Hanvey Group Holdings Limited reported interim results for the six months ended 30 June 2026, highlighting a sharp rebound across key financial metrics.

Revenue and Profitability • Revenue climbed 54.42% year-on-year to HK$83.48 million, driven mainly by stronger demand for semi-knocked-down (SKD) watch kits, which contributed HK$57.99 million. • Gross profit increased 18.89% to HK$21.90 million; gross margin declined to 26.2% from 34.1% a year earlier as cost of sales rose to HK$61.58 million. • Profit attributable to owners of the Company doubled to HK$2.05 million, versus HK$1.06 million in the prior-year period. • Basic earnings per share improved to HK0.83 cents from HK0.43 cents.

Cost Structure and Expenses • Selling and distribution expenses fell 10.71% to HK$1.25 million, reflecting lower commission outlays. • Administrative expenses slipped 2.99% to HK$17.85 million, aided by reduced depreciation charges. • Finance costs decreased 24.38% to HK$1.52 million, attributable to lower bank borrowings.

Balance Sheet Highlights • Total assets stood at HK$142.22 million; net assets rose to HK$21.12 million. • Cash and bank balances were HK$14.68 million, up from HK$7.15 million a year earlier. • Current ratio improved to 1.10 times (30 June 2025: 0.88 times). • Gearing ratio dropped to 256.00% from 969.31%, reflecting stronger equity and reduced borrowings.

Cash Flow and Capital Structure • Net cash used in operating activities amounted to HK$1.41 million; financing activities generated HK$8.69 million, underpinning a HK$6.25 million increase in cash and cash equivalents to HK$13.17 million. • No change occurred in share capital during the period, and no interim dividend was declared.

Operational Notes • Asia remained the largest market, accounting for HK$53.60 million of revenue, followed by South America at HK$20.46 million. • Finished watches contributed HK$24.03 million, while watch parts added HK$1.45 million. • Capital expenditure on property, plant and equipment totalled HK$1.14 million; pledged assets for banking facilities amounted to HK$43.10 million.

Outlook Management plans to maintain a prudent approach, emphasising cost control and product design enhancements amid global supply-chain and geopolitical uncertainties. No significant post-period events or material acquisitions were reported.