Tycoon Group reports net loss despite revenue growth

For the six months ended June 30, 2025, Tycoon Group Holdings Limited reported revenue of HK$510.1 million, an increase of 17.3% compared to HK$435.0 million in the previous year. Gross profit also rose by 19.8% to HK$129.2 million, with the gross profit margin improving to 25.3%. However, the company recorded a net loss of HK$7.7 million, a stark contrast to the net profit of HK$21.1 million in 1H2024. Basic and diluted losses per share were HK$(1) cent.

The shift to a net loss was primarily attributed to increased share-based payment expenses of HK$8.1 million (vs. HK$0.8 million in 1H2024), a share of loss from associates (CWA Group) of HK$4.0 million (vs. profit of HK$3.6 million in 1H2024), and additional marketing expenses. EBITDA (non-HKFRS) decreased to HK$15.9 million from HK$42.8 million, while adjusted net profit (non-HKFRS) fell to HK$10.6 million from HK$31.1 million. The board resolved not to declare an interim dividend for 1H2025.

Geographically, Southeast Asia saw a substantial revenue increase of 37.6% to HK$43.2 million, while Hong Kong and Macau experienced decreases of 6.1% and 5.1% respectively. Revenue from Mainland China was consolidated from March 2025 following the repurchase of a majority stake in CWA.