Man Wah Holdings (1999) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 was HK$16,902.6 million, down 8.2% year-over-year, mainly due to weak domestic demand and global economic challenges.

• Gross profit margin improved to 40.5% from 39.4% last year, reflecting effective cost control.

• Profit attributable to owners was HK$2,062.6 million, a decrease of 10.4% year-over-year; adjusted profit excluding one-off impairments rose 1.3%.

• The group maintained global leadership in recliner sales and expanded its overseas presence, especially in North America and Europe.

Financial highlights

• Revenue: HK$16,902.6 million (down 8.2% YoY).

• Gross profit margin: 40.5% (up from 39.4%).

• Net profit margin: 12.2% (down from 12.5%).

• Profit attributable to owners: HK$2,062.6 million (down 10.4% YoY).

• Basic EPS: 53.19 HK cents (down from 59.09 HK cents).

• Final dividend proposed: HK$0.12 per share; total payout ratio: 50.8%.

• Cash and bank balances: HK$4,006.3 million (up from HK$3,273.8 million).

Outlook and guidance

• Domestic market recovery is expected to be gradual, with focus on core cities and key regions.

• Continued investment in R&D for smart, green, and environmentally friendly products.

• Overseas expansion to continue, leveraging production bases in Vietnam, Mexico, Ukraine, Poland, and Lithuania.

• Management remains cautiously optimistic for export business amid global uncertainties.