Core Viewpoint - Raytech Holding Limited reported a significant revenue increase of 31.0% for the six months ended September 30, 2024, driven by strong sales in its trimmer series, although operating expenses rose sharply, leading to a decrease in income from operations and net income [2][5][10]. Financial Performance - Revenue reached HKD 43.2 million (US$ 5.6 million), up from HKD 33.0 million in the prior year [2][4]. - Total operating expenses increased by 50.9% to HKD 39.3 million from HKD 26.1 million [3][5]. - Income from operations decreased by 43.7% to HKD 3.9 million (US$ 0.5 million) compared to HKD 7.0 million in the previous year [3][9]. - Net income fell by 27.5% to HKD 4.7 million (US$ 0.6 million) from HKD 6.4 million [3][10]. Revenue Breakdown - The revenue increase was primarily attributed to the trimmer series, which saw sales rise to HKD 20.9 million from HKD 4.5 million in the previous year [6][4]. - Other product sales included hair styling series at HKD 19.1 million, eyelash curlers at HKD 0.2 million, nail care series at HKD 0.9 million, and other personal care appliances at HKD 1.0 million [6]. Operating Expenses - Merchandise costs surged by 40.3% to HKD 34.1 million (US$ 4.4 million) from HKD 24.3 million [7]. - Selling, general, and administrative expenses rose to HKD 5.2 million (US$ 0.7 million) from HKD 1.8 million, mainly due to increased salaries and costs related to the IPO [8]. Profitability Metrics - The overall gross profit margin decreased by 5.2% to 21.2% from 26.4% in the previous year, influenced by lower margin profiles from new customers and reduced sales of tooling [9]. - Income from operations as a percentage of revenue dropped to 9.1% from 21.1% [3]. Future Outlook - The company aims to optimize its cost structure while continuing to drive sales growth, focusing on enhancing product offerings and expanding its customer base to improve profitability [2].
Raytech Holding Reports Financial Results for Six Months Ended September 30, 2024