Shares of Easy Smart Group Holdings (HKG:2442) plummeted 6.5% in Friday's trading session following the release of the company's disappointing first half 2025 financial results.
While revenue increased by 3.5% year-over-year to HK$183.2 million, Easy Smart Group's net income plunged 91% to just HK$2.24 million. The company's profit margin also fell sharply from 14% in the first half of 2024 to a mere 1.2% in the latest period, driven by higher expenses.
Earnings per share declined from HK$0.06 in the first half of 2024 to just HK$0.005 in the first half of 2025, missing analysts' expectations. The steep decline in profitability raised concerns among investors about the company's outlook and valuation, leading to the sell-off in the stock.