Raytech Holding Limited Announces First Half Fiscal Year 2026 Financial Results

Rhea-AI Summary

Raytech (NASDAQ: RAY) reported first half fiscal 2026 results for the six months ended Sept 30, 2025. Revenue was HK$37.6M (US$4.8M), down 13.1% year‑over‑year, while net income was HK$4.7M (US$610,454) with a net margin of 12.6%. Gross profit margin improved to 26.3% (up 5.1 percentage points) and income from operations was HK$4.7M (operating margin 12.5%). Cash and cash equivalents strengthened to HK$121.5M (US$15.6M), a 43.2% increase from March 31, 2025, and accounts receivable fell 61.1% to HK$3.2M. Management cited tariff-related market instability as the primary driver of lower revenue and emphasized cash strength to support product and market expansion.

Positive

• Cash and cash equivalents +43.2% to HK$121.5M
• Gross profit margin +5.1 percentage points to 26.3%
• Accounts receivable down 61.1% to HK$3.2M
• Income from operations +20% to HK$4.7M

Negative

• Revenue down 13.1% to HK$37.6M for H1 FY2026

News Market Reaction

%

13 alerts

% News Effect

+17.8% Peak in 21 hr 15 min

$10M Market Cap

1.0x Rel. Volume

On the day this news was published, RAY declined NaN%, reflecting a moderate negative market reaction. Argus tracked a peak move of +17.8% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income: HK$4.7M (US$610,454) Net margin: 12.6% Revenue: HK$37.6M (US$4.8M) +5 more

8 metrics

Net income HK$4.7M (US$610,454) H1 FY2026

Net margin 12.6% H1 FY2026 vs 10.8% prior-year period

Revenue HK$37.6M (US$4.8M) H1 FY2026, 13.1% decline vs HK$43.2M prior-year

Cash & equivalents HK$121.5M (US$15.6M) As of Sep 30, 2025; up 43.2% from HK$84.9M

Gross profit margin 26.3% H1 FY2026 vs 21.2% prior-year period

Operating margin 12.5% H1 FY2026 vs 9.1% in H1 FY2025

Merchandise costs HK$27.7M (US$3.6M) 73.7% of revenue vs 78.8% in H1 FY2025

Net current assets HK$116.9M (US$15.0M) As of Sep 30, 2025 vs HK$76.9M as of Mar 31, 2025

Market Reality Check

Price: $3.68 Vol: Volume 237,793 is 2.85x t...

high vol

$3.68 Last Close

Volume Volume 237,793 is 2.85x the 20-day average, indicating elevated pre-news activity. high

Technical Price at $3.06 sits well below the $19.38 200-day MA and 94.8% below the 52-week high.

Peers on Argus

RAY showed a modest 0.33% pre-news gain with elevated volume, while close peers ...

1 Up

RAY showed a modest 0.33% pre-news gain with elevated volume, while close peers were mixed (e.g., UG up 2.09%, PHH down 1.69%, DSY down 3.45%), suggesting stock-specific dynamics rather than a sector-driven move.

Historical Context

3 past events · Latest: Oct 29 (Negative)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Oct 29	Share consolidation	Negative	-14.3%	16-for-1 share consolidation to address Nasdaq bid-price compliance.
Oct 22	Nasdaq deficiency	Negative	-25.1%	Nasdaq notice for failing minimum $1 bid price requirement.
Jul 25	Annual earnings	Positive	+0.0%	FY25 revenue and profit growth with stronger cash and net current assets.

Pattern Detected

Negative corporate or listing-related news has previously aligned with sharp price drops, while positive earnings once saw no price reaction.

Recent Company History

Over the last six months, Raytech navigated listing pressure and corporate actions alongside solid fundamentals. On Jul 25, 2025, it reported FY25 revenue of HK$78.7M and net income of HK$8.3M with a 10.5% margin, yet the stock was unchanged. Subsequent Nasdaq minimum bid deficiency notice on Oct 22, 2025 and a 16-for-1 share consolidation announced Oct 29, 2025 both triggered double-digit declines. Today’s H1 FY26 earnings fit into a backdrop of operational profitability but ongoing listing and capital-structure overhangs.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-15

Raytech has an active Form F-3 shelf registration, amended on Dec 15, 2025 mainly to add legal opinions and consents while leaving the existing prospectus unchanged. The filing confirms the company’s ability to register ordinary shares, warrants, rights and units, providing structural capacity for future capital markets activity even though no usage has been recorded yet.

Market Pulse Summary

This announcement highlights that Raytech maintained profitability in H1 FY2026 with a net margin of...

