Raytech Holding Reports Financial Results for Six Months Ended September 30, 2024
Raytech Holding (RAY) reported financial results for the six months ended September 30, 2024, showing mixed performance. Revenue increased by 31.0% to HKD 43.2 million (US$ 5.6 million), primarily driven by strong sales in the trimmer series within personal care products. However, operating expenses rose significantly, with merchandise costs up 40.3% to HKD 34.1 million and selling, general, and administrative expenses increasing to HKD 5.2 million.
The company's income from operations decreased by 43.7% to HKD 3.9 million, while net income fell by 27.5% to HKD 4.7 million. Gross profit margin declined by 5.2% to 21.2%. The trimmer series became the largest revenue contributor at HKD 20.9 million, while hair styling series generated HKD 19.1 million. The increase in expenses was largely attributed to higher salaries, transport costs, and IPO-related legal fees.
Raytech Holding (RAY) ha riportato risultati finanziari per i sei mesi terminati il 30 settembre 2024, mostrando performance miste. I ricavi sono aumentati del 31,0% a HKD 43,2 milioni (US$ 5,6 milioni), principalmente sostenuti da forti vendite nella serie di rifinitori all'interno dei prodotti per la cura personale. Tuttavia, le spese operative sono aumentate significativamente, con i costi delle merci aumentati del 40,3% a HKD 34,1 milioni e le spese di vendita, generali e amministrative che sono salite a HKD 5,2 milioni.
Il reddito operativo dell'azienda è diminuito del 43,7% a HKD 3,9 milioni, mentre l'utile netto è calato del 27,5% a HKD 4,7 milioni. Il margine di profitto lordo è diminuito di 5,2 punti percentuali, arrivando al 21,2%. La serie di rifinitori è diventata il maggior contributore ai ricavi, con HKD 20,9 milioni, mentre la serie di acconciatori ha generato HKD 19,1 milioni. L'aumento delle spese è attribuibile principalmente a salari più elevati, costi di trasporto e spese legali relative all'IPO.
Raytech Holding (RAY) informó los resultados financieros para los seis meses finalizados el 30 de septiembre de 2024, mostrando un rendimiento mixto. Los ingresos aumentaron un 31,0% a HKD 43,2 millones (US$ 5,6 millones), impulsados principalmente por fuertes ventas en la serie de recortadores dentro de los productos de cuidado personal. Sin embargo, los gastos operativos aumentaron significativamente, con los costos de mercancía subiendo un 40,3% a HKD 34,1 millones y los gastos de venta, generales y administrativos incrementándose a HKD 5,2 millones.
Los ingresos de la empresa por operaciones disminuyeron un 43,7% a HKD 3,9 millones, mientras que el ingreso neto cayó un 27,5% a HKD 4,7 millones. El margen de beneficio bruto se redujo en 5,2 puntos porcentuales, llegando al 21,2%. La serie de recortadores se convirtió en el mayor contribuyente a los ingresos con HKD 20,9 millones, mientras que la serie de peinado generó HKD 19,1 millones. El aumento de los gastos se atribuye principalmente a salarios más altos, costos de transporte y honorarios legales relacionados con la IPO.
Raytech Holding (RAY)는 2024년 9월 30일 종료된 6개월 간의 재무 결과를 보고했으며, 혼합된 성과를 보여주었습니다. 수익은 31.0% 증가하여 HKD 43.2백만(US$ 5.6백만)에 이르렀으며, 이는 주로 개인 관리 제품 내의 트리머 시리즈에서 발생한 강력한 판매 덕분입니다. 그러나 운영 비용은 상당히 증가하였으며, 상품 비용은 40.3% 증가하여 HKD 34.1백만에 도달했고, 판매, 일반 및 관리 비용은 HKD 5.2백만으로 증가했습니다.
회사의 운영 소득은 43.7% 감소하여 HKD 3.9백만이 되었고, 순이익은 27.5% 감소하여 HKD 4.7백만으로 떨어졌습니다. 총 이익률은 5.2% 감소하여 21.2%에 이릅니다. 트리머 시리즈는 HKD 20.9백만으로 최대 수익 기여자가 되었고, 헤어 스타일링 시리즈는 HKD 19.1백만을 생성했습니다. 비용 증가의 주된 원인은 높은 급여, 운송비 및 IPO 관련 법률 비용으로 나타났습니다.
