Crocodile Garments reported a HK$17.51 million net loss attributable to shareholders for the six months ended 30 June 2026, deepening from a HK$11.65 million loss a year earlier. The setback was driven chiefly by a HK$3.87 million decline in gross profit and a HK$2.96 million jump in fair-value losses on investment properties as the group worked to re-let vacated space at its flagship property.
Revenue slipped 9.2% year-on-year to HK$44.91 million. Garment and accessories sales eased 3.3% to HK$20.04 million, while rental income from the property portfolio fell 13.4% to HK$24.87 million after a major tenant exited in 2H 2025. Group gross profit margin stayed flat at 78.8%; however, higher selling costs and lower other income compressed profitability.
Segment performance diverged: • Garment operations posted a HK$5.01 million loss (2025: HK$3.82 million loss) despite a 2.9-percentage-point improvement in segment gross margin to 55.5%, as three Hong Kong store closures triggered one-off costs. • Property investment delivered HK$10.68 million in segment profit (2025: HK$20.63 million), reflecting reduced rents and HK$5.81 million of fair-value write-downs. • Treasury management contributed HK$7.01 million (2025: HK$4.35 million), aided by a HK$4.37 million mark-to-market gain on interest-rate swaps that cushioned market volatility.
Group finance costs dropped 18.3% to HK$13.20 million, supported by loan repayments following the HK$47.00 million rights issue completed in December 2025. Total borrowings, including margin loans, declined to HK$651.9 million (31 December 2025: HK$669.9 million), trimming the debt-to-equity ratio to 48% from 49%.
Operating cash flow turned positive at HK$11.55 million (2025: HK$27.72 million outflow), but overall cash and cash equivalents slipped to HK$116.24 million (end-2025: HK$124.60 million) after HK$24.66 million of net financing outflows, mainly bank loan and lease repayments. Net current assets stood at HK$33.42 million, while net assets were broadly steady at HK$1.36 billion.
The board declared no interim dividend. Management signalled continued cost discipline in retail, further tenant-mix optimisation in its property portfolio, and a cautious, liquidity-focused approach to treasury investments. With its 75th anniversary approaching in 2027, Crocodile Garments plans to refine product offerings, enhance customer engagement via a new membership app, and explore opportunities to unlock value from non-core properties.