Crocodile Garments Limited (Crocodile Garments, 00122) released its audited results for the 12 months ended 31 December 2025.

Financial highlights • Revenue fell to HK$92.29 million, compared with HK$137.63 million for the preceding 17-month period. • Gross profit reached HK$73.07 million, translating into a 79% gross margin (2024: 81%). • The Group recorded a consolidated loss attributable to shareholders of HK$108.00 million, widening from the HK$49.90 million loss in the prior period. Basic and diluted loss per share were both HK147.18 cents. • No dividend was declared.

Key drivers of the loss • Investment properties were re-valued downward by HK$73.13 million (2024: HK$23.19 million), representing the single largest negative item. • Fair-value movements on interest-rate swaps produced a HK$9.64 million loss, reversing a HK$4.59 million gain in 2024. • Finance costs declined markedly to HK$29.46 million from HK$63.08 million, reflecting lower HIBOR and ongoing debt amortisation.

Segment performance • Garment & Related Accessories: Revenue fell to HK$38.63 million. Segment loss narrowed to HK$11.91 million, supported by store closures and rental negotiations. The retail network stood at 14 shops in Hong Kong and Macau and 5 self-operated stores on the Mainland at year-end. • Property Investment & Letting: Rental income delivered HK$53.65 million; however, valuation losses drove the segment to a HK$34.21 million loss. Occupancy at the flagship Kowloon East asset rebounded to nearly 90% after service-retail repositioning. • Treasury Management: Trading and fund investments added HK$1.08 million to pre-tax profit, while mark-to-market deficits on derivatives pushed the segment into a net loss position of HK$9.64 million.

Balance-sheet indicators • Total assets stood at HK$2.12 billion; investment properties accounted for HK$1.62 billion. • Net assets were HK$1.37 billion. • Cash and cash equivalents totalled HK$124.60 million; pledged deposits were HK$2.74 million. • Interest-bearing bank borrowings amounted to HK$664.88 million and margin loans HK$5.52 million, giving a debt-to-equity ratio of approximately 49%. • Rights issue completed in December 2025 raised net proceeds of HK$47.00 million, earmarked for debt service; HK$1.80 million had been applied by year-end.

Outlook Management intends to: 1) continue rationalising the store network while investing in product development to lift margins in the garment segment; 2) enhance yields on the Kowloon East property through tenant mix upgrades; and 3) pursue a conservative treasury strategy focused on liquidity preservation ahead of forecast interest-rate declines.

No contingent liabilities or major capital commitments were reported as at 31 December 2025.