ESPRIT HOLDINGS (00330) announced that the group expects to achieve an unaudited net profit attributable to shareholders of approximately HK$100 million for the six months ended June 30, 2025 (the interim period), compared to an unaudited net loss attributable to shareholders of approximately HK$56 million for the six months ended June 30, 2024 (the comparative period).
The first half of 2025 marks a pivotal phase in the company's transformation journey, following extensive restructuring initiatives implemented in 2024. During the interim period, the group has decisively transitioned from a high-cost, capital-intensive direct retail business model to a light-asset, licensing-driven brand management model.
For continuing operations, the group has begun generating initial revenue from newly signed licensing agreements, with cost efficiency significantly improved during the interim period. Following the cessation of discontinued operations and the strategic transition to a licensing-driven business model, the group's continuing operations revenue remained modest at approximately HK$7 million during the interim period, compared to approximately HK$26 million in the comparative period.
The company has achieved substantial improvements in cost structure and working capital efficiency. Operating expenses were significantly reduced due to the closure of unprofitable subsidiaries, downsizing of back-end infrastructure, and elimination of fixed overhead costs. During the interim period, total operating expenses for continuing operations amounted to approximately HK$26 million, representing an 83% reduction from approximately HK$149 million in the comparative period.
These factors collectively led to a reduced net loss from the group's continuing operations, with a net loss of approximately HK$21 million during the interim period compared to a net loss of approximately HK$119 million in the comparative period, excluding one-time other income of approximately HK$128 million recorded in the comparative period.
For discontinued operations, the company achieved a net profit of approximately HK$22 million during the interim period, compared to a net loss of approximately HK$65 million in the comparative period, further contributing to the net profit attributable to shareholders.
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