Good afternoon, ladies and gentlemen. Thank you for joining us today for Vitasoy's interim results briefing for fiscal year 2025 and 2026. Before we start, I would like to introduce you to the senior management of Vitasoy Group. Sitting in the middle of the hard table, we have Mr. Winston Lo, Executive Chairman of Vitasoy Group. On the right-hand side of Mr. Lo, we have Ms. May Lo, Deputy Executive Chairman. On Mr. Lo's left-hand side, we have Mr. Roberto Guidetti, Group Chief Executive Officer. Last but not least, we have Ms. Ian Ng, Group Chief Financial Officer. In the following presentation, we'll first have Ian to provide us with a review on the company's financial performance, followed by Roberto's presentations on the business review of different markets and the outlook. We'll then have a Q&A session. Now, let's invite Ian to speak to us. Ian, please.
Thank you, Angela. Good afternoon, ladies and gentlemen. Welcome to our interim results announcement briefing. Before we start our presentation, I would like to draw your attention to this disclaimer regarding the forward-looking statement in this presentation. For the six months ended 30th September 2025, the group's revenue decreased by 6% to HKD 3.2 billion as compared with last year, mainly due to weak demand, higher trade spend, and competitive pricing in the Chinese mainland operation. The gross profit margin decreased to 51.1%. The savings from favorable raw material costs and production optimization partially mitigated the adverse sales performance in the Chinese mainland operation. Profits from operations decreased by 4% to HKD 247 million, mainly attributable to a decline in gross profit. Profits to shareholders increased by 1% to HKD 172 million due to lower finance costs and income tax as compared with last year.
Earnings per share was HKD 16.2, increased by 2% compared to last year. Next, let's move on to CapEx. Capital expenditure for the period was HKD 57 million, slightly higher than last year. The financial position of the group remains strong. As of September 30th, 2025, cash on hand was HKD 1.27 billion. Net of bank borrowing and lease liabilities, cash on hand was HKD 671 million. The gearing ratio was 20%, and excluding lease liabilities, the gearing ratio was 11%. For the first half of the financial year, the group's return on capital employed remained at 14%. Taking into account the financial position and business development, the Board of Directors recommends an interim dividend of HKD 0.04 per ordinary share. This ends the first section of the presentation.
Now, I would like to invite our Group CEO, Mr. Roberto Guidetti, to share with you the by-market review and talk about the outlook of the group's business. Thank you.
Thank you, Ian. Let me now review with you our business results overall and by geography. Group revenue decreased 6% during the first half of the financial year. The decline was mainly attributable to our Chinese mainland unit, as we are accelerating our capabilities to win with the new winning retail channels amid softer market conditions. Hong Kong operations retained strong performance but were temporarily affected by Vitaland, Macau, and the exports of the United States. As for other markets, Australia and Singapore units sustained growth and improved their core business results. The group operating profit decreased by 4%. Our Chinese mainland unit's operating profit margin was in line with last year at 11%. Hong Kong operations' operating margin was at 12%, down 1.7 percentage points. Australia-Singapore units both improved their bottom line. We also continue to reduce corporate expenses through sustained and effective cost control.
As for the outlook for the second half of the financial year, we will continue to accelerate our capabilities of our Chinese mainland team to improve our top line. We are strengthening our resourcing to improve the performance in the general trade and also accelerate our growth in the new fast-developing channels like online commerce, club stores, and snack chains. Following some challenges in the first half of the year, Hong Kong operations will work to accelerate top-line growth in the second half. Australia-Singapore units continue to accelerate the top-line growth and further reduce the operating loss as compared with last year. While we recognize the short-term challenge in context, we stay confident in our long-term potential for continuous scaling up. Total group revenue decreased by 6% due to China underperforming, while Australia and Singapore increased revenues.
The Chinese mainland unit remains the biggest operation by revenue at 55% of the group, and our Hong Kong operations maintain 34% revenue of total group sales. Australia-New Zealand unit grew from 8% to 9% of total group revenue. On the operating profit, it was HKD 247 million, down 4% versus last year. The contraction is attributable to the decline in both our Chinese mainland and Hong Kong units. At the same time, both Australia and Singapore continue their bottom-line improvement, further reducing losses versus last year. The total result was also aided by our relentlessly driving cost reductions and efficiencies of corporate expenses. Let's now move on to the by-market review, starting with our biggest operation, China. China total revenue was HKD 2.9 billion, down 7% versus last year. Operating profit decreased by 14% to HKD 326 million. I will now cover separately the Chinese mainland and Hong Kong operation results.
