Grown Up Group interim revenue contracts 30% to HK$102.52 million; net loss widens to HK$10.74 million

Grown Up Group Investment Holdings Limited (“Grown Up Group”) reported interim revenue of HK$102.52 million for the six months ended 30 June 2026, down 30.3% from HK$146.96 million a year earlier. The decline, attributed mainly to weaker demand from the United States and a sharp fall in higher-margin medical bag sales, pushed the Group’s gross margin down to 13.7% from 15.7%.

Net loss attributable to shareholders increased to HK$10.74 million from HK$8.47 million. Gross profit fell 39.0% to HK$14.07 million, while selling and distribution expenses dropped 26.2% to HK$4.54 million and administrative expenses eased 5.1% to HK$21.22 million, reflecting cost-control efforts. Other income swung to a HK$1.11 million gain, versus a HK$2.37 million loss in the prior-year period, driven by fair-value gains on financial assets. Net finance costs narrowed to HK$0.74 million (1H 2025: HK$1.01 million).

Product-mix shifts were pronounced: backpacks and related items contributed 86% of sales, but still declined 23.7% year-on-year to HK$88.27 million. Revenue from medical bags and supplies plunged 84.1% to HK$2.63 million, while luggage sales slipped 9.8% to HK$11.62 million; tool storage registered no sales after HK$1.91 million a year earlier.

Total assets decreased 16.8% since end-2025 to HK$195.87 million, with cash and pledged deposits at HK$67.03 million (31 December 2025: HK$82.97 million). Current liabilities contracted to HK$92.77 million, preserving a stable current ratio of 1.4 times. Total debt (bank borrowings, overdrafts and bills) stood at HK$54.20 million, keeping gearing broadly flat at 56.2%.

Capital expenditure was modest at HK$0.40 million. In June the Company agreed to issue 240 million new shares to Charming Blaze Limited at HK$0.033 each, aiming to raise net proceeds of about HK$7.80 million for working-capital purposes; completion remains pending.

Two subsidiaries are contesting a supplier claim of HK$8.50 million and have lodged a HK$6.70 million counterclaim; arbitration is pending. No interim dividend was declared.

Management indicated continued focus on diversifying the customer base, streamlining the multi-geographical supply chain and exploring measured expansion into adjacent sectors to support long-term growth while maintaining financial resilience.