The UNI PRINTSHOP (SEHK: 08448) has released an announcement containing a positive profit alert for the group.

It is expected that the annual profit for the year ending March 31, 2026, will increase to approximately HK$1.6 million. This compares to an annual profit of about HK$0.7 million for the year ended March 31, 2025.

Furthermore, the total comprehensive income for the 2026 fiscal year is anticipated to rise to around HK$2.3 million, up from approximately HK$0.6 million in the 2025 fiscal year.

Excluding the impact of non-recurring and one-off items, the group expects to achieve an operating net profit of about HK$4.7 million for the 2026 fiscal year. In contrast, the operating net profit for the 2025 fiscal year was approximately HK$0.6 million.

Adjustments for One-Off Items

The fundamental net operating performance for the current year has been adjusted to reflect significant non-recurring and one-off events that occurred during the 2026 fiscal year.

These include a one-off write-off of approximately HK$1.9 million for leasehold improvements, following the decision to cease operations at the Tsing Yi production base, leading to a one-time asset derecognition.

Additionally, one-off legal and professional fees increased by about HK$1.2 million due to ongoing connected transactions and a mandatory general cash offer.

For comparison, one-off items in the 2025 fiscal year included a gain of roughly HK$0.2 million from the sale of a subsidiary, a loss of about HK$0.2 million from the sale of property, plant, and equipment, and government grants of approximately HK$18,000.

Core Performance Drivers

After excluding these non-recurring items, the expected growth in annual profit and total comprehensive income for the 2026 fiscal year is primarily driven by several factors.

Firstly, increased sales volume and gross profit contributed significantly. The rise in sales volume led to an absolute increase in gross profit of about HK$2.5 million for the 2026 fiscal year compared to the previous year, despite intense local market price competition since October 2024.

Secondly, business restructuring played a key role. The group's income tax expense for the 2026 fiscal year decreased substantially by approximately HK$1.2 million compared to the 2025 fiscal year.

This reduction resulted from relocating part of the business back to Hong Kong, which allowed taxable profits to be fully offset against the group's available accumulated tax losses.

Lastly, other comprehensive income, specifically foreign exchange gains, provided further support. In addition to the growth in operating net profit, the positive total comprehensive income was further bolstered by a positive exchange difference of about HK$0.7 million from translating overseas operations in the 2026 fiscal year, compared to a negative difference of around HK$0.07 million in the 2025 fiscal year.