Financial Performance - Samsonite Group reported unaudited consolidated financial results for the three and nine months ended September 30, 2025[3]. - For the three months ended September 30, 2025, net sales were $872.7 million, a decrease of 0.6% compared to $877.7 million for the same period in 2024[11]. - Gross profit for the same period was $519.8 million, slightly down by 0.1% from $520.1 million[11]. - Operating profit increased by 4.6% to $139.2 million from $133.0 million year-over-year[11]. - Net profit for the period rose by 10.3% to $78.8 million, compared to $71.5 million in the previous year[11]. - Adjusted net income decreased by 20.2% to $63.6 million from $79.7 million year-over-year[11]. - Adjusted EBITDA was $142.6 million, down 7.7% from $154.6 million in the same period last year[11]. - Adjusted free cash flow decreased by 31.3% to $64.7 million from $94.2 million year-over-year[11]. - For the nine months ended September 30, 2025, net sales were $2,534.3 million, a decrease of 4.2% from $2,646.2 million for the same period in 2024[15]. - Adjusted net income for the nine months ended September 30, 2025, was $187.0 million, a decrease of $66.7 million or 26.3% from $253.7 million for the same period in 2024[18]. Market and Product Strategy - The company aims to expand its product portfolio and market coverage, particularly in non-travel product categories[6]. - Direct-to-consumer (DTC) channel performance, including the expansion of self-operated retail stores and e-commerce platforms, is a key focus area[6]. - The company is committed to upgrading and expanding its retail store network and investing in software to enhance e-commerce capabilities[6]. - The company plans to continue sourcing a majority of products sold in the U.S. from regions outside of China[6]. - The strategy to expand non-travel product categories aims to mitigate the impact of global travel trends on business performance[37]. - The company is focused on continuous investment in innovation and product development to enhance brand and product appeal, which is crucial for sales growth[32]. Economic and Operational Risks - Risks related to consumer spending and overall economic conditions were identified as significant factors affecting business performance[5]. - Economic uncertainties have led to stricter consumer spending habits, negatively impacting demand for discretionary items, including the company's products[34]. - The company is focused on navigating global economic conditions and regulatory changes that may impact its operations[6]. Cash Flow and Financial Position - Future financial conditions, including cash flow and working capital, were highlighted as critical for the next twelve months[6]. - Cash flow from operating activities for the three months ended September 30, 2025, was $131.4 million, a decrease of $18.8 million or 12.5% from $150.2 million for the same period in 2024[14]. - As of September 30, 2025, cash and cash equivalents were $496.7 million, with total outstanding financial debt of $1,749.4 million, resulting in net debt of $1,252.7 million[18]. - The company reported a total equity of $1,562.2 million as of September 30, 2025, an increase from $1,545.0 million as of December 31, 2024[21]. Sales Performance by Region and Brand - Travel products accounted for 64.0% of net sales for the nine months ended September 30, 2025, while non-travel products made up 36.0%[29]. - In North America, net sales for the three months ended September 30, 2025, were $282.2 million, a decline of 4.6% from $295.8 million in 2024[41]. - European net sales increased by 5.6% to $221.0 million for the three months ended September 30, 2025, compared to $209.2 million in 2024[41]. - The sales of the Samsonite brand decreased by $13.9 million or 2.9% year-over-year, with a decline of 10.5% in North America and 4.5% in Asia[52]. - TUMI brand sales increased by 5.7% to $204.3 million compared to $193.3 million in the same period of 2024[50]. Expenses and Profitability - Marketing expenses for the three months ended September 30, 2025, were $53.0 million, a decrease of $2.7 million or 4.9% compared to $55.7 million for the same period in 2024, representing 6.1% of net sales[14]. - Distribution expenses increased by $17.4 million or 6.5% due to the opening of 43 new retail stores and increased employee benefits[75]. - General and administrative expenses decreased by $0.9 million or 1.6%, remaining stable at 6.3% of sales[77]. - The company reported a net profit margin of 8.2% for the nine months ended September 30, 2025, compared to 9.7% in the previous year[164]. Debt and Financing - The company’s total borrowings, net of deferred financing costs, were $1,743.2 million as of September 30, 2025[168]. - The company entered into a new interest rate swap agreement effective from August 30, 2024, which will fix approximately 31% of the principal amount of past senior credit facilities at a SOFR rate of about 4.6%, reducing interest rate risk[177]. - The new credit agreement includes $800.0 million in senior secured A term loans and $494.0 million in senior secured B term loans, totaling $1.294 billion in new term loan credit facilities[181]. Shareholder Returns - The company declared a cash dividend of $150.0 million to shareholders for the year ended December 31, 2024[18]. - The company repurchased 16,690,800 shares under its share repurchase program, resulting in a cash outflow of $42.9 million[18].

