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Raytech Holding Limited Announces Fiscal Year 2025 Financial Results and the Filing of Its Annual Report on Form 20-F

1. Raytech reports 17.6% revenue growth, reaching HK$78.7 million. 2. Net income increased to HK$8.3 million, with a net margin of 10.5%. 3. Cash and equivalents surged 136.5%, totaling HK$84.9 million. 4. Sales in trimmer series grew by 48%, indicating strong product demand. 5. Company aims to expand its product lines and market presence in Asia.

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Why Bullish?

The revenue growth and improved profitability suggest strong market performance, resembling past instances where similar growths positively impacted share prices. The recent upward trend in profit margins showcases operational efficacy, which tends to boost investor confidence.

How important is it?

The article outlines Raytech's significant financial improvements and future strategic initiatives, which are likely to impact investor sentiment and stock performance in the long run.

Why Long Term?

Investments in new product lines and market expansions indicate potential long-term benefits, similar to companies that took decisive growth actions, leading to sustained market value increases.

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RAY
HONG KONG, July 25, 2025 (GLOBE NEWSWIRE) -- Raytech Holding Limited (NASDAQ: RAY) (“Raytech”, “We”, “Our” or the “Company”), a Hong Kong-based company specializing in design, sourcing, and wholesale of personal care electrical appliances for international brand owners, today announced financial results for the fiscal year ended March 31, 2025, and confirmed the filing of its annual report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”). Raytech delivered solid fiscal year 2025 results with revenue growth of 17.6% to HK$78.7 million (US$10.1 million), while maintaining profitability with net income of HK$8.3 million (US$1.1 million) and a net margin of 10.5%. The Company concluded the year with a significantly strengthened balance sheet, recording cash and cash equivalents of HK$84.9 million (US$10.9 million), up from HK$35.9 million as of the end of the prior fiscal year. Management Commentary Mr. Ching Tim Hoi, CEO and Chairman of Raytech, said: "Fiscal Year 2025 marked a pivotal year for Raytech. We not only sustained profitability but also strengthened our financial position. Our revenue increased by 17.6% to HK$78.7 million, which was principally driven by increased sales in our trimmer series, fueled by new customer-engaged models. We continue to demonstrate the strength of our specialized focus in personal care and lifestyle electrical appliances, where we have accumulated over 10 years of industry experience. As we transitioned to a public company during this fiscal year, we continue to maintain operational excellence. " Financial Highlights Key highlights for fiscal year 2025 compared to fiscal year 2024: Revenue increased by 17.6% to HK$78.7 million (US$10.1 million)Net income of HK$8.3 million (US$1.1 million) with a net margin of 10.5%Cash and cash equivalents increased by approximately 136.5% to HK$84.9 million (US$10.9 million)Net current assets strengthened to HK$76.9 million (US$9.9 million) in fiscal year 2025, compared with HK$25.8 million in fiscal year 2024 Financial Results Revenue Performance: Hair styling series: Revenue of HK$37.6 million in fiscal year 2025 (US$4.8 million) compared to HK$31.8 million in fiscal year 2024, an increase of 18.2%Trimmer series: Revenue of HK$33.6 million in fiscal year 2025 (US$4.3 million) compared to HK$22.7 million in fiscal year 2024, an increase of 48.0%Nail care series: Revenue of HK$1.5 million in fiscal year 2025 (US$195,954) compared to HK$1.4 million in fiscal year 2024Other personal care appliances: Revenue of HK$2.5 million in fiscal year 2025 (US$326,416) compared to HK$3.2 million in fiscal year 2024Eyelash curler: Revenue of HK$453,378 in fiscal year 2025 (US$58,276) compared to HK$804,863 in fiscal year 2024Sales of tooling: Revenue of HK$3.0 million in fiscal year 2025 (US$381,745) compared to HK$7.0 million in fiscal year 2024 Profitability and