Ta Yang Group reported unaudited revenue of HK$376.91 million for the six months ended 30 June 2026, up 29.7% year on year, driven mainly by a 44.0% surge in Digital Marketing revenue to HK$268.32 million. The Digital Marketing segment contributed 71.2% of total turnover, against 64.1% in the prior-year period.
Gross profit fell 57.4% to HK$26.35 million as cost of sales rose 53.3% to HK$350.57 million, compressing the gross margin to 7.0% from 21.3% a year earlier. After finance costs of HK$13.92 million and operating expenses, the Group swung to a pre-tax loss of HK$11.39 million (1H 2025: HK$2.43 million profit). Net loss attributable to shareholders narrowed 14.5% to HK$10.35 million, equal to a loss per share of HK7.01 cents.
Segment performance: • Silicone Rubber products generated HK$106.63 million (+4.5%), accounting for 28.3% of Group revenue. Segment profit slid to HK$1.34 million (1H 2025: HK$14.12 million). • Digital Marketing delivered HK$268.32 million (+44.0%) with a segment loss of HK$1.77 million versus HK$24.23 million profit last year, reflecting higher traffic-acquisition and monitoring costs. • Retail services in the UK produced HK$1.97 million (-16.0%) and a HK$0.55 million loss. • Healthcare and Hotel services recorded no revenue but booked HK$13.70 million segment profit, largely from a HK$25.15 million gain on disposal of property, plant and equipment.
Operating cash flow was negative, and cash and cash equivalents stood at HK$12.79 million at period-end, down from HK$23.89 million at 31 December 2025. The current ratio remained weak at 0.73 (FY-end 2025: 0.69), while net current liabilities narrowed to HK$185.82 million. Aggregate borrowings (excluding convertible bond) reached HK$224.61 million, raising the gearing ratio to 40.01%.
Management continues to prioritise cost controls, working-capital discipline and selective capital expenditure—HK$5.97 million in commitments relate chiefly to expansion of silicone production capacity. The Board declared no interim dividend.
Key post-period development includes an ongoing share capital reorganisation and a proposed two-for-one rights issue, with the circular slated for dispatch by 11 September 2026, subject to regulatory and shareholder approvals.
The Group highlights sector-specific risks—volatile raw-material costs in Silicone Rubber and Retail, intensified competition across all business lines, credit exposure amid tight liquidity, and legal proceedings including a winding-up petition adjourned to 21 September 2026.
Ta Yang Group plans to maintain investment in higher-value silicone applications, improve digital-marketing efficiency, and evaluate the future of its underperforming Healthcare and Hotel segment while monitoring macroeconomic conditions and regulatory developments.
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