Financial Performance - For the six months ended September 30, 2025, the company reported revenue of HKD 154.08 million, an increase of approximately 15% from HKD 133.98 million for the same period in 2024[5] - Gross profit for the same period was HKD 13.87 million, a decrease of approximately 15.4% compared to HKD 16.39 million in 2024[5] - Profit attributable to equity holders was HKD 0.41 million, down approximately 62.5% from HKD 1.09 million in the previous year[5] - Basic earnings per share decreased to HKD 0.03, a decline of 66.67% from HKD 0.09 in the prior period[5] - The increase in revenue was primarily driven by a rise in installation service revenue by approximately HKD 9.97 million and an increase in alteration and addition works revenue by approximately HKD 9.36 million[5] - The company experienced a gross profit decline of approximately HKD 2.52 million due to rising material and labor costs, which outpaced revenue growth[5] - For the six months ended September 30, 2025, total revenue from external customers was HKD 154,075,000, an increase from HKD 133,976,000 for the same period in 2024, representing a growth of approximately 15.0%[21][24] - The profit before tax for the six months ended September 30, 2025, was HKD 588,000, compared to HKD 1,284,000 for the same period in 2024, showing a decline of approximately 54.2%[21][22] - The total other income and gains for the six months ended September 30, 2025, were HKD 849,000, compared to HKD 788,000 for the same period in 2024, representing an increase of approximately 7.7%[25] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 161.79 million, compared to HKD 163.59 million as of March 31, 2025[7] - Current assets totaled HKD 311.95 million, an increase from HKD 302.52 million as of March 31, 2025[7] - The company’s net asset value was HKD 158.70 million as of September 30, 2025, compared to HKD 158.29 million as of March 31, 2025[7] - Trade receivables net amount as of September 30, 2025, was HKD 9,484,000, a decrease from HKD 31,884,000 as of March 31, 2025[35] - Contract assets as of September 30, 2025, totaled HKD 225,941,000, up from HKD 198,728,000 as of March 31, 2025[36] - Contract liabilities as of September 30, 2025, were HKD 13,509,000, compared to HKD 15,003,000 as of March 31, 2025[37] - Trade payables as of September 30, 2025, increased to HKD 91,500,000 from HKD 77,236,000 as of March 31, 2025[38] - Total bank borrowings as of September 30, 2025, were HKD 35,780,000, a decrease from HKD 38,765,000 as of March 31, 2025[40] Cash Flow - The net cash generated from operating activities was HKD 12,823,000, down from HKD 17,127,000 in the previous year, indicating a decline of about 25.5%[9] - Cash and cash equivalents at the end of the period were HKD 63,716,000, compared to HKD 66,030,000 at the end of the previous year, reflecting a decrease of approximately 3.9%[9] - The net cash generated from investing activities was HKD 731,000, up from HKD 676,000 in the previous year, reflecting an increase of approximately 8.1%[9] - The cash used in financing activities was HKD 5,535,000, compared to HKD 4,385,000 in the previous year, indicating an increase of about 26.2%[9] Expenses - Administrative and other operating expenses decreased to HKD 13.94 million from HKD 14.79 million in the previous period[6] - The employee cost for the group was approximately HKD 17.22 million for the reporting period, compared to HKD 18.43 million for the six months ended September 30, 2024[76] - The financing costs decreased to HKD 886,000 from HKD 1,184,000, showing a reduction of approximately 25.2%[9] - Administrative and other operating expenses amounted to HKD 13,943,000 for the six months ended September 30, 2025, a decrease from HKD 14,786,000 in the same period of 2024, reflecting a reduction of approximately 5.7%[26] Shareholder Information - The company did not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[32] - The total number of shares that may be issued upon exercise of options under the stock option plan is limited to 10% of the shares issued at the time of the company's listing, which amounts to 120,000,000 shares[45] - The company has not purchased, sold, or redeemed any of its listed shares during the reporting period[93] - The group had a total of 1,200,000,000 shares issued as of September 30, 2025[86] - The company’s total issued share capital as of September 30, 2025, is 1,200,000,000 shares[91] Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring independent review and oversight of financial reporting[100] - The company has adhered to the corporate governance code principles during the reporting period, with a noted deviation regarding the roles of the chairman and CEO[99] - The company is committed to good corporate governance to enhance shareholder value[98] - The board has adopted a revised dividend policy effective from May 17, 2022, stating that the annual dividend distributed to shareholders will not be less than 30% of the group's consolidated net profit attributable to shareholders for any financial year[101] Market Outlook - The group expects strong demand for fire installation services in the future, driven by ongoing public infrastructure projects and urgent housing needs in Hong Kong[56] - The group faced several risks, including economic and political conditions in Hong Kong, which could adversely affect its business and financial performance[78]

Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 46,076,000, a decrease of 27% compared to HKD 63,144,000 for the same period in 2024[3] - The company reported a profit from continuing operations of HKD 181,000 for the six months ended September 30, 2025, compared to a loss of HKD 10,463,000 in the same period of 2024[3] - Total comprehensive income for the period was HKD 316,000, a significant improvement from a loss of HKD 22,669,000 in 2024[5] - Basic and diluted earnings per share from continuing operations was HKD 0.02, compared to a loss of HKD 1.00 in the previous year[7] - The company recorded a net loss of HKD 16,588,000 during the period, contributing to a total comprehensive expense of HKD 22,165,000[9] - The company’s total comprehensive income for the period was HKD 316,000, compared to HKD 0 in the previous year[9] - For the six months ended September 30, 2025, the company's revenue from continuing operations decreased by approximately HKD 17,068,000 or 27.0% to about HKD 46,076,000 compared to the same period in 2024[53] - Operating profit from continuing operations decreased by approximately HKD 3,709,000 to about HKD 17,637,000, while the operating profit margin increased from 33.8% to 38.3%[55] Revenue Breakdown - The revenue from video conferencing and multimedia audio-visual solutions services was HKD 36,987,000, down 32% from HKD 54,102,000 in the previous year[16] - Revenue from video conferencing and multimedia audio-visual solutions decreased by approximately HKD 17,115,000 or 31.6% to about HKD 36,987,000 for the same period[53] - Revenue from external customers for the six months ended September 30, 2025, was HKD 46,076,000, a decrease of 27.1% compared to HKD 63,144,000 for the same period in 2024[20] Assets and Liabilities - Non-current assets decreased slightly to HKD 74,024,000 as of September 30, 2025, from HKD 75,583,000 as of March 31, 2025[8] - Current assets decreased to HKD 71,079,000 from HKD 75,910,000, with a notable reduction in inventory from HKD 3,315,000 to HKD 2,550,000[8] - Current liabilities decreased to HKD 25,841,000 from HKD 32,547,000, indicating improved liquidity management[8] - Total equity increased slightly to HKD 117,526,000 as of September 30, 2025, compared to HKD 117,210,000 as of March 31, 2025[8] - Trade receivables as of September 30, 2025, amounted to HKD 15,655,000, down from HKD 19,721,000 as of March 31, 2025[33] - Non-current assets in Hong Kong as of September 30, 2025, were HKD 73,044,000, slightly down from HKD 74,603,000 as of March 31, 2025[20] - Bank borrowings as of September 30, 2025, totaled HKD 8,191,000, down from HKD 10,239,000 as of March 31, 2025, representing a decrease of approximately 19.9%[40] Cash Flow and Liquidity - The company maintained a stable cash position with bank balances and cash increasing to HKD 50,520,000 from HKD 48,829,000[8] - The net cash generated from operating activities for the six months ended September 30, 2025, was HKD 3,660,000, a decline from HKD 8,324,000 in 2024[10] - The cash and cash equivalents at the end of the period increased to HKD 50,520,000 from HKD 41,427,000 in the previous year[10] - The group’s cash and cash equivalents as of September 30, 2025, were approximately HKD 50,520,000, up from HKD 48,829,000 as of March 31, 2025[64] Expenses and Costs - Employee costs for continuing operations decreased by approximately HKD 4,392,000 or 25.2% to about HKD 13,030,000 due to a reduction in the number of employees[56] - Operating expenses for continuing operations decreased by 48.1% from approximately HKD 5,519,000 for the six months ended September 30, 2024, to approximately HKD 2,863,000 for the six months ended September 30, 2025[59] - Interest expenses on bank borrowings for the six months ended September 30, 2025, were HKD 170,000, down 57.1% from HKD 396,000 in 2024[21] - The total income tax expense for the six months ended September 30, 2025, was HKD 4,000, significantly lower than HKD 243,000 in 2024[22] Shareholder Information - The company did not declare or recommend any dividends for the six months ended September 30, 2025, consistent with 2024[24] - The company has no unexercised options remaining under the share option plan as of September 30, 2025, following the expiration of all options granted under the plan[42] - The stock option plan adopted on May 11, 2015, will expire on May 2025, with no unexercised options remaining as of September 30, 2025[79] - The share award plan adopted on February 3, 2021, allows for a maximum of 150,000,000 shares to be granted, representing 15% of the issued share capital at the time of adoption[80] Corporate Actions and Events - The company completed the sale of its subsidiary for HKD 100,000, with total receivables of approximately HKD 36.2 million[29] - The company completed the sale of its entire equity interest in a subsidiary on August 30, 2024, resulting in a loss of approximately HKD 3,332,000[51] - The company incurred a foreign exchange loss of HKD 7,000, compared to a gain of HKD 277,000 in the same period last year[17] - There have been no significant events requiring disclosure since the end of the reporting period[87] Compliance and Governance - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated results and confirmed compliance with applicable accounting standards and regulations[85] - The company maintains the required public float as per listing rules as of the announcement date[86]

