Hong Kong-listed kitchenware maker CAROTE (02549) reported audited results for the year ended 31 December 2025.
Financial Performance • Revenue increased 4.0% year on year to RMB2.16 billion, driven by an 8.6% rise in branded business sales to RMB2.02 billion, which now represent 93.7% of total revenue. ODM revenue fell 36.2% to RMB135.60 million.
• Gross profit declined 18.0% to RMB685.40 million. Group gross margin contracted to 31.8% from 40.3% a year earlier, mainly reflecting a drop in branded-business margin to 33.1% (2024: 43.5%) after higher U.S. tariffs. ODM margin was stable at 11.8%.
• Net profit decreased 27.6% to RMB257.80 million, and net margin slipped to 12.0% (2024: 17.2%).
Cost Structure and Expenses • Cost of sales rose 18.9% to RMB1.47 billion, outpacing revenue growth amid tariff escalation and higher freight and storage costs.
• Selling expenses fell 12.5% to RMB328.80 million, reflecting a retreat from certain overseas markets. Administrative costs declined 37.0% to RMB39.30 million with no listing expenses booked in 2025, while R&D spending edged down 4.3% to RMB39.60 million.
• Finance income surged 156.3% to RMB48.40 million on larger time-deposit balances; other income fell sharply to RMB6.20 million after lower government grants.
Cash Flow and Balance Sheet • Operating activities recorded a RMB54.50 million cash outflow versus a RMB350.20 million inflow in 2024 due to longer inventory and receivable cycles tied to branded and offline expansion.
• Net cash from investing activities turned positive at RMB59.30 million, aided by time-deposit redemptions, while financing activities used RMB93.50 million, reflecting share buy-backs and dividend payment.
• The group remained debt-free; current ratio improved to 3.3 (2024: 3.1) and gearing fell to 0.1%.
Dividend The board recommended a final dividend of HK$0.1419 per share (≈RMB0.13), unchanged from last year, subject to approval at the 29 May 2026 AGM and payable on or before 31 July 2026.
Operational Highlights • United States sales rose 17.7% to RMB1.47 billion, contributing 72.8% of branded revenue. Mainland China grew 13.6% to RMB340.20 million; Japan advanced 20.3% to RMB112.70 million. Revenue from Western Europe and Southeast Asia declined.
• SKU count for own-brand products reached 3,775, with material expansion into stainless steel, enamel and ceramic categories. The company is advancing an omnichannel model, deepening alliances with retailers such as Walmart and Target in the U.S. and major chains in China and Japan.
Strategic Priorities for 2026 Management plans to: 1. Strengthen “quality-first” product positioning. 2. Accelerate global offline retail penetration while consolidating online share. 3. Optimize a “centralized platform + product-specific divisions” organization. 4. Implement a “Talent Development Programme” to enhance global expertise. 5. Maintain supply-chain cost advantages and improve inventory allocation.
Corporate Governance Update Effective 26 March 2026, Ms. Kwok Yan Ting Jennis becomes company secretary, authorised representative and process agent, succeeding Mr. Chow Shing Lung.
No material subsequent events or contingent liabilities were reported.
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