Man Wah Holdings (1999) H2 2026 earnings summary

Executive summary

• Revenue for FY2026 was HK$16,429.2 million, down 2.8% year-over-year, with gross profit margin declining to 39.4% from 40.5%.

• Net profit attributable to owners fell 12.1% to HK$1,812.4 million, mainly due to lower revenue, margin compression, and higher selling/distribution expenses.

• The Group maintained global leadership in recliner sales volume and completed the acquisition of Gainline Group in the US to enhance North American operations.

Financial highlights

• Revenue: HK$16,429.2 million (down 2.8% YoY); gross profit: HK$6,478.4 million (down 5.4% YoY).

• Net profit: HK$1,812.4 million (down 12.1% YoY); net profit margin decreased to 11.0% from 12.2%.

• EPS: Basic and diluted at 46.74 and 46.72 HK cents, respectively (down from 53.19 HK cents YoY).

• Final dividend proposed at HK$0.09 per share; total dividends for FY2026 represent 51.3% payout ratio.

Outlook and guidance

• The Group expects continued global economic uncertainty, with focus on operational efficiency and prudent strategy.

• Plans to enhance product intelligence, health orientation, and expand global manufacturing and logistics footprint.

• Will leverage China's consumption-driven policies and further develop online channels and lifestyle-focused products.