Financial Performance - The group's gaming net revenue for Q3 2025 was HKD 6.537 billion, a decrease of 6.5% compared to HKD 6.995 billion in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was HKD 881 million, down 15.0% from HKD 1.037 billion in Q3 2024[7] - The adjusted EBITDA margin for Q3 2025 was 12.5%, a decline of 1.3 percentage points from 13.8% in Q3 2024[7] - The group recorded a loss attributable to the company’s owners of HKD 9 million in Q3 2025, compared to a profit of HKD 101 million in Q3 2024, representing a 91.1% decrease[7] - Total net revenue for Q3 2025 was HKD 7.034 billion, a decrease of 6.2% from HKD 7.499 billion in Q3 2024[7] Cash and Debt Position - The group’s cash, bank balances, and short-term bank deposits amounted to HKD 34.48 billion as of September 30, 2025[6] - The group’s total debt was HKD 273.12 billion as of September 30, 2025[6] Non-Gaming Revenue - Non-gaming revenue for Q3 2025 was HKD 4.97 billion, slightly down from HKD 5.04 billion in Q3 2024[7] - Non-gaming revenue from hotels increased by 20.9% to HKD 52 million, compared to HKD 43 million in the previous year[11] - Non-gaming revenue from restaurants and shopping centers decreased by 8.3% to HKD 143 million compared to HKD 156 million in the previous year[10] Gaming Revenue - The group’s electronic gaming gross revenue for Q3 2025 was HKD 688 million, an increase of 11.0% from HKD 620 million in Q3 2024[8] - Gaming turnover increased by 27.8% to HKD 11,846 million, up from HKD 9,267 million in the same quarter last year[10] - The company reported a decline in gaming win percentage to 3.8%, down 0.9 percentage points from 4.7% in the previous year[10] - Casino gross revenue for the third quarter was HKD 1,305 million, a decrease of 5.6% compared to HKD 1,383 million in the previous year[12] - Casino gross revenue for the nine months ended September 30 was HKD 3,961 million, a slight increase of 1.5% from HKD 3,904 million[12] EBITDA and Adjusted EBITDA - The group’s adjusted property EBITDA for Q3 2025 was HKD 1.11 billion, down from HKD 1.65 billion in Q3 2024[6] - Adjusted property EBITDA decreased by 32.7% to HKD 111 million from HKD 165 million year-over-year[10] - Adjusted property EBITDA for the third quarter was HKD 300 million, down 12.5% from HKD 343 million year-over-year[12] - The EBITDA for satellite casinos showed a significant increase of 3,333% to HKD 206 million from HKD 6 million in the previous year[13] Capital Expenditures - Capital expenditures for the third quarter amounted to HKD 412 million, primarily for furniture, fixtures, and equipment, as well as property renovations[14] Hotel Performance - Hotel occupancy rate was 98.0%, a slight decrease of 0.9 percentage points from 98.9% in the previous year[11] - Average daily room rate increased by 17.3% to HKD 1,385 from HKD 1,181 in the same quarter last year[11] - The average daily room rate for the hotel was HKD 235, representing a 20.5% increase compared to HKD 195 in the previous year[12] - The occupancy rate for the hotel was 97.7%, down 2.2 percentage points from 99.9% year-over-year[12] Other Financial Metrics - The total revenue for the third quarter reached HKD 1,909 million, an increase of 7.4% compared to HKD 1,777 million in the previous year[10] - The total revenue for the nine months ended September 30 was HKD 5,537 million, a 17.0% increase from HKD 4,733 million in the previous year[10] - The company reported an unrealized fair value loss of HKD 7.4 million from equity securities investments, recognized in other comprehensive expenses[13] - The total revenue for the third quarter was HKD 1,379 million, down 5.5% from HKD 1,459 million year-over-year[12]

Revenue and Profitability - Revenue for the nine months ended September 30, 2025, was $66,682,225, representing an increase of 9.0% from $61,157,208 in the same period of 2024[3] - Gross profit increased to $6,649,403, up 35.9% from $4,889,936 year-over-year[3] - The company reported a reduced net loss of $1,409,100, improving by 26.0% compared to a net loss of $1,903,376 in the previous year[3] - Other income rose significantly to $767,960 from $139,185, highlighting improved revenue diversification[5] Cash Flow and Liquidity - Operating cash flow for the nine months was negative at $(10,041,168), compared to a positive cash flow of $15,524,889 in the same period last year[9] - Current liabilities decreased to $62,420,043 from $56,299,699, indicating improved liquidity management[7] - The company’s cash and cash equivalents at the end of the period were $13,716,509, down from $17,329,790 at the end of the previous year[9] Assets and Inventory - Total assets as of September 30, 2025, were $99,267,890, an increase from $95,570,913 at the end of 2024[7] - Inventory levels increased to $24,589,920 from $22,292,912, reflecting a 10.3% rise year-over-year[7] Shareholder Equity - The company’s equity attributable to shareholders decreased to $42,406,956 from $44,978,209, indicating a decline in shareholder value[8]

