GIORDANO INT'L (00709) announces annual performance, with a net profit attributable to shareholders of HKD 217 million, a year-on-year increase of 0.46%. E-commerce revenue experienced double-digit growth.

GIORDANO INT'L (00709) announced its annual performance for the year ending December 31, 2025, with group revenue of HK$3.854 billion, a decrease of 1.66% year-on-year; attributable profit to shareholders of HK$217 million, an increase of 0.46% year-on-year; earnings per share of 13.4 HK cents; final dividend of 6.4 HK cents per share. For the whole year, the group's revenue showed a slight decrease year-on-year; in an environment of geopolitical uncertainty and macroeconomic challenges, core business revenue remained flat year-on-year. This year's performance was mainly affected by weak performance of non-core brands in Indonesia; excluding the impact of these non-core brands, core business revenue remained stable year-on-year, showing resilience in the face of market challenges. In the second half of the year, we observed improved performance in most Southeast Asian markets, including Singapore, Malaysia, and Thailand, all recording stronger high single-digit year-on-year growth compared to the first half of the year. The Gulf Cooperation Council market also continued to show strong performance, with better sales momentum compared to the first half of the year. Additionally, despite the challenging retail environment in Hong Kong, the group's sales performance in Hong Kong outperformed the market average and maintained positive growth momentum in the second half of the year. The group's e-commerce platform recorded inspiring double-digit growth of 10% in the year. E-commerce revenue in mainland China grew by 9.1% year-on-year, outpacing offline sales. In other markets, our e-commerce platform showed even stronger performance, with sales increasing by 13.5% year-on-year; excluding the impact of non-core brands in Indonesia, the growth rate reached a significant 25.3%. It is worth mentioning that online business in Hong Kong and Macau rebounded strongly in the second half of the year, with online sales increasing by 18.2% year-on-year for the whole year. Furthermore, e-commerce revenue in Southeast Asia and Australia (excluding Indonesia) saw a substantial year-on-year increase of 45%, further proving the positive effects of the group's "digital-first" strategy. We continue to expand our digital footprint, use data intelligence to enhance personalized product recommendations, and deepen connections with customers through digital brand stories. The group's gross profit margin showed significant improvement in the second half of the year, increasing by 0.6 percentage points year-on-year, in sharp contrast to a 3.3 percentage point decrease year-on-year in the first half of the year. The full-year gross profit margin only recorded a slight decrease of 1.2 percentage points; excluding the impact of non-core brands in Indonesia, the decrease would narrow to just 0.8 percentage points. The improvement in gross profit margin was mainly attributed to the group's effective management of selling prices and ongoing restructuring of procurement processes to reduce offshore product costs. Looking ahead, we will carefully balance price strategies across different sales channels to ensure revenue growth and healthy gross profit margins go hand in hand, in full alignment with the group's omni-channel development direction.