SITOY GROUP forecasts a turnaround from loss to profit in the first half, earning at least 12 million

SITOY GROUP forecasts that for the six months ending December 31, 2025, it will record a profit attributable to the company's owners of no less than HKD 12 million, reversing a loss of HKD 67.083 million in the same period of 2024. The main reasons include the termination of the Cole Haan business in the same period last year and the expectation that investment properties will not have significant fair value changes. Revenue from manufacturing operations slightly increased, but the gross profit margin declined due to the appreciation of the Renminbi. Revenue from retail operations decreased due to the termination of the Cole Haan business, but it is expected to record a profit before tax

SITOY GROUP (01023) announced that for the six months ending December 31, 2025, it expects to record a profit attributable to shareholders of no less than HKD 12 million, compared to a loss attributable to shareholders of approximately HKD 67.083 million for the same period in 2024.

Image source: SITOY GROUP 2023 Annual Report Cover

The turnaround from loss to profit is mainly due to 1) the termination of the Cole Haan business in the same period last year and 2) the expectation of no significant fair value changes in investment properties.

The revenue from the manufacturing segment is expected to slightly increase compared to HKD 491.41 million in the same period of 2024. However, the segment's profit before tax is expected to decline to approximately HKD 33.537 million compared to the same period, mainly due to the appreciation of the RMB against the USD, which weakened the gross margin of the manufacturing segment.

The revenue from the retail segment is expected to decrease compared to approximately HKD 316 million in the same period of 2024, due to the termination of the Cole Haan business.

However, compared to the segment's loss before tax of approximately HKD 84.97 million in the same period, it is expected to record a profit before tax for the segment, mainly due to the one-time significant loss of approximately HKD 83.568 million incurred from the termination of the Cole Haan business in the same period last year