Happy City Holdings Limited Announces Financial Results for the First Half of Fiscal Year 2025
Happy City Holdings (Nasdaq: HCHL) reported unaudited results for the six months ended February 28, 2025. Revenue rose to $4,160,099, up 21.0% from $3,437,904 a year earlier, driven by a price increase in August 2024 and a new Kwun Tong restaurant. Gross profit increased to $1,047,071 (+165.5%), lifting gross margin to 25.2% from 11.5%.
Net income was $284,988 versus a loss of $90,245 prior-year. Operating cash flow declined to $212,592 and cash and cash equivalents fell to $1,365,478 at period end; investing and financing outflows increased due to prepayments and financing activity.
Happy City Holdings (Nasdaq: HCHL) ha riportato risultati non verificati per i sei mesi conclusi il 28 febbraio 2025. I ricavi sono saliti a $4,160,099, in aumento del 21,0% rispetto ai $3,437,904 dello stesso periodo dell'anno precedente, trainati dall'aumento di prezzo nell'agosto 2024 e dall'apertura di un nuovo ristorante a Kwun Tong. L'utile lordo è aumentato a $1,047,071 (+165,5%), portando il margine lordo al 25,2% dal 11,5%.
L'utile netto è stato di $284,988 rispetto a una perdita di $90,245 nello stesso periodo dell'anno precedente. Il flusso di cassa operativo è diminuito a $212,592 e la liquidità in contanti e disponibilità è scesa a $1,365,478 a fine periodo; i flussi di cassa legati a investimenti e finanziamenti sono aumentati a causa di anticipi/prepagamenti e attività di finanziamento.
Happy City Holdings (Nasdaq: HCHL) reportó resultados no auditados para los seis meses terminados el 28 de febrero de 2025. Los ingresos aumentaron a $4,160,099, un 21,0% más que los 3.437.904 dólares del año anterior, impulsados por un aumento de precio en agosto de 2024 y un nuevo restaurante en Kwun Tong. El beneficio bruto aumentó a $1,047,071 (+165,5%), elevando el margen bruto al 25,2% desde el 11,5%.
La utilidad neta fue de $284,988 frente a una pérdida de $90,245 en el año anterior. El flujo de caja operativo disminuyó a $212,592 y la liquidez en efectivo cayó a $1,365,478 al cierre del periodo; los flujos de salida por inversiones y financiación aumentaron debido a anticipos y actividad de financiación.
Happy City Holdings (Nasdaq: HCHL)는 2025년 2월 28일 종료된 6개월간의 비감사 실적을 보고했습니다. 매출은 $4,160,099로 상승했고, 지난해 같은 기간 대비 21.0% 증가했습니다. 이는 2024년 8월의 가격 인상과 Kwun Tong의 신규 레스토랑에 힘입은 것입니다. 총이익은 $1,047,071로 증가( +165.5%), 총 이익률은 25.2%로 11.5%에서 올랐습니다.
순이익은 전년동기의 손실 90,245달러에서 흑자 284,988달러로 전환되었습니다. 영업현금흐름은 $212,592로 감소했고 기말 현금 및 현금성자산은 $1,365,478로 하락했습니다. 투자 및 재무활동으로 인한 현금 흐름은 사전지급 및 재무활동 증가로 증가했습니다.
Happy City Holdings (Nasdaq : HCHL) a publié des résultats non audités pour les six mois clos le 28 février 2025. Le chiffre d'affaires est passé à 4 160 099 dollars, en hausse de 21,0% par rapport à 3 437 904 dollars l'année précédente, soutenus par une augmentation des prix en août 2024 et l'ouverture d'un nouveau restaurant à Kwun Tong. Le bénéfice brut a augmenté à 1 047 071 dollars (+165,5%), portant la marge brute à 25,2% contre 11,5%.
Le résultat net était de 284 988 dollars contre une perte de 90 245 dollars l'année précédente. Le flux de trésorerie opérationnel a diminué à 212 592 dollars et la trésorerie et équivalents ont chuté à 1 365 478 dollars à la fin de la période; les sorties liées à l'investissement et au financement ont augmenté en raison des prépaiements et de l'activité de financement.
Happy City Holdings (Nasdaq: HCHL) berichtete ungeprüfte Ergebnisse für die sechs Monate zum 28. Februar 2025. Der Umsatz stieg auf 4.160.099 USD, ein Anstieg um 21,0% gegenüber 3.437.904 USD im Vorjahr, angetrieben durch eine Preiserhöhung im August 2024 und ein neues Kwun Tong‑Restaurant. Der Bruttogewinn stieg auf 1.047.071 USD (+165,5%), wodurch die Bruttomarge von 11,5% auf 25,2% kletterte.
