HONG KONG, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Raytech Holding Limited (NASDAQ: RAY) ("Raytech", "We", "Our" or the "Company"), a Hong Kong-based group operating in the sourcing and wholesaling of personal care electrical appliances, product design, development and advisory services in relation to personal health care electronics, and marketing solutions services, today announced financial results for the fiscal year ended March 31, 2026, and confirmed the filing of its annual report on Form 20-F with the U.S. Securities and Exchange Commission ("SEC").

Raytech reported a transformational fiscal year 2026, with revenue rising 81.1% to HK$142.6 million (US$18.2 million) and net income increasing 101.9% to HK$16.7 million (US$2.1 million), representing a net margin of 11.7%. During the year, the company expanded from a single-subsidiary trading business into a group of three operating subsidiaries in Hong Kong, adding service lines that broadened its revenue mix beyond product sourcing and wholesaling. It added two service businesses — product design, development and advisory services conducted by Raytech Innovation Limited ("Raytech Innovation") and marketing solutions services conducted by Worry free Group (Hong Kong) Limited ("Worry free") — which together contributed service income of HK$44.2 million (US$5.6 million), or 31.0% of total revenue. That growth came alongside a 26.2% increase in product sales by Pure Beauty Manufacturing Company Limited ("Pure Beauty").

Financial Highlights

Key highlights for fiscal year 2026 compared with fiscal year 2025 included:

• Revenue increased 81.1% to HK$142.6 million (US$18.2 million), mainly reflecting new service income of HK$44.2 million (US$5.6 million) from Raytech Innovation and Worry free, as well as a 26.2% increase in product sales by Pure Beauty.
• Net income increased 101.9% to HK$16.7 million (US$2.1 million), with a net margin of 11.7%, compared with 10.5% in fiscal year 2025.
• Income from operations rose 135.7% to HK$18.0 million (US$2.3 million), with an operating margin of 12.6%, compared with 9.7% in fiscal year 2025.
• The company reported three segments following the start of Raytech Innovation’s business on October 1, 2025 and the acquisition of Worry free on December 29, 2025: appliances (69.01% of total revenue), product design, development and advisory services (15.38%), and marketing solutions services (15.60%).
• Cash and cash equivalents were HK$78.0 million (US$10.0 million) as of March 31, 2026, and net current assets were HK$97.1 million (US$12.4 million), up from HK$76.9 million as of March 31, 2025.
• Liquidity was further strengthened after year-end by a June 2026 registered direct offering that raised net proceeds of approximately US$6.08 million under the company’s Form F-3 shelf registration statement.

Financial Results

Revenue Performance

Total revenue increased 81.1% to HK$142,629,085 (US$18,192,485) in fiscal year 2026 from HK$78,739,564 in fiscal year 2025.

Sales of products increased 26.2% to HK$95,591,499 (US$12,192,793) from HK$75,769,626, primarily due to higher sales of the hair styling series arising from new models engaged by customers.

Sales of tooling decreased 4.3% to HK$2,843,350 (US$362,672) from HK$2,969,938, as fewer new tooling programs were engaged during the year.

Service income was HK$44,194,236 (US$5,637,020) in fiscal year 2026. This included HK$13,960,185 (US$1,780,636) from product design and development services and HK$7,983,051 (US$1,018,246) from project advisory services provided by Raytech Innovation, which began operations on October 1, 2025, as well as HK$22,251,000 (US$2,838,138) from marketing solutions services provided by Worry free for the period from December 29, 2025 to March 31, 2026.

Profitability and Margins

Merchandise costs were HK$73,587,672 (US$9,386,183) in fiscal year 2026, equal to 51.6% of revenue, compared with HK$60,931,870, or 77.4% of revenue, in fiscal year 2025. The increase in absolute terms was in line with the higher sales of products.

Service costs were HK$29,423,000 (US$3,752,934) in fiscal year 2026, including HK$10,100,000 for product design and development services and HK$4,700,000 for project advisory services incurred by Raytech Innovation, as well as HK$14,623,000 for marketing solutions services incurred by Worry free.

Selling, general and administrative expenses increased to HK$21,587,387 (US$2,753,493) from HK$10,158,945 in fiscal year 2025.

Income from operations was HK$18,031,026 (US$2,299,875) in fiscal year 2026, with an operating margin of 12.6%, driven mainly by the start of the service businesses and higher product sales, partially offset by the increase in selling, general and administrative expenses.

Basic and diluted earnings per share were HK$7.19 (US$0.92) in fiscal year 2026, compared with HK$7.60 in fiscal year 2025, retroactively restated to reflect the sixteen-for-one share consolidation effective on November 7, 2025.

Balance Sheet and Cash Flow

Cash and cash equivalents were HK$78,032,891 (US$9,953,175) as of March 31, 2026, compared with HK$84,850,995 as of March 31, 2025.

