Hypebeast Limited — Earnings Release 2025

Jun 19, 2025

HYPEBEAST

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Hypebeast Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00150)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2025

Annual Results

The board (the "Board") of directors (the "Directors") of Hypebeast Limited (the "Company") presents the audited consolidated annual results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 March 2025 ("FY2025"), together with the audited comparative figures for the year ended 31 March 2024 ("FY2024"), as follows:

Financial Highlights

| | 1H2025
HK$'000 | 2H2025
HK$'000 | FY2025
HK$'000 | FY2024
HK$'000 |
| --- | --- | --- | --- | --- |
| Revenue | 360,498 | 306,023 | 666,521 | 895,652 |
| - Media | 278,618 | 223,856 | 502,474 | 608,272 |
| - E-commerce and Retail | 81,880 | 82,167 | 164,047 | 287,380 |
| Gross profit | 173,225 | 94,323 | 267,548 | 413,458 |
| Gross profit margin | 48.1% | 30.8% | 40.1% | 46.2% |
| Selling and marketing expenses | (65,241) | (56,753) | (121,994) | (172,355) |
| Administrative and operating expenses | (84,577) | (78,027) | (162,604) | (213,636) |
| EBITDA* | 45,224 | (33,019) | 12,205 | 72,898 |
| Net profit/(loss) | 20,235 | (41,266) | (21,031) | 22,307 |
| Net profit/(loss) margin | 5.6% | (13.5%) | (3.2%) | 2.5% |
| Earnings/(Loss) per share | | | | |
| - Basic (HK cent) | 0.99 | (2.01) | (1.02) | 1.09 |
| - Diluted (HK cent) | 0.98 | (2.00) | (1.02) | 1.09 |

• Earnings before interest, tax, depreciation and amortization ("EBITDA") is calculated as profit/(loss) before tax + interest expense + depreciation + amortization expense

The Board recommends the payment of a final dividend of HK$0.0018 per ordinary share for FY2025.

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HYPEBEAST

Key Business Highlights

• The Group recorded revenue of HK$666.5 million in FY2025, representing a decrease of HK$229.1 million or 25.6% as compared to FY2024;
• Gross profit of HK$267.5 million in FY2025, down HK$145.9 million or 35.3% as compared to FY2024, translating to a 6.1 percentage points decrease in gross profit margin from 46.2% in FY2024 to 40.1% in FY2025; and
• Net loss of HK$21.0 million for FY2025, as compared to net profit of HK$22.3 million in FY2024, primarily due to the inventory provisioning adjustment and the slowdown of media revenue in second half.

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HYPEBEAST

Business Overview

The Group is a media and e-commerce and retail company primarily engaged in (i) the provision of creative advertising services and advertising spaces for global brands (the "Media segment"); and (ii) the sale of goods through its online and offline retail platform (the "E-commerce and retail segment").

The Group produces and distributes youth-focused digital content centering on fashion, lifestyle, technology, arts & entertainment, culture and music to its visitors and followers. Digital content is distributed via the Group's media platforms (including its Hypebeast, Hypebae and Popbee websites and mobile apps) and popular third-party social media platforms, including but not limited to Facebook, Instagram, X, TikTok, Youtube, Wechat, Weibo, Kakao and Naver. The Group also maintains multi-language versions of its flagship Hypebeast property across both website and social media platforms, with content available in English, Chinese, Japanese, Korean and Indonesian. The Group delivers bespoke creative solutions through its agency business to its brand clients, with services including but not limited to creative conceptualization, talent curation, technical production, campaign execution, data intelligence and distribution of digital media advertisement via the Group's digital media platforms.

The Group engages in retail of footwear, apparel, accessories and other products under its HBX e-commerce platform and retail shop. The HBX e-commerce platform focuses on delivering the latest, trend-setting apparel, accessories and lifestyle products to its customers, curating and creating fashion-forward pieces and collaborations to include in its merchandise portfolio. Combining the Group's unique insight into youth culture, and its longstanding reputation in the industry as a community and cultural leader, the Group is able to source and curate products most desired by its target demographic, thereby generating growing popularity and usage amongst shoppers.

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HYPEBEAST

Business Prospect and Future Developments

Operational Efficiency and Profitable Growth

Building on the restructuring and margin optimization efforts implemented in FY2025, we are now entering a new phase of disciplined execution. Our focus on operational efficiency is intended not only to stabilize our cost base but to unlock capacity for strategic reinvestment in high-growth areas of the business. We are prioritizing operational efficiency and cost management to ensure profitable growth across all of our media and e-commerce and retail divisions. By optimizing our internal processes and carefully managing expenses, we aim to maximize profitability, unlock resources for strategic reinvestment and position Hypebeast for sustainable long-term growth.

Some of the key initiatives in this area include:

• Prioritizing the correct balance of staffing across our divisions relative to impact on results and return on investment;
• Automating repetitive administrative tasks through intelligent workflow automation, freeing up our teams to focus on higher-value activities;
• Continuously reviewing and optimizing our process of delivering our products and services to save time and costs for both the company and our customers and clients;
• Rigorously evaluating our technology stack to ensure we are leveraging the most efficient and cost-effective solutions; and
• Implementing stringent cost controls and budgeting measures to maintain discipline across all operational expenditures.

