Tungtex (Holdings) Company Limited (00518) released its unaudited interim results for the six months ended 30 September 2025. Revenue stood at HK$279.6 million, reflecting a 13.5% year-on-year decline compared to HK$323.3 million in the same period of 2024. Gross profit amounted to HK$54.2 million with a gross margin of 19.4%, up from 16.0% in the prior period.

Loss before tax narrowed by 52% to HK$7.3 million, compared to HK$15.2 million in the previous year. Net loss attributable to owners of the company was HK$7.6 million, improving from HK$14.8 million. Basic and diluted loss per share stood at 1.7 HK cents. No interim dividend was proposed for the reporting period.

Revenue in North America declined by 23.3% year-on-year to HK$101.1 million as trade policy uncertainties and sluggish demand affected export orders. Asia remained the largest contributor with HK$162.8 million in sales, although the regional figure showed an 8.4% decrease. Management emphasized operational efficiency enhancements, cost control measures, and continued focus on expanding production capacity in Vietnam to adapt to shifting demand.

The group maintained a stable financial position, ending the period with approximately HK$146.0 million in bank balances and HK$105.4 million in pledged deposits. Short-term bank borrowings declined to HK$53.3 million, down from HK$74.1 million as at 31 March 2025, translating to a gearing ratio of 14.5%. Capital expenditure reached HK$0.6 million, primarily for regular upgrades of production facilities.

As of 30 September 2025, the company employed around 1,400 staff. Management reiterated a cautious outlook amid global economic uncertainties, citing tightened procurement and expense controls alongside prudent working capital and cash flow management as key strategies going forward. The interim report is accessible on both the company website and Hong Kong Stock Exchange website.