Raytech Holding Reports Financial Results for Six Months Ended September 30, 2024
Rhea-AI Summary
Raytech Holding (RAY) reported financial results for the six months ended September 30, 2024, showing mixed performance. Revenue increased by 31.0% to HKD 43.2 million (US$ 5.6 million), primarily driven by strong sales in the trimmer series within personal care products. However, operating expenses rose significantly, with merchandise costs up 40.3% to HKD 34.1 million and selling, general, and administrative expenses increasing to HKD 5.2 million.
The company's income from operations decreased by 43.7% to HKD 3.9 million, while net income fell by 27.5% to HKD 4.7 million. Gross profit margin declined by 5.2% to 21.2%. The trimmer series became the largest revenue contributor at HKD 20.9 million, while hair styling series generated HKD 19.1 million. The increase in expenses was largely attributed to higher salaries, transport costs, and IPO-related legal fees.
Positive
- Revenue growth of 31.0% to HKD 43.2 million
- Significant growth in trimmer series sales from HKD 4.5M to HKD 20.9M
- Successful expansion of customer base
Negative
- Net income declined 27.5% to HKD 4.7 million
- Operating income decreased 43.7% to HKD 3.9 million
- Gross profit margin declined 5.2% to 21.2%
- Operating expenses increased 50.9% to HKD 39.3 million
- Lower margin profiles from new customers
News Market Reaction – RAY
On the day this news was published, RAY declined 10.37%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HONG KONG, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Raytech Holding Limited (the “Company” or “RAY”), a Hong Kong-headquartered company specializing in design, sourcing and wholesale of personal care electrical appliances for international brand owners, today announced its financial results for the six months ended September 30, 2024.
CHING Tim Hoi, CEO and Chairman of the Company, commented, “The Company achieved a notable
“However, operating expenses rose sharply, with merchandise costs increasing by
“Looking ahead, we remain committed to optimize our cost structure while continuing to drive sales growth. We are focused on enhancing our product offerings and expanding our customer base to improve profitability and strengthen our market position in the coming periods.”
Selected 2024 Interim Financial Metrics
| Six Months Ended September 30, | Changes in | |||||||||||
| (HKD in millions, except per share data, differences due to rounding.) | 2024 | 2023 | Percentage | |||||||||
| Revenue | 43.2 | 33.0 | 31.0 | % | ||||||||
| Total operating expenses | 39.3 | 26.1 | 50.9 | % | ||||||||
| Income from operations | 3.9 | 7.0 | (43.7 | ) | % | |||||||
| Income from operations % | 9.1 | % | 21.1 | % | ||||||||
| Total other income, net | 1.0 | 0.6 | 71.4 | % | ||||||||
| Income before income taxes | 4.9 | 7.6 | (34.6 | ) | % | |||||||
| Net income | 4.7 | 6.4 | (27.5 | ) | % | |||||||
- Revenue increased by
31.0% to HKD43.2 million for the six months ended September 30, 2024, compared with HKD33.0 million during the same period in 2023. - Total operating expenses were HKD39.3 million for the six months ended September 30, 2024, increasing from HKD26.1 million during the same period in 2023.
- Net income decreased to HKD4.7 million for the six months ended September 30, 2024, from HKD6.4 million during the same period in 2023.
Revenue
Revenue increased by
The following table shows segregated revenue by sales of major products and sales of tooling for the six months ended September 30, 2024 and 2023.
| (HKD in millions, differences due to rounding.) | Six Months Ended September 30, | |||||
| Sales of products | 2024 | 2023 | ||||
| Hair styling series | 19.1 | 20.1 | ||||
| Trimmer series | 20.9 | 4.5 | ||||
| Eyelash curler | 0.2 | 0.2 | ||||
| Nail care series | 0.9 | 0.5 | ||||
| Other personal care appliances | 1.0 | 0.7 | ||||
| Sales of tooling | 1.1 | 7.0 | ||||
| Total | 43.2 | 33.0 | ||||
Operating expenses
Merchandise costs increased by
Selling, general and administrative expenses were HKD5.2 million (US
Income from operations and margin
Overall income from operations decreased by
Net income
Net income decreased by
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, neck care, 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 with the SEC on July 30, 2024 and the Interim Report on Form 6-K for the six months ended September 30, 2024, filed 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.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
| As of March 31, | (Unaudited) As of September 30, | |||||||||||
| 2024 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 35,885,666 | 81,047,102 | 10,431,712 | |||||||||
| Accounts receivable, net | 14,557,523 | 13,476,241 | 1,734,550 | |||||||||
| Amount due from a director | 145,166 | – | – | |||||||||
| Merchandise inventories, net | 1,855,686 | 1,135,068 | 146,096 | |||||||||
| Taxes receivables | 395,005 | 104,085 | 13,397 | |||||||||
| Prepayments | 5,000 | 5,000 | 644 | |||||||||
| TOTAL CURRENT ASSETS | 52,844,046 | 95,767,496 | 12,326,399 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Property and equipment, net | – | – | – | |||||||||