Financial Performance - Total revenue for Q3 2025 was RMB 8.46 billion (USD 1.19 billion), representing a year-over-year increase of 20.6%, primarily driven by strong growth in online music service revenue[6]. - Online music service revenue grew by 27.2% year-over-year to RMB 6.97 billion (USD 0.979 billion), with subscription revenue increasing by 17.2% to RMB 4.50 billion (USD 0.632 billion)[6]. - Net profit attributable to equity holders was RMB 2.15 billion (USD 0.302 billion), a year-over-year increase of 36.0%[6]. - Total revenue for Q3 2025 reached RMB 8.46 billion (USD 1.19 billion), an increase of RMB 1.45 billion or 20.6% compared to RMB 7.02 billion in Q3 2024[15]. - Net profit for Q3 2025 was RMB 2.21 billion (USD 311 million), with a year-on-year increase of 26.4%[19]. - Non-IFRS net profit for the three months ended September 30, 2024, was RMB 1,709 million, representing a year-over-year increase of 29.3%[30]. - The adjusted net profit for the nine months ended September 30, 2024, was RMB 5,737 million, reflecting a 27.7% increase year-over-year[33]. - Basic earnings per share for the three months ended September 30, 2024, was RMB 0.51, compared to RMB 0.40 in the same period last year[31]. - The company reported a basic earnings per share of RMB 0.59 for the three months ended September 30, 2024, compared to RMB 0.78 in 2025[33]. - The diluted earnings per American Depositary Share (ADS) for the nine months ended September 30, 2025, was USD 0.64, compared to USD 0.65 in the same period of 2024[33]. User Engagement - The number of monthly active users for online music services decreased by 4.3% year-over-year to 551 million, while the number of paying users increased by 5.6% to 125.7 million[7]. - Average revenue per paying user per month increased by 10.2% year-over-year to RMB 11.9[7]. - A differentiated membership system has been implemented to enhance user experience and loyalty[12]. - The average monthly revenue per paying user increased from RMB 10.8 in Q3 2024 to RMB 11.9 in Q3 2025, reflecting the expansion of super member benefits[17]. Operational Costs - Operating costs increased by 18.8% year-on-year to RMB 4.78 billion (USD 672 million), primarily due to higher costs associated with offline performances and IP-related expenses[16]. - Operating expenses rose by 7.6% year-on-year to RMB 1.31 billion (USD 184 million), with operating expenses as a percentage of total revenue decreasing from 17.4% to 15.5%[18]. - Sales and marketing expenses increased by 18.2% year-on-year to RMB 260 million (USD 37 million), driven by higher content and channel promotion costs[21]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled RMB 36.08 billion (USD 5.07 billion) as of September 30, 2025[6]. - Cash and cash equivalents totaled RMB 36.08 billion (USD 5.07 billion) as of September 30, 2025, up from RMB 34.92 billion as of June 30, 2025[20]. - Tencent Music's cash and cash equivalents decreased by RMB 2,054 million in the three months ended September 30, 2025, but increased to RMB 11,255 million by the end of the period[38]. - The company incurred a net cash outflow from investing activities of RMB 1,244 million for the three months ended September 30, 2025, down from RMB 3,337 million in the same period of 2024[38]. Strategic Initiatives - The company plans to continue expanding its music service offerings and enhance user engagement through innovative and personalized experiences[7]. - Strategic partnerships with well-known labels and artists have been deepened to enrich the music library, including collaborations with DREAMUS and KING RECORDS[10]. - The company is expanding its concert operations and services into international markets, leveraging its established capabilities[11]. - The "Music Space" public welfare project attracted 380,000 participants, enhancing its influence and promoting music accessibility[22]. Future Outlook - The company anticipates continued growth in online music services and social entertainment revenue in the upcoming quarters[28]. - The company emphasizes the importance of non-IFRS measures for understanding operational performance and trends[25]. - The company encourages investors to review complete financial information rather than relying solely on individual financial metrics[26]. Assets and Equity - The total assets of Tencent Music as of December 31, 2024, were RMB 90,444 million, which increased to RMB 104,866 million by September 30, 2025[36]. - The total equity attributable to the company's equity holders increased from RMB 67,863 million as of December 31, 2024, to RMB 82,751 million by September 30, 2025[37]. - Tencent Music's goodwill increased from RMB 19,647 million as of December 31, 2024, to RMB 20,517 million by September 30, 2025[36]. Cash Flow - Operating cash inflow for the three months ended September 30, 2025, was RMB 3,683 million, representing a significant increase from RMB 2,165 million in the same period of 2024[38].