Der Nettogewinn betrug 284.988 USD gegenüber einem Verlust von 90.245 USD im Vorjahr. Der operative Cashflow ging auf 212.592 USD zurück und die Barmittel und Barmäntel fielen zum Periodenende auf 1.365.478 USD; Investitions- und Finanzierungsabflüsse nahmen aufgrund von Vorauszahlungen und Finanzaktivitäten zu.
Happy City Holdings (بورصة ناسداك: HCHL) أظهرت نتائج غير مدققة لمدة الستة أشهر المنتهية في 28 فبراير 2025. ارتفع الإيرادات إلى $4,160,099، بارتفاع قدره 21.0% مقارنة بـ 3,437,904 دولار في العام السابق، مدفوعًا بزيادة الأسعار في أغسطس 2024 وافتتاح مطعم Kwun Tong جديد. ارتفع الربح الإجمالي إلى $1,047,071 (+165.5%)، مما رفع الهامش الإجمالي إلى 25.2% من 11.5%. كان صافي الربح $284,988 مقابل خسارة قدرها 90,245 دولار في العام السابق. انخفض التدفق النقدي من التشغيل إلى $212,592 وانخفض النقد النقدي وما يعادله إلى $1,365,478 في نهاية الفترة؛ ازدادت التدفقات النقدية الخارجة من الاستثمار والتمويل بسبب المدفوعات مقدماً ونشاط التمويل.
Happy City Holdings（纳斯达克股票代码：HCHL）披露了截至2025年2月28日的六个月未经审计的业绩。收入增长至 $4,160,099，较上年同期的 $3,437,904 增长了 21.0%，这得益于2024年8月的价格调整以及 Kwun Tong 新开设的餐厅。毛利润增至 $1,047,071（+165.5%），毛利率由 11.5% 提升至 25.2%。净利润为 $284,988，而上年同期为亏损 $90,245。经营现金流下降至 $212,592，期末现金及现金等价物为 $1,365,478；由于预付款和融资活动，投资及筹资净流出增加。
- Revenue +21.0% to $4.16M for six months ended Feb 28, 2025
- Gross profit +165.5% to $1.047M; margin improved to 25.2%
- Net income $284,988 vs net loss $90,245 a year earlier
- Net cash decrease $1,570,493 for the six months ended Feb 28, 2025
- Operating cash flow down from $592,859 to $212,592
- Financing outflow $1,016,471 during the period
Insights
Happy City reported a clear operational turnaround: higher revenue, much stronger gross margin and a return to net income in H1.
The company delivered revenue of
Key dependencies and risks are explicit in the results: operating cash provided fell to
HONG KONG, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Happy City Holdings Limited (Nasdaq: HCHL) (the “Company”), an established all-you-can-eat hotpot restaurant operator in Hong Kong , today announced its unaudited financial results for the six months ended February 28, 2025 (the “First Half of Fiscal Year 2025”).
| Financial Highlights for the First Half of Fiscal Year 2025 | ||||||||||||||
| For the six months ended | Variance | |||||||||||||
| February 28, 2025 | February 29, 2024 | Amount | Percentage | |||||||||||
| US$ | US$ | US$ | % | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 4,160,099 | $ | 3,437,904 | $ | 722,195 | 21.0 | % | ||||||
| Cost of revenue | (3,113,028 | ) | (3,043,454 | ) | (69,574 | ) | 2.3 | % | ||||||
| Gross profit | 1,047,071 | 394,450 | 652,621 | 165.5 | % | |||||||||
| Total operating expenses | (638,812 | ) | (558,345 | ) | (80,467 | ) | 14.4 | % | ||||||
| Income (loss) from operations | 408,259 | (163,895 | ) | 572,154 | (349.1 | )% | ||||||||
| Total other (expense) income, net | (100,999 | ) | 30,765 | (131,764 | ) | (428.3 | )% | |||||||
| Income (loss) before income taxes | 307,260 | (133,130 | ) | 440,390 | (330.8 | )% | ||||||||
| Income tax (expense) benefit | (22,272 | ) | 42,885 | (65,157 | ) | (151.9 | )% | |||||||
| Net income (loss) | $ | 284,988 | $ | (90,245 | ) | $ | 375,233 | (415.8 | )% | |||||
- Our revenue increased by US
$722,195 or21.0% , from US$3,437,904 for the six months ended February 29, 2024 to US$4,160,099 for the six months ended February 28, 2025. Such increase was mainly attributable to the upward adjustment in our selling price of our food in August 2024 and the opening of one new restaurant located in Kwun Tong during the six months ended February 28, 2025. - Our overall gross profit increased by US
$652,621 or165.5% , from US$394,450 for the six months ended February 29, 2024 to US$1,047,071 for the six months ended February 28, 2025. Our overall gross profit margin increased from11.5% for the six months ended February 29, 2024 to25.2% for the six months ended February 28, 2025. Such increase in our overall gross profit and gross profit margin was mainly attributable to (i) the increase in our revenue as a result of the upward adjustment in our selling price of our food in August 2024 and the opening of one new restaurant located in Kwun Tong during the six months ended February 28, 2025 as stated above; and (ii) our successful negotiation with our suppliers and also sourcing new suppliers which supply us with the same quality of food and beverages but at a reduced cost, which led our cost of food and beverages remained relatively stable for the six months ended February 28, 2025, as compared to the six months ended February 29, 2024. - We reported net income of US
$284,988 for the six months ended February 28, 2025 and net loss of US$90,245 for the six months ended February 29, 2024.
