Tian Chang Group Holdings reported a HK$33.30 million attributable loss for the six months ended 30 June 2026, widening from HK$11.59 million a year earlier, as softer customer demand curtailed revenue and squeezed margins.

Revenue fell 31.6% year on year to HK$173.85 million, driven by a 33.6% slide in the core Integrated Advanced Manufacturing Solutions (IAMS) business to HK$153.15 million. Sales from Advanced Consumer & Industrial Products (aerosol technology) retreated 14.3% to HK$19.19 million, while Medical Consumable Products inched up 36.4% to HK$1.51 million.

Group gross profit dropped 47.1% to HK$25.45 million, cutting gross margin to 14.7% from 19.0%. IAMS margin compressed to 15.1% (1H25: 20.0%) as fixed manufacturing overheads were spread over lower volumes. The aerosol segment held margin steady at 11.5%, and medical consumables swung to a modest HK$0.09 million profit after a prior-year inventory write-down.

Operating costs remained elevated: administrative and other operating expenses edged up 3.9% to HK$55.64 million, while other items swung to a HK$3.63 million net loss, mainly on foreign-exchange movements. Finance costs eased 44.2% to HK$0.43 million amid lower average borrowing costs.

Cash and cash equivalents stood at HK$125.80 million on 30 June 2026, against HK$132.24 million at end-2025. Interest-bearing borrowings rose to HK$57.94 million, lifting the gearing ratio to 8.8% (31 Dec 2025: 1.2%). Net assets slipped marginally to HK$748.04 million. The board declared no interim dividend.

Capital expenditure reached HK$66.76 million, largely for land use rights and machinery; outstanding capex commitments totalled HK$36.70 million. Post-period, a wholly owned subsidiary signed a RMB149.30 million (HK$173.50 million) contract to build a new magnesium thixomolding and advanced-materials facility in Huizhou, with operations targeted for 1H27.

Management cited subdued demand for solar energy system components and customer supply-chain shifts to Southeast Asia as key headwinds but reaffirmed ongoing investment in precision tooling, automation and advanced materials to support future growth.