Raytech Holding Limited Announces Fiscal Year 2025 Financial Results and the Filing of Its Annual Report on Form 20-F
Rhea-AI Summary
Raytech Holding Limited (NASDAQ: RAY) reported strong financial results for fiscal year 2025, with revenue increasing 17.6% to HK$78.7 million (US$10.1 million). The company maintained profitability with net income of HK$8.3 million (US$1.1 million) and a net margin of 10.5%.
The growth was primarily driven by the company's trimmer series, which saw a 48% revenue increase, and hair styling series with an 18.2% increase. Raytech significantly strengthened its balance sheet, with cash and cash equivalents rising 136.5% to HK$84.9 million (US$10.9 million). The company's net current assets improved to HK$76.9 million from HK$25.8 million in the previous year.
Positive
- Revenue growth of 17.6% year-over-year to HK$78.7 million
- Strong net margin maintained at 10.5%
- Cash position increased 136.5% to HK$84.9 million
- Trimmer series revenue grew 48% to HK$33.6 million
- Accounts receivable decreased 44.1%, indicating improved collection efficiency
- Merchandise costs as percentage of revenue improved slightly to 77.4% from 77.7%
Negative
- Revenue from eyelash curler segment declined significantly
- Sales of tooling decreased from HK$7.0 million to HK$3.0 million
- Other personal care appliances revenue decreased from HK$3.2 million to HK$2.5 million
News Market Reaction 1 Alert
On the day this news was published, RAY declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Revenue Growth of
HONG KONG, July 25, 2025 (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 fiscal year ended March 31, 2025, and confirmed the filing of its annual report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”).
Raytech delivered solid fiscal year 2025 results with revenue growth of
Management Commentary
Mr. Ching Tim Hoi, CEO and Chairman of Raytech, said: "Fiscal Year 2025 marked a pivotal year for Raytech. We not only sustained profitability but also strengthened our financial position. Our revenue increased by
Financial Highlights
Key highlights for fiscal year 2025 compared to fiscal year 2024:
- Revenue increased by
17.6% to HK$78.7 million (US$10.1 million ) - Net income of HK
$8.3 million (US$1.1 million ) with a net margin of10.5% - Cash and cash equivalents increased by approximately
136.5% to HK$84.9 million (US$10.9 million ) - Net current assets strengthened to HK
$76.9 million (US$9.9 million ) in fiscal year 2025, compared with HK$25.8 million in fiscal year 2024
Financial Results
Revenue Performance:
- Hair styling series: Revenue of HK
$37.6 million in fiscal year 2025 (US$4.8 million ) compared to HK$31.8 million in fiscal year 2024, an increase of18.2% - Trimmer series: Revenue of HK
$33.6 million in fiscal year 2025 (US$4.3 million ) compared to HK$22.7 million in fiscal year 2024, an increase of48.0% - Nail care series: Revenue of HK
$1.5 million in fiscal year 2025 (US$195,954) compared to HK$1.4 million in fiscal year 2024 - Other personal care appliances: Revenue of HK
$2.5 million in fiscal year 2025 (US$326,416) compared to HK$3.2 million in fiscal year 2024 - Eyelash curler: Revenue of HK
$453,378 in fiscal year 2025 (US$58,276) compared to HK$804,863 in fiscal year 2024 - Sales of tooling: Revenue of HK
$3.0 million in fiscal year 2025 (US$381,745) compared to HK$7.0 million in fiscal year 2024
Profitability and Margins:
- Merchandise costs of HK
$60.9 million in fiscal year 2025 (US$7.8 million ) compared to HK$52.1 million in fiscal year 2024, representing77.4% of revenue in fiscal year 2025 compared to77.7% in fiscal year 2024 - Income from operations of HK
$7.6 million in fiscal year 2025 (US$983,142) with an operating margin of9.7% - Interest income increased substantially to HK
$3.2 million in fiscal year 2025 (US$406,002) , compared to HK$1.4 million in fiscal year 2024
Balance Sheet Strength:
- Cash and cash equivalents of HK
$84.9 million in fiscal year 2025 (US$10.9 million ) compared to HK$35.9 million in fiscal year 2024 - Total current assets increased to HK
$94.9 million (US$12.2 million ) in fiscal year 2025, compared to HK$52.8 million as of March 31, 2024 - Accounts receivable decreased
44.1% to HK$8.1 million (US$1.0 million ) in fiscal year 2025 from HK$14.6 million in fiscal year 2024, primarily driven by faster customer payments - Total current liabilities decreased to HK
$17.9 million (US$2.3 million ) in fiscal year 2025 compared to HK$27.0 million in fiscal year 2024 - Net current assets of HK
$76.9 million (US$9.9 million ) in fiscal year 2025compared to HK$25.8 million in fiscal year 2024
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 US and other Asia markets. Our strong cash position provides the financial flexibility to pursue strategic growth opportunities while maintaining operational excellence.
