Tan Chong International Announces Q3 2025 Financial Results of Subsidiary Zero Co., Ltd.

Key Highlights from Zero Co., Ltd.’s Q3 2025 Results

• Zero Co., Ltd. (“Zero”) Reports Unaudited Financials: Tan Chong International Limited (TCIL) has announced the unaudited results for the three months ended 30 September 2025 for its non-wholly owned subsidiary, Zero Co., Ltd., which is listed on the Tokyo Stock Exchange Standard Market.
• Results Prepared Under IFRS: The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
• Summary of Results:
  • Sales Revenue: ¥35,453 million, an increase of 3.3% year-on-year.
  • Operating Income: ¥2,510 million, a decrease of 7.9% year-on-year.
  • Profit Before Tax: ¥2,516 million, a decrease of 7.3% year-on-year.
  • Quarterly Income: ¥1,754 million, a decrease of 7.5% year-on-year.
  • Profit Attributable to Equity Shareholders: ¥1,747 million, a decrease of 7.4% year-on-year.
  • Total Comprehensive Income: ¥2,046 million, an increase of 17.9% year-on-year.
• Earnings Per Share:
  • Basic and Diluted EPS: ¥103.10 for Q1 FY2025/2026, down from ¥111.55 in the prior year period.
• Financial Position:
  • Total Assets: ¥71,541 million (down from ¥73,948 million at FY2024/2025 end).
  • Total Capital: ¥43,970 million (slightly up from ¥43,530 million).
  • Equity Attributable to Equity Shareholders: ¥43,313 million.
  • Equity Ratio: 60.5% (up from 58.0%).
• Dividend Information:
  • FY2024/2025 Actual: Total annual dividend of ¥139.90 per share (including ¥43.00 interim and ¥96.90 year-end).
  • FY2025/2026 Forecast: Total forecast dividend of ¥140.30 per share (with ¥56.00 interim and ¥84.30 year-end), representing a slight increase.
  • No Amendments to Latest Dividend Forecast.
• Access to Full Report: The full Japanese report is available on the TSE website, while an English translation has been posted as an overseas regulatory announcement on the HKEX and Tan Chong’s own website.

Implications and Shareholder Considerations

• Potential Share Price Sensitivity:
  • The modest increase in sales revenue is a positive sign of ongoing operations, but the year-on-year declines in operating income, profit before tax, and profit attributable to shareholders may raise concerns about profitability and operational efficiency.
  • The improved equity ratio (60.5% vs 58.0%) reflects a stronger balance sheet, which is generally positive for shareholder confidence.
  • The increase in the dividend forecast for FY2025/2026 (¥140.30 vs ¥139.90) signals confidence in future cash flows and could support share price stability or growth.
  • Total comprehensive income saw a significant 17.9% increase, indicating positive gains outside of core profit, possibly from other comprehensive income items, which may warrant further investigation by investors.
• Regulatory and Transparency Notes:
  • This announcement was made to comply with Hong Kong regulatory requirements and to provide timely and material information to investors.
  • Shareholders should note that the financials are unaudited and subject to further review.

Board and Management

The announcement was signed by Joint Company Secretaries Teo Siok Ghee and Liew Daphnie Pingyen on 13 November 2025. The Board includes a mix of executive and independent non-executive directors, ensuring oversight and governance.

Conclusion

The results indicate steady top-line growth for Zero Group, but with a noticeable decline in bottom-line profitability for the quarter. The slight increase in dividend forecast may reassure some investors, but the drop in earnings per share and operating profit could be viewed as a cautionary signal, potentially affecting share valuation in the short term. Investors should review the full details and monitor upcoming quarters for signs of margin improvement or operational recovery.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. Investors are advised to conduct their own research or consult with a qualified financial advisor before making investment decisions.

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