Hong Kong – Mainland Headwear Holdings Limited reported solid top-line growth and a sharp earnings rebound for the year ended 31 December 2025, underpinned by expanding manufacturing orders and an enlarged trading portfolio.

Revenue and Profitability • Group revenue rose 15.4% year on year to HK$1.70 billion. • Gross profit increased at the same pace to HK$526.24 million, keeping the gross margin steady at 30.9%. • Profit attributable to shareholders more than doubled to HK$118.47 million, lifting basic earnings per share to 27.60 HK cents (2024: 13.30 HK cents). • Operating profit gained 54.0% to HK$174.06 million, while finance costs fell 8.6% to HK$13.40 million.

Segment Performance • Manufacturing: Revenue advanced 14.5% to HK$1.07 billion, representing 62.7% of group sales. Segment operating profit rose 24.9% to HK$238.05 million, supported by higher volumes from key U.S. and European customers and improved plant efficiency, particularly in Bangladesh and Mexico. • Trading: Revenue grew 16.9% to HK$634.19 million (37.3% of group sales), buoyed by the first full-year consolidation of Dutch licensee Difuzed. The segment recorded a narrower operating loss of HK$77.92 million (2024: loss of HK$95.44 million) as cost pressures persisted.

Cash Flow and Balance Sheet • Cash and cash equivalents plus short-term deposits totalled HK$178.90 million at year-end. • Net current assets improved to HK$459.51 million (2024: HK$342.78 million). • Total borrowings declined to HK$140.35 million, trimming the borrowings-to-equity ratio to 10.9% (2024: 16.9%). • The group had HK$645.30 million in unutilised banking facilities.

Dividend The Board proposes a final dividend of 6 HK cents per share, taking full-year dividends to 9 HK cents (2024: 8 HK cents). The final dividend is subject to shareholder approval on 22 May 2026; the record date is 4 June 2026 and payment is scheduled on or after 18 June 2026.

Operational Highlights • Bangladesh: Output rose about 20% without major capex, reflecting continued lean-management gains. • Mexico: Capacity expansion and process upgrades led to a break-even month in December 2025; exports benefit from USMCA duty-free status. • Cambodia: A new plant entered trial production in November 2025 and is slated to achieve break-even by end-2026. • Group headcount stood at 8,615, with annual staff costs of HK$436.80 million.

Capital Expenditure and Commitments • FY2025 capex reached HK$58.70 million, mainly for facility upgrades in Bangladesh, Mexico and Cambodia. • For 2026 the group has budgeted HK$201.30 million, including HK$161.30 million for a new Cambodian factory and a Mexican warehouse, financed by internal resources and bank lines.

Outlook Management expects geopolitical shifts and tariff changes to keep the operating environment volatile, but believes its multi-regional production network and diversified licensed-product portfolio position the group for sustained growth. Key 2026 initiatives include scaling Cambodian production, enhancing automation, expanding North American free-trade-zone logistics and leveraging European and U.S. brand licences to deepen market penetration.