Raytech Holding (RAY) a rapporté des résultats financiers pour les six mois clos le 30 septembre 2024, montrant une performance mixte. Les revenus ont augmenté de 31,0% pour atteindre 43,2 millions de HKD (5,6 millions de dollars US), principalement soutenus par de fortes ventes dans la série de tondeuses des produits de soin personnel. Cependant, les dépenses d'exploitation ont considérablement augmenté, avec les coûts des marchandises en hausse de 40,3% à 34,1 millions de HKD et les dépenses de vente, générales et administratives montant à 5,2 millions de HKD.
Le revenu d'exploitation de l'entreprise a diminué de 43,7% à 3,9 millions de HKD, tandis que le revenu net a chuté de 27,5% à 4,7 millions de HKD. La marge brute a chuté de 5,2 points de pourcentage à 21,2%. La série de tondeuses est devenue le plus grand contributeur aux revenus avec 20,9 millions de HKD, tandis que la série de coiffage a généré 19,1 millions de HKD. L'augmentation des dépenses a été largement attribuée à des salaires plus élevés, des coûts de transport et des frais juridiques liés à l'IPO.
Raytech Holding (RAY) hat die finanziellen Ergebnisse für die sechs Monate bis zum 30. September 2024 berichtet und zeigt gemischte Ergebnisse. Der Umsatz stieg um 31,0% auf HKD 43,2 Millionen (US$ 5,6 Millionen), hauptsächlich unterstützt durch starke Verkäufe in der Trimmer-Serie im Bereich der Körperpflegeprodukte. Die Betriebskosten stiegen jedoch erheblich, wobei die Warenkosten um 40,3% auf HKD 34,1 Millionen anstiegen und die Vertriebs-, allgemeinen und Verwaltungskosten auf HKD 5,2 Millionen erhöht wurden.
Das Betriebseinkommen des Unternehmens sank um 43,7% auf HKD 3,9 Millionen, während der Nettogewinn um 27,5% auf HKD 4,7 Millionen fiel. Die Bruttogewinnmarge sank um 5,2 Prozentpunkte auf 21,2%. Die Trimmer-Serie wurde mit HKD 20,9 Millionen der größte Umsatzbeitrag, während die Haarstylingserie HKD 19,1 Millionen generierte. Der Anstieg der Kosten wurde hauptsächlich durch höhere Löhne, Transportkosten und rechtliche Gebühren im Zusammenhang mit dem Börsengang verursacht.
- Revenue growth of 31.0% to HKD 43.2 million
- Significant growth in trimmer series sales from HKD 4.5M to HKD 20.9M
- Successful expansion of customer base
- Net income declined 27.5% to HKD 4.7 million
- Operating income decreased 43.7% to HKD 3.9 million
- Gross profit margin declined 5.2% to 21.2%
- Operating expenses increased 50.9% to HKD 39.3 million
- Lower margin profiles from new customers
Insights
The financial results reveal a complex picture of RAY's performance. While revenue growth of
The trimmer series emerged as a key growth driver, surging from
Most concerning is the disproportionate increase in operating expenses by
The strategic shift in RAY's product mix reveals important market dynamics. The dramatic growth in the trimmer series, now representing
The lower margin profiles of new customers highlight the challenges of expansion in the competitive personal care appliance market. This trade-off between growth and profitability is typical during market share acquisition phases, but sustainability of this strategy depends on future ability to improve customer profitability and achieve operational efficiencies.
HONG KONG, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Raytech Holding Limited (the “Company” or “RAY”), a Hong Kong-headquartered company specializing in design, sourcing and wholesale of personal care electrical appliances for international brand owners, today announced its financial results for the six months ended September 30, 2024.
CHING Tim Hoi, CEO and Chairman of the Company, commented, “The Company achieved a notable
“However, operating expenses rose sharply, with merchandise costs increasing by
“Looking ahead, we remain committed to optimize our cost structure while continuing to drive sales growth. We are focused on enhancing our product offerings and expanding our customer base to improve profitability and strengthen our market position in the coming periods.”
