Core Viewpoint - Kandal M Venture Limited has appointed Mr. Fok Yui Kwong as the new Executive Director and CEO, effective February 1, 2026, succeeding Mr. Ngee Woon Lim, who has served in both roles until that date [1][2]. Group 1: Leadership Changes - Mr. Ngee Woon Lim will cease to serve as CEO and Executive Director effective February 1, 2026, and the company expresses gratitude for his leadership and contributions during his tenure [2]. - Mr. Fok Yui Kwong brings over 16 years of senior management experience, including roles as Chief Financial Officer and Executive Director at a leading PCB manufacturing firm, and has more than 14 years of banking experience in Hong Kong [3]. Group 2: Future Outlook - The Chairman of the Board, Mr. Duncan Miao, expressed confidence in Mr. Fok's ability to lead Kandal into its next growth phase, highlighting his financial expertise and operational discipline [4]. - The company aims to strengthen its capabilities, enhance operational efficiency, and drive positive developments under Mr. Fok's leadership throughout the year [4]. Group 3: Company Overview - Kandal M Venture Limited is a contract manufacturer of affordable luxury leather goods, primarily producing handbags and smaller leather goods, with manufacturing operations based in Cambodia [5].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $318 million, essentially flat year-over-year, while GMV increased low single digits [13] - Adjusted net income was $7 million, or $0.21 per share, with adjusted EBITDA of $26 million, representing a year-over-year increase of approximately 28% [17] - Gross margin improved to nearly 52%, an increase of approximately 120 basis points from Q3 2024 [16] Business Line Data and Key Metrics Changes - U.S. e-commerce business generated $180 million, a decrease of approximately 3% compared to Q3 2024, attributed to improved promotional productivity [14] - Third-party marketplace business grew approximately 34%, with significant contributions from Amazon and Macy's [14] - School uniform sales grew over 20%, driven by a strong back-to-school season [15] Market Data and Key Metrics Changes - Sales in Europe decreased approximately 20% year-over-year due to increased promotional activity and macroeconomic pressures [16] - The U.S. consumer business saw a 25% increase in traffic, driven by digital channels, social media, and search [8] Company Strategy and Development Direction - The company is focused on connecting with customers through an asset-light, agile business model, emphasizing high-quality solutions [4] - A long-term partnership with Delta Air Lines was secured, positioning the company as the exclusive design and manufacturing partner for uniforms [6] - The company is expanding its marketplace presence and leveraging collaborations to enhance brand visibility [10][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in North America and noted the positive performance in November, particularly during the holiday season [20] - The company is focused on maintaining gross margin improvements while managing promotional levels effectively [28][32] - Future guidance includes expected net revenue between $1.33 billion and $1.36 billion for the full year, with adjusted EBITDA projected to be in the range of $99 million to $104 million [19] Other Important Information - The company achieved record gross margins despite tariff challenges, reflecting disciplined execution by the supply chain team [11] - Inventory levels increased by only 3% year-over-year, indicating effective inventory management strategies [17][46] - Two key leadership appointments were announced to strengthen strategic focus and drive growth [22] Q&A Session Summary Question: What did you see in promotional levels during Black Friday? - Management noted that promotional levels were managed well, with a successful back-to-school campaign and strong early sales leading into the holiday season [28][29] Question: Can you provide an update on the licensing business and its impact for 2026? - Management expects licensing to continue growing, with new licenses set to take effect and a pipeline for additional licenses being developed [36][41] Question: How should we think about inventories going forward? - Management indicated that inventory levels are expected to remain low single digits going forward, reflecting efficient inventory management despite tariff pressures [46][48]

Group 1 - The company Kandal M Venture Limited reported customer orders totaling approximately US$6,722,000 for the fiscal year ending March 31, 2026, with orders for the Resort 2026 and Spring 2026 seasons meeting expectations [2][3] - The company aims to increase orders and expand its operations to enhance its geographic presence and customer base [3] - Kandal M Venture Limited specializes in manufacturing affordable luxury leather goods, including various types of handbags and smaller leather items like wallets, with manufacturing operations based in Cambodia [4]