Hong Kong-listed Tongda Group reported revenue of HK$2.36 billion for the six months ended 30 June 2026, down 5.1% year on year, as softer demand for consumer-electronics structural components outweighed gains in its household and sports-goods unit.
Profit attributable to owners fell 22.2% to HK$49.29 million, despite a HK$49.47 million tax credit that lifted group net profit to HK$67.50 million. Profit before tax dropped 80.4% to HK$18.03 million, reflecting higher operating costs and lower other income.
Segment performance diverged sharply. Sales from consumer-electronics structural components—still 70.9% of group turnover—declined 12.2% to HK$1.67 billion amid a 4.2% contraction in China’s smartphone shipments and cost pressure from rising component prices. Conversely, household and sports goods revenue rose 18.0% to HK$685.0 million, increasing its contribution to 29.1% of total sales and underpinning overall margin stability.
Gross profit slipped 5.8% to HK$342.13 million, but the margin held at 14.5% (H1 2025: 14.6%) on product-mix optimisation and cost controls. Selling and distribution expenses grew 7.5% to HK$27.16 million, while general and administrative expenses rose 9.8% to HK$339.85 million, partly due to renminbi appreciation and higher R&D spending on diversification into wearables and other electronics. Net finance costs decreased 19.7% to HK$20.44 million as average borrowings and interest rates edged lower.
Operating cash inflow reached HK$31.89 million. Cash and equivalents fell to HK$1.34 billion from HK$1.61 billion at end-2025, driven by HK$97.12 million in capital expenditure—largely for expanding household and sports-goods capacity. The group remained in a net cash position; total borrowings stood at HK$885.69 million, while pledged bank deposits were HK$306.47 million.
Total assets declined to HK$6.78 billion (31 December 2025: HK$7.06 billion), and equity increased to HK$3.28 billion, supported by exchange gains. The board did not declare an interim dividend.
Management signalled a continued focus on shifting the product portfolio toward higher-growth categories, expanding overseas manufacturing in Vietnam and Malaysia, and driving automation to mitigate cost pressures and reduce reliance on the volatile smartphone market.
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