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
Consolidated Financial Information
| RAYTECH HOLDING LIMITED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of March 31, | ||||||||||||
| 2024 | 2025 | 2025 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 35,885,666 | 84,850,995 | 10,906,438 | |||||||||
| Accounts receivable, net | 14,557,523 | 8,144,307 | 1,046,839 | |||||||||
| Amount due from a director | 145,166 | – | – | |||||||||
| Merchandise inventories, net | 1,855,686 | 1,879,435 | 241,576 | |||||||||
| Taxes receivables | 395,005 | – | – | |||||||||
| Prepayments | 5,000 | – | – | |||||||||
| TOTAL CURRENT ASSETS | 52,844,046 | 94,874,737 | 12,194,853 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Plant and equipment, net | – | – | – | |||||||||
| Deferred initial public offering costs | 5,252,768 | – | – | |||||||||
| Long-term deposits | 16,200 | 16,200 | 2,082 | |||||||||
| TOTAL NON-CURRENT ASSETS | 5,268,968 | 16,200 | 2,082 | |||||||||
| TOTAL ASSETS | 58,113,014 | 94,890,937 | 12,196,935 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts payable | 732,340 | 466,327 | 59,940 | |||||||||
| Accounts payable - related parties | 24,278,340 | 14,984,393 | 1,926,039 | |||||||||
| Accruals | 1,018,618 | 1,786,314 | 229,607 | |||||||||
| Contract liabilities | 1,008,415 | 501,804 | 64,500 | |||||||||
| Tax payables | – | 190,082 | 24,432 | |||||||||
| TOTAL CURRENT LIABILITIES | 27,037,713 | 17,928,920 | 2,304,518 | |||||||||
| TOTAL LIABILITIES | 27,037,713 | 17,928,920 | 2,304,518 | |||||||||
| COMMITMENTS AND CONTINGENCIES | – | – | – | |||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Ordinary Shares, US | 783 | 862 | 110 | |||||||||
| Additional paid-in capital | 99,217 | 37,717,487 | 4,848,068 | |||||||||
| Retained earnings | 30,975,301 | 39,243,668 | 5,044,239 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 31,075,301 | 76,962,017 | 9,892,417 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 58,113,014 | 94,890,937 | 12,196,935 | |||||||||
| (1) | 1,500,000 Ordinary Shares were issued on May 15, 2024, and 113,083 Ordinary Shares were issued on July 5, 2024. | |
The accompanying notes are an integral part of these consolidated financial statements.
| RAYTECH HOLDING LIMITED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| For the Years ended March 31, | ||||||||||||||||
| 2023 | 2024 | 2025 | 2025 | |||||||||||||
| HKD | HKD | HKD | US$ | |||||||||||||
| REVENUE | ||||||||||||||||
| Sales of products | 42,382,764 | 59,966,287 | 75,769,626 | 9,739,152 | ||||||||||||
| Sales of tooling | 3,135,475 | 7,006,014 | 2,969,938 | 381,745 | ||||||||||||
| Total revenue | 45,518,239 | 66,972,301 | 78,739,564 | 10,120,897 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Merchandise costs | (34,046,287 | ) | (52,067,436 | ) | (60,931,870 | ) | (7,831,961 | ) | ||||||||
| Selling, general and administrative expenses | (4,277,677 | ) | (3,545,369 | ) | (10,158,945 | ) | (1,305,794 | ) | ||||||||
| Total operating expenses | (38,323,964 | ) | (55,612,805 | ) | (71,090,815 | ) | (9,137,755 | ) | ||||||||
| INCOME FROM OPERATIONS | 7,194,275 | 11,359,496 | 7,648,749 | 983,142 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income | 143,352 | 1,416,354 | 3,158,654 | 406,002 | ||||||||||||
| Interest expense | (7,151 | ) | (2,028 | ) | – | – | ||||||||||
| Gain (loss) from foreign currency exchange | 143,450 | (20,846 | ) | (328,471 | ) | (42,220 | ) | |||||||||
| Other income, net | – | 818 | 45,922 | 5,902 | ||||||||||||
| Total other income, net | 279,651 | 1,394,298 | 2,876,105 | 369,684 | ||||||||||||
| INCOME BEFORE INCOME TAX PROVISION | 7,473,926 | 12,753,794 | 10,524,854 | 1,352,826 | ||||||||||||
| PROVISION FOR INCOME TAXES | (1,181,056 | ) | (2,817,000 | ) | (2,256,487 | ) | (290,040 | ) | ||||||||
| NET INCOME | 6,292,870 | 9,936,794 | 8,268,367 | 1,062,786 | ||||||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||||||
| Basic and diluted (1) | 16,000,000 | 16,000,000 | 17,398,409 | 17,398,409 | ||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||
| Basic and diluted | 0.39 | 0.62 | 0.48 | 0.06 | ||||||||||||
| (1) | 1,500,000 Ordinary Shares were issued on May 15, 2024, and 113,083 Ordinary Shares were issued on July 5, 2024. | |
The accompanying notes are an integral part of these consolidated financial statements.
