ATTT — FY2026 Financial Report Analysis

Profit doubled, but per-share earnings fell and the cash went the other way

Atlas Trinity Tech, which renamed itself from Raytech Holding and switched its Nasdaq ticker from RAY to ATTT on September 10, 2026, is a small Hong Kong company. Its core business is sourcing personal-care appliances (mostly hair dryers and trimmers) from contract factories in mainland China and wholesaling them to brand owners, chiefly a large Japanese appliance brand. In the fiscal year ended March 31, 2026 (its FY2026) it added two service businesses: Raytech Innovation, a product-design and advisory unit it started on October 1, 2025, and Worry free, a Hong Kong mobile-marketing agency it bought on December 29, 2025.

Those additions explain most of the headline growth. Revenue rose 81.1% to HKD 142.6 million (about US$18.2 million) and net income rose 101.9% to HKD 16.7 million. Two things cut the other way. Earnings per share fell 5.4%, because the share count more than doubled. And operations used HKD 14.5 million of cash during the year even though the company booked a profit. All figures are in Hong Kong dollars (HKD), the company's reporting currency. The HKD is pegged to the US dollar at about 7.8 to 1, and the filing translates at HKD 7.84 = US$1.

At a glance

• HKD 44.2 million of brand-new service revenue (31% of the total). It came from a unit that ran for six months and an agency the company owned for three. The legacy appliance business grew a more modest 25%.
• HKD 7.19 earnings per share, down from HKD 7.60. The weighted-average share count rose from 1.09 million to 2.32 million after a July 2025 share sale. Shareholders made less per share even as total profit doubled.
• Minus HKD 14.5 million of operating cash flow against HKD 16.7 million of profit. Unpaid customer bills (receivables) jumped from HKD 8.1 million to HKD 67.8 million. That is almost half a year's revenue sitting uncollected at year-end.

The numbers

Operating margin is the share of revenue left after the costs of running the business, before interest and tax. Share counts reflect the 16-for-1 share consolidation of November 2025, under which every 16 old shares became one new share. The company did this to keep its share price above Nasdaq's US$1 minimum.

Where the growth came from

The appliance business grew on hair dryers. Product sales rose 26.2% to HKD 95.6 million. The filing credits "an increase in sales of our hair styling series arising from new models engaged from customers": hair-styling revenue went from HKD 37.6 million to HKD 62.3 million. Trimmers, which drove the previous year's growth, fell 17% to HKD 27.8 million. Tooling (one-off charges for the molds behind a new model) slipped 4.3% as fewer new programs started. The margin on this business improved. After merchandise costs, product and tooling sales kept 25.2 cents of every dollar, up from 22.6 cents, because merchandise costs grew 20.8% while sales grew about 25%.

Two new service units contributed the rest:

The service units earned about 33% of revenue after direct costs, a higher margin than the appliance business. Together they produced HKD 9.2 million of segment profit, more than half of group net income. The appliance segment made HKD 13.3 million. The listed holding company's central costs (audit, legal, directors) produced a HKD 5.8 million loss.

Overhead more than doubled. Selling, general and administrative expenses rose from HKD 10.2 million to HKD 21.6 million. The largest item was legal and professional fees, which rose from HKD 2.6 million to HKD 8.3 million. The filing attributes this "primarily" to "newly incurred business consultancy fee regarding exploration to Middle East Market." Selling and marketing grew from HKD 33,314 to HKD 3.6 million, and HKD 1.5 million went to "development expenses for product technology."

