Kelfred Holdings Limited reported a HK$12.08 million net loss for the six months ended 30 June 2026, widening 156.1% from the HK$4.72 million loss a year earlier. The deterioration was driven by weaker pricing in a highly competitive market and higher production costs stemming from Renminbi appreciation.
Revenue fell 9.5% year on year to HK$219.60 million (1H25: HK$242.52 million). The decline was attributed to a lower average selling price for the Group’s eyewear products, particularly in Europe, which remains its largest market. Italy, the United Kingdom and Hong Kong together accounted for roughly 83% of sales.
Cost-saving measures curbed expenses but could not offset margin pressure: gross profit dropped 26.4% to HK$22.98 million, and gross margin contracted to 10.5% from 12.9%. Selling and distribution expenses rose 41.3% to HK$10.19 million, reflecting stepped-up marketing efforts, while administrative and other operating expenses were steady at HK$27.68 million. Finance costs eased 20.1% to HK$1.24 million due to reduced use of trade-receivable factoring.
Total assets stood at HK$257.30 million (31 Dec 2025: HK$282.78 million). Net assets slipped to HK$141.68 million (31 Dec 2025: HK$148.48 million). The gearing ratio marginally improved to 5.3% (31 Dec 2025: 5.7%), and the company remained in a net cash position. Cash and bank balances fell to HK$29.88 million from HK$48.00 million, largely reflecting operating cash outflows, capital expenditure and lease payments.
Operationally, Kelfred continued to manufacture eyewear through its Shenzhen and Jiangxi plants, while a third facility in Thailand is slated to come onstream in 2H26. The Group highlighted persistent economic headwinds in Europe and global trade tensions as key challenges but reiterated its commitment to cost optimisation, supply-chain efficiency and product innovation.
Post period-end, Kelfred secured two short-term bank loans totalling RMB23.95 million, collateralised by certain PRC land and buildings valued at HK$10.84 million, to bolster working capital.
The Board did not declare an interim dividend for the period.