Executive Summary
Kelfred Holdings Limited reported QQ1 2025 results with revenue of HKD 121.262 million, up 22.85% year-over-year, driven by stronger demand in its eyewear product lines. Gross profit reached HKD 15.606 million, delivering a gross margin of 12.87%, a meaningful improvement from prior periods, while EBITDA stood at HKD 2.581 million. Despite the positive topline and EBITDA contribution, the company posted a net loss of HKD 2.359 million and an operating loss of HKD 0.936 million, as selling, general, and administrative expenses remained elevated relative to gross profit. On the balance sheet, Kelfred maintains a healthy liquidity profile with HKD 29.586 million in cash and cash equivalents and a net cash position of HKD 20.505 million after accounting for debt, supporting ongoing investments and working capital needs. Operating cash flow was HKD 2.969 million and free cash flow HKD 2.534 million, underscoring cash-generative capacity even in a quarter of negative net income. The near-term trajectory will hinge on sustaining revenue growth while converting gross margin improvements into sustained profitability, aided by cost discipline and a favorable mix, against a backdrop of competitive dynamics in the eyewear market and potential FX and supply chain volatility.
Key Performance Indicators
Key Insights
Revenue: HKD 121.262 million; YoY +22.85%; QoQ -5.33%
Gross Profit: HKD 15.606 million; Gross Margin 12.87%; YoY +75.46%; QoQ +16.13%
Operating Income: HKD -0.936 million; Margin -0.77%; YoY +83.93%; QoQ +76.07%
EBITDA: HKD 2.581 million; EBITDA Margin ~2.13%
Net Income: HKD -2.359 million; Net Margin -1.95%; YoY +61.49%; QoQ +49.72%
EPS (Diluted): -HKD 0.0047; YoY +61.48%; QoQ +50.00%
Cash Flow: CFO HKD 2.970 million; Capex HKD -0.435 million; Free Cash Flow HKD 2.534 million; Depreciation &...
Financial Highlights
Revenue: HKD 121.262 million; YoY +22.85%; QoQ -5.33%
Gross Profit: HKD 15.606 million; Gross Margin 12.87%; YoY +75.46%; QoQ +16.13%
Operating Income: HKD -0.936 million; Margin -0.77%; YoY +83.93%; QoQ +76.07%
EBITDA: HKD 2.581 million; EBITDA Margin ~2.13%
Net Income: HKD -2.359 million; Net Margin -1.95%; YoY +61.49%; QoQ +49.72%
EPS (Diluted): -HKD 0.0047; YoY +61.48%; QoQ +50.00%
Cash Flow: CFO HKD 2.970 million; Capex HKD -0.435 million; Free Cash Flow HKD 2.534 million; Depreciation & Amortization HKD 2.099 million
Liquidity & Balance Sheet: Cash and cash equivalents HKD 29.586 million; Total assets HKD 245.559 million; Total liabilities HKD 89.177 million; Total stockholders’ equity HKD 156.382 million; Net debt position HKD -20.505 million (net cash). Current assets HKD 207.395 million; Current liabilities HKD 83.414 million; Short-term debt HKD 3.318 million; Long-term debt HKD 5.763 million.
Cash Flow Profile: Operating cash flow HKD 2.970 million; Investing cash flow HKD -0.552 million; Financing cash flow HKD -1.648 million; Net effect from forex HKD +0.117 million; Free cash flow HKD 2.534 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
121.26M |
22.85% |
-5.33% |
| Gross Profit |
15.61M |
75.46% |
16.13% |
| Operating Income |
-935.50K |
83.92% |
76.07% |
| Net Income |
-2.36M |
61.49% |
49.72% |
| EPS |
0.00 |
61.48% |
50.00% |
Management Commentary
Note: No earnings call transcript data were provided in the material. As a result, there are no management quotes or transcript-derived themes to summarize in this section. The analysis thus relies on disclosed financial statements and quarterly data.
Forward Guidance
There are no explicit forward-looking targets disclosed in the QQ1 2025 materials. Looking ahead, the near-term trajectory will likely depend on (i) sustaining revenue growth through the product mix and geographic expansion, (ii) improving gross margin further towards mid-teens, and (iii) achieving operating leverage to convert EBITDA gains into positive net income. Industry trends in eyewear and medical instruments suggest modest growth, with upside from ODM/original brand manufacturing expansion and potential brand licensing opportunities. Key factors for investors to monitor include: trend in gross margin expansion, SG&A containment, cadence of new product introductions, order momentum from key customers, and the impact of currency fluctuations and supply chain dynamics on costs and working capital.