Tycoon Group Sustains Profitability: 2026 Interim Results Net Profit Surges 183% Year-on-Year

Business Demonstrates Strong Resilience,

Profitability Continues to Materialise

Results Highlights

• Tycoon Group sustained its turnaround success from the previous year, recording a net profit of approximately HK$6.3 million during the Period (1H2025: net loss of approximately HK$7.7 million), representing a year-on-year increase of 182.6% and successfully turning loss into profit compared to the Last Period.
• During the Period, the Group recorded revenue of approximately HK$496.1 million, representing a slight decrease of 2.7% compared to HK$510.1 million for 1H2025.
• Facing severe challenges such as rising operational costs, shifts in the spending patterns of both local consumers and Individual Visit Scheme travellers, and the appreciation of the Hong Kong dollar, the Group's overall revenue decreased only slightly, demonstrating the strong resilience of the Group's business in adversity. The Group will continue to closely monitor market conditions, flexibly adjust strategies according to consumer preferences, and optimise its product mix, striving to increase revenue. Concurrently, the Group will adopt stringent cost control measures; coupled with the traditional peak consumption season in the second half of the year, revenue in the second half of 2026 is expected to improve, continuing on its profitable track.
• Leveraging its extensive practical experience in the Southeast Asian market, the Group seized opportunities to adjust its market strategies, proactively optimising its product mix, strategically reducing the proportion of products with relatively low gross profit margins, and actively exploring and introducing high-quality products with relatively higher gross profit margins. Although the Group's overall distribution sales in the Southeast Asian market recorded a decrease during the Period, the Group's businesses in Singapore and Malaysia both recorded improvements in gross profit margins following the product structure adjustment. This strategic portfolio restructuring is believed to bring higher-quality, more stable, and more sustainable revenue streams to the Group.
• The Board has resolved not to declare any interim dividend for 1H2026 (1H2025: Nil).

HONG KONG, Aug. 29, 2026 /PRNewswire/ -- Tycoon Group Holdings Limited ("Tycoon Group"; Stock Code: 3390), a reputable Hong Kong-based omnichannel marketing and management service integrator of healthcare and wellbeing-related products, announces the unaudited condensed consolidated interim results of the Group for the six months ended 30 June 2026 ("Period" or "1H2026").

Sustaining Last Year's Turnaround Success, Returning to a Profitable Track
Following the full-year turnaround from loss to profit in 2025, the Group recorded a net profit of approximately HK$6.3 million for its 2026 interim results (1H2025: net loss of approximately HK$7.7 million), representing a year-on-year increase of 182.6% and sustaining the profitable momentum from the previous year. During the Period, the Group recorded a slight decrease in revenue of 2.7% to approximately HK$496.1 million (1H2025: HK$510.1 million). Facing severe challenges such as rising operational costs and shifts in the spending patterns of both local consumers and Individual Visit Scheme travellers, the Group's overall revenue decreased only slightly, demonstrating the strong resilience of the Group's business in adversity. The Group will continue to closely monitor market conditions, flexibly adjust strategies according to consumer preferences, and optimise its product mix, striving to increase revenue. Concurrently, the Group will adopt stringent cost control measures; coupled with the traditional peak consumption season in the second half of the year, revenue in the second half of 2026 is expected to improve, continuing on its profitable track.

In the first half of 2026, in Hong Kong, due to weakened consumer purchasing desire, Hong Kong distribution sales amounted to HK$238.8 million, representing a year-on-year decrease of 7.2% (1H2025: HK$257.4 million); Macau distribution sales were HK$43.7 million, representing a year-on-year increase of 1.8% (1H2025: HK$42.9 million). During the Period, due to the Group's adjustment of its Southeast Asian market strategy, proactive optimisation of its product mix, strategic reduction in the proportion of products with relatively low gross profit margins, and active addition of higher-margin products, total distribution sales in the Southeast Asian market recorded HK$23.6 million, representing a year-on-year decrease of 45.2% (1H2025: HK$43.1 million). In particular, Singapore distribution sales recorded HK$17.8 million, down by 51.4% year-on-year, whilst Malaysia amounted to HK$5.7 million, representing a decrease of 9.4%. The Group expects to progressively expand into more Southeast Asian countries in the future, with the higher gross profit margin sales of the Southeast Asian distribution business expected to achieve healthier growth.

