Ocean Star Technology Group Limited (Ocean Star Tech, 08297) released its audited results for the year ended 31 March 2026, highlighting a sharply narrowed net loss but continued operational headwinds and liquidity pressure.
Financial Performance • Revenue fell 8.5% year on year to HK$27.00 million (FY25: HK$29.53 million), driven mainly by softer demand for its “Bodibra” lingerie products despite expanded distributor channels. • Gross profit slipped 2.1% to HK$23.20 million, while gross margin improved to 85.9% (FY25: 80.2%) on lower material and staff costs. • Selling expenses declined 29.0% to HK$8.73 million, and administrative & other operating expenses were cut by 51.1% to HK$17.49 million following cost-control measures and reduced professional fees. • Impairment losses on deposits and other receivables totalled HK$4.52 million, though a HK$3.18 million reversal on loan-receivable provisions partially offset this charge. • Loss attributable to shareholders narrowed to HK$5.25 million, compared with a HK$30.02 million loss in FY25. Basic loss per share improved to HK0.41 cents from HK2.67 cents.
Balance Sheet & Liquidity • Total assets stood at HK$36.25 million (FY25: HK$41.21 million), while total liabilities edged up to HK$67.62 million (FY25: HK$67.08 million), resulting in net liabilities of HK$31.37 million. • Net current liabilities widened to HK$32.29 million (FY25: HK$26.12 million). • Cash and bank balances increased to HK$1.73 million but remain low relative to obligations. • A HK$5.00 million loan facility at 7% interest was secured from an independent third party during the year. • The auditor highlighted a material uncertainty related to going concern, citing persistent losses, net liabilities and limited cash reserves, though issued an unmodified opinion.
Operational Update • Store network reduced to eight outlets (FY25: ten) amid a subdued Hong Kong retail environment and rising cross-border consumer outflow. • The Group continues to pursue distributor partnerships, brand-building campaigns and tighter cost management to support sales and profitability. • Money-lending contributed HK$0.11 million in interest income; all outstanding loan receivables were fully settled by year-end.
Capital & Dividend • Issued share capital remained at HK$12.94 million, representing 1.29 billion ordinary shares. • The Board proposed no dividend for FY26 (FY25: nil).
Trading Status Shares have been suspended from trading on the Stock Exchange since 2 July 2025 and will remain suspended until further notice.
Outlook Management expects the retail environment to stay challenging amid high interest rates, geopolitical tensions and restrained consumer sentiment. Efforts will focus on optimising the store network, expanding distribution, controlling costs and enhancing product mix to stabilise operations and improve cash flow.
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