Raytech Holding Limited Announces First Half Fiscal Year 2026 Financial Results
Net Income of HK$4.7 Million (US$610,454) with Net Margin of 12.6%; Strong Cash Position of HK$121.5 Million (US$15.6 Million)
HONG KONG, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Raytech Holding Limited (NASDAQ: RAY) ("Raytech", "We", "Our" or the "Company"), a Hong Kong-based company specializing in design, sourcing, and wholesale of personal care electrical appliances for international brand owners, today announced financial results for the first half of fiscal year 2026 (six months ended September 30, 2025).
Raytech delivered solid first half fiscal year 2026 results, maintaining strong profitability with net income of HK$4.7 million (US$610,454) and an improved net margin of 12.6%, compared to 10.8% in the prior year period. The Company continues to demonstrate exceptional balance sheet strength, recording cash and cash equivalents of HK$121.5 million (US$15.6 million), representing a significant increase of 43.2% from HK$84.9 million as of March 31, 2025. Revenue for the period was HK$37.6 million (US$4.8 million), reflecting a 13.1% decrease from HK$43.2 million in the prior year period, primarily attributable to the imposition of tariffs in early 2025 which created instability in the global trading environment.
Management Commentary
Mr. Ching Tim Hoi, CEO and Chairman of Raytech, said: "The first half of fiscal year 2026 demonstrates our resilience and operational excellence despite challenging global trade conditions. While revenue was impacted by tariff-related market instability, we successfully improved our profitability metrics, with our net margin increasing to 12.6% from 10.8% in the prior year period. Our gross profit margin improved significantly by 5.1 percentage points to 26.3%, driven by our strategic focus on higher-margin hair styling series products within our hair styling series. We continue to maintain a robust financial position with cash and cash equivalents of HK$121.5 million, providing substantial flexibility to pursue strategic growth opportunities. We remain committed to expanding our presence in the U.S., UK, Europe, Australia and regional Asian markets."
Financial Highlights
Key highlights for the six months ended September 30, 2025 compared to the six months ended September 30, 2024:
- Net income of HK$4.7 million (US$610,454) with an improved net margin of 12.6%
- Gross profit margin improved to 26.3% compared to 21.2% in the prior year period
- Cash and cash equivalents increased by 43.2% to HK$121.5 million (US$15.6 million)
- Net current assets strengthened to HK$116.9 million (US$15.0 million) compared to HK$76.9 million as of March 31, 2025
Financial Results
Revenue Performance:
- Hair styling series: Revenue of HK$26.0 million (US$3.3 million) in H1 FY2026 compared to HK$19.1 million in H1 FY2025, an increase of 35.9%
- Trimmer series: Revenue of HK$9.1 million (US$1.2 million) in H1 FY2026 compared to HK$20.9 million in H1 FY2025
- Nail care series: Revenue of HK$0.9 million (US$116,936) in H1 FY2026 compared to HK$0.9 million in H1 FY2025
- Other personal care appliances: Revenue of HK$1.3 million (US$170,656) in H1 FY2026 compared to HK$1.0 million in H1 FY2025, an increase of 27.8%
- Eyelash curler: Revenue of HK$0.3 million (US$32,238) in H1 FY2026 compared to HK$0.2 million in H1 FY2025, an increase of 19.3%
Profitability and Margins:
- Merchandise costs of HK$27.7 million (US$3.6 million) in H1 FY2026 compared to HK$34.1 million in H1 FY2025, representing 73.7% of revenue in H1 FY2026 compared to 78.8% in H1 FY2025
- Income from operations of HK$4.7 million (US$603,192) in H1 FY2026 with an operating margin of 12.5%, compared to HK$3.9 million and 9.1% in H1 FY2025
- Interest income of HK$1.4 million (US$175,048) in H1 FY2026 compared to HK$1.4 million in H1 FY2025
Balance Sheet Strength:
- Cash and cash equivalents of HK$121.5 million (US$15.6 million) as of September 30, 2025 compared to HK$84.9 million as of March 31, 2025
- Total current assets increased to HK$145.7 million (US$18.7 million) as of September 30, 2025, compared to HK$94.9 million as of March 31, 2025
- Accounts receivable decreased 61.1% to HK$3.2 million (US$407,016) as of September 30, 2025 from HK$8.1 million as of March 31, 2025, primarily driven by less number of orders near September
- Total current liabilities of HK$28.8 million (US$3.7 million) as of September 30, 2025 compared to HK$17.9 million as of March 31, 2025
- Net current assets of HK$116.9 million (US$15.0 million) as of September 30, 2025 compared to HK$76.9 million as of March 31, 2025
Outlook and Strategic Priorities
Our goal is to become a leading product design and development company in the personal care and lifestyle electrical appliances industry in Asia. We intend to explore new product lines, continue expanding our men's personal care and hair care product lines, and approach customers who sell and market their personal care electrical appliances in Europe, the U.S. and regional Asia markets. Our strong cash position will support these initiatives, including the exploration of new product lines and market expansion efforts, while we continue to manage our business with financial discipline.
