Hong Kong–based environmental services provider Baguio Green Group reported profit attributable to shareholders of HK$97.30 million for the year ended 31 December 2025, up 80.6% year on year, as tighter cost control and higher-margin contracts offset a 6.9% decline in revenue to HK$2.42 billion. Net profit margin improved to 4.0% from 2.2% in 2024, while gross margin widened by 2.3 percentage points to 9.5%.
Gross profit advanced 22.4% to HK$230.60 million, supported by a 9.1% reduction in cost of services to HK$2.19 billion. Other income rose to HK$23.69 million (2024: HK$9.58 million), buoyed by a HK$14.96 million gain on asset disposals. Finance costs fell 51.6% to HK$5.12 million following a 37.3% reduction in bank borrowings to HK$50.70 million.
Segment review: • Cleaning—core revenue dropped 9.1% to HK$1.90 billion (78.2% of group total); gross margin expanded to 7.6% (+1.5 ppts). • Waste Management & Recycling—revenue eased 2.8% to HK$277.80 million; margin climbed to 15.0% (+3.4 ppts). • Landscaping—revenue jumped 22.0% to HK$195.56 million; margin improved to 19.0% (+3.5 ppts). • Pest Management—revenue contracted 22.0% to HK$54.81 million; margin increased to 12.5% (+7.8 ppts).
Cash and bank balances almost doubled to HK$244.29 million, lifting the current ratio to 1.6 times (2024: 1.3 times). Gearing decreased to 0.2 times from 0.3 times. Net operating cash inflow reached HK$198.70 million.
The board proposed a final dividend of HK7.0 cents per share, up 84.2% from the previous year, representing a payout of HK$29.05 million. Shareholder approval will be sought at the 29 May 2026 AGM, with payment slated for 8 July 2026.
Contracted backlog totaled HK$2.54 billion at year-end, of which HK$1.56 billion is scheduled for recognition by end-2026. Major 2025 wins included a HK$150 million three-year marine refuse cleansing contract with Hong Kong’s Marine Department and two Environmental Protection Department recycling contracts worth HK$43 million. The group is also developing solar-powered compacting refuse bins for rollout in 2026.
Headcount fell to 7,977 from 10,329 as operational efficiency initiatives progressed. No material post-balance-sheet events were reported.
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