Hong Kong-listed luxury goods retailer Milan Station Holdings Limited (Milan Station, 01150) reported a sharply narrower net loss of HK$2.16 million for the six months ended 30 June 2026, compared with a HK$11.02 million deficit a year earlier. The improvement was driven primarily by a HK$6.63 million fair-value gain on listed securities, reversing a HK$1.88 million loss in the prior-year period, alongside tighter cost controls.
Revenue slipped 2% year on year to HK$49.14 million, reflecting muted consumer demand in Hong Kong and selective spending among affluent shoppers. Handbags remained the core contributor, accounting for 99.2% of sales. Unused products generated 78.6% of revenue, up from 74.1% a year earlier, while second-hand items fell 19.2%.
Cost of sales edged up 1.8% to HK$45.11 million, squeezing gross profit to HK$4.04 million and trimming the margin to 8.2% (1H25: 11.5%). Selling expenses declined 7.3% to HK$7.40 million, and administrative and other operating expenses dropped 26.9% to HK$4.98 million.
Finance costs increased 45.5% to HK$1.01 million, largely due to higher imputed bond interest. Basic and diluted loss per share narrowed to HK0.20 cents from HK1.04 cents a year earlier. No interim dividend was declared.
Total assets stood at HK$109.65 million with cash and bank balances of HK$9.01 million. Net assets amounted to HK$71.05 million, while the gearing ratio (borrowings and lease liabilities to equity) eased to 37.4% from 39.7% at year-end 2025. The current ratio was 3.8 and quick ratio 3.0.
Inventory declined to HK$21.32 million from HK$22.53 million at 31 December 2025, with 41.1% of stock aged over one year. The company operated four “Milan Station” stores in Hong Kong and continues to pursue cost-conscious network optimisation.
Management highlighted a cautiously improving retail environment, citing a 4.6% rise in June 2026 Hong Kong retail sales and continued support from local high-net-worth consumers and inbound travellers. However, geopolitical tensions and macroeconomic uncertainties remain key headwinds.
Subsequent to period end, Milan Station disclosed the sale of an additional 10.09 million shares in BFB Health Limited for HK$4.94 million, following an earlier April disposal of 14 million shares for HK$6.30 million. Combined, the transactions constitute a discloseable transaction under Hong Kong’s Listing Rules.
No material contingent liabilities, capital commitments, or share option movements were reported during the period.