Ten Pao (1979) investor relations material

Executive summary

• Revenue for H1 2026 declined 9.5% year-over-year to HK$2,666.8 million due to weaker market demand and a high base in the prior year.

• Operating profit dropped 50.9% to HK$123.97 million, with profit attributable to owners down 49.1% to HK$107.7 million; basic EPS decreased to HK10 cents from HK21 cents.

• Gross profit margin decreased to 16.5% from 17.9%, reflecting higher raw material costs and RMB appreciation.

• Interim dividend of HK4.2 cents per share declared, with a scrip option, representing a payout ratio of 40.4%.

• The group maintained stable business relationships with global brands, leveraged its diversified product portfolio, and was recognized as a “National Green Factory” in China.

Financial highlights

• Revenue: HK$2,666.8 million (down 9.5% YoY).

• Operating profit: HK$123.97 million (down 50.9% YoY).

• Gross profit: HK$440.5 million (down 16.4% YoY); gross margin: 16.5%.

• Profit attributable to owners: HK$107.7 million (down 49.1% YoY).

• Basic EPS: HK10 cents (down from HK21 cents YoY); interim dividend: HK4.2 cents per share (payout ratio 40.4%).

Outlook and guidance

• Expects business recovery in H2 2026 as customer orders show signs of rebound and the second half is typically a peak season.

• Will focus on high-growth areas such as energy storage, AI server power supplies, and smart controllers, with increased R&D and production efficiency.

• Plans to enhance production efficiency and invest in automation and intelligent logistics.

• Confident in long-term prospects, with ongoing capacity upgrades and global sales network expansion.