Lap Kei Engineering (Holdings) Limited reported FY25 (year ended 31 Dec 2025) net profit attributable to shareholders of HK$15.69 million, a 657.0% surge from HK$2.07 million in FY24, driven by tighter cost management and a rebound in gross margin.

Revenue dropped 32.4% year-on-year to HK$280.76 million, reflecting fewer and smaller building services engineering contracts. Nevertheless, cost of revenue fell a sharper 37.7% to HK$244.32 million, lifting gross profit 58.1% to HK$36.44 million and expanding gross margin to 13.0% (FY24: 5.6%).

Administrative expenses edged down 3.6% to HK$21.57 million, while other income and gains rose 39.1% to HK$3.15 million, mainly from higher disposal gains on fixed assets. Earnings per share rose to 1.08 HK cents from 0.14 HK cents.

The Board proposed a final dividend of HK$0.02 per share (FY24: HK$0.01), implying a total payout of HK$28.91 million.

Balance-sheet metrics remained solid. At year-end, cash and bank balances stood at HK$68.69 million against nil interest-bearing debt; net assets were HK$149.86 million. The current ratio improved to 2.2x (FY24: 1.7x).

Operationally, the Group held 26 ongoing or upcoming projects with outstanding contract value of HK$142.16 million. Segment revenue comprised HK$267.84 million from building services engineering work and HK$12.92 million from maintenance, repair and other services.

Capital commitments, contingent liabilities and gearing remained nil. Pledged assets totaled HK$10.11 million, supporting HK$73.70 million of available banking facilities.

The Board highlighted that future performance will track Hong Kong’s property development and maintenance activity, alongside labour and material cost trends.