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HYPEBEAST

Focus on Engagement and Community

At the core of Hypebeast's business is our vibrant, globally-engaged community of young, style-conscious and culturally aware readers and consumers. We are deeply committed to nurturing these relationships and empowering our audience to become active participants across our platforms and points of engagement.

Our key initiatives in this area include:

• Investing in community management and delivering meaningful, thought provoking content to foster community dialogue, strengthen brand loyalty, and drive user engagement;
• Developing and curating immersive virtual and physical experiences that bring our readership and consumer community together around shared passions and interests;
• Collaborating with influential figures, tastemakers, and industry partners to curate content and product offerings that resonate with our target demographic; and
• Exploring topic adjacencies that are culturally important and relevant to our audience, such as golf, arts, entertainment and technology, and developing a unique way to experience these themes through the Hypebeast lens.

By placing our readership and consumer community at the heart of our strategy, we can deepen our understanding of their evolving needs and preferences, unlock new avenues for growth, and solidify Hypebeast's position as a trusted, go-to destination for youth culture and style.

Strengthen the Hypebeast Ecosystem

At the heart of Hypebeast's business lies a powerful, interconnected network that unites our core divisions of media and e-commerce and retail and agency services. This end-to-end model gives us a competitive edge few youth-focused platforms can replicate.

Our media platforms serve as the heart of the Hypebeast community, engaging our readers with captivating content that shapes trends and fuels cultural discourse. This, in turn, empowers our e-commerce and retail division to serve as a direct conduit to our engaged, style-conscious consumer base. The data and insights gleaned from our e-commerce and retail operations inform our media strategy, enabling us to deliver personalized, relevant content and product recommendations that anticipate and meet the evolving needs of our community.

Our agency business offers a unique opportunity to bridge the gap between our media influence and e-commerce and retail capabilities. By tapping into the wealth of data, insights, and creative expertise within our agency division, we can continuously optimize our own media and e-commerce and retail strategies, ensuring that we remain at the forefront of youth culture and style.

We aim to upgrade our platform into a more cohesive and effective system to further benefit from this virtuous cycle of growth and influence, bridging the relationship between brands and our audience and driving customer acquisition and conversion.

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HYPEBEAST

Business and Financial Review

Media Segment

Revenue and gross profit of the Media segment for FY2025 and FY2024, are as follows:

| | 1H2025
HK$'000 | 2H2025
HK$'000 | FY2025
HK$'000
(Audited) | FY2024
HK$'000
(Audited) | Change
HK$'000 | % Change |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue | 278,618 | 223,856 | 502,474 | 608,272 | (105,798) | (17.4%) |
| Gross Profit | 145,439 | 78,728 | 224,167 | 327,114 | (102,947) | (31.5%) |
| Gross Profit Margin | 52.2% | 35.2% | 44.6% | 53.8% | | |

• Revenue from the Media segment amounted to HK$502.5 million in FY2025, a decrease of 17.4% against a comparative of HK$608.3 million in FY2024. The Group's Media segment experienced a slowdown in revenue growth, particularly in the United States. This was primarily due to a cyclical slowdown in discretionary advertising spend among select brand partners, as well as a more cautious marketing environment amid broader macroeconomic uncertainty.

• Gross profit of the Media segment amounted to HK$224.2 million in FY2025, representing a decrease of HK$102.9 million, or 31.5%, versus FY2024. Gross profit margin decreased from 53.8% in FY2024 to 44.6% in FY2025. The difference was mainly due to the aforementioned lower-than-expected revenue as well as campaign costs associated with "in real life" sales executions produced by the Group during FY2025.

• Gross profit in the first half of FY2025 was HK$145.4 million, compared to HK$78.7 million recorded in the second half of FY2025. The decrease in gross profit margin in the second half of FY2025 was driven by the lower-than-expected sales and profitability across the regions.

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HYPEBEAST

E-Commerce and Retail Segment

Revenue and gross profit of the E-commerce and retail segment for FY2025 and FY2024, are as follows:

| | 1H2025
HK$’000 | 2H2025
HK$’000 | FY2025
HK$’000
(Audited) | FY2024
HK$’000
(Audited) | Change
HK$’000 | % Change |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue | 81,880 | 82,167 | 164,047 | 287,380 | (123,333) | (42.9%) |
| Gross Profit | 27,786 | 15,595 | 43,381 | 86,344 | (42,963) | (49.8%) |
| Gross Profit Margin | 33.9% | 19.0% | 26.4% | 30.0% | | |

• Revenue from the E-commerce and retail segment decreased from HK$287.4 million in FY2024 to HK$164.0 million in FY2025, or a decrease of 42.9%. Gross profit of the E-commerce and retail segment amounted to HK$43.4 million in FY2025, representing a decrease of HK$43.0 million, or 49.8%, as compared to FY2024. This translates to a gross profit margin of 26.4% in FY2025, a decrease of 3.6 percentage points as compared to 30.0% in FY2024. As part of our continued focus on prudent financial management and inventory optimisation, the Group recognised a non-cash, one-time impairment charge of HK$14.2 million on certain legacy inventory to reflect its estimated net realisable value under current market conditions. While impacting reported profitability for the reporting period, this adjustment strengthens our balance sheet and positions the Group for improved inventory efficiency going forward.

