Hong Kong-listed headwear manufacturer and distributor Mainland Headwear Holdings Limited reported unaudited interim results for the six months ended 30 June 2026.

Revenue and margins • Group revenue rose 9.5% year on year to HK$925.86 million, supported by double-digit expansion in the Manufacturing segment. • Gross profit increased 8.9% to HK$277.86 million; gross margin held broadly flat at 30.0% (1H25: 30.2%).

Profitability • Operating profit climbed 14.0% to HK$96.62 million. • Profit attributable to shareholders advanced 10.0% to HK$65.93 million. • Basic and diluted EPS were both 15.36 HK cents, up from 13.96 HK cents a year earlier.

Segment performance • Manufacturing revenue grew 12.3% to HK$604.00 million, representing 65.2% of group sales; segment operating profit improved 12.5% to HK$135.20 million. • Trading revenue edged up 4.5% to HK$321.86 million; segment operating loss widened to HK$48.50 million (1H25: HK$43.83 million loss).

Cash flow and balance sheet • Cash, cash equivalents and short-term deposits totalled HK$226.62 million at period-end (31 December 2025: HK$174.21 million). • Borrowings stood at HK$179.33 million, giving a borrowings-to-equity ratio of 13.5% (end-2025: 10.9%). • Net current assets increased to HK$479.74 million (end-2025: HK$459.51 million).

Capital expenditure and commitments • 1H26 capex reached HK$44.50 million, primarily for equipment upgrades in manufacturing facilities. • The group has authorised HK$232.00 million in future capex, including HK$189.00 million for new warehousing in Mexico and factory construction in Cambodia.

Dividend The board declared an interim dividend of 3.0 HK cents per share, unchanged from the prior year, payable on or after 12 October 2026. The register of members will be closed from 18 to 22 September 2026 for dividend entitlement determination.

Operational highlights • Bangladesh remains the core production hub with approximately 7,500 staff. • Mexico plant production efficiency continued to improve; Cambodia ramp-up is ongoing, with headcount rising to roughly 660. • The Shenzhen facility has completed its transition from manufacturing to R&D and cross-regional support.

Outlook Management expects external uncertainties—geopolitical risks, consumer softness and cost inflation—to persist. Strategic priorities include further automation in Bangladesh, capacity utilisation improvements in Cambodia, leveraging near-shoring advantages in Mexico, and realising synergies across European and U.S. trading operations while exercising disciplined cost control and capital allocation.