Core Insights - Raytech Holding Limited reported a 31.0% increase in revenue for the six months ended September 30, 2024, reaching HKD 43.2 million (US$ 5.6 million) compared to HKD 33.0 million in the prior year, primarily driven by strong sales in the trimmer series of personal care products [2][4][6] - Operating expenses rose significantly by 50.9% to HKD 39.3 million (US$ 5.1 million), leading to a 43.7% decrease in income from operations to HKD 3.9 million (US$ 0.5 million) and a 27.5% decline in net income to HKD 4.7 million (US$ 0.6 million) [2][3][11] - The company aims to optimize its cost structure while focusing on sales growth and enhancing product offerings to improve profitability and market position [2] Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 43.2 million, up from HKD 33.0 million in the same period of 2023, marking a 31.0% increase [4][6] - Total operating expenses increased to HKD 39.3 million from HKD 26.1 million, reflecting a 50.9% rise [3][6] - Net income decreased to HKD 4.7 million from HKD 6.4 million, a decline of 27.5% [11] Revenue Breakdown - Sales of the trimmer series significantly increased to HKD 20.9 million from HKD 4.5 million, while hair styling series sales decreased to HKD 19.1 million from HKD 20.1 million [5][7] - Other product sales included HKD 0.9 million for nail care and HKD 1.0 million for other personal care appliances, with tooling sales dropping to HKD 1.1 million from HKD 7.0 million [5][7] Operating Expenses - Merchandise costs rose by 40.3% to HKD 34.1 million, aligning with increased sales [8] - Selling, general, and administrative expenses surged to HKD 5.2 million from HKD 1.8 million, attributed to higher salaries, audit committee compensation, and increased travel and legal expenses related to the IPO [9] Income from Operations - Income from operations fell by 43.7% to HKD 3.9 million, with a gross profit margin decrease of 5.2% to 21.2% due to lower margin profiles from new customers and reduced tooling sales [10]
Raytech Holding Reports Financial Results for Six Months Ended September 30, 2024