| RAYTECH HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| For the Years ended March 31, | ||||||||||||||||
| 2023 | 2024 | 2025 | 2025 | |||||||||||||
| HKD | HKD | HKD | US$ | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net income | 6,292,870 | 9,936,794 | 8,268,367 | 1,062,786 | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
| Depreciation of plant and equipment | 13,924 | 4,868 | – | – | ||||||||||||
| Amortization of right-of-use asset | 102,573 | 85,477 | – | – | ||||||||||||
| Gain (loss) from unrealized foreign currency translation | 178,454 | (61,043 | ) | 214,994 | 27,635 | |||||||||||
| Changes in operating assets and liabilities | ||||||||||||||||
| Accounts receivable, net | (907,711 | ) | (7,755,205 | ) | 6,335,863 | 814,389 | ||||||||||
| Merchandise inventories, net | – | (1,855,686 | ) | (26,189 | ) | (3,366 | ) | |||||||||
| Prepayments | (5,000 | ) | 90,000 | 5,000 | 643 | |||||||||||
| Long-term deposits | (5,200 | ) | 18,000 | – | – | |||||||||||
| Accounts payable | (119,019 | ) | (5,441 | ) | (262,048 | ) | (33,683 | ) | ||||||||
| Accounts payable - related parties | 4,682,655 | 15,554,384 | (9,163,121 | ) | (1,177,794 | ) | ||||||||||
| Accruals | 566,078 | 402,540 | 768,541 | 98,785 | ||||||||||||
| Contract liabilities | 1,705,854 | (697,439 | ) | (505,960 | ) | (65,035 | ) | |||||||||
| Operating lease obligation | (100,849 | ) | (87,972 | ) | – | – | ||||||||||
| Taxes payables | (1,442,797 | ) | 119,002 | 585,087 | 75,205 | |||||||||||
| Net cash generated from operating activities | 10,961,832 | 15,748,279 | 6,220,534 | 799,565 | ||||||||||||
| Cash flows from investing activity | ||||||||||||||||
| Repayment by the director | 1,444,872 | 846,860 | 145,166 | 18,659 | ||||||||||||
| Net cash generated from investing activity | 1,444,872 | 846,860 | 145,166 | 18,659 | ||||||||||||
| Cash flows from financing activity | ||||||||||||||||
| Deferred initial public offering cost | (3,176,871 | ) | (2,075,897 | ) | – | – | ||||||||||
| Proceed from Initial Public Offering of shares | – | – | 42,871,117 | 5,510,497 | ||||||||||||
| Net cash (used in) generated from financing activity | (3,176,871 | ) | (2,075,897 | ) | 42,871,117 | 5,510,497 | ||||||||||
| Change in cash | 9,229,833 | 14,519,242 | 49,236,817 | 6,328,721 | ||||||||||||
| Effect of foreign exchange on cash | (157,725 | ) | 3,844 | (271,488 | ) | (7,783 | ) | |||||||||
| Cash at the beginning of the year | 12,290,472 | 21,362,580 | 35,885,666 | 4,585,500 | ||||||||||||
| Cash at the end of the year | 21,362,580 | 35,885,666 | 84,850,995 | 10,906,438 | ||||||||||||
| Supplementary cash flow information | ||||||||||||||||
| Cash paid for income tax | 2,619,407 | 2,697,998 | 1,671,400 | 214,836 | ||||||||||||
| Cash paid for interest expense | – | – | – | – | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
FAQ
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