to HK$5.27 million; promissory notes remained at HK$56.46 million. • Gearing ratio rose to 79.9% (31 Dec 2025: 69.3%), while net-debt-to-equity increased to 63.5% (31 Dec 2025: 54.8%). • Capital expenditure totalled HK$0.30 million, focused on office equipment and a vehicle.
Cash flow • Operating activities generated HK$0.55 million (H1 2025: HK$1.14 million). • Net outflow from financing reached HK$0.73 million, driven by loan repayments and lease payments.
Outlook Management expects Hong Kong’s sizeable stock of aging buildings and statutory inspection requirements to underpin medium-term RMAA demand, though competitive tendering and cautious developer spending will continue to pressure margins. Unity Enterprise plans to maintain strict cost discipline, pursue selective project bids and extend financing arrangements to support liquidity.
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