Leveraging Practical Overseas Expansion Experience in Southeast Asia to Strategically Restructure Product Mix and Increase High-Margin Products, Paving the Way for New Milestones
Notably, the Group's development in the Southeast Asian market continued to progress. As one of the few in the industry to take the lead in expanding overseas and establishing local roots, the Group possesses extensive practical experience in local markets and seized the opportunity to adjust market strategies. Although the Group's overall distribution sales in the Southeast Asian market recorded a decrease during the Period, this was due to the Group's proactive optimisation of its product mix, strategically reducing the proportion of products with relatively low gross profit margins, and actively exploring and introducing high-quality products with relatively higher gross profit margins. In particular, the Group's businesses in Singapore and Malaysia both recorded improvements in gross profit margins during the Period following the product structure adjustment, affirming the prudence of the Group's strategic expansion into Southeast Asia in recent years.

Omnichannel Brand Marketing and Management Services for Brands
Meanwhile, the Group acts as the distributor for numerous overseas brands, including the exclusive agency for Kuku Bima Ener-G!, the flagship energy drink powder product of Sido Muncul, a leading Indonesian herbal pharmaceutical brand, in the food and beverage channel in Malaysia; the exclusive agency for Unichi, popular bear-shaped hair growth gummies, in Hong Kong; the exclusive agency for Japanese hair loss prevention and care brand Kaminowa in Hong Kong, Macau, and Singapore; and the exclusive agency for Helaslim, a popular Japanese slimming and beauty brand, in Singapore. The Group has also secured exclusive distribution rights for PNKids, a leading children's multivitamin brand in Singapore, covering Singapore and Malaysia; distribution rights for plu, a popular Korean body care brand, in Hong Kong, Macau, Singapore, and Malaysia; and the Group has been appointed as the general distributor for the well-known Mainland brand Dong-E-E-Jiao (東阿阿膠) in Hong Kong.

The Group maintains a long-term partnership with JBM (Healthcare) Limited ("JBM" (HKEX Stock Code: 2161), together with its subsidiaries, the "JBM Group"). The Group represents numerous time-honoured brands under the JBM Group that are renowned in Hong Kong, Mainland China, and Southeast Asia, including the century-old Li Chung Shing Tong Po Chai Pills (李眾勝堂保濟丸), Ho Chai Kung (何濟公), Flying Eagle Medicated Oil (飛鷹活絡油) from Europharm, and products under Tin Hee Tong (天喜堂), including its flagship product Tin Hee Tong Tin Hee Pills (天喜堂天喜丸), which enjoys strong brand recognition in Hong Kong and Mainland China. Notably, the Group has been granted the exclusive agency rights in Singapore and Cambodia for Li Chung Shing Tong Po Chai Pills, and the exclusive agency rights in Singapore for Europharm Singapore products.

Strengthening R&D of High-Gross-Margin Self-Owned and Collaborative Brand Products
In addition to its agency brand business, the Group continues to actively expand its self-owned brand products. Popular brands include Boost & Guard Pro (BG Pro 博健專研) and Craft by Wakan (和漢匠心). Collaborative brands include Kinmen Qiangxiao (金門強效), SEASONS (田心日辰), and MiTime. To date, the Group has registered over 60 self-owned brand product trademarks. Best-selling products include Craft by Wakan Japanese Probiotics (和漢匠心日本多元益生菌), BG Pro Dr. Growth Calcium (BG Pro博健專研長高鈣), and BG Pro Ultra Purity Deep Sea Fish Oil (BG PRO 博健專研頂級深海魚油), while collaborative brand products include Kinmen Qiangxiao I-Tiao-Gung Plaster (金門強效一條根精油貼布), SEASONS NMN 40000 (田心日辰逆轉齡 NMN 40000), and MiTime Kids DHA 60 Softgels (MiTime兒童魚油藻油DHA).

