Hin Sang Group (06893) released its audited results for the year ended 31 March 2026, showing a rebound in top-line growth but continued bottom-line pressure.
Revenue and Profitability • Revenue climbed 13.8% to HK$104.60 million, driven mainly by a 14.9% increase in the core Product Development Segment, which contributed 98.9% of sales. • Gross profit rose 5.8% to HK$63.80 million; however, gross margin declined to 61.0% from 65.6% due to lower average selling prices. • Net loss narrowed 7.9% year on year to HK$45.52 million. Basic and diluted loss per share improved to 4.20 HK cents (FY 2025: 4.52 HK cents).
Segment Performance • Product Development: Revenue HK$103.50 million; segment loss HK$23.83 million, margin –23.0%. • Brand Development & Management: Revenue fell 41.5% to HK$0.49 million; segment profit HK$0.08 million. • Trading of Goods: Revenue slid 61.3% to HK$0.14 million. • Healthcare: Revenue decreased 23.6% to HK$0.48 million; segment loss reduced to HK$0.47 million.
Cost Structure • Cost of sales grew 29.1% to HK$40.80 million. • Selling & distribution expenses declined 21.5% to HK$11.73 million as advertising spending was trimmed. • Administrative and other operating expenses dropped 10.8% to HK$61.52 million. • Other net losses expanded to HK$22.99 million, primarily reflecting HK$10.21 million impairment on property, plant and equipment and HK$12.22 million impairment on right-of-use assets. • Finance costs eased to HK$15.47 million from HK$18.55 million.
Balance Sheet and Liquidity • Cash and bank balances stood at HK$15.89 million, up 19.0% year on year. • Total bank and other borrowings increased to HK$359.82 million; gearing ratio rose to 3.1. • Net current liabilities widened to HK$297.77 million; current ratio remained low at 0.1. • Auditors flagged a material uncertainty related to going concern, citing continued losses and negative working capital, though management expects financing facilities to be renewed and has obtained HK$13.58 million in shareholder advances post balance-sheet date.
Capital Allocation and Investments • No final dividend declared. • The group holds HK$23.26 million in listed equity investments, mainly stakes in Fullshare Holdings and Nanjing Sinolife United; fair value changes added HK$0.15 million to other comprehensive income. • Trading securities amounted to HK$5.92 million.
Operational Developments and Outlook • Management is concentrating resources on own-brand product development, expansion of the Mainland China children’s health-supplement market, ramp-up of the Yunfu production facility to lower manufacturing costs, and enhanced e-commerce penetration via platforms such as Douyin, Tmall and JD.com. • Cost-control measures will continue, with a focus on optimizing product mix and rationalising low-margin trading activities.
Governance Update • Post year-end, former chairman and CEO Mr Pang resigned following his detention by PRC authorities; executive director Ms Kwan Lai Man has been appointed Chairperson and Co-CEO.
No material acquisitions, disposals or contingent liabilities were reported during the period.