HERBS GROUP (02593) released its annual performance, with a loss of 23.09 million Hong Kong dollars for the year, a year-on-year turnaround from profit to loss.

HERBS GROUP (02593) announced its annual performance for the year ending December 31, 2025. The company achieved revenue of 228 million Hong Kong dollars, a decrease of 7.18% year-on-year; a loss of 23.09 million Hong Kong dollars for the year, a turnaround from profit to loss; and a loss per share of 17.26 Hong Kong cents. The announcement stated that the main reasons for the turnaround from profit to loss were: (i) a decrease in the group's revenue and gross profit during the reporting period, mainly due to offering more promotional discounts during the period; (ii) an increase in advertising and promotional expenses during the reporting period (including but not limited to online advertising, offline advertising, and hiring of celebrities and KOLs); and (iii) an increase in employee costs during the reporting period.