Sitoy Group Holdings Limited reported a net profit of HK$13.95 million for the six months ended 31 December 2025, reversing a HK$67.08 million loss in the prior-year period. The turnaround was mainly attributed to the absence of a one-off HK$83.40 million charge linked to last year’s termination of the Cole Haan distribution business and a stabilised commercial property market in Hong Kong.

Revenue was broadly stable at HK$812.23 million (1H FY25: HK$813.71 million). Gross profit slipped 4.52 % to HK$261.70 million, while gross margin narrowed to 32.2 % from 33.7 %, reflecting Renminbi appreciation against the U.S. dollar.

Segment performance • Retail: Revenue fell 5.7 % to HK$297.68 million, but the segment moved to a HK$18.28 million profit before tax (PBT) from an HK$85.00 million loss a year earlier, following the discontinuation of the loss-making Cole Haan operation. • Manufacturing: Revenue inched up 3.4 % to HK$508.03 million; PBT declined to HK$7.81 million (1H FY25: HK$33.54 million) due to currency headwinds squeezing margins. • Property Investment: Revenue was steady at HK$6.52 million, with PBT at HK$3.55 million versus a HK$0.80 million loss last year as fair-value losses on investment properties ceased.

Cost structure Selling and distribution expenses contracted 13.6 % to HK$115.52 million, and administrative expenses eased 8.7 % to HK$111.82 million, both benefiting from the Cole Haan exit. Other expenses fell sharply to HK$16.43 million (1H FY25: HK$88.86 million).

Financial position As at 31 December 2025, Sitoy held cash and cash equivalents of HK$340.27 million (30 June 2025: HK$437.39 million) and maintained a net cash position, with pledged deposits of HK$26.86 million. Inventory days improved to 59 from 70, while trade-receivable and trade-payable days stood at 65 and 62 respectively. Capital expenditure totalled HK$13.00 million, primarily for retail expansion and production upgrades in mainland China and Indonesia.

Dividend The board declared an interim dividend of HK$0.02 per share, unchanged year on year. Shareholders on the register as of 2 April 2026 will be entitled to the payout, expected on or before 27 April 2026.

Operational updates Sitoy continues to develop its three proprietary brands—TUSCAN’S, Fashion & Joy and Duffy—and is expanding the China footprint of outdoor brand “Keen” under a sub-licence agreement. Digital channels now include Tmall, JD.com and livestreaming platforms, supported by an in-house team of about 300 staff.

On the manufacturing side, the Group’s new Indonesian facility, operational since January 2025, employs 1,600 staff and targets full capacity of 3,000 workers by 2Q FY26 to diversify geographic risk and serve additional international brands.

Its Hong Kong investment property portfolio, led by the 20-storey Sitoy Tower in Kwun Tong, maintained a carrying value of HK$558.36 million with no fair-value adjustments during the period, generating stable rental income of HK$6.52 million.

Board changes Effective 17 November 2025, Ms. Lisa So joined the board as an independent non-executive director, succeeding Mr. Vincent Kwan, who retired on the same date.

Outlook (as disclosed) Management intends to bolster global e-commerce presence, particularly via TikTok, broaden product categories to lifestyle and household goods, and pursue further expansion of the “Keen” retail network across mainland China. On the manufacturing front, the Group aims to leverage its Indonesian plant to attract new customers and mitigate geopolitical and cost pressures.