Margins: Merchandise costs of HK$60.9 million in fiscal year 2025 (US$7.8 million) compared to HK$52.1 million in fiscal year 2024, representing 77.4% of revenue in fiscal year 2025 compared to 77.7% in fiscal year 2024Income from operations of HK$7.6 million in fiscal year 2025 (US$983,142) with an operating margin of 9.7%Interest income increased substantially to HK$3.2 million in fiscal year 2025 (US$406,002), compared to HK$1.4 million in fiscal year 2024 Balance Sheet Strength: Cash and cash equivalents of HK$84.9 million in fiscal year 2025 (US$10.9 million) compared to HK$35.9 million in fiscal year 2024Total current assets increased to HK$94.9 million (US$12.2 million) in fiscal year 2025, compared to HK$52.8 million as of March 31, 2024Accounts receivable decreased 44.1% to HK$8.1 million (US$1.0 million) in fiscal year 2025 from HK$14.6 million in fiscal year 2024, primarily driven by faster customer paymentsTotal current liabilities decreased to HK$17.9 million (US$2.3 million) in fiscal year 2025 compared to HK$27.0 million in fiscal year 2024Net current assets of HK$76.9 million (US$9.9 million) in fiscal year 2025compared to HK$25.8 million in fiscal year 2024 Outlook and Strategic Priorities Our goal is to become a leading product design and development company in the personal care and lifestyle electrical appliances industry in Asia. We intend to explore new product lines, continue expanding our men's personal care and hair care product lines, and approach customers who sell and market their personal care electrical appliances in Europe, the US and other Asia markets. Our strong cash position provides the financial flexibility to pursue strategic growth opportunities while maintaining operational excellence. 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, 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 Company's annual report on Form 20-F filed on July 24, 2025 with the U.S. Securities and Exchange Commission (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. Media and Investor Relations Contact: International Elite Capital Annabelle ZhangTel: +1 (646) 866-7928Email: annabelle@iecapitalusa.com Consolidated Financial Information  RAYTECH HOLDING LIMITEDCONSOLIDATED BALANCE SHEETS   As of March 31,   2024  2025  2025   HKD  HKD  US$ ASSETS         CURRENT ASSETS         Cash and cash equivalents  35,885,666   84,850,995   10,906,438 Accounts receivable, net  14,557,523   8,144,307   1,046,839 Amount due from a director  145,166   –   – Merchandise inventories, net  1,855,686   1,879,435   241,576 Taxes receivables  395,005   –   – Prepayments  5,000   –   – TOTAL CURRENT ASSETS  52,844,046   94,874,737   12,194,853              NON-CURRENT ASSETS            Plant and equipment, net  –   –   – Deferred initial public offering costs  5,252,768   –   – Long-term deposits  16,200   16,200   2,082 TOTAL NON-CURRENT ASSETS  5,268,968   16,200   2,082 TOTAL ASSETS  58,113,014   94,890,937   12,196,935              LIABILITIES AND SHAREHOLDERS’ EQUITY            CURRENT LIABILITIES            Accounts payable  732,340   466,327   59,940 Accounts payable - related parties  24,278,340   14,984,393   1,926,039 Accruals  1,018,618   1,786,314   229,607 Contract liabilities  1,008,415   501,804   64,500 Tax payables  –   190,082   24,432 TOTAL CURRENT LIABILITIES  27,037,713   17,928,920   2,304,518              TOTAL LIABILITIES  27,037,713   17,928,920   2,304,518              COMMITMENTS AND CONTINGENCIES  –   –   –              SHAREHOLDERS’ EQUITY            Ordinary Shares, US$0.00000625 par value, 8,000,000,000 Ordinary Shares authorized, and 16,000,000 Ordinary Shares and 17,613,083 Ordinary Shares issued and outstanding as of March 31, 2024 and 2025, respectively (1)  783   862   110 Additional paid-in capital  99,217   37,717,487   4,848,068 Retained earnings  30,975,301   39,243,668   5,044,239 TOTAL SHAREHOLDERS’ EQUITY  31,075,301   76,962,017   9,892,417 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  58,113,014   94,890,937   12,196,935   (1)1,500,000 Ordinary Shares were issued on May 15, 2024, and 113,083 Ordinary Shares were issued on July 5, 2024.    The accompanying notes are an integral part of these consolidated financial statements.  