• The decrease in revenue from E-commerce and retail segment was primarily driven by management's right sizing of the e-commerce business and an increase in promotion and discounts deployed in the course of improving the Group's inventory portfolio.

Cost of Revenue

The Group's cost of revenue decreased from HK$482.2 million for FY2024 to HK$399.0 million for FY2025, representing a decrease of approximately 17.3%. The decrease was mainly attributable to a decline in sales under both the Media and E-commerce and retail segments during FY2025.

Gross Profit Margin

Gross profit of the Group decreased from HK$413.5 million for FY2024 to HK$267.5 million for FY2025, representing a decrease of approximately 35.3%. The decrease was mainly caused by the decrease in revenue for FY2025 as discussed above. The overall gross profit margin decreased from approximately 46.2% for FY2024 to approximately 40.1% for FY2025, primarily due (i) the non-cash, one-time impairment charge on the inventory balance from the E-commerce and retail segment; and (ii) the lower-than-expected sales and the campaign costs associated with "in real life" sales executions from the Media segment.

Selling and Marketing Expenses

Selling and marketing expenses of the Group decreased by 29.2% from HK$172.4 million in FY2024 to HK$122.0 million in FY2025 and, correspondingly as a percentage of revenue, decreased from 19.2% in FY2024 to 18.3% in FY2025, primarily due to an efficiency improvement exercise deployed by the Group during the fiscal year. The Group holistically scrutinized all of the Company's expenses and significantly downsized both people and processes in order to improve margin and profitability whilst maintaining productivity.

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HYPEBEAST

A reduction in marketing expenses also drove a portion of the decrease. The Group shifted its marketing strategy from higher cost paid channels to lower cost organic marketing channels to drive customer acquisition and conversion within the E-commerce and retail segment.

Such cost savings are expected to continue its positive impact to the Group's financial results in the next fiscal year.

Administrative and Operating Expenses

Administrative and operating expenses of the Group decreased by 23.9% from HK$213.6 million in FY2024 to HK$162.6 million in FY2025. The decrease was mainly led by the Group's cost efficiency actions to improve margin and profitability, primarily through efficiencies and reductions in office space footprint as well as headcount optimizations. As with Selling and Marketing expenses, the impact of cost savings measures are expected to continue its positive impact to the Group's financial results in the next fiscal year. Correspondingly as a percentage of revenue, it increased from 23.9% in FY2024 to 24.4% in FY2025.

Cash Flow

Net cash inflow from operating activities of HK$75.7 million in FY2025 as compared to HK$70.6 million in FY2024. Such net cash inflow was mainly driven by the decrease in trade and other receivables due to the better collection processes and cycles and inventory reductions through optimized procurement.

Net cash used in investing activities amounted to HK$92.3 million in FY2025, compared to cash outflows of HK$15.2 million in FY2024. Such cash outflows were mainly due to the placement of time deposits with maturity over three months.

Net cash used in financing activities amounted to HK$58.2 million in FY2025 as compared to HK$31.5 million in FY2024. Such cash outflows primarily due to the dividends paid and the Group's rentals paid of office, retail and warehouse space.

| Extracts of cash flow | FY2025
HK$'000
(Audited) | FY2024
HK$'000
(Audited) |
| --- | --- | --- |
| Net cash from operating activities | 75,677 | 70,577 |
| Net cash used in investing activities | (92,274) | (15,205) |
| Net cash used in financing activities | (58,245) | (31,503) |
| Net (decrease) increase in cash and cash equivalents | (74,842) | 23,869 |
| Cash and cash equivalents at beginning of the year | 183,492 | 166,021 |
| Effect of foreign exchange rate changes | (651) | (6,398) |
| Cash and cash equivalents at end of the year, representing bank balances and cash | 107,999 | 183,492 |

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HYPEBEAST

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 March 2025

| | NOTES | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- | --- |
| Revenue | 3 | 666,521 | 895,652 |
| Cost of revenue | | (398,973) | (482,194) |
| Gross profit | | 267,548 | 413,458 |
| Other income, other gains and losses | 5 | (1,749) | 2,884 |
| Selling and marketing expenses | | (121,994) | (172,355) |
| Administrative and operating expenses | | (162,604) | (213,636) |
| Impairment losses under expected credit losses model, net of reversal | | (928) | (1,739) |
| Impairment loss reversed on intangible assets | | – | 7,255 |
| Finance costs | | (2,547) | (3,051) |
| (Loss) profit before tax | | (22,274) | 32,816 |
| Income tax credit (expense) | 6 | 1,243 | (10,509) |
| (Loss) profit for the year | 7 | (21,031) | 22,307 |
| Other comprehensive expense for the year: | | | |
| Item that may be reclassified subsequently to profit or loss: | | | |
| Exchange differences arising on translation of foreign operations | | (5,739) | (11,578) |
| Surplus on revaluation of intangible assets | | 5,316 | – |
| Other comprehensive expense for the year | | (423) | (11,578) |
| Total comprehensive (expense) income for the year | | (21,454) | 10,729 |
| (Loss) earnings per share | 9 | | |
| – Basic (HK cent) | | (1.02) | 1.09 |
| – Diluted (HK cent) | | (1.02) | 1.09 |

