Hong Kong-listed Sitoy Group Holdings Limited (Sitoy Group) anticipates a significantly reduced loss for the financial year ended 30 June 2026, according to its latest profit alert filed with the Stock Exchange of Hong Kong.
Key takeaways:
1. Headline result • Management projects a loss attributable to owners of between HK$110.00 million and HK$130.00 million for FY2026, versus a HK$178.07 million loss in FY2025. • The improvement stems mainly from two factors: – No recurrence of the HK$83.57 million one-off loss linked to the termination of the Cole Haan retail franchise recorded in FY2025. – A smaller fair-value loss on investment properties of about HK$50-55 million, compared with HK$109.22 million in the prior year.
2. Segment performance • Manufacturing: Revenue is set to exceed the FY2025 level of HK$918.08 million. Despite stronger sales, segment loss before tax will widen from HK$3.77 million in FY2025, weighed down by Renminbi appreciation and non-cash provision adjustments that squeezed gross margins. • Retail: Segment revenue will fall below FY2025’s HK$654.97 million because of the Cole Haan exit. Nevertheless, the segment is on track to swing to a profit before tax, reversing the HK$62.27 million loss in the previous year, largely due to the elimination of last year’s one-off exit costs. Management cautions that non-cash provisions will temper the extent of the turnaround. • Property investment: Revenue will decline from FY2025’s HK$11.19 million, yet segment loss before tax will contract sharply from HK$101.79 million, reflecting the substantially lower fair-value hit on investment properties.
3. Outlook and process The FY2026 figures are based on preliminary, unaudited management accounts and may change. The audited annual results will be published in due course. Shareholders and potential investors are urged to exercise caution when trading Sitoy Group shares until the final results are released.
The Board emphasised that the company continues to finalise its consolidated financial statements, with external audit and audit committee reviews still pending.