Namyue Holdings Narrows Loss but Leverage Climbs on Shift Toward Subcontracted Processing

Guangdong Tannery Limited ( (HK:1058) ) has issued an update.

Namyue Holdings Limited reported a sharp 80.3% surge in subcontracted leather processing volume to 34.2 million square feet in 2025, but cowhide sales volume fell 34.8%, driving a 20% decline in revenue to HK$71.3 million. Despite the weaker top line, gross profit improved significantly and the annual loss narrowed to HK$14.2 million from HK$33.8 million as the group reduced selling and administrative expenses and recorded higher other operating income.

Key balance sheet indicators deteriorated, with total assets down 15.8%, the debt‑to‑asset ratio rising to 92.3%, and net asset value per share dropping to HK$0.01, underscoring elevated leverage and a weakened capital base. The mixed results highlight an operational pivot toward subcontract processing and better cost control, but also signal ongoing financial pressure and heightened risk for shareholders and creditors given the low liquidity ratios and high gearing.

The most recent analyst rating on (HK:1058) stock is a Hold with a HK$0.32 price target. To see the full list of analyst forecasts on Guangdong Tannery Limited stock, see the HK:1058 Stock Forecast page.

More about Guangdong Tannery Limited

Namyue Holdings Limited, formerly known as Guangdong Tannery, operates in the leather processing industry with a focus on subcontracted leather processing and cowhide sales. The Hong Kong‑incorporated group serves downstream manufacturers by providing processed leather materials, positioning itself as a niche supplier in the regional leather value chain.

Average Trading Volume: 80,008

Technical Sentiment Signal: Sell

Current Market Cap: HK$182.9M

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