Financial Performance - The company reported an unaudited consolidated profit attributable to owners of approximately $278.7 million for the nine months ended September 30, 2025[2]. - Revenue for the nine months was $6,017.4 million, a slight decrease of 1.0% compared to $6,075.3 million in the same period last year[8]. - Gross profit for the period was $1,371.4 million, down from $1,472.3 million year-on-year[3]. - The pre-tax profit for the period was $357.1 million, compared to $438.5 million in the previous year[3]. - Total comprehensive income for the period was $323.2 million, down from $381.9 million year-on-year[4]. - Revenue from BaoSheng decreased by 7.9% year-on-year to $1,785.7 million, with a decline of 7.7% in RMB terms to RMB 12,902.8 million[9]. - Net profit attributable to the company's owners was $278.7 million, a decrease of 16.0% from $331.7 million in the previous year[15]. Revenue and Cost Analysis - Gross profit fell by 6.9% to $1,371.4 million, with a gross margin decline of 1.4 percentage points to 22.8%[11]. - The average discount rate increased, leading to a gross margin drop of 0.5 percentage points to 33.5% for BaoSheng[12]. - Selling and distribution expenses decreased by 7.2% to $579.4 million, accounting for approximately 9.6% of total revenue[13]. Manufacturing and Workforce - The company's manufacturing business revenue, including footwear, soles, accessories, and others, was $4,231.7 million, an increase of 2.3% year-on-year[8]. - The company experienced a 4.4% year-on-year increase in manufacturing workforce, contributing to higher labor costs due to wage increases[6]. Market Conditions and Challenges - The retail subsidiary, Pou Chen, faced challenges with low consumer confidence and high industry inventory, impacting foot traffic and sales[7]. - The company maintained a strong order mix, which helped to offset the negative impact of declining shipment volumes on footwear revenue[6]. Future Outlook and Strategies - The company expects a boost in shipment volume in Q4, traditionally a peak season, despite challenges from tariffs and macroeconomic uncertainties[17]. - The company plans to diversify its manufacturing capacity in Indonesia and India to support sustainable growth[17]. - The company aims to enhance operational resilience and maintain healthy cash flow through rigorous cost control and digital transformation strategies[18]. - The long-term outlook for the sports industry remains optimistic, driven by upcoming international sports events[17].

Financial Performance - Total revenue for the six months ended September 30, 2025, was $1,833 million, a decrease of 1% compared to the same period last year[2]. - Gross profit was $441 million, representing 24.0% of revenue, up from 23.6% in the previous year[2]. - Adjusted EBITDA was $159 million, or 8.7% of revenue, down from 9.5% in the previous year[2]. - Net profit attributable to shareholders increased by 3% to $133 million, or $0.1421 per share[2]. - Basic net profit decreased by 8% to $123 million after excluding unrealized gains or losses related to exchange rate fluctuations and restructuring costs[2]. - Free cash flow from operations was $174 million, compared to $144 million in the previous year[2]. - The company's operating profit for the first half of the 25/26 fiscal year was $156.2 million, a decrease of $1.7 million compared to the previous year[33]. - Shareholders' profit for the first half of the 25/26 fiscal year was $133.3 million, an increase of 3% from $129.6 million in the previous year[34]. - The gross profit margin improved to 24.0% in the first half of the 25/26 fiscal year, compared to 23.6% in the previous year[33]. - The company reported a profit of $133.3 million for the six months ended September 30, 2025, compared to a profit of $129.6 million for the same period in 2024, reflecting a year-over-year increase of approximately 2.1%[111]. - Total comprehensive income for the six months ended September 30, 2025, amounted to $158.4 million, compared to $136.4 million for the same period in 2024, representing a growth of about 16.1%[112]. Revenue Segmentation - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates[4]. - The industrial products segment represented 16% of total revenue, with stable sales compared to the previous year[8]. - Revenue for the first half of the 25/26 fiscal year decreased by $20.7 million or 1% to $1,833.5 million compared to $1,854.2 million in the previous fiscal year[18]. - Automotive product segment revenue decreased by $41.4 million or 3% (excluding foreign exchange effects), maintaining an 84% share of total revenue[22]. - Total revenue for the automotive products segment was $1,541,991 thousand for the six months ended September 30, 2025, slightly down from $1,564,418 thousand in 2024, reflecting a decrease of 1.4%[122]. - The industrial products segment generated revenue of $291,492 thousand, a marginal increase from $289,750 thousand in the same period last year, showing a growth of 0.6%[122]. Cash Flow and Liquidity - Free cash flow from operations rose from $144 million to $174 million, driven by a decline in working capital, which outweighed the increase in capital expenditures[11]. - Cash and cash equivalents increased by $141.9 million to $932.5 million as of September 30, 2025, compared to $790.6 million on March 31, 2025[55]. - The company reported a net cash from operating activities for the six months ended September 30, 2025, was $290,001 thousand, up from $222,780 thousand in 2024, indicating a year-over-year increase of 30.2%[114]. - The