Analysis

This announcement highlights that Raytech maintained profitability in H1 FY2026 with a net margin of 12.6% and cash of HK$121.5M, even as revenue fell 13.1%. Compared with FY2025, margins and net current assets improved, suggesting tighter cost control and a stronger balance sheet. Investors may focus on how the company addresses prior Nasdaq bid-price issues, customer concentration risks, and the role of its active Form F-3 shelf in funding any future expansion.

Key Terms

net current assets, operating margin, accounts receivable

3 terms

net current assets financial

"Net current assets strengthened to HK$116.9 million (US$15.0 million)..."

Net current assets is the difference between a company's short-term resources (cash, inventory, receivables) and its short-term obligations (bills, short-term loans, accounts payable). Think of it as the money left in your pocket after accounting for the bills due this week; it shows whether a business has a comfortable buffer to keep operating, pay debts and handle unexpected costs, so investors watch it to judge short-term financial health and stability.

operating margin financial

"Income from operations of HK$4.7 million... with an operating margin of 12.5%..."

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

accounts receivable financial

"Accounts receivable decreased 61.1% to HK$3.2 million..."

Money a company is owed by its customers for goods or services already delivered but not yet paid for. Think of it like a stack of IOUs or open tabs: it represents future cash the business expects to collect. Investors watch accounts receivable because large or growing balances can signal strong sales or potential cash shortfalls if customers don’t pay, affecting liquidity, working capital and the company’s financial health.

AI-generated analysis. Not financial advice.

Net Income of HK$4.7 Million (US$610,454) with Net Margin of 12.6%; Strong Cash Position of HK$121.5 Million (US$15.6 Million)

HONG KONG, Jan. 15, 2026 (GLOBE NEWSWIRE) -- Raytech Holding Limited (NASDAQ: RAY) ("Raytech", "We", "Our" or the "Company"), a Hong Kong-based company specializing in design, sourcing, and wholesale of personal care electrical appliances for international brand owners, today announced financial results for the first half of fiscal year 2026 (six months ended September 30, 2025).

Raytech delivered solid first half fiscal year 2026 results, maintaining strong profitability with net income of HK$4.7 million (US$610,454) and an improved net margin of 12.6%, compared to 10.8% in the prior year period. The Company continues to demonstrate exceptional balance sheet strength, recording cash and cash equivalents of HK$121.5 million (US$15.6 million), representing a significant increase of 43.2% from HK$84.9 million as of March 31, 2025. Revenue for the period was HK$37.6 million (US$4.8 million), reflecting a 13.1% decrease from HK$43.2 million in the prior year period, primarily attributable to the imposition of tariffs in early 2025 which created instability in the global trading environment.

Management Commentary

Mr. Ching Tim Hoi, CEO and Chairman of Raytech, said: "The first half of fiscal year 2026 demonstrates our resilience and operational excellence despite challenging global trade conditions. While revenue was impacted by tariff-related market instability, we successfully improved our profitability metrics, with our net margin increasing to 12.6% from 10.8% in the prior year period. Our gross profit margin improved significantly by 5.1 percentage points to 26.3%, driven by our strategic focus on higher-margin hair styling series products within our hair styling series. We continue to maintain a robust financial position with cash and cash equivalents of HK$121.5 million, providing substantial flexibility to pursue strategic growth opportunities. We remain committed to expanding our presence in the U.S., UK, Europe, Australia and regional Asian markets."

Financial Highlights

Key highlights for the six months ended September 30, 2025 compared to the six months ended September 30, 2024:

• Net income of HK$4.7 million (US$610,454) with an improved net margin of 12.6%
• Gross profit margin improved to 26.3% compared to 21.2% in the prior year period
• Cash and cash equivalents increased by 43.2% to HK$121.5 million (US$15.6 million)
• Net current assets strengthened to HK$116.9 million (US$15.0 million) compared to HK$76.9 million as of March 31, 2025

Financial Results

Revenue Performance:

• Hair styling series: Revenue of HK$26.0 million (US$3.3 million) in H1 FY2026 compared to HK$19.1 million in H1 FY2025, an increase of 35.9%
• Trimmer series: Revenue of HK$9.1 million (US$1.2 million) in H1 FY2026 compared to HK$20.9 million in H1 FY2025
• Nail care series: Revenue of HK$0.9 million (US$116,936) in H1 FY2026 compared to HK$0.9 million in H1 FY2025
• Other personal care appliances: Revenue of HK$1.3 million (US$170,656) in H1 FY2026 compared to HK$1.0 million in H1 FY2025, an increase of 27.8%
• Eyelash curler: Revenue of HK$0.3 million (US$32,238) in H1 FY2026 compared to HK$0.2 million in H1 FY2025, an increase of 19.3%

Profitability and Margins:

• Merchandise costs of HK$27.7 million (US$3.6 million) in H1 FY2026 compared to HK$34.1 million in H1 FY2025, representing 73.7% of revenue in H1 FY2026 compared to 78.8% in H1 FY2025
• Income from operations of HK$4.7 million (US$603,192) in H1 FY2026 with an operating margin of 12.5%, compared to HK$3.9 million and 9.1% in H1 FY2025
• Interest income of HK$1.4 million (US$175,048) in H1 FY2026 compared to HK$1.4 million in H1 FY2025

Balance Sheet Strength:

• Cash and cash equivalents of HK$121.5 million (US$15.6 million) as of September 30, 2025 compared to HK$84.9 million as of March 31, 2025
• Total current assets increased to HK$145.7 million (US$18.7 million) as of September 30, 2025, compared to HK$94.9 million as of March 31, 2025
• Accounts receivable decreased 61.1% to HK$3.2 million (US$407,016) as of September 30, 2025 from HK$8.1 million as of March 31, 2025, primarily driven by less number of orders near September
• Total current liabilities of HK$28.8 million (US$3.7 million) as of September 30, 2025 compared to HK$17.9 million as of March 31, 2025
• Net current assets of HK$116.9 million (US$15.0 million) as of September 30, 2025 compared to HK$76.9 million as of March 31, 2025

Outlook and Strategic Priorities

Our goal is to become a leading product design and development company in the personal care and lifestyle electrical appliances industry in Asia. We intend to explore new product lines, continue expanding our men's personal care and hair care product lines, and approach customers who sell and market their personal care electrical appliances in Europe, the U.S. and regional Asia markets. Our strong cash position will support these initiatives, including the exploration of new product lines and market expansion efforts, while we continue to manage our business with financial discipline.

About Raytech Holding Limited

Raytech Holding Limited is a Hong Kong-headquartered company with over 10 years of experience in the personal care electrical appliance industry. Through its operating subsidiary in Hong Kong, it sources and wholesales a diverse range of personal care electrical appliances ranging from hair styling, tooling, trimmer, eyelash curler, to nail care and other body and facial care appliances for international brand owners, providing integrated product design, production processing, and manufacturing solutions. For more information please visit: https://ir.raytech.com.hk/.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These forward-looking statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the Company's annual report on Form 20-F filed on July 24, 2025 with the U.S. Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Media and Investor Relations Contact:
International Elite Capital
Annabelle Zhang
Tel: +1 (646) 866-7928
Email: annabelle@iecapitalusa.com

RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
		As of March 31,				(Unaudited) As of September 30,
		2025				2025				2025
		HKD				HKD				US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents			84,850,995				121,544,270				15,620,850
Accounts receivable, net			8,144,307				3,166,952				407,016
Merchandise inventories, net			1,879,435				5,799,922				745,405
Prepayments			–				15,194,115				1,952,745
TOTAL CURRENT ASSETS			94,874,737				145,705,259				18,726,016
NON-CURRENT ASSETS
Property and equipment, net			–				–				–
Deferred initial public offering costs			–				659,625				84,775
Long-term deposits			16,200				16,200				2,082
TOTAL NON-CURRENT ASSETS			16,200				675,825				86,857
TOTAL ASSETS			94,890,937				146,381,084				18,812,873
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable			466,327				1,072,335				137,817
Accounts payable - related parties			14,984,393				22,266,672				2,861,709
Accruals			1,786,314				1,351,231				173,660
Contract liabilities			501,804				2,773,891				356,500
Tax payables			190,082				1,304,285				167,626
TOTAL CURRENT LIABILITIES			17,928,920				28,768,414				3,697,312
TOTAL LIABILITIES			17,928,920				28,768,414				3,697,312
COMMITMENTS AND CONTINGENCIES			–				–				–
SHAREHOLDERS’ EQUITY
Ordinary Shares, US$0.0001 par value, 500,000,000 Ordinary Shares authorized, 1,100,818shares and 2,724,880 shares issued and outstanding as of March 31, 2025 and September 30, 2025, respectively(1) (2)			862				2,137				273
Additional paid-in capital			37,717,487				73,616,990				9,461,244
Retained earnings			39,243,668				43,993,543				5,654,044
TOTAL SHAREHOLDERS’ EQUITY			76,962,017				117,612,670				15,115,561
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			94,890,937				146,381,084				18,812,873