About Raytech Holding Limited
Raytech Holding Limited is a Hong Kong-headquartered company with over 10 years of experience in the personal care electrical appliance industry. Through its operating subsidiary in Hong Kong, it sources and wholesales a diverse range of personal care electrical appliances ranging from hair styling, tooling, trimmer, eyelash curler, to nail care and other body and facial care appliances for international brand owners, providing integrated product design, production processing, and manufacturing solutions. For more information please visit: https://ir.raytech.com.hk/.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These forward-looking statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the Company's annual report on Form 20-F filed on July 24, 2025 with the U.S. Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
Media and Investor Relations Contact:
International Elite Capital
Annabelle Zhang
Tel: +1 (646) 866-7928
Email: annabelle@iecapitalusa.com
| RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
|
As of March 31, |
(Unaudited) As of September 30, |
|||||||||||
| 2025 | 2025 | 2025 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 84,850,995 | 121,544,270 | 15,620,850 | |||||||||
| Accounts receivable, net | 8,144,307 | 3,166,952 | 407,016 | |||||||||
| Merchandise inventories, net | 1,879,435 | 5,799,922 | 745,405 | |||||||||
| Prepayments | – | 15,194,115 | 1,952,745 | |||||||||
| TOTAL CURRENT ASSETS | 94,874,737 | 145,705,259 | 18,726,016 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Property and equipment, net | – | – | – | |||||||||
| Deferred initial public offering costs | – | 659,625 | 84,775 | |||||||||
| Long-term deposits | 16,200 | 16,200 | 2,082 | |||||||||
| TOTAL NON-CURRENT ASSETS | 16,200 | 675,825 | 86,857 | |||||||||
| TOTAL ASSETS | 94,890,937 | 146,381,084 | 18,812,873 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts payable | 466,327 | 1,072,335 | 137,817 | |||||||||
| Accounts payable - related parties | 14,984,393 | 22,266,672 | 2,861,709 | |||||||||
| Accruals | 1,786,314 | 1,351,231 | 173,660 | |||||||||
| Contract liabilities | 501,804 | 2,773,891 | 356,500 | |||||||||
| Tax payables | 190,082 | 1,304,285 | 167,626 | |||||||||
| TOTAL CURRENT LIABILITIES | 17,928,920 | 28,768,414 | 3,697,312 | |||||||||
| TOTAL LIABILITIES | 17,928,920 | 28,768,414 | 3,697,312 | |||||||||
| COMMITMENTS AND CONTINGENCIES | – | – | – | |||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Ordinary Shares, US$0.0001 par value, 500,000,000 Ordinary Shares authorized, 1,100,818shares and 2,724,880 shares issued and outstanding as of March 31, 2025 and September 30, 2025, respectively(1) (2) | 862 | 2,137 | 273 | |||||||||
| Additional paid-in capital | 37,717,487 | 73,616,990 | 9,461,244 | |||||||||
| Retained earnings | 39,243,668 | 43,993,543 | 5,654,044 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 76,962,017 | 117,612,670 | 15,115,561 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 94,890,937 | 146,381,084 | 18,812,873 | |||||||||
| (1) | 1,624,062 ordinary shares were issued on July 1, 2025. (2) |
| (2) | Retroactively restated share consolidation that every sixteen (16) issued and unissued ordinary shares with a par value of US$0.00000625 each in the capital of the Company are hereby consolidated into one (1) ordinary share with a par value of US$0.0001 each, with the effective date on November 7, 2025. |
| The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. | |
| RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
|
(Unaudited) For the Six Months ended September 30, |
||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| REVENUE | ||||||||||||
| Sales of products | 42,101,829 | 37,578,932 | 4,829,638 | |||||||||
| Sales of tooling | 1,147,077 | – | – | |||||||||
| 43,248,906 | 37,578,932 | 4,829,638 | ||||||||||
