Hyfusin FY2025 earnings fall 40.8% as margin pressure and credit costs bite

Bulletin Express03-25

Hyfusin Group Holdings Limited reported full-year results for the 12 months ended 31 December 2025.

Revenue and product mix • Revenue slipped 1.20% year on year to HK$898.11 million, weighed by a HK$11.64 million decline in daily-use candles and a HK$51.83 million drop in “Others” (mainly diffusers). • Scented candles remained the core growth driver, advancing HK$35.67 million to HK$639.25 million and now represent 71.2% of total sales. • Geographically, the United States contributed HK$777.79 million (86.6% of group revenue) while the United Kingdom delivered HK$109.16 million.

Profitability • Gross profit contracted 19.34% to HK$283.94 million; gross margin narrowed to 31.6% from 38.7% due to lower selling prices and higher production costs. • Administrative expenses dropped HK$32.09 million (-22.13%) to HK$112.90 million, reflecting tighter cost controls. • Other gains swung to a HK$12.76 million net loss, mainly from a HK$15.34 million impairment on trade receivables and the absence of the HK$29.71 million provision reversal booked in 2024. • Finance costs eased 6.62% to HK$10.99 million. • Net profit fell 40.78% to HK$101.47 million; basic EPS declined to 11.05 HK cents from 17.58 HK cents. • No dividend was declared.

Balance sheet and liquidity • Total assets reached HK$861.15 million, up 8.07%, driven by higher property, plant and equipment and a HK$81.13 million rise in cash to HK$405.65 million. • Net assets improved to HK$748.46 million (2024: HK$646.97 million). • Interest-bearing bank borrowings dropped to HK$8.35 million (2024: HK$12.73 million); gearing fell to 1.6% from 2.5%. • Current ratio strengthened to 5.6x (2024: 4.1x). • Unutilised banking facilities stood at HK$112.40 million.

Capital expenditure • Additions to property, plant and equipment totalled HK$53.91 million, largely for machinery and facility upgrades in Vietnam; renovation of the primary facility completed during the year.

Operational highlights • Workforce reduced to approximately 1,240 employees (2024: about 1,500); staff costs fell to HK$138.10 million from HK$173.10 million. • A product recall claim settled in 2024 was fully paid off; no further provision existed at year-end. • All IPO net proceeds of HK$44.50 million have been fully deployed, with facility upgrades and machinery purchases accounting for HK$33.50 million.

Outlook and risk factors Management noted ongoing challenges from volatile raw-material prices, shifting U.S. trade policy, and credit risk in key markets. The group intends to pursue proactive marketing, continued automation and strict cost controls to safeguard profitability.

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