Financial Results for the First Half of Fiscal Year 2025
Revenue
Our revenue is generated from providing food and beverage to customers in our restaurants located in North Point, Kwun Tong, Mong Kok and Tsuen Wan. The following table sets forth the breakdown of our revenue by location of our restaurants for the six months ended February 28, 2025 and February 29, 2024, respectively:
| For the six months ended | Variance | |||||||||||
| February 28, 2025 | February 29, 2024 | Amount | Percentage | |||||||||
| US$ | US$ | US$ | % | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenue | ||||||||||||
| North Point | $ | 1,259,198 | $ | 1,142,755 | $ | 116,443 | 10.2 | % | ||||
| Kwun Tong | 255,378 | — | 255,378 | N/A | ||||||||
| Mong Kok | 1,608,812 | 1,480,107 | 128,705 | 8.7 | % | |||||||
| Tsuen Wan | 1,036,711 | 809,866 | 226,845 | 28.0 | % | |||||||
| Others | — | 5,176 | (5,176 | ) | (100.0 | )% | ||||||
| Total revenue | $ | 4,160,099 | $ | 3,437,904 | $ | 722,195 | 21.0 | % | ||||
Our revenue increased by US
Others represent the revenue recognized for the expiry of membership points in our loyalty program.
Cost of Revenue
Our cost of revenue consists of cost directly related to revenue generating activities, which primarily includes food and beverages cost, operating expenses for the hotpot restaurants, personnel-related compensation expenses, including salaries and related retirement benefit for operations personnel, and other cost directly related to the revenue.
The following table sets forth the breakdown of our cost of revenue for the six months ended February 28, 2025 and February 29, 2024, respectively:
| For the six months ended | Variance | |||||||||||
| February 28, 2025 | February 29, 2024 | Amount | Percentage | |||||||||
| US$ | US$ | US$ | % | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Cost of revenue | ||||||||||||
| Food and beverages | $ | 1,226,775 | $ | 1,225,912 | $ | 863 | 0.1 | % | ||||
| Payroll and employee benefits expenses | 635,998 | 671,321 | (35,323 | ) | (5.3 | )% | ||||||
| Utilities expenses (restaurants) | 101,913 | 92,437 | 9,476 | 10.3 | % | |||||||
| Building management fee (restaurants) | 218,497 | 182,325 | 36,172 | 19.8 | % | |||||||
| Depreciation of property and equipment | 292,208 | 274,221 | 17,987 | 6.6 | % | |||||||
| Operating lease expenses | 439,354 | 402,177 | 37,177 | 9.2 | % | |||||||
| Others | 198,283 | 195,061 | 3,222 | 1.7 | % | |||||||
| Total cost of revenue | $ | 3,113,028 | $ | 3,043,454 | $ | 69,574 | 2.3 | % | ||||
Our cost of revenue remained relatively stable at US
Food and Beverages
Our cost of food and beverages remained relatively stable at US
Payroll and Employee Benefits Expenses
Restaurant operation is highly service-oriented and labor-intensive. Payroll and employee benefits expenses of operation personnel, which primarily consisted of salaries and other allowances and retirement benefit scheme contributions of operation personnel. Our payroll and employee benefits expenses remained relative stable at US
Utilities Expenses (restaurants)
Our utilities expenses for our restaurants primarily consist of expenses incurred for electricity, gas and water utilities for the operation of the restaurants. Our utilities expenses for restaurant remained relatively stable at US
Building Management Fee (restaurants)
Our building management fee for our restaurants increased by US
Depreciation of Property and Equipment
Our depreciation of property and equipment for the operation of our restaurant remained relatively stable at US
Operating lease expenses
Our operating lease expenses in relation to right-of-use assets for the operation of our restaurant increased by US
Other Expenses
Our other expenses mainly represent repair and maintenance expenses, cleaning expenses, consumable expenses and sundry expenses incurred in the ordinary course of operation of our restaurants. Our other expenses remained relatively stable at US
Gross Profit and Gross Profit Margin
The following table sets forth the breakdown of our gross profit and gross profit margin for the six months ended February 28, 2025 and February 29, 2024, respectively:
| For the six months ended | Variance | |||||||||||||
| February 28, 2025 | February 29, 2024 | Amount | Percentage | |||||||||||
| US$ | US$ | US$ | % | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Overall gross profit | $ | 1,047,071 | $ | 394,450 | $ | 652,621 | 165.5 | % | ||||||
| Overall gross profit margin | 25.2 | % | 11.5 | % | 13.7 | % | ||||||||
Our overall gross profit increased by US
Operating Expenses
Selling and Marketing Expenses
Our selling and marketing expenses mainly represented the advertising and promotion expenses incurred to promote our brand image and awareness.
