Performance Tongda Hong Tai reported 2025 revenue of HK$64.44 million, down 10.10% year on year, reflecting continued softness in notebook and tablet casing demand. Gross profit slipped to HK$2.40 million, trimming the gross margin to 3.70% from 4.50% in 2024. The net loss attributable to equity holders narrowed to HK$23.80 million (2024: HK$25.70 million), translating into a basic loss per share of HK11.65 cents versus HK15.69 cents a year earlier. The board proposed no dividend.
Cost and Expense Trends • 2025 selling and distribution expenses remained muted at HK$0.16 million. • General and administrative expenses dropped 37.70% to HK$4.77 million after continued cost-control measures. • Finance costs fell 16.30% to HK$11.02 million, aided by the restructuring of certain payables. • Net other operating expenses eased to HK$11.68 million from HK$12.31 million, helped by gains from asset disposals and lower lease-related costs.
Balance Sheet Highlights Cash and bank balances stood largely unchanged at HK$84.90 million. Trade and bills receivables fell 55.50% to HK$18.34 million, while inventories contracted 37.30% to HK$15.46 million. Current liabilities shrank to HK$41.07 million from HK$331.34 million, turning net current assets positive at HK$83.31 million (2024: net current liabilities of HK$170.89 million).
Non-current liabilities, mainly interest-bearing other payables, rose to HK$279.96 million, lifting total net liabilities to HK$196.09 million (2024: HK$171.39 million). The current ratio improved sharply to 3.03 (2024: 0.48), while the gearing ratio moderated to 101% from 109%.
Cash Flow & Liquidity The company highlighted a material uncertainty over going-concern status but detailed several measures to bolster liquidity: 1. Business restructuring to enhance operational efficiency and explore new opportunities. 2. Extension of HK$208.25 million in payables to March 2027. 3. A creditor’s undertaking not to demand repayment of HK$71.16 million within 12 months of the report date.
Operating Metrics • Inventory turnover improved to 59 days (2024: 152.3 days). • Trade and bills receivable turnover shortened to 84.3 days (2024: 188.1 days). • Headcount reduced to 13 permanent employees from 22, with total staff costs at HK$3.40 million (2024: HK$4.70 million).
Capital Expenditure & Funding No significant capex was recorded in 2025. Interest-bearing other payables totaled HK$279.41 million with interest rates ranging from 2% to 7.00% per annum. The HK$77.86 million raised via the May 2024 rights issue is earmarked primarily for debt repayment and general working capital; HK$7.90 million had been used by year-end 2025.
Outlook Management expects the operating environment to remain challenging amid geopolitical risks and subdued consumer demand, but sees opportunities in AI-capable notebook and robotics casings. The company will continue cost optimisation, pursue new material-trading business, and deepen R&D to diversify revenue streams.