Tat Seng Packaging Group posted a net profit attributable to shareholders of S$16.9 million for the year ended 31 Dec 2025, down 10.3 per cent year-on-year, as muted demand and keen price competition weighed on margins despite improved financing gains.

Earnings per share slipped to 10.74 Singapore cents from 11.98 cents a year earlier. The board declared a final tax-exempt dividend of 5.0 cents and a special dividend of 34.0 cents per share, in addition to the 1.0-cent interim dividend paid on 12 Nov 2025. The total FY2025 payout of 40.0 cents compares with 6.0 cents in FY2024, and is scheduled for payment on 16 Jun 2026 to shareholders on record as at 2 Jun 2026.

Group revenue fell 8.9 per cent to S$231.4 million as volumes declined and selling prices stayed under pressure. Singapore operations contributed S$42.3 million, down 7.9 per cent, while revenue from China shrank 9.1 per cent to S$189.1 million after a 5.3 per cent drop in sales volume and the weaker renminbi.

Operating profit before tax slid 13.7 per cent to S$20.9 million. By geography, pre-tax earnings from Singapore dipped to S$2.7 million from S$4.4 million, and China generated S$15.7 million versus S$18.1 million a year earlier. Group gross profit narrowed 14.3 per cent to S$48.4 million, partly offset by a 44.8 per cent rise in net finance income to S$2.5 million on higher fair-value gains and dividends from financial assets.

Headwinds included higher raw-material costs and continued excess capacity in China’s corrugated packaging sector, which intensified price competition. Foreign-exchange movements also eroded revenue translated into Singapore dollars.

Capital expenditure rose to S$10.6 million, focused mainly on production upgrades and automation projects. Net cash generated from operations amounted to S$27.2 million, enabling the group to lift net cash holdings to S$102.0 million even after paying S$7.2 million in dividends and reducing borrowings marginally to S$67.3 million.

Management noted that excess industry capacity in China and potential increases in input prices could continue to pressure margins over the next 12 months. The group will prioritise cost discipline, efficiency improvements and automation, while deepening engagement with key customers to secure new business opportunities.