HYFUSIN GROUP (stock code 08512) reported a notable contraction in earnings for the six months ended 30 June 2026. Net profit attributable to shareholders fell 56.6% year-on-year (YoY) to HK$19.59 million, dragged by softer demand and margin compression.
Revenue slipped 7.5% YoY to HK$341.87 million, as declines in daily-use candles (-HK$4.59 million), scented candles (-HK$16.68 million) and decorative candles (-HK$11.93 million) outweighed a HK$5.23 million rise in “other” products such as diffusers. Gross profit narrowed 14.1% to HK$97.63 million; gross margin eased to 28.6% from 30.7%, reflecting lower average selling prices.
Operating metrics were further pressured by: • Other gains and losses swinging to a HK$12.64 million net loss (1H2025: HK$3.99 million gain) following a HK$13.43 million impairment on trade receivables and reduced foreign-exchange gains. • Other income decreasing 46.5% to HK$3.84 million, primarily on lower bank interest and miscellaneous income. • Selling and distribution costs edging down 1.2% to HK$16.45 million, while administrative expenses declined 13.0% to HK$42.34 million due to lower staff costs. • Finance costs dropped 25.0% to HK$3.30 million as average borrowings fell.
Earnings per share slid to 2.13 HK cents from 4.91 HK cents a year earlier. The board did not declare an interim dividend.
Balance-sheet highlights show total assets rising 11.8% since year-end to HK$963.06 million, supported by higher inventories (up 147.3% to HK$197.05 million) and cash of HK$367.94 million. Net assets increased 2.6% to HK$768.04 million. Bank borrowings expanded to HK$30.85 million, lifting the gearing ratio to 4.7% (31 Dec 2025: 1.6%). The current ratio stood at 3.7x (31 Dec 2025: 5.6x), while unutilised banking facilities amounted to HK$89.90 million.
Operationally, HYFUSIN maintained its focus on the U.S. and U.K. markets, where scented candles remain the largest revenue contributor. Management highlighted continued investment in automation at two new Vietnamese plants and completion of a primary facility renovation in 2025, aimed at enhancing efficiency. The group is monitoring potential U.S. tariff changes and high interest-rate conditions while working to strengthen liquidity and reduce debt.
No material acquisitions, disposals, or capital-raising activities occurred during the period, and the company confirmed it has no significant post-period events or outstanding contingent liabilities. The share option scheme adopted in June 2024 remained unused as of 30 June 2026.
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