Tian Chang Group unveils advanced manufacturing roadmap, new Huizhou magnesium-alloy plant; supplements 1H 2026 loss alert

Bulletin Express
08/12

Tian Chang Group Holdings Ltd. (TIAN CHANG GP, 02182) released a voluntary announcement detailing its long-term strategy, major capacity expansion and an update to its profit warning for the six months ended 30 June 2026.

The Board positions the company as an “Integrated Advanced Manufacturing Platform,” leveraging accumulated strengths in product engineering, precision tooling, injection moulding, surface finishing, automated assembly and mass-production management. Its tooling capability already meets Grade H tolerance under GB/T 47067-2026 for high-precision plastic parts, underscoring the platform’s technical depth across multiple end-markets.

Recent diversification includes precision tooling and plastic component projects for Smart Manufacturing Equipment and Smart Agricultural Equipment. These programmes are in development and mass-production preparation, with initial ramp-up targeted for the second half of 2026.

To extend into lightweight metals, Tian Chang is building a semi-solid magnesium alloy injection moulding capability (Magnesium Thixomolding Platform). Early customer engagement is underway in three principal sectors: new-energy vehicles, AI-related equipment and other high-end precision products.

Supporting this expansion, the Group will construct a new manufacturing facility in Huizhou, Guangdong. Ground-breaking is slated for the second half of 2026, with phased commissioning from the first half of 2027. The project—classified as a major transaction under HKEX Chapter 14—has secured written shareholder approval; a circular will be dispatched in due course.

Management will prioritise: 1) continual upgrades in engineering, automation and mass-production capability; 2) deeper penetration into advanced materials and lightweight applications; 3) broader customer and industry coverage to enhance revenue mix; and 4) timely execution of the Huizhou facility to anchor the next growth phase.

Supplementing its earlier profit warning, the Board confirmed that the expected interim loss stems from: • softer demand for solar energy system products, reducing order volumes; • customer supply-chain diversification towards Southeast Asia, lowering office electronics orders; and • gross-margin contraction as largely fixed overheads were spread over lower production and sales volumes.

The announcement reiterates that project timelines and commercial outcomes remain subject to market conditions, customer requirements and regulatory approvals. Shareholders and investors are advised to exercise caution when dealing in the company’s securities.

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