cash and cash equivalents at the end of the period increased to $932,483 thousand, up from $687,658 thousand in 2024, representing a growth of 35.5%[114]. Debt and Financing - Total debt to capital ratio remains stable at 11%, with cash balance of $932 million as of September 30, 2025[12]. - The company has $1,019.8 million in available and undrawn credit facilities as of September 30, 2025[57]. - The company repaid a net amount of $1.7 million in loans, significantly lower than the $203.8 million net repayment in the previous fiscal year[51]. - The total loan amount as of September 30, 2025, was $359,683 thousand, slightly up from $359,335 thousand on March 31, 2025, indicating a marginal increase of 0.1%[158]. - The company secured a $400 million financing agreement in August 2023, which includes $200 million in term loan financing and $200 million in revolving credit financing[158]. Shareholder Information - The board declared an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share, to be distributed on January 6, 2026[13]. - The company paid a final dividend of $52.1 million for the fiscal year 2024/25, maintaining the same amount as the previous year[66]. - The company announced an interim dividend of $20.3 million for the first half of the fiscal year 2025/26, consistent with the previous year's interim dividend[66]. - The company’s shares have a par value of HKD 0.05[92]. - The total number of issued ordinary shares as of September 30, 2025, was 1,760.0 million, unchanged from March 31, 2025, with a par value of HKD 0.05 per share[168]. Operational Efficiency - The management team is focusing on reducing indirect production costs and investing in innovative drive system solutions for high-growth markets such as robotics and data center thermal management[31]. - Operating expenses as a percentage of revenue remained stable at 14.1% compared to 14.0% in the previous year[37]. - The company incurred a loss of $21.6 million related to hedging instruments during the six months ended September 30, 2025[111]. - The company recognized a foreign exchange gain of $45.1 million from the translation of subsidiaries for the six months ended September 30, 2025[111]. Market Outlook - The company expects moderate revenue growth in the second half of the fiscal year despite a highly uncertain macroeconomic outlook, assuming pragmatic agreements in ongoing US-China trade negotiations[14]. - In the Asia-Pacific region, revenue decreased by 6%, primarily due to declining demand for non-local automotive brands in China and pricing measures to maintain competitiveness[26]. - In Europe, the Middle East, and Africa, revenue slightly declined by 1%, with sales of cooling management and visual application systems decreasing, offset by growth in brake system applications and powder metal components[26]. - In the Americas, revenue also slightly declined by 1%, driven by weak demand from several customers and the phase-out of certain product lines, although this was offset by growth in powder metal components and cooling management applications[26]. Corporate Governance - The company has complied with the corporate governance code as of September 30, 2025, except for specific circumstances regarding the rotation of directors[85]. - The roles of the Chairman and CEO are held by the same individual, Dr. Wang Suizhong, which the board believes is in the best interest of the company[86]. - The company has adhered to the standard code for securities trading as outlined in the listing rules[89].

Financial Performance - The Group's total revenue decreased by 36.0% year-on-year to RMB 95,800,000 in the first half of fiscal year 2025/26, compared to RMB 149,600,000 in 2024/25[16]. - Consolidated gross profit fell by 30.0% to RMB 55,600,000, with a gross profit margin of 58.0%, an increase of 4.9 percentage points from the previous year[16][19]. - Consolidated loss attributable to owners of the Company was RMB 31,400,000, an improvement from a loss of RMB 38,000,000 in the same period last year[16][18]. - The Group's total retail revenue decreased by 36.0% to RMB 95,800,000 compared to RMB 149,600,000 in the previous year, with same store sales down by 13.2%[42]. - For the six months ended August 31, 2025, the Group reported revenue of RMB 95,808,000, a decrease of 36% compared to RMB 149,591,000 for the same period in 2024[83]. - The gross profit for the same period was RMB 55,585,000, down from RMB 79,415,000, reflecting a decline in gross margin[83]. - The total comprehensive loss for the period was RMB 38,633,000, compared to RMB 45,363,000 in the previous year, indicating a reduction in overall losses[85]. - The company reported a loss for the period of RMB 31,356,000 for the six months ended August 31, 2025[93]. - For the six months ended August 31, 2025, the loss attributable to owners of the Company was RMB 31,356,000, compared to RMB 38,038,000 for the same period in 2024, representing a decrease of approximately 17.6%[162]. - Basic loss per share for the six months ended August 31, 2025, was RMB 4.44, an improvement from RMB 5.39 in 2024, indicating a reduction in loss per share by approximately 17.6%[162]. Expenses and Cost Management - Selling and distribution expenses decreased by 39.5% year-on-year to RMB 50,500,000, with the ratio to total revenue dropping by 3.0 percentage points to 52.7%[20]. - General and administrative expenses decreased by 17.6% to RMB 34,500,000, but the ratio to total revenue increased by 8.0 percentage points to 36.0%[21]. - Employee benefit expenses for the six months