Combine Will International Holdings (N0Z) H1 2025 earnings summary

Executive summary

• H1 revenue rose 31.8% to HK$875.630m; net profit fell 24.7% to HK$16.087m as gross margin narrowed and administrative costs increased.

• Green products generated a record 71% of revenue, exceeding the 65% FY2025 target by June; Indonesian capacity expansion advanced.

Financial highlights

• Gross profit rose 17.9% to HK$88.386m, while gross margin declined to 10.1% from 11.3%, reflecting higher-cost green materials and expansion investment.

• Operating profit fell 8.7% to HK$36.605m; profit before tax was HK$21.104m, down 16%, and net profit was HK$16.087m.

• Other income rose 37.7% to HK$14.6m; finance costs increased 4.7% to HK$15.5m and income tax expense rose 28.2% to HK$5.0m.

Outlook and guidance

• Annual plush output is expected to double YoY following Plush Phase 2; the die-casting facility is targeted to begin operations in Q4 2025.

• Priorities include expanding Indonesian capacity, sustainable-material innovation, quality systems, IT and automation investment, and deeper customer and supplier collaboration.

• New strategic customers and partnerships are expected to broaden the revenue base and improve earnings visibility.