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HYPEBEAST

Consolidated Statement of Financial Position

At 31 March 2025

| | NOTES | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- | --- |
| Non-current assets | | | |
| Property, plant and equipment | | 17,251 | 40,715 |
| Intangible assets | | 26,470 | 21,258 |
| Right-of-use assets | 10 | 28,917 | 37,582 |
| Financial assets at fair value through profit or loss ("FVTPL") | | 11,114 | 11,114 |
| Interest in an associate | | 3,916 | – |
| Rental and other deposits | 11 | 5,912 | 6,047 |
| Deferred tax assets | | 9,800 | 1,404 |
| | | 103,380 | 118,120 |
| Current assets | | | |
| Inventories | | 45,759 | 77,924 |
| Trade and other receivables | 11 | 164,208 | 189,960 |
| Tax prepayments | | 9,591 | 20,915 |
| Contract assets | 12 | 6,656 | 9,625 |
| Pledged bank deposits | | 10,000 | 10,438 |
| Time deposits with original maturity over three months | | 114,673 | 19,403 |
| Cash and cash equivalents | | 107,999 | 183,492 |
| | | 458,886 | 511,757 |
| Current liabilities | | | |
| Trade and other payables | 13 | 77,098 | 73,387 |
| Contract liabilities | 14 | 31,386 | 27,115 |
| Lease liabilities | 15 | 10,302 | 18,308 |
| Tax payables | | 1,985 | 4,686 |
| | | 120,771 | 123,496 |
| Net current assets | | 338,115 | 388,261 |
| Total assets less current liabilities | | 441,495 | 506,381 |
| Non-current liability | | | |
| Lease liabilities | 15 | 14,900 | 26,049 |
| Net assets | | 426,595 | 480,332 |
| Capital and reserves | | | |
| Share capital | 16 | 20,505 | 20,541 |
| Reserves | | 406,090 | 459,791 |
| | | 426,595 | 480,332 |

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HYPEBEAST

NOTES:

1. General Information

The Company was incorporated in the Cayman Islands as an exempted company and registered in the Cayman Islands with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands on 25 September 2015. The Company's shares were listed on Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

Its registered office is located at Vistra (Cayman) Limited, P.O. Box 31119, Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman Islands. The address of its principal place of business is 40/F, Cable TV Tower, No. 9 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong.

The Company is an investment holding company and its subsidiaries and variable interest entity (hereinafter together with the Company collectively referred to as the "Group") are principally engaged in the provision of advertising spaces services, provision of services for creative agency projects, publication of magazines and operation of online and offline retail platform. Its parent and ultimate holding company is CORE Capital Group Limited, a private company incorporated in the British Virgin Islands. Its ultimate controlling party is Mr. Ma Pak Wing Kevin ("Mr. Ma").

The consolidated financial statements are presented in Hong Kong dollars ("HK$"), which are the same as the functional currency of the Company.

2. Application of New and Amendments to IFRS Accounting Standards

Amendments to IFRS Accounting Standards that are mandatorily effective for the current year

In the current year, the Group has applied the following amendments to IFRS Accounting Standards, International Accounting Standards ("IASs"), and interpretations issued by the International Accounting Standards Board, for the first time, which are mandatorily effective for the Group's annual period beginning on 1 April 2024 for the preparation of the Group's consolidated financial statements:

Amendments to IFRS 16
Amendments to IAS 1
Amendments to IAS 1
Amendments to IAS 7 and IFRS 7

Lease Liability in a Sale and Leaseback
Classification of Liabilities as Current or Non-current
Non-current Liabilities with Covenants
Supplier Finance Arrangements

The application of the amendments to IFRS Accounting Standards in the current reporting period has had no material impact on the Group's financial positions and performance for the current and prior periods and/or on the disclosures set out in these consolidated financial statements.

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3. Revenue

Disaggregation of revenue from contracts with customers

Segments	Media		E-commerce and retail		Total
	2025 HK$'000	2024 HK$'000	2025 HK$'000	2024 HK$'000	2025 HK$'000	2024 HK$'000
Sales of goods through online and offline retail platform	-	-	147,750	269,347	147,750	269,347
Commission fee from consignment sales	-	-	2,540	3,560	2,540	3,560
Provision of advertising spaces	386,923	473,037	3,465	738	390,388	473,775
Provision of services for creative agency projects	107,427	134,813	-	-	107,427	134,813
Publication of magazines	1,218	422	-	-	1,218	422
Exhibition income	6,906	-	4,161	9,068	11,067	9,068
Beverage income	-	-	6,131	4,667	6,131	4,667
Total revenue from contracts with customers	502,474	608,272	164,047	287,380	666,521	895,652
Geographical markets
Hong Kong	44,676	32,134	55,330	81,388	100,006	113,522
PRC	58,941	66,010	21,700	37,423	80,641	103,433
United States ("US")	194,497	251,564	35,187	71,357	229,684	322,921
Other countries	204,360	258,564	51,830	97,212	256,190	355,776
Total	502,474	608,272	164,047	287,380	666,521	895,652
Timing of revenue recognition
A point in time	115,551	135,235	160,582	279,776	276,133	415,011
Over time	386,923	473,037	3,465	7,604	390,388	480,641
Total	502,474	608,272	164,047	287,380	666,521	895,652

4. Segment Information

Information reported to the Chief Executive Officer ("CEO") of the Group, being the chief operating decision maker ("CODM") for the purpose of resource allocation and assessment of segment performance focuses on types of goods delivered, or service provided. The CODM has chosen to organise the Group's results according to the category of the business segment and differences in nature of the goods and services that each segment delivers. No operating segments identified by CODM have been aggregated in arriving at the reportable segments of the Group.