ended August 31, 2025, amounted to RMB 40,200,000, down from RMB 59,300,000 in 2024/25[81]. - Total costs of sales decreased to RMB 40,223,000 for the six months ended August 31, 2025, down from RMB 70,176,000 in 2024, reflecting a significant reduction of approximately 42.7%[162]. - Depreciation of property, plant, and equipment was RMB 2,028,000 for the six months ended August 31, 2025, compared to RMB 4,408,000 in 2024, a reduction of approximately 54.0%[162]. - Interest income on bank deposits decreased to RMB 3,948,000 for the six months ended August 31, 2025, from RMB 5,848,000 in 2024, a decline of approximately 32.4%[153]. Inventory and Cash Management - Inventory balance decreased by approximately 34.4% to RMB 78,100,000 from RMB 119,000,000[32]. - The proportion of inventory aged less than one year increased by 16.0 percentage points to 58.2%[36]. - Cash and bank balances amounted to RMB 309,000,000, with a quick ratio of 4.8 times[39]. - The Group focused on effective inventory management to maintain healthy inventory levels and enhance cash flow[51]. - The company reported a write-back of impairment losses on inventories amounting to RMB 17,891,000 for the six months ended August 31, 2025, compared to a loss of RMB 3,323,000 in 2024, indicating a significant improvement in inventory management[162]. - Cash and cash equivalents decreased to RMB 287,393,000 as of August 31, 2025, down from RMB 307,002,000 a year earlier[98]. Market Conditions and Strategic Initiatives - The footwear retail consumption in Mainland China remained sluggish, impacting the Group's sales performance[19]. - The Group is consolidating its sales network and closing underperforming outlets to reduce fixed selling and distribution expenses[20]. - The sales mix improved due to a higher proportion of new-season products, contributing to the increase in gross profit margin[19]. - The Group implemented various marketing initiatives, including rebranding and enhanced product quality control, to adapt to shifting consumer patterns[42]. - The Group launched two large flagship stores and one compact flagship store in Southern China to enhance customer shopping experience[52]. - The Group's strategy includes a brand revamp and reform of retail operations to better engage target customers[52]. - The Group is investing in online resources and collaborating with major e-commerce platforms to increase online traffic and meet customer needs[58]. - The Group is utilizing mini program stores and private traffic systems to lower customer acquisition costs and reduce overall e-commerce operating expenses[61]. - The Group maintains a cautiously optimistic outlook on the medium-to-long-term prospects of China's retail market, despite current consumer confidence challenges[65]. Financial Position and Liabilities - Total assets as of August 31, 2025, are RMB 526,154,000, a decrease of 8.4% from RMB 574,245,000 as of February 28, 2025[90]. - Total equity decreased to RMB 444,774,000 from RMB 483,407,000, reflecting a decline of 8.0%[90]. - Current liabilities decreased to RMB 67,257,000 from RMB 77,051,000, a reduction of 12.7%[90]. - The Group's financial liabilities as of 31 August 2025 included trade and other payables of RMB 52,718,000 and lease liabilities of RMB 6,714,000, totaling RMB 59,432,000[120]. - The total liabilities per consolidated interim balance sheet as of 31 August 2025 were RMB 81,380,000, with segment liabilities of RMB 67,335,000[134]. Shareholder Information - The number of issued and fully paid ordinary shares remained at 705,895,060 with a share capital of RMB 59,979,000[180]. - Mr. Li Wing Yeung, Peter holds a total of 60,920,200 shares, representing approximately 8.63% of the issued share capital of the Company[190]. - Mr. Leung Wai Ki, George has an interest in 1,700,000 shares, accounting for about 0.24% of the issued share capital[190]. - As of August 31, 2025, no other Directors or chief executives had any interests or short positions in the Shares or debentures of the Company[194]. - The Company had no arrangements for Directors to purchase shares or debentures during the six months ended August 31, 2025[195].

Financial Performance - For the nine months ended September 30, 2025, the company reported revenue of approximately RMB 12,902.8 million, a decrease of 7.7% compared to RMB 13,984.2 million in the same period last year[9] - The company's net profit attributable to shareholders for the same period was approximately RMB 171.0 million, representing a significant decline of 50.1% from RMB 343.0 million year-on-year[9] - Gross profit for the nine months was RMB 4,320.1 million, down 9.2% from RMB 4,758.2 million in the previous year[9] - Operating profit decreased by 41.5% to RMB 300.3 million from RMB 513.6 million in the prior year[9] - The gross margin for the period was 33.5%, a slight decrease of 0.5 percentage points from 34.0% in the previous year[9] - The operating margin fell to 2.3%, down 1.4 percentage points from 3.7% year-on-year[9] - The net profit margin also decreased to 1.4%, down 1.1 percentage points from 2.5% in the previous year[9] Challenges and Strategies - The company continues to face challenges such as low consumer confidence and high industry inventory levels, leading to weak foot traffic and intense price competition[7] - The company is enhancing its omnichannel capabilities, with online sales trends remaining robust, partially alleviating pressure on offline retail channels[7] - The company's net cash position remains strong despite the challenging operating environment[8]