Hong Kong-listed eyewear manufacturer Kelfred Holdings reported FY25 revenue of HK$500.25 million, up 10.3% year on year, driven by higher export volumes of spectacle frames and sunglasses.

Gross profit rose 32.7% to HK$59.31 million, while the gross margin widened to 11.9% from 9.8%, reflecting a combination of stronger sales orders and cost-saving measures.

Operating expenses remained broadly stable. Selling and distribution costs increased 14.2% to HK$16.89 million, mainly on higher advertising and promotion spending, whereas administrative and other operating expenses eased 2.4% to HK$60.46 million following lower staff costs. Other incomes fell to HK$6.35 million (FY24: HK$12.80 million) due to a swing to HK$3.70 million in forex losses from HK$4.03 million gains a year earlier.

The company recorded a reversal of impairment on trade receivables of HK$0.58 million, versus a HK$0.11 million charge in FY24. Finance costs increased to HK$2.64 million, reflecting greater use of receivables factoring.

Consequently, the net loss attributable to shareholders narrowed 30.2% to HK$15.12 million, and basic loss per share shrank to 3.02 HK cents (FY24: 4.33 HK cents). No dividend was declared.

Cash and bank balances rose to HK$48.00 million (FY24: HK$27.81 million), supported by positive operating cash flow, while total lease liabilities dropped to HK$8.46 million from HK$12.56 million, reducing the gearing ratio to 5.7% (FY24: 8.0%). Net assets stood at HK$148.48 million. The current and quick ratios remained steady at 1.9 times and 1.3 times, respectively.

Capital commitments contracted but not provided for amounted to HK$0.68 million, and there were no significant contingent liabilities.

Post balance sheet, the group secured two PRC bank loans totaling RMB14.95 million (about HK$16.08 million) in January 2026, maturing in 2027 and secured against leasehold land and buildings valued at HK$10.64 million. Proceeds will be used for working capital.

Management remains cautious on European demand amid geopolitical and macro uncertainty but intends to pursue further cost optimisation, supply-chain efficiency and product innovation while preparing a third production base in Thailand slated for 2026.