Specifically, the Group's reportable and operating segments under IFRS 8 Operating Segments are as follows:

Media segment — Provision of advertising spaces, provision of services for creative agency projects and publication of magazines

E-commerce and retail segment — Operation of online and offline retail platform for the sale of third-party branded clothing, shoes and accessories, commission fee from consignment sales, provision of advertising space, exhibition income and beverage income.

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HYPEBEAST

The following is an analysis of the Group's revenue and results by operating and reportable segments:

Year ended 31 March 2025

| | Media
HK$'000 | E-commerce and
retail
HK$'000 | Consolidated
HK$'000 |
| --- | --- | --- | --- |
| Total segment revenue | 502,474 | 164,047 | 666,521 |
| Segment results | 83,973 | (33,492) | 50,481 |
| Finance costs | | | (2,547) |
| Interest income | | | 6,216 |
| Share-based payment expense | | | (1,343) |
| Central administration costs | | | (59,393) |
| Unallocated expenses | | | (15,688) |
| Loss before tax | | | (22,274) |

Year ended 31 March 2024

| | Media
HK$'000 | E-commerce and
retail
HK$'000 | Consolidated
HK$'000 |
| --- | --- | --- | --- |
| Total segment revenue | 608,272 | 287,380 | 895,652 |
| Segment results | 159,763 | (39,012) | 120,751 |
| Finance costs | | | (199) |
| Interest income | | | 3,524 |
| Share-based payment expense | | | (2,998) |
| Gain on fair value changes of financial assets at
FVTPL | | | 506 |
| Reversal of impairment losses recognised on
intangible assets | | | 7,255 |
| Central administration costs | | | (61,492) |
| Unallocated expenses | | | (34,531) |
| Profit before tax | | | 32,816 |

5. Other Income, Other Gains and Losses

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Net exchange losses | 983 | 2,112 |
| Gain on fair value changes of financial assets at FVTPL | – | (506) |
| Penalty on customers for overdue settlement | – | (2) |
| Bank interest income | (6,216) | (3,524) |
| Gain on lease modification | (5,742) | (66) |
| Loss on disposal of property, plant and equipment | 13,965 | 872 |
| Others | (1,241) | (1,770) |
| | 1,749 | (2,884) |

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HYPEBEAST

6. Income Tax (Credit) Expense

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Current tax: | | |
| - Hong Kong Profits Tax | - | 1,944 |
| - The PRC Enterprise Income Tax (“EIT”) | 3,918 | 1,860 |
| - Japan Corporate Income Tax | 3,235 | 2,759 |
| - Other jurisdictions | - | 1,501 |
| PRC withholding tax on distributed profits from PRC subsidiaries | - | 2,734 |
| | 7,153 | 10,798 |
| Deferred tax: | | |
| Credit for the year | (8,396) | (289) |
| | (1,243) | 10,509 |

Under the two-tiered profits tax rates regime of Hong Kong Profits Tax, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.

Accordingly, the Hong Kong Profits Tax of the qualifying group entity is calculated at 8.25% on the first HK$2 million of the estimated assessable profits and at 16.5% on the estimated assessable profits above HK$2 million.

The basic tax rate of the Company's PRC subsidiaries is 25% for both years under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulations of the EIT Law.

Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdiction.

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7. (Loss) Profit for the Year

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| (Loss) Profit for the year has been arrived at after charging: | | |
| Directors' remuneration | 6,589 | 6,985 |
| Other staff costs | | |
| - salaries and allowances | 236,597 | 299,837 |
| - discretionary bonus | 1,628 | - |
| - retirement benefits scheme contribution | 9,337 | 11,228 |
| - Share-based payment expense | 529 | 1,820 |
| Total directors and other staff costs | 254,680 | 319,870 |
| Auditor's remuneration | 980 | 980 |
| Cost of inventories recognised as an expense (included in cost of revenue) | 101,559 | 178,098 |
| Depreciation of property, plant and equipment | 14,433 | 12,152 |
| Depreciation of right-of-use assets | 17,400 | 24,780 |
| Amortisation of intangible assets | 99 | 99 |
| Write-down of inventories (included in cost of revenue) | 14,186 | 10,019 |

8. Dividends

During the year ended 31 March 2025, a final dividend of HK$0.00359 per ordinary share in an aggregate amount of HK$7,370,000 in respect of the results for the year ended 31 March 2024, a special dividend of HK$0.01063 per ordinary share in an aggregate amount of HK$21,830,000 and interim dividend of HK$0.00179 per share amounting to HK$3,686,000 were declared in respect of the results for the six months ending 30 September 2025 and paid to the owners of the Company.

