High Fashion International Limited (High Fashion, 00608) reported audited results for the year ended 31 December 2025, navigating a turbulent macro-economic and geopolitical backdrop.
Financial Performance • Revenue declined 8.2% year on year to HK$3.06 billion, pressured by softer global apparel demand and lower property rental income. • Gross profit fell 15.5% to HK$545.89 million; gross margin narrowed to 17.8% from 19.3% in 2024. • Net profit attributable to shareholders came in at HK$69.77 million, down 23.9% from HK$91.68 million a year earlier. • Basic and diluted earnings per share dropped to HK$0.23 (2024: HK$0.30). • The board proposes a final dividend of HK$0.035 per share, bringing full-year distributions to HK$0.07 per share.
Segment Results • Manufacturing & Trading of Garments: Revenue contracted 6.7% to HK$3.00 billion; segment profit was HK$72.18 million, halving from HK$144.46 million in 2024. • Property Investment & Development: Rental income slid 47.1% to HK$61.71 million; the segment posted a loss of HK$12.96 million versus a profit of HK$19.05 million last year. A HK$39.47 million fair-value gain on investment properties partly offset the segment loss.
Geographic Mix • Mainland China and Hong Kong generated HK$1.82 billion, accounting for 59.2% of total revenue. • Sales to the United States and Europe were HK$0.84 billion, representing 27.6% of revenue. • Other markets, mainly in Southeast Asia and Japan–Australia, contributed HK$0.40 billion.
Cost Structure and Margins • Administrative expenses represented 9.2% of revenue (2024: 8.6%). • Selling and distribution costs accounted for 7.0% of revenue (2024: 6.1%). • Finance costs fell 29.5% to HK$51.43 million, reflecting lower interest expenses.
Balance Sheet and Cash Flow • Cash, short-term deposits and financial assets at FVTPL totalled HK$673.87 million (31 Dec 2024: HK$593.78 million). • Bank borrowings rose to HK$1.83 billion from HK$1.60 billion, lifting the gearing ratio of non-current liabilities to shareholders’ funds to 41.6% (2024: 40.2%). • Current ratio remained stable at 1.2. • Net asset value per share increased to HK$10.58 from HK$10.11. • Net cash generated from operations reached HK$47.1 million. • Capital expenditure totalled HK$94.10 million, primarily for automation, digital transformation and environmental upgrades; property development spending was HK$53.90 million. • Outstanding capital commitments stood at HK$180.40 million.
Operational Highlights High Fashion advanced AI-driven production management, secured additional patents in circular fashion, machine-washable silk and waterless dyeing, and continued to expand its Southeast Asia manufacturing footprint. The Hangzhou-based “High Fashion International Industrial Park” sustained stable rental cash flow and attracted technology-driven tenants.
Dividend and AGM Subject to shareholder approval at the AGM on 9 June 2026, the proposed HK$0.035 final dividend will be paid on 10 July 2026 to shareholders on record as of 18 June 2026.