Core Viewpoint - Happy City Holdings Limited reported significant financial improvements for the first half of fiscal year 2025, with a notable increase in revenue and net income compared to the same period in the previous year [1][4][25]. Financial Highlights - Revenue increased by US$722,195 or 21.0%, from US$3,437,904 for the six months ended February 29, 2024, to US$4,160,099 for the six months ended February 28, 2025 [2][4][5]. - Gross profit rose by US$652,621 or 165.5%, from US$394,450 to US$1,047,071, with the gross profit margin increasing from 11.5% to 25.2% [4][16]. - Net income for the period was US$284,988, a turnaround from a net loss of US$90,245 in the previous year [25]. Revenue Breakdown - Revenue by location for the six months ended February 28, 2025: - North Point: US$1,259,198 (10.2% increase from US$1,142,755) - Kwun Tong: US$255,378 (new location) - Mong Kok: US$1,608,812 (8.7% increase from US$1,480,107) - Tsuen Wan: US$1,036,711 (28.0% increase from US$809,866) [3][5]. Cost of Revenue - Total cost of revenue was US$3,113,028, a slight increase of 2.3% from US$3,043,454 [7]. - Food and beverage costs remained stable at US$1,226,775 compared to US$1,225,912 [8]. Operating Expenses - Selling and marketing expenses decreased by US$19,630 or 22.4%, from US$87,651 to US$68,021 [19]. - Employee compensation and benefits for management remained stable at US$152,855 compared to US$143,597 [20]. - Other general and administrative expenses were stable at US$417,936 compared to US$327,097 [22]. Cash Flow - Net cash provided by operating activities was US$212,592 for the six months ended February 28, 2025, down from US$592,859 in the previous year [27][29]. - Net cash used in investing activities was US$794,013, primarily for the new restaurant in Kwun Tong [31]. - Net cash used in financing activities was US$1,016,471, mainly due to bank borrowings repayment and offering costs [32]. Recent Events - The company was listed on the Nasdaq Capital Market on June 24, 2025, with gross proceeds from the initial public offering totaling US$6.06 million [34]. Company Overview - Happy City Holdings Limited operates three all-you-can-eat hotpot restaurants in Hong Kong, specializing in Thai and Japanese hotpot [35].
Happy City Holdings Limited Announces Financial Results for the First Half of Fiscal Year 2025