WAHSUN HANDBAGS (02683) announced that the group is expected to record a net profit attributable to shareholders of no less than HK$40 million for the six months ending September 30, 2025, compared to approximately HK$27 million for the same period in 2024. The increase in net profit is primarily attributed to the following factors: (i) Revenue rose by approximately HK$80 million, or 23%, from about HK$352 million in the prior period to around HK$432 million in the reporting period. This growth was mainly driven by sustained orders from new clients, particularly from the Netherlands and Canada. (ii) Higher sales volume and stringent cost-control measures led to reduced production costs, resulting in improved gross profit and gross margin.

However, the profit increase was partially offset by: (i) Higher administrative expenses due to expanded operations and increased employee benefits; (ii) Elevated sales and distribution costs, primarily from increased transportation expenses; and (iii) A rise in income tax expenses due to higher taxable profits during the reporting period.