Now, in Chinese mainland, the category yearly growth rates of plant milk and tea are slowing down. The plant milk category has declined by -10%, whilst the tea category has decreased growth from double- digit last year to only 5%, driven by the no-sugar segment, where we do not have a sizable presence. The general trade channel, by general trade channel we mean the independent Mom-and-Pop stores, is slowing down and is being challenged by online social and instant commerce, club stores, snack, and on-premises chains. During the period, we grew in the omnichannel and in the snack chains, proving the appeal of our portfolio when executed properly and relevantly. Whilst the plant milk market is experiencing a downward adjustment, Vitasoy, Vitasoy the brand, is growing our market share in both soy and overall plant milk.
Vita Tea is also gradually improving market share performance in the tea category, behind the launch of our new Vita Ya Shi Xiang Lemon Tea. Now, going forward, we're focusing and acting simultaneously at the same time on two fronts. In the slowing general trade channel, we're working on improving our route to market to secure a stronger presence and ability to execute in full our winning portfolio, expand the new white spaces, and also effectively leverage the yearly innovation. At the same time, in the growing new channels, we will work to provide and co-develop customized propositions. As we drive stronger execution of Vitasoy and Vita Tea, we will secure value competitiveness.
Now, moving to the Hong Kong operation, our Hong Kong beverage , our Hong Kong beverage operation performed strongly in the first half and sustained its leadership market shares in both plant milk and tea categories, confirming the strength of our equities and activities in this most established market. Despite a slower retail environment, particularly in the tea category, we were able to drive market share with creative product innovations like Vita Ya Shi Lemon Tea. Now, we experienced the short-term challenges in Macau, in Vitaland, and the exports to the United States. Macau was affected owing to slow economic recovery, and Vitaland was negatively impacted by lesser number of school days and frequent adverse weather conditions in the typhoon season.
The imposition of and the frequent change to the tariffs imposed by the United States have had a negative impact on our North American business, albeit not significant to the total group revenue. We're adjusting our commercial strategy as the tariff situation evolves. Let us go through the overseas markets, starting with the business in Australia and New Zealand. Revenue from Australia and New Zealand increased by 5% in local currency, reflecting our growth in a market where the adoption of plant milk continues to steadily develop. Riding on our recovered stability in manufacturing attainment, we were able to restore our activities and promotions with customers, thereby gaining penetration and market share with particular increases in the almond milk. We continue to drive our chilled category business with both the PET 1L and our yogurt platform that is now ever more adding net incremental business in this exciting new category.
At the same time, we have narrowed the loss in the first half as we improved operational efficiency and will stay focused to accelerate improvements in the second half. Now, moving on to the Singapore market, both our domestic and export tofu business continue to improve and gain momentum behind our disciplined execution and consistent price competitiveness. The imported beverage business is affected by lower-priced competitive products but showed resilience at consumer offtake level and potential for incremental growth in the second half of the financial year. At the same time, we have continued to drive cost reduction programs to reduce losses so to gradually return this unit to profitability. I would like to close the market review by providing you a brief update on our business in the Philippines.
In the Philippines, the plant-based category continues to grow very healthily, a double-digit year- on- year since our entry, with the oat and the almond segments now leading the growth. Our joint venture in the Philippines with Universal Robina Corporation, URC, continues to sustain the business. We are determined to keep driving scale and improving profitability in this exciting market. Now, in summary, the external macro and competitive environment on the category, on the media, and on the channels continue to evolve rapidly. We continue accelerating our capabilities to improve sales in our Chinese mainland unit. Our goal is to improve performance in the general trade whilst continuing to accelerate in new fast-developing channels. Our Hong Kong operation will work to accelerate growth in the second half of the financial year.
Australia and Singapore units will work to accelerate top line and more significantly reduce operating losses versus last year. While we recognize the short-term challenge in context, we stay confident in our long-term potential for continuous scaling up. That is all of our sharing.