Samfine Creation Holdings Group Limited

Samfine Creation Holdings Group Limited reported a challenging fiscal year 2025, with revenue increasing 10.6% to $21.8 million, driven by strategic price reductions to boost volume. However, profitability deteriorated significantly; the company swung from a net loss of $2.7 million in FY 2024 to a net loss of $19.8 million in FY 2025. This decline was primarily due to a 63.9% surge in general and administrative expenses to $38.8 million, including increased marketing, R&D, and legal costs. Gross profit slightly decreased to $35.0 million, with the gross margin compressing to 20.6% from 23.0% in the prior year. Operating cash flow remained negative at -$21.1 million, reflecting the net loss and working capital changes. The company completed its IPO in October 2024, raising net proceeds of approximately $63.9 million (HK$), which bolstered the balance sheet despite the operational losses.

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