Meilleure Health reports profit surge despite revenue drop in first half

Meilleure Health International Industry Group reported a profit after tax of HK$15.1 million for the six months ended June 30, 2025, an 84.1% increase from HK$8.2 million in the same period of 2024. This growth occurred despite revenue decreasing by 41.7% to HK$17.5 million, primarily due to an HK$8.7 million decline in construction materials sales and an HK$3.5 million drop in healthcare-related product sales amidst adverse market conditions. The gross profit margin, however, significantly improved to 81.1% from 51.3%.

The profit surge was attributed to an increase in property-related business revenue (up HK$1.8 million) and a rise in rental income from HK$8.2 million in 2024 to HK$10.0 million in 2025, alongside a positive financial impact from foreign exchange gains which increased from HK$4.4 million to HK$5.8 million. Interest income also increased to HK$14.8 million from HK$8.9 million. These positive factors were partially offset by a decrease in fair value gain on investments at FVTPL (from HK$17.8 million to HK$0.9 million) and an impairment loss of HK$1.3 million on receivables, compared to a reversal of HK$4.2 million in 2024.

Total operating expenses decreased by 16.4% to HK$13.3 million due to lower commission and rental expenses. The company declared an interim dividend of HK0.15 cents per share for the six months ended June 30, 2025.