What the headline numbers hide

• The profit hasn't turned into cash yet. Operations used HKD 14.5 million in cash while the company reported HKD 16.7 million of net income, a gap of about HKD 31 million. Receivables grew by HKD 40.8 million (excluding balances inherited with Worry free), and deposits and prepayments grew by HKD 20.7 million. Raytech Innovation's year-end receivable was HKD 21,943,236, the same figure as its entire revenue for the year. By March 31, the unit had not collected any cash for the work it billed. Management says all March 31 receivables "had been fully settled" by the 20-F filing date (July 31, 2026). That is reassuring if accurate, but a full-year cash flow statement is the only place that will show it. The legacy appliance business had generated cash in each of the two prior years: HKD 15.7 million and HKD 6.2 million.
• HKD 20.5 million (US$2.62 million) is sitting as deposits with two suppliers. These refundable deposits were placed by the appliance unit and have no fixed maturity. Management already reserves US$151,960 (5.8%) against them as a possible credit loss. That is a meaningful amount for a company whose year-end cash was HKD 78 million.
• Most of the Worry free purchase price is goodwill. The company paid US$6.1 million: US$4.1 million in cash plus a US$2 million two-year promissory note at 2%. It recorded HKD 43.8 million of goodwill on the deal. Goodwill is the premium paid above the value of identifiable assets, and here it is roughly 95% of the consideration at the note's fair value. A goodwill-impairment test, based on the company's own projected cash flows, put Worry free's value at HKD 68.7 million against a HKD 51.6 million carrying amount. Worry free earned HKD 5.8 million of segment profit in about three months on HKD 22.3 million of revenue, a 26% net margin. If that pace slows, that headroom shrinks quickly.
• Per-share results went backwards. The July 2025 follow-on offering, priced at US$3.20 per post-consolidation share, more than doubled the average share count. Profit growth did not keep up, so EPS fell 5.4%. A lower tax rate also helped the reported profit: 18.0% of pre-tax income versus 21.4%. Interest income fell from HKD 3.2 million to HKD 2.3 million.
• Dilution has continued since year-end, at falling prices. At March 31 there were 2.72 million shares. A June 2026 registered direct offering of 3.15 million shares at US$1.97 took the count to 5.87 million. On September 28, 2026 the company agreed to sell another 11.75 million shares at US$1.27 to 15 purchasers in a private placement, for gross proceeds of US$14.9 million, subject to closing conditions. If it closes, the count would be about 17.6 million shares, roughly 7.6 times FY2026's weighted average. Each sale has been priced below the last.
• Concentration on both ends. One customer accounted for 62.5% of revenue. Zhongshan Raytech, a factory affiliated with the company, accounted for 62.1% of purchases, down from 88.2%. At year-end the company owed that affiliate HKD 20.0 million. The filing also flags US tariffs on China-made goods as a risk to demand.
• No going-concern warning. The 20-F contains no going-concern language, the auditor's opinion is unqualified, and management says cash covers at least the next 12 months. Net current assets were HKD 97.1 million.
• Governance churn. In August 2026 the CFO and the audit-committee chair both resigned. The new audit-committee chair is CFO of a company whose ultimate owner is Liu Zhiwei, a shareholder and the father of the chairman appointed in April 2026, Liu Haoyuan. The filing also states that two investors in the June 2026 offering were affiliates of certain directors and of Liu Zhiwei.

Takeaway: The year's growth was mostly bought and then booked faster than it was collected. Nearly all of the profit increase came from two service units owned for three to six months, whose revenue was still almost entirely unpaid at year-end. Meanwhile the share count has been rising faster than profit at ever-lower prices. A per-share owner is worse off than the 101.9% net-income growth suggests.

Outlook

Management gives no numeric revenue or profit guidance. The 20-F's trend section names four things to watch. The first is continued expansion of the service businesses, which the company declared its strategic focus in April 2026. The second is how quickly the large receivable balance converts to cash. The third is "reliance on external financing," pointing to the June 2026 raise. The fourth is tariff uncertainty for China-made products. A new 60%-owned subsidiary, Fluxen, was formed in June 2026 for a future export-trading business but is dormant.

Our read: FY2027 revenue should grow mechanically, because Worry free will be included for twelve months instead of about three, and Raytech Innovation for twelve instead of six. That says little about underlying demand. Three tests matter more:

1. Operating cash flow turning positive in the half-year results to September 2026, which would confirm the receivables were collected as management states.
2. Whether the services margin holds once the units are compared with a full prior period rather than none.
3. Whether profit growth outruns dilution. With up to about 17.6 million shares outstanding if the September placement closes, net income would need to be several times FY2026's HKD 16.7 million just to keep EPS flat.

The appliance business looks steady and profitable on its own. The open question is whether the new services are a durable second engine or a source of reported profit that hasn't yet shown up as cash.

Source: Raytech Holding Limited (now Atlas Trinity Tech Limited) annual report on Form 20-F for the fiscal year ended March 31, 2026, filed July 31, 2026; subsequent events from Forms 6-K filed August 19 and September 1, 9 and 28, 2026.