RAYTECH HOLDING LIMITEDCONSOLIDATED STATEMENTS OF INCOME   For the Years ended March 31,   2023  2024  2025  2025   HKD  HKD  HKD  US$ REVENUE            Sales of products  42,382,764   59,966,287   75,769,626   9,739,152 Sales of tooling  3,135,475   7,006,014   2,969,938   381,745 Total revenue  45,518,239   66,972,301   78,739,564   10,120,897                  OPERATING EXPENSES                Merchandise costs  (34,046,287)  (52,067,436)  (60,931,870)  (7,831,961)Selling, general and administrative expenses  (4,277,677)  (3,545,369)  (10,158,945)  (1,305,794)Total operating expenses  (38,323,964)  (55,612,805)  (71,090,815)  (9,137,755)                 INCOME FROM OPERATIONS  7,194,275   11,359,496   7,648,749   983,142                  OTHER INCOME (EXPENSE)                Interest income  143,352   1,416,354   3,158,654   406,002 Interest expense  (7,151)  (2,028)  –   – Gain (loss) from foreign currency exchange  143,450   (20,846)  (328,471)  (42,220)Other income, net  –   818   45,922   5,902 Total other income, net  279,651   1,394,298   2,876,105   369,684 INCOME BEFORE INCOME TAX PROVISION  7,473,926   12,753,794   10,524,854   1,352,826 PROVISION FOR INCOME TAXES  (1,181,056)  (2,817,000)  (2,256,487)  (290,040)NET INCOME  6,292,870   9,936,794   8,268,367   1,062,786                  WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES                Basic and diluted (1)  16,000,000   16,000,000   17,398,409   17,398,409 EARNINGS PER SHARE                Basic and diluted  0.39   0.62   0.48   0.06   (1)1,500,000 Ordinary Shares were issued on May 15, 2024, and 113,083 Ordinary Shares were issued on July 5, 2024.    The accompanying notes are an integral part of these consolidated financial statements.  RAYTECH HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS   For the Years ended March 31,   2023  2024  2025  2025   HKD  HKD  HKD  US$ Cash flows from operating activities            Net income  6,292,870   9,936,794   8,268,367   1,062,786 Adjustments to reconcile net income to net cash provided by operating activities                Depreciation of plant and equipment  13,924   4,868   –   – Amortization of right-of-use asset  102,573   85,477   –   – Gain (loss) from unrealized foreign currency translation  178,454   (61,043)  214,994   27,635 Changes in operating assets and liabilities                Accounts receivable, net  (907,711)  (7,755,205)  6,335,863   814,389 Merchandise inventories, net  –   (1,855,686)  (26,189)  (3,366)Prepayments  (5,000)  90,000   5,000   643 Long-term deposits  (5,200)  18,000   –   – Accounts payable  (119,019)  (5,441)  (262,048)  (33,683)Accounts payable - related parties  4,682,655   15,554,384   (9,163,121)  (1,177,794)Accruals  566,078   402,540   768,541   98,785 Contract liabilities  1,705,854   (697,439)  (505,960)  (65,035)Operating lease obligation  (100,849)  (87,972)  –   – Taxes payables  (1,442,797)  119,002   585,087   75,205 Net cash generated from operating activities  10,961,832   15,748,279   6,220,534   799,565 Cash flows from investing activity                Repayment by the director  1,444,872   846,860   145,166   18,659 Net cash generated from investing activity  1,444,872   846,860   145,166   18,659 Cash flows from financing activity                Deferred initial public offering cost  (3,176,871)  (2,075,897)  –   – Proceed from Initial Public Offering of shares  –   –   42,871,117   5,510,497 Net cash (used in) generated from financing activity  (3,176,871)  (2,075,897)  42,871,117   5,510,497 Change in cash  9,229,833   14,519,242   49,236,817   6,328,721 Effect of foreign exchange on cash  (157,725)  3,844   (271,488)  (7,783)Cash at the beginning of the year  12,290,472   21,362,580   35,885,666   4,585,500 Cash at the end of the year  21,362,580   35,885,666   84,850,995   10,906,438                  Supplementary cash flow information                Cash paid for income tax  2,619,407   2,697,998   1,671,400   214,836 Cash paid for interest expense  –   –   –   –   The accompanying notes are an integral part of these consolidated financial statements.

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