Hong Kong-listed CH TREASURES NM (02439) saw its share price fall nearly 6% before the midday break on Tuesday, trading down 5.97% at HK$0.315, with a turnover of approximately HK$18.12 million.

According to the company's interim results for fiscal year 2026, revenue came in at RMB 145.5 million, a year-on-year decline of 5.4%, while profit attributable to shareholders dropped significantly by 47.9% to RMB 18.53 million. Basic earnings per share stood at RMB 1.72 cents.

The management attributed the revenue contraction to persistently weak domestic consumer demand, driven by a structural shift in shopping habits from brick-and-mortar stores to online channels, alongside increased adoption of substitute products. As a result, orders from existing clients—particularly chain supermarkets—have diminished, with sales of biodegradable shopping bags bearing a notable brunt of the slowdown.

Where to start

Investors tracking the bioplastics sector should note that the company's order book remains under pressure as consumer preferences continue evolving. The near-term outlook hinges on how effectively CH TREASURES NM adapts its product mix to capture demand from e-commerce and alternative retail formats.

Focus on key numbers

Beyond the headline profit slump, the earnings report underscores a widening gap between revenue stability and bottom-line deterioration, suggesting margin compression amid softer volume. The HK$0.315 price level reflects market concerns over sustained order softness into the second half of the fiscal year.