Subsequent to the end of the reporting period, a final dividend in respect of the year ended 31 March 2025 of HK$0.0018 per ordinary share, in an aggregate amount of HK$3,686,000 have been proposed by the Directors and is subject to approval by the shareholders of the Company in the forthcoming annual general meeting.

9. (Loss) Earnings Per Share

The calculation of the basic and diluted (loss) earnings per share for the years ended 31 March 2025 and 2024 is based on the following data:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| (Loss) earnings | | |
| (Loss) earnings for the purpose of basic and diluted (loss) earnings per share | | |
| (Loss) profit for the year attributable to owners of the Company | (21,031) | 22,307 |

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| | 2025
'000 | 2024
'000 |
| --- | --- | --- |
| Number of shares | | |
| Weighted average number of ordinary shares
for the purpose of basic (loss) earnings per share | 2,053,492 | 2,054,129 |
| Effect of dilutive potential ordinary shares: | | |
| Share options issued by the Company | – | 784 |
| Weighted average number of ordinary shares
for the purpose of diluted (loss) earnings per share | 2,053,492 | 2,054,913 |

The computation of diluted loss per share for the year ended 31 March 2025 did not assume the exercise of share options granted since the exercise would result in a decrease in loss per share for the year ended 31 March 2025.

For the year ended 31 March 2024, diluted earnings per share did not assume the exercise of certain share options granted by the Company since the exercise prices for the computation of diluted earnings per share of those share options were higher than the average market price for shares.

10. Right-of-Use Assets

Leased properties HK$'000

As at 31 March 2024
Carrying amount	37,582
As at 31 March 2025
Carrying amount	28,917
For the year ended 31 March 2024
Depreciation charge	24,780
For the year ended 31 March 2025
Depreciation charge	17,400

The above right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful lives and the respective lease terms ranging from one to seven years.

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11. Trade and Other Receivables

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Trade receivables | 118,293 | 125,372 |
| Unbilled receivables (Note (b)) | 22,582 | 17,181 |
| Trade and unbilled receivables | 140,875 | 142,553 |
| Less: allowance for credit losses | (2,425) | (2,437) |
| Trade and unbilled receivables (net carrying amount) | 138,450 | 140,116 |
| Advance to staff | 1,050 | 1,533 |
| Rental and utilities deposits | 11,068 | 14,652 |
| Prepayments | 13,184 | 18,744 |
| Other receivables | 6,368 | 15,855 |
| Consideration receivable related to disposal of a joint venture | – | 3,149 |
| Deposit paid for long term investment | – | 1,958 |
| Total | 170,120 | 196,007 |
| Analysed as: | | |
| Current | 164,208 | 189,960 |
| Non-current (Note (a)) | 5,912 | 6,047 |
| Total | 170,120 | 196,007 |

Notes:

a) The amounts included certain rental deposits and deposit paid for long term investment.

b) Certain tax bureaus in the PRC have set monthly quotas on the aggregate invoice amounts for transactions in the Media segment. The unbilled receivables represent the amount of unconditional right to the consideration for completed performance obligations but the related invoices have not yet been issued as at year end as the quota limit has been exceeded.

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As at 1 April 2023, trade and unbilled receivables from contracts with customers amounted to HK$145,867,000.

The Group allows credit periods ranging from 30 to 60 days to its trade customers derived from provision of advertising spaces and creative agency projects, whereas no credit period is granted to customers from online and offline retail platforms, consignor from consignment sales commission income and subscribers of magazines. The following is an aging analysis of trade receivables presented based on the invoice date at the end of the reporting period:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Within 60 days | 87,377 | 93,014 |
| 61–90 days | 10,576 | 7,147 |
| 91–180 days | 11,169 | 21,329 |
| 181–365 days | 3,787 | 2,016 |
| Over 365 days | 5,384 | 1,866 |
| | 118,293 | 125,372 |

As at 31 March 2025, included in the Group's trade and unbilled receivables balance are debtors with aggregate gross carrying amounts of HK$17,685,000 (2024: HK$26,284,000) which are past due as at the reporting date. Out of the past due balances, HK$9,058,000 (2024: HK$5,401,000) has been past due 90 days or more and are not considered as in default as there had not been a significant change in credit quality and the amounts were still considered recoverable based on historical experience. The Group does not hold any collateral over these balances and the Group will further charge at 1.5% (2024: 1.5%) on overdue balances of certain customers pursuant to the contracts upon negotiation as a penalty of overdue settlement.

12. Contract Assets

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Provision of advertising spaces | 6,656 | 9,625 |

As at 1 April 2023, contract assets amounted to HK$13,028,000.

The contract assets primarily relate to the Group's right to consideration for the advertisement launched in the online platform or social media platform but not billed because the rights are conditioned on the satisfaction of the target impression rate or click rate pursuant to the contract. The contract assets are transferred to trade and unbilled receivables upon the satisfaction of the target impression rate or click rate and the end of advertising period.

As at 31 March 2025 and 2024, all contract assets are expected to be settled within one year, and accordingly classified as current.

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13. Trade and Other Payables

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Trade payables | 23,032 | 20,726 |
| Commission payable to staff | 9,844 | 8,993 |
| Accrual for campaign cost (Note) | 2,804 | 7,992 |
| Other payables and accrued expenses | 41,418 | 35,676 |
| | 77,098 | 73,387 |

Note: Accrual for campaign cost represents the best estimate of accrual for expenses incurred for rendering the creative agency campaign and media project which include video shooting and photography.

