Happy City Holdings Ltd
HCHL · Retail-Eating Places · EDGAR filings ↗
Grade
D43Small Hong Kong hotpot chain that swung to a heavy loss on falling revenue, with bottom-decile margins and sub-1 liquidity.
Strengths
- Cash runway ~6.8 quarters (84.6th pct) provides some buffer
- Cost of revenue held flat despite the sales decline
Risks
- Net margin -35.7%, operating margin -33%, ROE -110% — all bottom-decile; revenue down 18% (2.2nd pct)
- Current ratio 0.83 (<1) and debt/equity 1.43; cross-border dining competition pressuring demand
Notable findings
- Net lossNet loss (net margin -35.7%)
- Cash burnNegative free cash flow (-2.2M)
- Weak liquidityCurrent ratio 0.83 (<1)
- Revenue declineRevenue -18.0% YoY
Key metrics
Gross margin
12.6%
Operating margin
-33.4%
Net margin
-35.7%
Return on equity
-110.1%
Return on assets
-30.3%
ROIC
-33.5%
Revenue growth (QoQ)
-18.0%
Net-income growth
-284.1%
Debt / equity
1.4×
Current ratio
0.8×
Free cash flow
-$2M
Tangible book value
$2M
Cash & investments
$4M
Cash runway
7q
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 20-F | 2026-01-14 | 2025-08-31 | 0001213900-26-004364 ↗ |