| Deferred initial public offering costs | 5,252,768 | – | – | |||||||||
| Long-term deposits | 16,200 | 16,200 | 2,085 | |||||||||
| TOTAL NON-CURRENT ASSETS | 5,268,968 | 16,200 | 2,085 | |||||||||
| TOTAL ASSETS | 58,113,014 | 95,783,696 | 12,328,484 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts payable | 732,340 | 1,098,929 | 141,445 | |||||||||
| Accounts payable - related party | 24,278,340 | 20,418,181 | 2,628,059 | |||||||||
| Accruals | 1,018,618 | 920,901 | 118,531 | |||||||||
| Contract liabilities | 1,008,415 | - | - | |||||||||
| TOTAL CURRENT LIABILITIES | 27,037,713 | 22,438,011 | 2,888,035 | |||||||||
| TOTAL LIABILITIES | 27,037,713 | 22,438,011 | 2,888,035 | |||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Ordinary Shares, US | 783 | 862 | 110 | |||||||||
| Additional paid-in capital | 99,217 | 37,717,487 | 4,854,683 | |||||||||
| Retained earnings | 30,975,301 | 35,627,336 | 4,585,656 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 31,075,301 | 73,345,685 | 9,440,449 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 58,113,014 | 95,783,696 | 12,328,484 | |||||||||
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| (Unaudited) For the Six Months Ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| REVENUE | ||||||||||||
| Sales of products | 26,011,185 | 42,101,829 | 5,418,999 | |||||||||
| Sales of tooling | 7,006,014 | 1,147,077 | 147,642 | |||||||||
| 33,017,199 | 43,248,906 | 5,566,641 | ||||||||||
| OPERATING EXPENSES | ||||||||||||
| Merchandise costs | (24,305,564 | ) | (34,100,724 | ) | (4,389,163 | ) | ||||||
| Selling, general and administrative expenses | (1,751,531 | ) | (5,229,459 | ) | (673,093 | ) | ||||||
| Total operating expenses | (26,057,095 | ) | (39,330,183 | ) | (5,062,256 | ) | ||||||
| INCOME FROM OPERATIONS | 6,960,104 | 3,918,723 | 504,385 | |||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | 615,405 | 1,431,474 | 184,248 | |||||||||
| Interest expense | (1,657 | ) | – | – | ||||||||
| Loss from foreign currency exchange | (16,334 | ) | (407,242 | ) | (52,417 | ) | ||||||
| Total other income, net | 597,414 | 1,024,232 | 131,831 | |||||||||
| INCOME BEFORE INCOME TAX PROVISION | 7,557,518 | 4,942,955 | 636,216 | |||||||||
| PROVISION FOR INCOME TAXES | (1,139,449 | ) | (290,920 | ) | (37,445 | ) | ||||||
| NET INCOME | 6,418,069 | 4,652,035 | 598,771 | |||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
| Basic and diluted(1) | 16,000,000 | 17,613,083 | 17,613,083 | |||||||||
| EARNINGS PER SHARE | ||||||||||||
| Basic and diluted | 0.40 | 0.26 | 0.03 | |||||||||
RAYTECH HOLDING LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| (Unaudited) For the Six Months Ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | 6,418,069 | 4,652,035 | 598,771 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Depreciation of property and equipment | 2,928 | - | - | |||||||||
| Amortization of right-of-use asset | 51,286 | - | - | |||||||||
| Loss from unrealized foreign currency translation | 17,918 | 406,530 | 52,325 | |||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable, net | (654,485 | ) | 978,597 | 125,957 | ||||||||
| Merchandise inventories, net | (681,683 | ) | 720,618 | 92,752 | ||||||||
| Prepayments | 54,000 | - | - | |||||||||
| Accounts payable | (150,807 | ) | 372,876 | 47,994 | ||||||||
| Accounts payable - related party | 12,178,316 | (3,694,385 | ) | (475,511 | ) | |||||||
| Accruals | (203,832 | ) | (97,717 | ) | (12,577 | ) | ||||||
| Contract liabilities | (1,705,854 | ) | (1,008,415 | ) | (129,795 | ) | ||||||
| Operating lease obligation | (52,344 | ) | - | - | ||||||||
| Taxes receivables | - | 290,920 | 37,445 | |||||||||
| Taxes payables | 1,139,449 | - | - | |||||||||
| Net cash provided by operating activities | 16,412,961 | 2,621,059 | 337,361 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Repayment of amount due from a director | 210,702 | 145,166 | 18,684 | |||||||||
| Net cash provided by investing activities | 210,702 | 145,166 | 18,684 | |||||||||
| Cash flows from financing activities | ||||||||||||
| Proceed from Initial Public Offering of shares | - | 42,772,241 | 5,505,289 | |||||||||
| Deferred initial public offering cost | (257,702 | ) | - | - | ||||||||
| Net cash (used in)/from financing activities | (257,702 | ) | 42,772,241 | 5,505,289 | ||||||||
| Change in cash | 16,365,961 | 45,538,466 | 5,861,334 | |||||||||
| Effect of foreign exchange on cash | 35,039 | (377,030 | ) | (48,528 | ) | |||||||
| Cash at the beginning of the period | 21,362,580 | 35,885,666 | 4,618,906 | |||||||||
| Cash at the end of the period | 37,763,580 | 81,047,102 | 10,431,712 | |||||||||
| Supplementary cash flow information | ||||||||||||
| Cash paid for income tax | – | – | – | |||||||||
| Cash paid for interest expense | – | – | – | |||||||||
FAQ
What was RAY's revenue growth in H1 2024?
How much did RAY's net income decline in H1 2024?
What caused the increase in RAY's operating expenses in H1 2024?
Which product segment drove RAY's revenue growth in H1 2024?
Why did RAY's gross profit margin decline in H1 2024?
