Artini Holdings slips into HK$9.63 million loss for FY 2026 as gross margin contracts; skincare and health segment becomes primary revenue source

Bulletin Express
Jun 30

Artini Holdings Limited reported a net loss of HK$9.63 million for the year ended 31 March 2026, reversing the prior year’s HK$7.61 million profit. The swing was driven by a weaker gross margin, higher impairment charges and lower gains on subsidiary deregistration.

Group revenue increased 7.6% year on year to HK$162.12 million (FY 2025: HK$150.70 million). The performance was fuelled by the Skincare and Health Product Sales Platform, whose sales surged 80.4% to HK$115.34 million and represented 71.2% of total turnover. Conversely, the Integrated Fashion Accessories Platform Business saw revenue fall 46.1% to HK$46.78 million.

Rising cost pressures reduced gross profit by 20.2% to HK$27.30 million, and overall gross margin slid to 16.8% from 22.7% a year earlier. Segmentally, gross margin for fashion accessories narrowed to 15.8% (FY 2025: 21.2%), while skincare and health margin dropped to 17.2% (FY 2025: 24.8%).

Operating expenses reflected mixed trends. Selling and distribution costs declined 12.1% to HK$15.81 million and administrative expenses fell 13.5% to HK$15.68 million following staff and professional-fee reductions. Nevertheless, other gains and losses swung to a net loss of HK$3.99 million (FY 2025: net gain HK$10.14 million), mainly due to a HK$6.46 million trademark impairment and a smaller HK$2.47 million gain on subsidiary deregistration versus HK$9.12 million a year earlier.

Cash and bank balances stood at HK$21.34 million at 31 March 2026, down from HK$53.35 million a year earlier. Net assets were largely stable at HK$176.04 million, while the gearing ratio eased to 8.4% (FY 2025: 11.6%) on lower lease liabilities.

The board recommended no final dividend. Basic loss per share amounted to HK$0.007 versus earnings per share of HK$0.006 in FY 2025.

Placing proceeds update: Of the HK$58.90 million raised in October 2024, 81.8% (HK$48.16 million) had been deployed by 31 March 2026. The remaining HK$10.74 million—earmarked mostly for marketing activities and online-platform enhancements—is now expected to be fully utilised by December 2026.

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