The average credit period on purchases of goods is 30 days. The aging analysis of the Group's trade payables below is presented based on the invoice date at the end of the reporting period:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Within 30 days | 12,125 | 10,313 |
| 31–60 days | 2,123 | 3,710 |
| 61–90 days | 2,553 | 1,138 |
| Over 90 days | 6,231 | 5,565 |
| | 23,032 | 20,726 |

14. Contract Liabilities

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Provision of advertising spaces (Note a) | 24,884 | 25,374 |
| Sales of goods through online retail platform (Note b) | 5,357 | 596 |
| Customer loyalty scheme (Note c) | 1,145 | 1,145 |
| | 31,386 | 27,115 |

As at 1 April 2023, contract liabilities amounted to HK$17,716,000.

Notes:

a) The Group receives 50% of the contract value as deposits from new customers when they sign the contracts for provision of advertising spaces. The deposits and advance payment schemes result in contract liabilities being recognised until the advertisement launched in relevant spaces and relevant benefits received by the customers. During the year ended 31 March 2025, the Group has recognised revenue of HK$25,374,000 (2024: HK$16,151,000) that was included in the contract liabilities balance at the beginning of the respective year. All contract liabilities attributable to the provision of advertising spaces and services for creative agency projects as at 31 March 2025 are expected to be recognised as revenue within 1 year.

b) When the Group receives the payment in full before the goods is shipped/delivered, this will give rise to contract liabilities at the start of a contract, until the revenue recognised when the goods is shipped/delivered to the customers. During the year ended 31 March 2025, the Group has recognised revenue of HK$596,000 (2024: HK$420,000) that was included in the contract liabilities balance at the beginning of the respective year. All contract liabilities attributable to the sales of goods through online retail platform as at 31 March 2025 are expected to be recognised as revenue within 1 year.

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c) The Group grants award credits for customers for sales under the Group's customer loyalty scheme. The customers can use the award credits to purchase the goods through the Group's online retail platform in future purchases. The award credits has an expiry period of one year.

15. Lease Liabilities

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Lease liabilities payable: | | |
| Within one year | 10,302 | 18,308 |
| In more than one year but not more than two years | 12,783 | 11,682 |
| In more than two years but not more than five years | 2,117 | 14,367 |
| | 25,202 | 44,357 |
| Less: Amount due for settlement with 12 months
shown under current liabilities | (10,302) | (18,308) |
| Amount due for settlement after 12 months
shown under non-current liabilities | 14,900 | 26,049 |

The incremental borrowing rates applied to lease liabilities range from 3.50% to 6.50% (2024: 2.77% to 4.38%) per annum.

16. Share Capital

The movements in the Company's authorised and issued ordinary share capital are as follows:

| | Number of shares | Share capital
HK$ |
| --- | --- | --- |
| Ordinary shares of HK$0.01 each | | |
| Authorised: | | |
| As 1 April 2023, 31 March 2024 and 31 March 2025 | 6,000,000,000 | 60,000,000 |
| Issued: | | |
| At 1 April 2023 and 31 March 2024 | 2,054,129,231 | 20,541,293 |
| Shares repurchased and cancelled (Note) | (3,575,600) | (35,756) |
| At 31 March 2025 | 2,050,553,631 | 20,505,537 |

Note: During the year ended 31 March 2025, the Company repurchased and cancelled 3,575,600 of its own ordinary shares through The Hong Kong Stock Exchange, and the total amount paid of HK$740,000 to acquire the cancelled shares and the amount was deducted from equity.

| Month of repurchase | Number of ordinary shares repurchased
'000 | Price per share | | Aggregate consideration
paid
HK$'000 |
| --- | --- | --- | --- | --- |
| | | Highest
HK$ | Lowest
HK$ | |
| December 2024 | 899 | 0.223 | 0.212 | 195 |
| January 2025 | 1,081 | 0.230 | 0.188 | 233 |
| February 2025 | 1,596 | 0.198 | 0.188 | 312 |
| | 3,576 | | | 740 |

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Proposed Final Dividend

The Board has recommended the payment of a final dividend of HK$0.0018 per ordinary share for FY2025 (the "Proposed Final Dividend") (FY2024: a final dividend of HK$0.00359 per ordinary share and a special dividend of HK$0.01063 per ordinary share). The Proposed Final Dividend is subject to the approval of shareholders of the Company (the "Shareholders") at the annual general meeting of the Company to be held on Tuesday, 26 August 2025 (the "AGM"). The Proposed Final Dividend will be paid in cash on Wednesday, 10 September 2025 to the Shareholders whose names appear on the register of members of the Company at the close of business on Tuesday, 2 September 2025.

Closure of Register of Members

(a) Entitlement to attend and vote at the AGM

For determining the entitlement of the Shareholders to attend and vote at the AGM, the Company's register of members will be closed from Thursday, 21 August 2025 to Tuesday, 26 August 2025, both dates inclusive, during which period no transfer of shares will be registered. The record date for determining the entitlement of the Shareholders to attend and vote at the AGM will be Tuesday, 26 August 2025. In order to be eligible to attend and vote at the AGM, unregistered holders of shares of the Company shall ensure that all transfer documents accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712–1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong for registration not later than 4:30 p.m. on Wednesday, 20 August 2025.