Selected 2024 Interim Financial Metrics
| Six Months Ended September 30, | Changes in | |||||||||||
| (HKD in millions, except per share data, differences due to rounding.) | 2024 | 2023 | Percentage | |||||||||
| Revenue | 43.2 | 33.0 | 31.0 | % | ||||||||
| Total operating expenses | 39.3 | 26.1 | 50.9 | % | ||||||||
| Income from operations | 3.9 | 7.0 | (43.7 | ) | % | |||||||
| Income from operations % | 9.1 | % | 21.1 | % | ||||||||
| Total other income, net | 1.0 | 0.6 | 71.4 | % | ||||||||
| Income before income taxes | 4.9 | 7.6 | (34.6 | ) | % | |||||||
| Net income | 4.7 | 6.4 | (27.5 | ) | % | |||||||
- Revenue increased by
31.0% to HKD43.2 million for the six months ended September 30, 2024, compared with HKD33.0 million during the same period in 2023. - Total operating expenses were HKD39.3 million for the six months ended September 30, 2024, increasing from HKD26.1 million during the same period in 2023.
- Net income decreased to HKD4.7 million for the six months ended September 30, 2024, from HKD6.4 million during the same period in 2023.
Revenue
Revenue increased by
The following table shows segregated revenue by sales of major products and sales of tooling for the six months ended September 30, 2024 and 2023.
| (HKD in millions, differences due to rounding.) | Six Months Ended September 30, | |||||
| Sales of products | 2024 | 2023 | ||||
| Hair styling series | 19.1 | 20.1 | ||||
| Trimmer series | 20.9 | 4.5 | ||||
| Eyelash curler | 0.2 | 0.2 | ||||
| Nail care series | 0.9 | 0.5 | ||||
| Other personal care appliances | 1.0 | 0.7 | ||||
| Sales of tooling | 1.1 | 7.0 | ||||
| Total | 43.2 | 33.0 | ||||
Operating expenses
Merchandise costs increased by
Selling, general and administrative expenses were HKD5.2 million (US
Income from operations and margin
Overall income from operations decreased by
Net income
Net income decreased by
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, neck care, 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 with the SEC on July 30, 2024 and the Interim Report on Form 6-K for the six months ended September 30, 2024, filed 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.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
| As of March 31, | (Unaudited) As of September 30, | |||||||||||
| 2024 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 35,885,666 | 81,047,102 | 10,431,712 | |||||||||
| Accounts receivable, net | 14,557,523 | 13,476,241 | 1,734,550 | |||||||||
| Amount due from a director | 145,166 | – | – | |||||||||
| Merchandise inventories, net | 1,855,686 | 1,135,068 | 146,096 | |||||||||
| Taxes receivables | 395,005 | 104,085 | 13,397 | |||||||||
| Prepayments | 5,000 | 5,000 | 644 | |||||||||
| TOTAL CURRENT ASSETS | 52,844,046 | 95,767,496 | 12,326,399 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Property and equipment, net | – | – | – | |||||||||
| Deferred initial public offering costs | 5,252,768 | – | – | |||||||||
| Long-term deposits | 16,200 | 16,200 | 2,085 | |||||||||
| TOTAL NON-CURRENT ASSETS | 5,268,968 | 16,200 | 2,085 | |||||||||
| TOTAL ASSETS | 58,113,014 | 95,783,696 | 12,328,484 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts payable | 732,340 | 1,098,929 | 141,445 | |||||||||
| Accounts payable - related party | 24,278,340 | 20,418,181 | 2,628,059 | |||||||||
| Accruals | 1,018,618 | 920,901 | 118,531 | |||||||||
| Contract liabilities | 1,008,415 | - | - | |||||||||
| TOTAL CURRENT LIABILITIES | 27,037,713 | 22,438,011 | 2,888,035 | |||||||||
| TOTAL LIABILITIES | 27,037,713 | 22,438,011 | 2,888,035 | |||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Ordinary Shares, US | 783 | 862 | 110 | |||||||||
| Additional paid-in capital | 99,217 | 37,717,487 | 4,854,683 | |||||||||
| Retained earnings | 30,975,301 | 35,627,336 | 4,585,656 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 31,075,301 | 73,345,685 | 9,440,449 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 58,113,014 | 95,783,696 | 12,328,484 | |||||||||
