Tungtex (Holdings) Company Limited reported audited results for the year ended 31 March 2026.

Revenue and Margin • Group revenue fell 15.3 % year-on-year to HK$567.02 million, driven chiefly by a 32.8 % contraction in North American sales to HK$209.54 million. • Asia remained the largest market, contributing HK$332.10 million, broadly flat versus the prior year and accounting for 58.6 % of revenue. • Gross profit narrowed 9.3 % to HK$110.88 million, yet the gross margin improved to 19.6 % (FY 2024/25: 18.3 %) owing to operational efficiencies and tighter cost control.

Earnings • Loss attributable to owners expanded to HK$14.99 million from HK$9.93 million; basic and diluted loss per share increased to HK3.3 cents (FY 2024/25: HK2.2 cents). • Group loss before tax stood at HK$14.69 million versus HK$9.87 million a year earlier. • EBITDA swung to a negative HK$4.43 million from a positive HK$2.85 million. • An impairment charge of HK$2.93 million on property, plant, equipment and right-of-use assets, alongside a HK$0.52 million impairment on financial assets, weighed on earnings. A HK$0.97 million fair-value gain on investment property provided partial offset.

Cost Structure • Selling and distribution expenses declined 19.1 % to HK$53.22 million on lower freight, shop rental and promotional spending. • Administrative expenses edged up 5.5 % to HK$77.46 million, mainly due to higher depreciation and other overheads. • Finance costs fell 31.9 % to HK$2.60 million, reflecting reduced borrowings and lower interest rates.

Working Capital and Cash Position • Inventory turnover improved to 56 days (FY 2024/25: 58 days); trade receivable days shortened to 48 (FY 2024/25: 57). • Cash and bank balances, including pledged deposits, reached HK$253.02 million. After deducting HK$105.45 million in pledged deposits and HK$62.47 million in short-term borrowings, net cash stood at HK$85.10 million. • Gearing ratio (total bank borrowings to total equity) was 17.0 %.

Dividend The board recommends no final dividend (FY 2024/25: HK0.5 cent per share).

Outlook Management expects ongoing macro and geopolitical headwinds—particularly U.S. tariff volatility—to constrain North American demand. The Group plans to deepen Asian market penetration, expand Vietnam capacity, and intensify cost-control initiatives while leveraging digital-first retail strategies in mainland China.