Hong Kong-listed Ten Pao Group (Ten Pao) reported a sharp earnings contraction for the six months ended 30 June 2026, as weaker customer orders, higher input costs and RMB strength cut into profitability.
Financial performance • Revenue fell 9.5% year-on-year (YoY) to HK$2.67 billion. • Gross profit slid 16.4% YoY to HK$440.47 million; gross margin narrowed 1.4 ppts to 16.5%. • Profit attributable to shareholders dropped 49.1% YoY to HK$107.72 million; basic EPS declined to HK$0.10 from HK$0.21. • Operating profit roughly halved to HK$123.97 million, while net finance result moved to a small loss of HK$0.36 million versus a gain of HK$0.97 million a year earlier. • Interim dividend lowered to HK4.2 cents per share (2025 interim: HK6.2 cents), payable in cash or scrip.
Segment trends • Smart chargers & controllers: revenue fell 13.3% YoY to HK$1.01 billion, accounting for 38.0% of group sales. • Consumer power supplies (telecom, media & entertainment, lighting and others): revenue rose 9.6% YoY to HK$1.33 billion (50.0% of total). Media & entertainment sales surged 142.7% YoY, offsetting weakness in other niches. • New-energy business: revenue declined 43.0% YoY to HK$320.24 million, representing 12.0% of total.
Balance-sheet and cash flow • Net current assets stood at HK$440.20 million (31 Dec 2025: HK$417.28 million); current ratio held at 1.13x. • Total borrowings rose to HK$958.12 million; gearing ratio increased to 41.8% from 36.6%. • Net cash used in operations was HK$467.21 million, reversing an inflow of HK$99.66 million in the prior-year period, mainly due to higher inventory and receivables as the group locked in electronic components and extended credit to certain customers. • Capital expenditure reached HK$90.27 million, centred on property, plant and equipment; overall net cash outflow from investing activities was HK$87.66 million. • Financing activities generated HK$439.50 million, driven by additional short-term bank borrowings.
Management commentary and outlook Ten Pao cited volatile raw-material prices, a firm RMB and order deferrals as key headwinds in the first half. Management expects demand to improve in the seasonally stronger second half as customers resume replenishment and has highlighted continued investment in high-value smart controllers, AI-related power products and high-power charging modules. The company will maintain cost discipline, leverage its China-plus-overseas manufacturing footprint, and deepen relationships with core global clients to navigate market uncertainties.
Key dates • Ex-dividend date: 29 September 2026 • Books close: 2–6 October 2026 • Dividend payment / scrip share dispatch: on or about 16 November 2026
Auditor PricewaterhouseCoopers has conducted a review of the unaudited interim results in accordance with HKSR 2410. The board reports no significant post-period events up to the announcement date of 28 August 2026.
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