Hong Kong – Milan Station Holdings Limited released its audited results for the year ended 31 December 2025, reporting a return to profitability on the back of stronger sales, strict cost control and sizeable investment gains.

Revenue and Gross Margin • Revenue rose 12.0% year on year to HK$125.27 million, driven almost entirely by handbag sales, which contributed 98.7% of turnover. • Gross profit increased 43.4% to HK$11.93 million, lifting gross margin to 9.5% from 7.4% in 2024.

Expense Management • Selling expenses fell 27.8% to HK$15.64 million as store-related depreciation, salaries and marketing costs declined. • Administrative and other operating expenses were cut by 15.4% to HK$11.68 million. • Finance costs remained stable at HK$1.64 million.

Investment Contribution • Other gains surged to HK$18.17 million (2024: HK$13.22 million), underpinned by a HK$15.73 million fair-value gain on listed securities and a HK$1.70 million gain on disposal of financial assets at fair value through profit or loss. • Financial assets at FVTPL expanded to HK$57.36 million from HK$35.01 million, representing 55.9% of current assets.

Bottom-line Rebound • Profit attributable to shareholders was HK$1.50 million, reversing a HK$26.36 million loss in 2024. • Basic earnings per share reached HK0.14 cents (2024: loss of HK2.74 cents). • The board recommended no final dividend.

Balance Sheet and Liquidity • Cash and bank balances stood at HK$8.06 million (31 Dec 2024: HK$11.25 million). • Net current assets were HK$76.17 million, while the current ratio eased to 3.9 times (2024: 4.9 times). • Total borrowings comprised HK$18.98 million of bond payables and HK$2.10 million of other borrowings, yielding a gearing ratio of 40% (2024: 26%). • Inventory fell 40.3% to HK$22.53 million, cutting inventory turnover days to 97 from 150.

Operational Highlights • All revenue was generated in Hong Kong through five Milan Station stores and an online platform. • Unused products accounted for 77.1% of sales, while items priced above HK$50,000 rose to 58.0% of revenue, reflecting continued demand for premium luxury handbags. • The money-lending portfolio stood at HK$2.86 million after HK$10.29 million of ECL provisions.

Outlook Management noted modest growth in Hong Kong’s luxury segment and expects local consumption to benefit from government stimulus and potential interest-rate cuts, while cautioning that geopolitical tensions and macro uncertainties remain key risks.