The Group closely monitors market demands and continuously upgrades and improves (i) its popular self-owned brand products, including Craft by Wakan Japan Liver Boost EX (和漢匠心日本護肝盾EX), Craft by Wakan Japan Joint Active (和漢匠心日本活關腱), and BG Pro CoQ-10 (BG Pro 博健專研醫學級輔酶Q10); and (ii) collaborative brand products, including Kinmen Qiangxiao I-Tiao-Gung Pain Relief Penetrating Liquid (金門強效一條根滲透鎮痛露) and Kinmen Qiangxiao I-Tiao-Gung Pain Relief Roller Cream (金門強效一條根滾珠鎮痛膏). The Group is also actively collaborating with two major local personal care product chain stores to launch new products tailored to local consumer needs and establish a comprehensive sales channel network.

Regarding collaborative brands, to complement the Group's strategy of strengthening own brand development, Mr. Wong Ka Chun Michael, the Group's Chairman, Executive Director and Chief Executive Officer, acquired in his personal capacity the century-old Hong Kong brand Po Wo Tong and collaborates with the Group to launch and sell more new products, injecting new vitality into this time-honoured brand with over a century of history. The Group has also invited renowned actress Ms. Selena Lee (李施嬅小姐) as spokesperson for the flagship best-selling products Po Wo Tong Dampness Removing Pills (寶和堂祛濕丸) and Po Wo Tong Dampness Removing Bath Capsule (寶和堂祛濕浸泡珠). Meanwhile, during the last financial year, the Group established the pop-up "Po Wo Tong Wellness Concept Store" at Harbour City shopping mall in Tsim Sha Tsui, which is popular among Mainland tourists and local consumers, allowing more young people and travellers to become acquainted with Po Wo Tong.

Mr. Wong Ka Chun Michael, Chairman and Chief Executive Officer of Tycoon Group, said, "The Group has successfully maintained the positive turnaround momentum from FY2025, with profitability continuing to materialise, affirming that the Group's operational strategies are well-directed and that our business demonstrates strong resilience. In the first half of this year, leveraging extensive practical experience in the Southeast Asian market, management decisively optimised and upgraded the local product portfolio, strategically reducing the proportion of products with relatively low gross profit margins and focusing resources on more high-margin, premium products. Although this forward-looking strategy moderately affected overall distribution sales in Southeast Asia in the short term, the Group firmly believes that following a brief transition period, it will generate higher-quality, more stable, and more sustainable revenue streams. With the steady expansion of our Southeast Asian operations, coupled with the brand collaborations, product R&D, and cost-reduction and efficiency-enhancement initiatives actively pursued in recent years, the Group's core profitability is fully on track, and we look forward to continuing to create greater value and higher profitability."

About Tycoon Group Holdings Limited (Stock Code: 3390)
Tycoon Group is a reputable omnichannel marketing and management service integrator of healthcare and wellbeing-related products in Hong Kong. The Group specialises in providing one-stop omnichannel services for proprietary Chinese medicines ("PCM"), health supplements, skincare, personal care and other healthcare products, including brand agent, promotion and marketing, management, distribution and sales. Through years of dedicated efforts, the Group supplies to nearly 100,000 online and offline sales points across Hong Kong, Macau, the PRC and Southeast Asia, selling products from over 300 local and overseas brands and offering more than 2,000 products, with the mission of bringing health and vitality to consumers in Mainland China, Hong Kong, Macau and Asia-Pacific. The Group actively develops self-owned brands, including "Boost & Guard Pro", " Craft by Wakan", and collaborative brands such as "Kinmen Qiangxiao". The Group also collaborates with Po Wo Tong, a century-old Hong Kong brand, to launch and sell more popular products. The Group is one of the major distributors for PCM in Hong Kong and has established sound relationships with the top two personal care product chain retailers in Hong Kong. For more details, please visit the Group's official website: https://www.tycoongroup.com.hk/