Ten Pao Group Holdings Limited reported interim revenue of HK$2.67 billion for the six months ended 30 June 2026, down 9.5% year on year, reflecting softer global demand and order delays. Operating profit dropped 50.9% to HK$123.97 million, while profit attributable to shareholders fell 49.1% to HK$107.72 million. Basic earnings per share declined to HK$0.10 from HK$0.21 a year earlier.
Gross profit narrowed 16.4% to HK$440.47 million as the gross margin contracted by 1.4 percentage points to 16.5%, pressured by elevated raw-material costs and a stronger renminbi. The operating profit margin fell to 4.6% from 8.6%.
Segment results were mixed. Consumer power supplies became the largest contributor, growing 9.6% to HK$1.33 billion and representing 50.0% of total sales. Media & entertainment revenue surged 142.7% to HK$538.77 million. In contrast, smart chargers and controllers slipped 13.3% to HK$1.01 billion, while new-energy products dropped 43.0% to HK$320.24 million. Telecommunications and lighting sales declined 22.4% and 20.8%, respectively.
Working-capital metrics weakened: inventory turnover stretched to 91 days from 80 days, and trade-receivable days lengthened to 108 from 94. Net cash used in operations totalled HK$467.17 million versus inflows of HK$99.65 million a year earlier, driven by higher component pre-buying and extended customer credit. Capital expenditure reached HK$90.27 million, mainly for the Huizhou Intelligent Manufacturing Industrial Park and R&D programmes.
Total borrowings rose to HK$958.12 million, lifting the gearing ratio to 41.8% from 36.6%. Cash and cash equivalents stood at HK$165.77 million, with HK$378.91 million in restricted deposits.
The board declared an interim dividend of HK$0.042 per share, equating to a 40.4% payout ratio and down from HK$0.062 a year earlier. Management cited improving order momentum heading into the traditional second-half peak season and remains focused on high-value-added opportunities in smart controllers, AI-related power supplies and green-mobility charging modules.
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