SITOY GROUP (01023) has announced that the Group expects to record a net profit attributable to owners of the company of no less than HK$12 million for the six-month period ending December 31, 2025. This represents a significant turnaround from the net loss attributable to owners of approximately HK$67.083 million recorded in the corresponding period in 2024.

The shift from loss to profit is primarily attributed to the absence of a significant one-time loss incurred last year from the termination of the Cole Haan business. Additionally, the stabilization of the Hong Kong commercial property market is expected to prevent any major fair value changes on investment properties for the current period.

Revenue from the manufacturing business segment for the six months ending December 31, 2025, is anticipated to show a slight increase compared to the segment revenue of approximately HK$491 million in the same period last year. However, the segment's profit before tax is expected to decline relative to the profit before tax of about HK$33.537 million recorded in the prior year period. This decrease is mainly due to the appreciation of the Renminbi against the US dollar, which has negatively impacted the gross profit margin of the manufacturing division.

Revenue from the retail business segment for the six-month period ending December 31, 2025, is projected to decrease compared to the segment revenue of approximately HK$316 million in the corresponding period of 2024, following the termination of the Cole Haan business. Despite the lower revenue, the segment is expected to report a profit before tax, a substantial improvement from the loss before tax of approximately HK$84.97 million in the same period last year. This return to profitability is largely because the significant one-time loss of about HK$83.568 million related to the Cole Haan business termination, which occurred in the previous period, did not reoccur.

Revenue from the property investment segment for the six months ending December 31, 2025, is expected to remain stable compared to the segment revenue of approximately HK$6.609 million in the prior year period. The segment is forecast to achieve a profit before tax, contrasting with the loss before tax of about HK$761,000 in the corresponding period of 2024. This improvement is due to the expectation that no significant fair value changes will be recorded for the current period.