Win Hanverky Holdings Limited (03322.HK) reported a consolidated net loss of HK$189.18 million for FY2025, up from a HK$61.94 million loss in FY2024, mainly after booking HK$165.79 million in losses from discontinued high-end fashion retail operations. Basic loss per share rose to 14.3 HK cents from 5.3 HK cents.

Revenue from continuing operations fell 5.2 % to HK$3.42 billion. Gross profit edged up 0.4 % to HK$592.90 million, lifting gross margin by 0.9 percentage point to 17.3 %. Operating profit from continuing businesses slipped 13.3 % to HK$21.54 million, as manufacturing underperformed.

Segment performance • Manufacturing revenue dropped 9.8 % to HK$2.99 billion. – Sportswear Manufacturing posted a HK$31.51 million operating loss (FY2024 profit: HK$16.00 million) after raw-material issues inflated costs. – High-end Functional Outerwear Manufacturing swung to a HK$7.74 million loss (FY2024 profit: HK$38.16 million) amid a shift from outsourcing to in-house production. • Fashion Brands & Licensing revenue surged 48.0 % to HK$424.00 million, generating an operating profit of HK$60.79 million versus a HK$29.31 million loss a year earlier, buoyed by the rollout of franchise stores for the “Barbour” brand.

Discontinued operations The Board resolved to exit the loss-making High-end Fashion Retailing Business. The unit recorded HK$287.32 million in revenue (-21.4 %) and a HK$165.79 million loss, including non-cash impairments of HK$81.60 million on goodwill and trademarks, HK$24.88 million on property, plant and equipment, and a HK$29.26 million inventory write-down.

Cash flow & balance sheet Cash and bank balances increased to HK$264.42 million (FY2024: HK$250.32 million). Net borrowings stood at HK$244.55 million, producing a net gearing ratio of 18.8 % (FY2024: 16.0 %). Undrawn banking facilities totalled HK$543.70 million, while pledged assets comprised HK$20.44 million in bank deposits and HK$78.90 million in land and properties.

Dividend To preserve cash, the Board proposed no final dividend for FY2025 (FY2024: Nil).

Outlook Management expects a stable near-term outlook for Sportswear Manufacturing, supported by demand linked to the 2026 FIFA World Cup and sustained global interest in health and athleisure. High-end Functional Outerwear is anticipated to recover as in-house capacity scales, while the asset-light Fashion Brands & Licensing segment is projected to sustain revenue growth and margin expansion via franchise and brand-management initiatives.