HONG KONG, July 30, 2024 (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 fiscal year ended March 31, 2024.
CHING Tim Hoi, CEO and Chairman of the Company, commented, “The Company delivered a robust financial performance in the fiscal year ended March 31, 2024, with revenue increased by a substantial 47.1% to reach HKD67.0 million (US$8.6 million), up from HKD45.5 million in the prior year. This exceptional revenue growth was primarily driven by a significant increase in sales of our hair styling, trimmer product series, as well as new tooling revenue generated from manufacturing a variety of tools, molds, and assembly equipment for our customers.”
“While merchandise costs rose in line with the higher revenue, we were able to effectively manage our selling, general and administrative expenses. In particular, staff costs decreased slightly, and we achieved reductions in certain other expense categories such as depreciation and selling and marketing costs. As a result, income from operations grew by a strong 57.9% to HKD11.4 million (US$1.5 million), and net income likewise expanded by 57.9% to HKD9.9 million (US$1.3 million).”
“We are very pleased with the Company’s robust financial performance in fiscal 2024, which demonstrates our ability to drive substantial revenue growth while maintaining disciplined cost control. Going forward, we will continue to focus on expanding our customer base, developing innovative products, and enhancing operational efficiency to deliver sustainable long-term value for our shareholders.”
Selected Fiscal Year 2024 Financial Metrics
Years Ended March 31,
Changes in
(HKD in millions, except per share data, differences due to rounding.)
2024
2023
Percentage
Revenue
HKD
67.0
45.5
47.1
%
Total operating expenses
55.6
38.3
45.1
%
Income from operations
11.4
7.2
57.9
%
Total other income, net
1.4
0.3
366.7
%
Income before income taxes
12.8
7.5
70.7
%
Net income
9.9
6.3
57.9
%
Earnings per share
0.62
0.39
59.0
%
Revenue increased by 47.1% to HKD67.0 million for the year ended March 31, 2024, compared with HKD45.5 million for 2023.
Total operating expenses were HKD55.6 million for the year ended March 31, 2024, increasing from HKD38.3 million for 2023.
Income from operations grew by 57.9% to HKD11.4 million for the year ended March 31, 2024, from HKD7.2 million for 2023.
Net income also grew by 57.9% to HKD9.9 million for the year ended March 31, 2024, from HKD6.3 million for 2023. Earnings per share was HKD0.62 for the year ended March 31, 2024, compared to HKD0.39 for 2023.
Revenue
Revenue increased by 47.1% to HKD67.0 million (US$8.6 million) for the year ended March 31, 2024 from HKD45.5 million for the year ended March 31, 2023. The increase was principally driven by a significant increase in sales in our hair styling and trimmer series, and new tooling revenue generated from manufacturing multiple tools, molds and assembly equipment as part of tooling program for our customers, which are mostly driven by engaging new customers.
The following table shows disaggregated revenue by sales of major products and sales of tooling for the years ended March 31, 2024 and 2023.
(HKD in millions, differences due to rounding)
Years Ended March 31,
Sales of products
2024
2023
Hair styling series
HKD
31.8
28.2
Trimmer series
22.7
8.6
Eyelash curler
0.8
1.4
Nail care series
1.4
1.2
Other personal care appliances
3.2
3.0
Sales of tooling
7.0
3.1
Total
66.9
45.5
Operating expenses
Merchandise costs increased by 52.9% to HKD52.1 million (US$6.7 million) for the year ended March 31, 2024 from HKD34.0 million for the year ended March 31, 2023. The increase was in line with the increase in our revenue.
Selling, general and administrative expenses were HKD3.5 million (US$0.5 million) for the year ended March 31, 2024, as compared to HKD4.3 million for the year ended March 31, 2023. The decrease is mainly due to declines in staff costs, selling and marketing expenses, and in depreciation for our property and equipment, which are partially offset by increases in transport and travelling expenses, legal and professional fee and in other general and administrative expenses.
Income from operations
Overall income from operations increased by 57.9% to HKD11.4 million (US$1.5 million) for the year ended March 31, 2024 from HKD7.2 million for the year ended March 31, 2023. The increase was principally driven by a significant increase in sales in our hair styling and trimmer series, and new tooling revenue generated from manufacturing multiple tools, molds and assembly equipment as part of tooling program for our customers as well as engaged new customers.
Total other income, net
Total other income, net, increased by 366.7% to HKD1.4 million (US$178,165) for the year ended March 31, 2024 from HKD0.3 million for the year ended March 31, 2023. The increase was mainly driven by significant growth in interest income.
Provision for income tax expense
Income tax expenses amounted to HKD2.8 million (US$359,959) for the year ended March 31, 2024 and amounted to HKD1.2 million for the year ended March 31, 2023.
Net income
Net income increased by 57.9% to HKD9.9 million (US$1.3 million) for the year ended March 31, 2024 as compared to HKD6.3 million for the year ended March 31, 2023. The increase in net income was predominantly due to an increase in revenue and interest income and a decrease in selling, general and administrative expenses.
Recent development
On May 17, 2024, the Company announced the closing of its initial public offering (the “IPO”) of 1,500,000 ordinary shares (the “Ordinary Shares”) at a price of $4 per share for total gross proceeds of $6,000,000, before deducting underwriting discounts and other offering expenses. The Ordinary Shares began trading on Nasdaq Capital Market on May 15, 2024, under the ticker symbol “RAY”. On July 5, 2024, the Company announced it completed sale of an additional 113,083 ordinary shares pursuant to the partial exercise of the underwriters’ over-allotment option granted in connection with the IPO, at the IPO price of $4 per share, less underwriting discounts. As a result, the Company has raised a total gross proceeds of $6,452,332, before deducting underwriting discounts and offering expenses.
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 registration statement and the Annual Report on Form 20-F for the fiscal year ended March 31, 2024 filed with 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
CONSOLIDATED BALANCE SHEETS
As of March 31,
2023
2024
2024
HKD
HKD
US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
21,362,580
35,885,666
4,585,500
Accounts receivable, net
6,787,330
14,557,523
1,860,172
Amount due from a director
992,026
145,166
18,550
Merchandise inventories, net
–
1,855,686
237,121
Taxes receivables
514,007
395,005
50,474
Prepayments
95,000
5,000
639
TOTAL CURRENT ASSETS
29,750,943
52,844,046
6,752,456
NON-CURRENT ASSETS
Property and equipment, net
4,868
–
–
Right-of-use assets – operating lease
85,477
–
–
Deferred initial public offering costs
3,176,871
5,252,768
671,203
Long-term deposits
34,200
16,200
2,070
TOTAL NON-CURRENT ASSETS
3,301,416
5,268,968
673,273
TOTAL ASSETS