(1)	1,624,062 ordinary shares were issued on July 1, 2025. (2)
(2)	Retroactively restated share consolidation that every sixteen (16) issued and unissued ordinary shares with a par value of US$0.00000625 each in the capital of the Company are hereby consolidated into one (1) ordinary share with a par value of US$0.0001 each, with the effective date on November 7, 2025.
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		(Unaudited) For the Six Months ended September 30,
		2024				2025				2025
		HKD				HKD				US$
REVENUE
Sales of products			42,101,829				37,578,932				4,829,638
Sales of tooling			1,147,077				–				–
			43,248,906				37,578,932				4,829,638
OPERATING EXPENSES
Merchandise costs			(34,100,724	)			(27,708,506	)			(3,561,093	)
Selling, general and administrative expenses			(5,229,459	)			(5,177,047	)			(665,353	)
Total operating expenses			(39,330,183	)			(32,885,553	)			(4,226,446	)
INCOME FROM OPERATIONS			3,918,723				4,693,379				603,192
OTHER INCOME (EXPENSE)
Interest income			1,431,474				1,362,022				175,048
Other income, net			–				116,195				14,933
Loss from foreign currency exchange			(407,242	)			(307,518	)			(39,522	)
Total other income, net			1,024,232				1,170,699				150,459
INCOME BEFORE INCOME TAX PROVISION			4,942,955				5,864,078				753,651
PROVISION FOR INCOME TAXES			(290,920	)			(1,114,203	)			(143,197	)
NET INCOME			4,652,035				4,749,875				610,454
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
Basic and diluted(1) (2) (3)			1,074,058				1,917,286				1,917,286
EARNINGS PER SHARE
Basic and diluted			4.33				2.48				0.32

(1)	93,750 ordinary shares were issued on May 15, 2024, and 7,068 ordinary shares were issued on July 5, 2024. (3)
(2)	1,624,062 ordinary shares were issued on July 1, 2025. (3)
(3)	Retroactively restated share consolidation that every sixteen (16) issued and unissued ordinary shares with a par value of US$0.00000625 each in the capital of the Company are hereby consolidated into one (1) ordinary share with a par value of US$0.0001 each, with the effective date on November 7, 2025.
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

RAYTECH HOLDING LIMITED UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		(Unaudited) For the Six Months ended September 30,
		2024				2025				2025
		HKD				HKD				US$
Cash flows from operating activities
Net income			4,652,035				4,749,875				610,454
Adjustments to reconcile net income to net cash provided by operating activities
Loss from unrealized foreign currency translation			406,530				100,934				12,972
Changes in operating assets and liabilities
Accounts receivable, net			978,597				4,984,224				640,572
Merchandise inventories, net			720,618				(3,924,830	)			(504,419	)
Prepayments			–				(15,211,885	)			(1,955,029	)
Accounts payable			372,876				606,657				77,967
Accounts payable - related parties			(3,694,385	)			7,288,868				936,764
Accruals			(97,717	)			(435,398	)			(55,957	)
Contract liabilities			(1,008,415	)			2,274,680				292,342
Taxes payables			290,920				1,114,203				143,197
Net cash provided by operating activities			2,621,059				1,547,328				198,863
Cash flows from investing activity
Repayment of amount due from a director			145,166				–				–
Net cash provided by investing activity			145,166				–				–
Cash flows from financing activities
Proceed from Initial Public / Follow On Offering of shares			42,772,241				35,900,778				4,613,962
Deferred initial public offering cost			–				(659,625	)			(84,775	)
Net cash from financing activities			42,772,241				35,241,153				4,529,187
Change in cash			45,538,466				36,788,481				4,728,050
Effect of foreign exchange on cash			(377,030	)			(95,206	)			(13,638	)
Cash at the beginning of the period			35,885,666				84,850,995				10,906,438
Cash at the end of the period			81,047,102				121,544,270				15,620,850
Supplementary cash flow information
Cash paid for income tax			–				–				–
Cash paid for interest expense			–				–				–
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

FAQ

What were Raytech (RAY) H1 FY2026 results announced Jan 15, 2026?

Raytech reported H1 FY2026 revenue of HK$37.6M, net income of HK$4.7M, and cash of HK$121.5M.

Why did Raytech (RAY) revenue decline in H1 FY2026?

Management attributed the 13.1% revenue decline to tariff-related market instability in early 2025.

How did Raytech (RAY) profitability change in H1 FY2026?

Gross profit margin rose to 26.3% and operating margin was 12.5%, improving profitability despite lower revenue.

What is Raytech (RAY) cash position as of Sept 30, 2025?

Cash and cash equivalents were HK$121.5M (US$15.6M), up 43.2% from March 31, 2025.

Which product lines drove Raytech (RAY) H1 FY2026 performance?

Hair styling series grew to HK$26.0M (up 35.9%), while trimmer series declined to HK$9.1M.

What near-term strategy did Raytech (RAY) outline on Jan 15, 2026?

The company plans to expand product lines and pursue growth in the U.S., UK, Europe, Australia and regional Asia using its strong cash position.