REM Group (Holdings) Limited released its audited results for the year ended 31 December 2025, reporting a sharp recovery in profitability driven by higher sales of low-voltage electrical power distribution and control devices in Hong Kong, Macau and Mainland China.

Revenue and Margins • Revenue increased 15.0% year-on-year to HK$161.95 million, supported by an expanded customer base and strong contributions from the Light Public Housing and Kwu Tung projects. • Low-voltage switchboards remained the core product, contributing HK$94.68 million, or 58.5% of total revenue. • Gross profit rose 16.8% to HK$42.79 million, lifting the gross margin to 26.4% from 26.0% in 2024.

Profitability • Profit before taxation climbed to HK$6.29 million, compared with HK$1.87 million a year earlier. • Net profit surged 225.6% to HK$5.39 million, translating into basic earnings of HK0.30 cent per share (2024: HK0.09 cent). • Selling and distribution expenses fell 12.5% to HK$4.10 million, while administrative and other expenses increased 6.1% to HK$33.83 million. • Finance costs declined to HK$0.16 million, reflecting lower interest on lease liabilities. • The effective tax charge rose to HK$0.90 million, consistent with improved profitability.

Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$74.95 million (2024: HK$63.81 million). • Net current assets improved to HK$147.61 million from HK$135.48 million, while total equity increased to HK$174.20 million. • The group carried no interest-bearing bank borrowings; gearing remained at zero. • Capital commitments were nil, and unutilised listing proceeds amounted to HK$3.90 million, earmarked mainly for factory maintenance, equipment upgrades and banking-facility expansion.

Operational Metrics • Average trade receivable turnover shortened to 108 days from 130 days, aided by smoother collections; no bad-debt write-offs were recorded. • Inventory fell to HK$35.10 million from HK$42.90 million, indicating tighter working-capital management. • Contract assets declined to HK$16.48 million (2024: HK$24.22 million), mirroring project completions.

Dividend • The board did not declare a dividend for 2025.

Outlook and Risk Considerations Management highlighted persistent economic uncertainty and intense competition in the construction sector across Hong Kong, Macau and Mainland China. REM Group intends to maintain proactive cost control, pursue selective project tenders and continue monitoring raw-material costs to mitigate margin pressure. The company forecasts longer-term demand stability but remains cautious on near-term visibility.