Tan Chong International Subsidiary Zero Co., Ltd. Releases Unaudited Financial Results for H2 2025

Hong Kong, 12 February 2026 – Tan Chong International Limited (Stock Code: 693) has announced the unaudited consolidated financial results for the six-month period ended 31 December 2025 for its non-wholly owned subsidiary, Zero Co., Ltd. (“Zero”). Zero is listed on the Standard Market of the Tokyo Stock Exchange. The announcement fulfills the Company’s obligations under the Hong Kong Securities and Futures Ordinance and the Listing Rules, providing shareholders with timely disclosure of potentially price-sensitive information.

Key Highlights from the Financial Report

• Zero Group’s consolidated revenue for H2 2025 was 65,841 million yen, marking a 4.5% year-on-year decrease compared to the same period in the previous year.
• Operating income dropped by 10.4% to 4,436 million yen, and profit before tax was 4,426 million yen, a 10.5% decline year-on-year.
• Profit attributable to equity shareholders decreased by 13.3% to 3,037 million yen, down from 3,505 million yen in the previous corresponding period.
• Despite profit declines, total comprehensive income for the quarter increased by 6.4% to 3,669 million yen.
• Basic and diluted quarterly earnings per share both declined, standing at 179.11 yen and 179.10 yen, respectively (down from 207.12 yen and 207.10 yen a year ago).
• Total assets grew to 74,841 million yen, up from 73,948 million yen, reflecting a modest increase in the company’s balance sheet strength.
• Equity attributable to shareholders rose to 44,900 million yen with an equity ratio of 60.0%, up from 42,901 million yen and an equity ratio of 58.0% in the previous year.

Dividends and Shareholder Returns

• Zero declared an interim dividend of 56.00 yen per share, up from 43.00 yen last year. The company has forecast a total dividend for FY2025/2026 of 140.30 yen per share (including an 84.30 yen year-end dividend).
• No amendments have been made to the most recently announced dividend forecast.

Key Issues for Shareholders and Price-Sensitive Information

• Profitability Pressure: The decline in both revenue and profit margins may raise concerns about the operational challenges facing Zero Group, possibly reflecting market headwinds or increased costs.
• Dividend Growth: Despite the earnings decline, Zero has raised its interim dividend, signaling confidence in the company’s cash flow and financial health. This may be seen as a positive for income-focused investors and could support the share price.
• Stronger Equity Position: The improvement in equity and equity ratio highlights a strengthened financial position, which could be viewed as a buffer against future uncertainties.
• Total Comprehensive Income: The rise in total comprehensive income, despite lower net profits, suggests positive movements in other comprehensive income items, which may warrant further analysis by investors.
• Regulatory Disclosure: Shareholders are reminded that the original report is available only in Japanese, though an English translation is accessible on Tan Chong International’s website and the Hong Kong Stock Exchange.

Summary Table: Key Financials

Leadership and Board

The board of Tan Chong International Limited comprises executive directors Mr. Tan Eng Soon, Mr. Glenn Tan Chun Hong, Mr. Tan Kheng Leong, Mdm. Sng Chiew Huat, Ms. Gillian Tan Tsui Lyn, and Mr. Lee Chow Yoke. Independent non-executive directors include Mr. Ng Kim Tuck, Mr. Azman Bin Badrillah, Mr. Prechaya Ebrahim, Mr. Teo Ek Kee, and Mr. Charles Tseng Chia Chun.

Investor Takeaways

• The financial results contain mixed signals: while profitability is under pressure, the company’s dividend increase and improved equity position may provide reassurance to investors.
• The disclosed information is potentially price-sensitive, especially the divergence between declining profits and increased dividends, which could influence investor sentiment and Zero’s and Tan Chong International’s share prices.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the original documents and conduct their own research or seek professional advice before making investment decisions. The author is not responsible for any actions taken based on this article.

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