Tongda Group Holdings Limited (the "Group") has announced a turnaround in its financial performance for the year ended 31 December 2025 (“FY2025”). According to management’s preliminary assessment, profit attributable to owners of the Group is anticipated to range from approximately HK$115 million to HK$125 million, compared to a loss of around HK$3,942 million in the previous year (“FY2024”).

The improvement is primarily linked to the absence of one-off non-cash asset impairment losses that impacted FY2024 results. Additionally, a marked rise in the Group’s overall gross profit margin is expected, increasing from a gross loss margin of 5.9% in FY2024 to around 15.5% to 16.5% in FY2025. Key contributors include reduced depreciation expenses after significant asset impairment provisions at the end of FY2024, alongside lower inventory provisions due to a strategic shift toward higher-margin orders and optimized customer partnerships.

The Group also expects a decrease in overall administrative and R&D expenses, mainly due to the completion of the disposal of its high-precision components business in early April 2024. The final audited consolidated results for FY2025 are set to be published by the end of March 2026. Shareholders and potential investors are advised to exercise caution in dealing in the Group’s shares.