Huaxin Handbag International Holdings (02683) is expected to account for net profit of not less than HK$60 million in mid-term shareholders

According to Zhitong Finance App, Huaxin Handbag International Holdings (02683) announced that the Group is expected to record a net profit of not less than HK$60 million for the six months ending September 30, 2026 (reporting period), while for the six months ended September 30, 2025 (the past period), the net profit attributable to the Company's owners was approximately HK$48 million.

The increase in net profit attributable to the Company's owners during the reporting period compared to the previous period was mainly due to the following factors: (i) Revenue increased by approximately HK$45 million from approximately HK$432 million in the previous period to approximately HK$477 million in the reporting period, an increase of about 11%. This is mainly due to the continued increase in orders from existing customers during the reporting period, particularly from the Netherlands and the United States of America; (ii) increased revenue due to an increase in the number of products sold by the Group, and continued implementation of a number of strict cost control measures to successfully reduce the Group's basic production and operating costs, increasing gross profit and gross margin; and (iii) impairment provisions were withdrawn during the reporting period due to the recovery of certain accounts receivable that had previously been calculated, based on anticipated credit loss patterns.

In summary, gross profit increased during the reporting period compared to previous periods. However, the increase was mitigated in part by the following factors: (i) increased sales and distribution expenses, mainly due to increased transportation expenses and higher fuel prices due to higher levels of sales activity; and (ii) increased income tax expenses due to increased taxable profit during the reporting period.