KNT Holdings (01025) released its audited results for the year ended 31 March 2026, showing a sharp revenue rebound but a significantly larger bottom-line loss.
Revenue climbed 53.18% year on year to HK$98.00 million, driven chiefly by a HK$74.43 million jump in fashion apparel sales, which offset a HK$28.72 million contraction in bridesmaid dress demand. Hong Kong became the primary sales market, contributing 73.8% of total revenue versus 35.5% a year earlier, while the United States share dropped to 17.2% from 48.4%.
Cost of sales rose 61.63% to HK$93.24 million, outpacing revenue growth and compressing gross profit to HK$4.80 million (-24.1% YoY). Gross margin narrowed to 4.9% from 9.8% due to higher raw-material, subcontracting and labour expenses.
Operating costs accelerated: • Selling & distribution expenses: up 30.9% to HK$7.24 million. • Administrative expenses: up 45.6% to HK$35.50 million, reflecting staff compensation related to a voluntary resignation scheme, increased promotion, and higher right-of-use depreciation. • Impairment provisions totalled HK$4.67 million, mainly for trade and other receivables (HK$3.31 million) and right-of-use assets (HK$1.21 million). • Finance costs nearly doubled to HK$3.43 million owing to higher interest on borrowings.
Consequently, the annual net loss deepened to HK$45.66 million from HK$23.81 million. Basic and diluted loss per share improved to HK20.7 cents (FY 2025: HK49.5 cents) following share issuances that enlarged the capital base.
Balance-sheet indicators showed mixed movements: • Net current assets swung to HK$30.72 million (FY 2025: net current liabilities of HK$6.26 million) on higher trade receivables (HK$69.55 million) and reduced borrowings. • Cash and bank balances increased to HK$10.87 million, while bank overdrafts were eliminated. • Total borrowings fell to HK$8.46 million from HK$15.35 million; the gearing ratio dropped to 14.2% (FY 2025: 78.0%). • Current ratio improved to 1.4x from 0.9x. • Net assets more than doubled to HK$59.71 million, bolstered by two rights issues that raised a combined HK$79.59 million (net).
The Board recommended no final dividend, consistent with the prior year.
Post-balance sheet event: On 18 June 2026, KNT Holdings agreed to place up to 80.87 million new shares at HK$0.20 each through Grand China Securities, aiming to further strengthen liquidity.
Management flagged persisting headwinds from US-China trade tensions, geopolitical risks, and softer global demand, particularly in the bridal segment. To navigate these challenges, the Group is integrating AI-driven solutions for design and inventory management while maintaining stringent cost controls and exploring new revenue streams.