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| (Unaudited) For the Six Months Ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| REVENUE | ||||||||||||
| Sales of products | 26,011,185 | 42,101,829 | 5,418,999 | |||||||||
| Sales of tooling | 7,006,014 | 1,147,077 | 147,642 | |||||||||
| 33,017,199 | 43,248,906 | 5,566,641 | ||||||||||
| OPERATING EXPENSES | ||||||||||||
| Merchandise costs | (24,305,564 | ) | (34,100,724 | ) | (4,389,163 | ) | ||||||
| Selling, general and administrative expenses | (1,751,531 | ) | (5,229,459 | ) | (673,093 | ) | ||||||
| Total operating expenses | (26,057,095 | ) | (39,330,183 | ) | (5,062,256 | ) | ||||||
| INCOME FROM OPERATIONS | 6,960,104 | 3,918,723 | 504,385 | |||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | 615,405 | 1,431,474 | 184,248 | |||||||||
| Interest expense | (1,657 | ) | – | – | ||||||||
| Loss from foreign currency exchange | (16,334 | ) | (407,242 | ) | (52,417 | ) | ||||||
| Total other income, net | 597,414 | 1,024,232 | 131,831 | |||||||||
| INCOME BEFORE INCOME TAX PROVISION | 7,557,518 | 4,942,955 | 636,216 | |||||||||
| PROVISION FOR INCOME TAXES | (1,139,449 | ) | (290,920 | ) | (37,445 | ) | ||||||
| NET INCOME | 6,418,069 | 4,652,035 | 598,771 | |||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
| Basic and diluted(1) | 16,000,000 | 17,613,083 | 17,613,083 | |||||||||
| EARNINGS PER SHARE | ||||||||||||
| Basic and diluted | 0.40 | 0.26 | 0.03 | |||||||||
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| (Unaudited) For the Six Months Ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | 6,418,069 | 4,652,035 | 598,771 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Depreciation of property and equipment | 2,928 | - | - | |||||||||
| Amortization of right-of-use asset | 51,286 | - | - | |||||||||
| Loss from unrealized foreign currency translation | 17,918 | 406,530 | 52,325 | |||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable, net | (654,485 | ) | 978,597 | 125,957 | ||||||||
| Merchandise inventories, net | (681,683 | ) | 720,618 | 92,752 | ||||||||
| Prepayments | 54,000 | - | - | |||||||||
| Accounts payable | (150,807 | ) | 372,876 | 47,994 | ||||||||
| Accounts payable - related party | 12,178,316 | (3,694,385 | ) | (475,511 | ) | |||||||
| Accruals | (203,832 | ) | (97,717 | ) | (12,577 | ) | ||||||
| Contract liabilities | (1,705,854 | ) | (1,008,415 | ) | (129,795 | ) | ||||||
| Operating lease obligation | (52,344 | ) | - | - | ||||||||
| Taxes receivables | - | 290,920 | 37,445 | |||||||||
| Taxes payables | 1,139,449 | - | - | |||||||||
| Net cash provided by operating activities | 16,412,961 | 2,621,059 | 337,361 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Repayment of amount due from a director | 210,702 | 145,166 | 18,684 | |||||||||
| Net cash provided by investing activities | 210,702 | 145,166 | 18,684 | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceed from Initial Public Offering of shares | - | 42,772,241 | 5,505,289 | |||||||||
| Deferred initial public offering cost | (257,702 | ) | - | - | ||||||||
| Net cash (used in)/from financing activities | (257,702 | ) | 42,772,241 | 5,505,289 | ||||||||
| Change in cash | 16,365,961 | 45,538,466 | 5,861,334 | |||||||||
| Effect of foreign exchange on cash | 35,039 | (377,030 | ) | (48,528 | ) | |||||||
| Cash at the beginning of the period | 21,362,580 | 35,885,666 | 4,618,906 | |||||||||
| Cash at the end of the period | 37,763,580 | 81,047,102 | 10,431,712 | |||||||||
| Supplementary cash flow information | ||||||||||||
| Cash paid for income tax | – | – | – | |||||||||
| Cash paid for interest expense | – | – | – | |||||||||
FAQ
What was RAY's revenue growth in H1 2024?
How much did RAY's net income decline in H1 2024?
What caused the increase in RAY's operating expenses in H1 2024?
Which product segment drove RAY's revenue growth in H1 2024?
Why did RAY's gross profit margin decline in H1 2024?