Net current assets increased to HK$97,073,067 (US$12,381,769) as of March 31, 2026, from HK$76,945,817 a year earlier.

Accounts receivable rose to HK$67,775,993 (US$8,644,897) as of March 31, 2026, primarily because of the newly commenced and acquired service businesses. As of the date of the annual report, the receivables outstanding as of March 31, 2026 had been fully settled.

Net cash used in operating activities was HK$14,511,287 (US$1,850,928) in fiscal year 2026, mainly reflecting the build-up of accounts receivable from the newly commenced and acquired service businesses toward year-end, which management expects to unwind as those receivables are collected.

Net cash generated from financing activities was HK$34,805,809 (US$4,439,517) in fiscal year 2026, primarily consisting of net proceeds of US$4,682,910 from the follow-on offering completed on July 1, 2025.

Fiscal Year 2026 Corporate Developments

• Follow-on public offering (July 1, 2025): The company closed a follow-on public offering at a public offering price of US$0.20 per share, equivalent to US$3.20 per share on a post-consolidation basis, for aggregate gross proceeds of approximately US$5.197 million. Following the offering, the company ceased to qualify as a "controlled company" under Nasdaq listing rules.
• Share consolidation (November 7, 2025): The company effected a 1-for-16 share consolidation and subsequently regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).
• Shelf registration (December 18, 2025): The SEC declared effective a shelf registration statement on Form F-3 registering the offer and sale of up to US$500,000,000 of securities from time to time.
• Acquisition of Worry free (December 29, 2025): Raytech Innovation completed the acquisition of 100% of the issued share capital of Worry free, a marketing solutions company, for aggregate consideration of US$6,099,000, consisting of US$4,099,000 in cash and a US$2,000,000 promissory note bearing interest at 2% per annum and maturing on the second anniversary of issuance.
• Board appointments (January 2, 2026): The board approved the appointment of Mr. Yuan Tianfu as a director and Dr. Wang Shibin as an independent director of the company.
• Strategic expansion: Beginning in the third quarter of the fiscal year, the company began a strategic expansion into services related to personal health care electronics, including product design, development and consultation, led by Raytech Innovation.

Subsequent Events

• Chairman appointment (April 15, 2026): Mr. Liu Haoyuan was appointed as a director and chairman of the board, while founder Mr. Ching Tim Hoi continued to serve as an executive director and chief executive officer.
• Registered direct offering (June 29, 2026): The company closed a registered direct offering of 3,149,832 ordinary shares, on a post-share consolidation basis, at a price of US$1.97 per share, for aggregate gross proceeds of approximately US$6.2 million, pursuant to the Form F-3 shelf registration statement.
• Incorporation of Fluxen Limited (June 12, 2026): The company incorporated Fluxen Limited in Hong Kong and holds 60% of its equity interest following an allotment to an independent third party on July 8, 2026. Fluxen is currently dormant and is intended to support the group’s future export trading business.

Outlook and Strategic Priorities

Raytech said that, building on more than 10 years of experience in the personal care electrical appliance industry, it intends to continue expanding its service businesses, which contributed 31.0% of total revenue in the fiscal year ended March 31, 2026, while Pure Beauty continues to operate its established sourcing and wholesaling business in the ordinary course.

The company’s strategic focus includes product design, development and consultation services in relation to personal health care electronics through Raytech Innovation, as well as marketing solutions services through Worry free. With a larger share of service revenue now coming from businesses that began operating only during the fiscal year, execution in those newly added units will remain important to future operating results and working capital management, particularly given the year-end build-up in receivables that was subsequently collected after the reporting date.

Raytech said it believes its current cash resources and operating cash flows, together with the net proceeds of approximately US$6.08 million raised in June 2026, will be sufficient to meet anticipated cash needs, including working capital requirements and repayment of the promissory note, for at least the next 12 months.

About Raytech Holding Limited

Raytech Holding Limited (Nasdaq: RAY) is a Hong Kong-based holding company with more than 10 years of experience in the personal care electrical appliance industry. Through its operating subsidiaries in Hong Kong, the company operates three businesses: (i) sourcing and wholesaling of personal care electrical appliances for international brand owners, ranging from hair styling, trimmer, eyelash curler and nail care to other body and facial care appliances, through Pure Beauty Manufacturing Company Limited; (ii) product design and development services and project advisory services in relation to personal health care electronics, through Raytech Innovation Limited; and (iii) marketing solutions services, through Worry free Group (Hong Kong) Limited.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions, as well as other statements that are not statements of historical fact. 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. These risks and uncertainties include, but are not limited 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 31, 2026 with the SEC. Investors are cautioned not to place undue reliance on these forward-looking statements. Additional factors are discussed in the company’s filings with the SEC, which are available at www.sec.gov. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances arising after the date of this press release.

Media and Investor Relations Contact

International Elite Capital
Annabelle Zhang
Tel: +1 (646) 866-7928
Email: annabelle@iecapitalusa.com