Baijin Life Science Holdings Limited announced a sharp reversal for the financial year ended 31 March 2026 (FY26), reporting a loss attributable to shareholders of HK$37.87 million versus a HK$0.32 million loss a year earlier. Basic loss per share expanded to 4.49 HK cents from 0.05 HK cents.
\n\nRevenue fell 34.1% year on year to HK$89.30 million (FY25: HK$135.56 million). The decline was led by the core Jewellery Business, where sales dropped 44.8% to HK$63.57 million amid weaker U.S. demand and higher tariffs. Conversely, Skincare Business revenue advanced 26.4% to HK$25.73 million, partially cushioning the overall top-line contraction.
\n\nGross profit contracted 84.1% to HK$6.67 million, driving gross margin down to 7.5% from 31.0%. Key drags included an HK$8.96 million inventory impairment and lower‐margin clearance sales in the jewellery segment. Operating expenses rose markedly: selling expenses surged 542% to HK$19.72 million on brand promotion for skincare products, while administrative costs increased 10.1% to HK$37.71 million. A HK$13.00 million goodwill impairment tied to the 2024 Tonnett Group acquisition further weighed on earnings, though a HK$12.95 million fair-value gain on the company’s convertible bond partly offset these charges.
\n\nBy segment, the Jewellery Business recorded an operating loss of HK$7.65 million (FY25: profit HK$20.89 million). The Skincare Business widened its segment loss to HK$38.22 million (FY25: HK$25.12 million) due to heavy upfront investment in marketing and new retail initiatives. The Strategic Investment unit remained inactive after divestment of its co-working investment in July 2024.
\n\nBaijin closed FY26 with cash and cash equivalents of HK$43.11 million and bank borrowings of HK$13.68 million, giving a current ratio of 3.0 (FY25: 4.6). Net assets rose 23.3% to HK$192.25 million, supported by HK$63.63 million in equity raised through share subscriptions and the full conversion of a HK$31.50 million convertible bond into 119.86 million shares in October 2025, which eliminated HK$62.34 million of liabilities.
\n\nNo dividend was declared. Capital commitments for property, plant and equipment totalled HK$11.25 million.
\n\nManagement signals continued headwinds for U.S.-focused jewellery sales and plans to pivot toward China’s fine-jewellery market while scaling its “FO” branded skincare operations through company-run beauty salons and a flagship beauty club. Post-year-end, Baijin signed a framework agreement with Foryoung Biotechnology to collaborate on clinical cell-therapy development and granted 67.93 million share options at HK$0.54 each to incentivise key personnel.