Milan Station Holdings Limited (Milan Station) reported a markedly reduced net loss of HK$2.16 million for the six months ended 30 June 2026, an 80.4% improvement from the HK$11.02 million deficit posted a year earlier. The turnaround was largely driven by a HK$6.63 million fair-value gain on listed securities, reversing a HK$1.88 million loss in the prior-year period.

Revenue eased 2.0% year-on-year to HK$49.14 million, reflecting softer sales at the Group’s four Hong Kong “Milan Station” stores and online platform. Handbags remained the core category, contributing HK$48.67 million, or 99.2% of total turnover. Unused products accounted for 78.6% of sales, up from 74.1% in 1H25.

Margin pressure persisted: gross profit slid 29.8% to HK$4.04 million, and gross margin narrowed to 8.2% from 11.5% due to promotional pricing to clear slow-moving stock. Selling expenses fell 7.3% to HK$7.40 million and administrative and other operating costs declined 26.9% to HK$4.98 million, underscoring management’s cost-control efforts. Finance costs rose 45.5% to HK$1.01 million, mainly from higher bond and borrowing expenses.

The balance sheet showed cash and bank balances of HK$9.01 million (31 December 2025: HK$8.06 million), net current assets of HK$75.48 million and net assets of HK$71.05 million. Gearing stood at 37.4%, while current and quick ratios were 3.8x and 3.0x, respectively. Inventories edged down to HK$21.32 million from HK$22.53 million at year-end 2025.

No interim dividend was declared. Post-period, the company sold an additional HK$4.94 million of BFB Health shares on 10 August 2026, following an earlier HK$6.30 million disposal in April; both transactions together qualified as a discloseable transaction under Hong Kong listing rules.

Management expects Hong Kong’s improving retail backdrop, supported by tourism initiatives, to aid recovery but flagged ongoing macroeconomic and geopolitical uncertainties. Milan Station intends to maintain a prudent cost structure while leveraging demand from high-net-worth consumers and Greater Bay Area opportunities.