Lever Style Corporation (stock code: 01346, stock name: LEVER STYLE) recorded revenue of US$200.16 million for the year ended 31 December 2025, reflecting a 10.2% decrease from US$222.93 million in 2024. Management attributes this decline mainly to stricter credit risk controls on key accounts and the discontinuation of new orders from one former client. Excluding the impact of these clients, revenue would have registered an underlying increase. Despite the lower sales figure, net profit reached US$15.87 million—down 7.4% year-on-year—while net profit margin stood at 7.9%, above the level recorded last year.
Cost of sales amounted to US$143.14 million, representing 71.5% of total revenue. The Group’s gross profit came in at US$57.01 million, and cost of sales as a percentage of revenue remained unchanged from 2024. Through disciplined credit controls and efficiencies within its asset-light model, the Company reported a healthy liquidity position, finishing the year with US$41.53 million in cash and no outstanding bank borrowings. This capital structure supported a gearing ratio of 0% and net current assets of US$62.63 million, underscoring the Group’s capacity to meet near-term obligations.
During the reporting period, Lever Style continued to diversify its business segments, notably through finalizing the acquisition of certain assets of Active Apparel Group in December 2025. This transaction marked the seventh acquisition since the Company’s 2019 listing and expanded the Group’s offerings in activewear categories such as golf shirts, running shorts, and yoga leggings. The Group maintained its strategy of acquiring businesses without operating their own factories, reinforcing the asset-light model and broadening its premium customer base.
Industry conditions remained challenging amid fluctuating tariffs on apparel exports to the United States, which reached as high as 150% on certain China-origin products before later moderating. Several U.S. retail bankruptcies, including a filing by Saks Global in early 2026, prompted further caution among brands and supply chains, driving Lever Style to uphold its conservative credit policies. Management also highlighted ongoing digitalization initiatives, aiming to introduce a two-way marketplace platform for streamlined order processing and factory selection, reflecting a focus on operational scalability and technology-driven efficiencies.
In corporate governance, the Board consists of three executive directors and four independent non-executive directors supported by multiple committees, including Audit, Remuneration, Nomination, and ESG Committees. The Group emphasizes a structured risk management framework overseen by the Board, with dedicated internal control protocols and periodic reviews of material risks. According to the independent auditor’s report, the consolidated financial statements present a true and fair view of the Group’s financial position and performance for 2025, in line with applicable Hong Kong reporting standards.
Overall, Lever Style attributes the year’s results to strategic client portfolio adjustments, disciplined financial management, and ongoing expansions in activewear. With a net profit margin of 7.9% and US$69.75 million in equity, the Group underscores its continued resilience, seeking further acquisition opportunities and enhancements to its platform as market conditions evolve.