Our selling and marketing expenses decreased by US
Employee Compensation and Benefits
Our employee compensation and benefits under operating expenses primarily consisted of salaries and other allowances and retirement benefit scheme contributions for management and administrative personnel.
Our employee compensation and benefits for our management and administrative personnel remained relatively stable at US
Other General and Administrative Expenses
Our other general and administrative expenses, including other general and administrative expenses to our third parties and our related parties, primarily consisted of bank and credit card charges, office expenses, legal and professional fee, travelling expenses, entertainment expenses, etc.
Our other general and administrative expenses remained relatively stable at US
Other Income (Expense)
Other Income
Our other income includes other income received from the third parties and other income received from our related parties. Our other income received from the third parties primarily consists of bank interest income. Our other income received from our related parties mainly consists of manpower support income received from our replated parties, which we have provided our manpower resources for our related parties, and others. Our total other income decreased by US
Interest Expenses
Our interest expenses primarily comprised interest on bank borrowings, which amounted to US
Net Income (loss)
As a result of the foregoing, we reported net income of US
Cash Flow
The following table summarizes our cash flows for the six months ended February 28, 2025 and February 29, 2024.
| For the six months ended | |||||||
| February 28, 2025 | February 29, 2024 | ||||||
| US$ | US$ | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Net cash provided by operating activities | $ | 212,592 | $ | 592,859 | |||
| Net cash used in investing activities | (794,013 | ) | (581,617 | ) | |||
| Net cash (used in) provided by financing activities | (1,016,471 | ) | 315,682 | ||||
| Effect on exchange rate change on cash and cash equivalents | 27,399 | (31,259 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (1,570,493 | ) | 295,665 | ||||
| Cash and cash equivalents at the beginning of the period | 2,935,971 | 184,738 | |||||
| Cash and cash equivalents at the end of the period | 1,365,478 | 480,403 | |||||
Operating activities
Our cash flows generated from operating activities was principally generated from the receipts from our restaurant operations, while our cash used in operating activities was principally used for payments for purchases of food ingredients and beverages, staff costs, property rentals and other operating expenses incurred for our business operations. Our net cash provided by operating activities amounted to US
Our net cash provided by operating activities amounted to US
Investing activities
Our net cash used in investing activities was US
Our net cash used in investing activities was US
Financing activities
Our net cash used in financing activities was US
Our net cash provided by financing activities was US
Recent Events
On June 24, 2025, the Company was listed on the Nasdaq Capital Market following the completion of its share offering. The Company began trading under the ticker symbol “HCHL” on this date. On July 7, 2025, the underwriters to the Company’s initial public offering had exercised the over-allotment option partially to purchase an additional 112,000 Class A Ordinary Shares. The gross proceeds received from the Company’s initial public offering, including the proceeds from the sale of the over-allotment shares, totalled US
About Happy City Holdings Limited
We operate three all-you-can-eat hotpot restaurants and specialize in Thai and Japanese Hotpot under the brand names “Thai Pot (泰金鍋)” and “Gyu! Gyu! Shabu Shabu (牛牛殿堂日式火鍋放題)” in Hong Kong. As of the date of this prospectus, we operate three restaurants located in Tsuen Wan in the New Territories, Mong Kok in Kowloon, and Kwun Tong in Kowloon. We have been in the restaurant services industry in Hong Kong for over 5 years. We primarily compete in the Hong Kong hotpot restaurant market.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantee of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict and many of which are beyond the control of the Company. Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company's filings with the U.S. Securities and Exchange Commission. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that their objectives or plans will be achieved. The Company does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contacts
Happy City Holdings Limited
Investor Relations
Email: info@happycitys.com
FAQ
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