(b) Entitlement to the Proposed Final Dividend

For determining the entitlement of the Shareholders to receive the Proposed Final Dividend, the Company's register of members will be closed on Tuesday, 2 September 2025 on which no transfer of shares will be registered. The record date for determining the entitlement of the Shareholders to receive the Proposed Final Dividend will be Tuesday, 2 September 2025. In order to be eligible to receive the Proposed Final Dividend, unregistered holders of shares of the Company shall ensure that all transfer documents accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712–1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong for registration not later than 4:30 p.m. on Monday, 1 September 2025.

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Purchase, Sale or Redemption of Listed Securities of The Company

During the year ended 31 March 2025 and up to the date of this announcement, the Company repurchased a total of 6,384,000 ordinary shares (the "Shares Repurchased") of the Company on the Stock Exchange at an aggregate consideration of approximately HK$1,158,819.76. Particulars of the Shares Repurchased are as follows:

Month/Year	Number of Shares Repurchased	Price paid per share		Aggregate consideration HK$
		Highest HK$	Lowest HK$
December 2024	898,800	0.223	0.212	195,489.00
January 2025	1,080,800	0.230	0.188	233,190.16
February 2025	1,596,000	0.198	0.188	311,958.08
April 2025	2,808,400	0.160	0.134	418,182.52
Total	6,384,000			1,158,819.76

A total of 3,575,600 shares repurchased from 12 December 2024 to 27 February 2025 and a total of 2,808,400 shares repurchased from 8 April 2025 to 17 April 2025 were cancelled on 28 March 2025 and 9 June 2025, respectively.

Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities (or sold treasury shares, if any) during the year ended 31 March 2025. As at 31 March 2025 and as at the date of this announcement, the Company did not hold any treasury shares.

Corporate Governance Practice

The Company recognizes the importance of corporate transparency and accountability. The Company is committed to achieving and maintaining a high standard of corporate governance, as the Board believes that effective corporate governance practices are key to obtaining and maintaining the trust of the shareholders and other stakeholders of the Company, and are essential for encouraging accountability and transparency so as to sustain the success of the Group in its creation of long-term value for the shareholders of the Company.

To the best knowledge of the Board, the Company has met the code provisions set out in the Corporate Governance Code (the "CG Code") contained in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") during the year ended 31 March 2025, save for the deviation from the code provisions C.2.1.

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Code provision C.2.1 of the CG Code stipulates that the roles of chairman and chief executive should be separate and should not be performed by the same individual. The division of responsibilities between the chairman and chief executive should be clearly established. Mr. Ma Pak Wing Kevin currently assumes the role of both chairman and chief executive officer of the Company. The Board considers that consolidation of these roles by Mr. Ma provides strong and consistent leadership to the Company which facilitates effective planning and efficient management of the Company.

Furthermore, having considered Mr. Ma's extensive experience in the digital media industry, the relationships Mr. Ma has built with the customers and the historical development of the Group, the Board considers that it is beneficial for the Group for Mr. Ma to continue to act as both Chairman and Chief Executive Officer of the Company.

Directors' Securities Transactions

The Company adopted the required standard of dealings set out in the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, as part of its code of conduct regarding Directors' transactions in the securities of the Company. Specific enquiry has been made of all the Directors and all Directors confirmed that they had fully complied with the required standard of dealings and there was no event of non-compliance throughout the period from 1 April 2024 to the date of this announcement.

Audit Committee

The audit committee of the Company consists of three members, being the three independent non-executive Directors, namely Mr. Wong Kai Chi (Chairman), Ms. Poon Lai King and Ms. Kwan Shin Luen Susanna. The audit committee of the Company has reviewed the consolidated financial statements of the Group for the year ended 31 March 2025 and is of the opinion that the consolidated financial statements of the Group for the year ended 31 March 2025 comply with applicable accounting standards, the Listing Rules and that adequate disclosures have been made.

Events After The Reporting Period

Save as disclosed above, there were no important events subsequent to the end of the reporting period and up to the date of this announcement, which would affect the Group's business operations in material aspects.

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Scope of Work of Messrs. Deloitte Touche Tohmatsu

The figures in respect of the Group's consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 March 2025 as set out in the preliminary announcement have been agreed by the Group's auditor, Messrs. Deloitte Touche Tohmatsu, to the amounts set out in the audited consolidated financial statements of the Group for the year as approved by the Board of Directors on 19 June 2025. The work performed by Messrs. Deloitte Touche Tohmatsu in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by Messrs. Deloitte Touche Tohmatsu on this preliminary announcement.

By Order of the Board
Hypebeast Limited
Ma Pak Wing Kevin
Chairman and executive Director

Hong Kong, 19 June 2025

As at the date of this announcement, the executive Directors are Mr. Ma Pak Wing Kevin and Ms. Lee Yuen Tung Janice; and the independent non-executive Directors are Ms. Kwan Shin Luen Susanna, Ms. Poon Lai King and Mr. Wong Kai Chi.

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