MBV International Limited (MBV International) reported a profit attributable to owners of RM9.67 million for the six months ended 30 June 2026, up 18.3% from RM8.16 million a year earlier. The improvement was driven primarily by a RM6.10 million gain recognised from the waiver of part of a consideration payable linked to a prior acquisition.

Revenue fell 4.6% year on year to RM83.30 million as softer demand trimmed sales of imprintable apparel and gift products. Imprintable apparel sales declined 5.3% to RM65.47 million on a 3.3% drop in volume and a 1.7% lower average selling price. Gift product revenue edged down 1.1% to RM17.80 million, with a 10.2% fall in volume largely offset by an 8.1% price increase.

Gross profit contracted 9.8% to RM25.46 million, reducing gross margin by 1.7 percentage points to 30.6%. Higher administrative and operating expenses, notably staff, depreciation and professional fees, lifted total operating costs by 28.5% to RM15.75 million. Finance costs rose 25.9% to RM0.07 million. Income-tax expenses nearly halved to RM1.61 million, reflecting lower taxable profits in certain subsidiaries.

The net profit margin improved to 11.8% (1H 2025: 10.1%) aided by the one-off waiver. Basic and diluted earnings per share increased 18.5% to RM1.54 sen. The board does not recommend an interim dividend.

Balance-sheet metrics remained robust. Net assets reached RM232.63 million, up 4.4% from end-2025. Cash and bank balances totalled RM92.90 million; net current assets stood at RM178.14 million. Interest-bearing borrowings declined to RM3.86 million, lowering the gearing ratio to 2.4% (end-2025: 2.8%).

During the period, MBV International disposed of its entire 40% stake in associate Lordan Group Ltd. for HK$31.41 million (approximately RM16.08 million). The sale, completed on 24 March 2026, followed a HK$12.31 million (RM6.10 million) waiver of outstanding consideration payable, which was recorded as other income.

Management cited an uncertain economic outlook for the remainder of 2026 but pledged to maintain prudent cost control and a strong liquidity position. As at 30 June 2026, unutilised IPO proceeds of HK$31.70 million remain earmarked for sales-office upgrades, e-commerce platform development and general working capital, with deployment targeted by end-2028.

No significant post-period events were reported, and the company confirmed compliance with Hong Kong’s corporate governance and directors’ dealing requirements.