| OPERATING EXPENSES | ||||||||||||
| Merchandise costs | (34,100,724 | ) | (27,708,506 | ) | (3,561,093 | ) | ||||||
| Selling, general and administrative expenses | (5,229,459 | ) | (5,177,047 | ) | (665,353 | ) | ||||||
| Total operating expenses | (39,330,183 | ) | (32,885,553 | ) | (4,226,446 | ) | ||||||
| INCOME FROM OPERATIONS | 3,918,723 | 4,693,379 | 603,192 | |||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | 1,431,474 | 1,362,022 | 175,048 | |||||||||
| Other income, net | – | 116,195 | 14,933 | |||||||||
| Loss from foreign currency exchange | (407,242 | ) | (307,518 | ) | (39,522 | ) | ||||||
| Total other income, net | 1,024,232 | 1,170,699 | 150,459 | |||||||||
| INCOME BEFORE INCOME TAX PROVISION | 4,942,955 | 5,864,078 | 753,651 | |||||||||
| PROVISION FOR INCOME TAXES | (290,920 | ) | (1,114,203 | ) | (143,197 | ) | ||||||
| NET INCOME | 4,652,035 | 4,749,875 | 610,454 | |||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
| Basic and diluted(1) (2) (3) | 1,074,058 | 1,917,286 | 1,917,286 | |||||||||
| EARNINGS PER SHARE | ||||||||||||
| Basic and diluted | 4.33 | 2.48 | 0.32 | |||||||||
| (1) | 93,750 ordinary shares were issued on May 15, 2024, and 7,068 ordinary shares were issued on July 5, 2024. (3) |
| (2) | 1,624,062 ordinary shares were issued on July 1, 2025. (3) |
| (3) | Retroactively restated share consolidation that every sixteen (16) issued and unissued ordinary shares with a par value of US$0.00000625 each in the capital of the Company are hereby consolidated into one (1) ordinary share with a par value of US$0.0001 each, with the effective date on November 7, 2025. |
| The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. | |
| RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
|
(Unaudited) For the Six Months ended September 30, |
||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | 4,652,035 | 4,749,875 | 610,454 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Loss from unrealized foreign currency translation | 406,530 | 100,934 | 12,972 | |||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable, net | 978,597 | 4,984,224 | 640,572 | |||||||||
| Merchandise inventories, net | 720,618 | (3,924,830 | ) | (504,419 | ) | |||||||
| Prepayments | – | (15,211,885 | ) | (1,955,029 | ) | |||||||
| Accounts payable | 372,876 | 606,657 | 77,967 | |||||||||
| Accounts payable - related parties | (3,694,385 | ) | 7,288,868 | 936,764 | ||||||||
| Accruals | (97,717 | ) | (435,398 | ) | (55,957 | ) | ||||||
| Contract liabilities | (1,008,415 | ) | 2,274,680 | 292,342 | ||||||||
| Taxes payables | 290,920 | 1,114,203 | 143,197 | |||||||||
| Net cash provided by operating activities | 2,621,059 | 1,547,328 | 198,863 | |||||||||
| Cash flows from investing activity | ||||||||||||
| Repayment of amount due from a director | 145,166 | – | – | |||||||||
| Net cash provided by investing activity | 145,166 | – | – | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceed from Initial Public / Follow On Offering of shares | 42,772,241 | 35,900,778 | 4,613,962 | |||||||||
| Deferred initial public offering cost | – | (659,625 | ) | (84,775 | ) | |||||||
| Net cash from financing activities | 42,772,241 | 35,241,153 | 4,529,187 | |||||||||
| Change in cash | 45,538,466 | 36,788,481 | 4,728,050 | |||||||||
| Effect of foreign exchange on cash | (377,030 | ) | (95,206 | ) | (13,638 | ) | ||||||
| Cash at the beginning of the period | 35,885,666 | 84,850,995 | 10,906,438 | |||||||||
| Cash at the end of the period | 81,047,102 | 121,544,270 | 15,620,850 | |||||||||
| Supplementary cash flow information | ||||||||||||
| Cash paid for income tax | – | – | – | |||||||||
| Cash paid for interest expense | – | – | – | |||||||||
| The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. | ||||||||||||
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