Tan Chong International (693) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was HK$6.51 billion, down 1% year-over-year, while after-tax profit surged to HK$107.7 million from HK$28.0 million in H1 2024, reflecting improved cost controls and operational efficiencies.

• EBITDA rose 15% to HK$673.6 million, and operating profit margin improved to 5.1% from 3.7% year-over-year.

• Interim dividend of HK$0.02 per share (HK2 cents) declared, totaling HK$40.3 million, payable on 24 September 2025.

• Cost controls and operational efficiencies led to an 11% reduction in administrative expenses and a 29% drop in distribution costs (excluding certain subsidiaries).

Financial highlights

• Net gearing ratio was 49.3% as of 30 June 2025, with net debt at HK$6,330.4 million, up from HK$5,872.1 million at end-2024.

• ROCE improved to 1.9% in H1 2025 from 1.5% in H1 2024.

• Net asset per share increased to HK$6.37 from HK$6.04 at end-2024.

• Net cash generated from operating activities was HK$437.8 million, up from HK$368.7 million in H1 2024.

• Unrealised loss of HK$37 million on investments at fair value through OCI, compared to a gain of HK$262 million in H1 2024.

Outlook and guidance

• The group expects global economic conditions to remain complex, but operational improvements and cost controls provide a solid foundation for continued progress.

• Automotive division is positioned for growth with new Subaru hybrid and EV models and Nissan launches in H2 2025 and early 2026.

• The potential separate listing of ETHOZ Group is on hold, pending more favorable market conditions.