Zero Co., Ltd. Reports 9-Month FY2025/2026 Results: Key Takeaways for Investors
Overview
Tan Chong International Limited (Stock Code: 693) has announced, pursuant to regulatory requirements, the unaudited consolidated financial results for the nine-month period ended 31 March 2026 for its non-wholly owned subsidiary, Zero Co., Ltd. (“Zero”), whose shares are listed on the Tokyo Stock Exchange Standard Market.
The results were filed in Japanese with the TSE and an English translation is available on the websites of both the Hong Kong Stock Exchange and Tan Chong International Limited.
Key Financial Highlights
- Sales Revenue: ¥111,925 million for 3Q FY2025/2026, a slight decrease of 1.0% year-on-year.
- Operating Income: ¥7,503 million, down 2.8% year-on-year.
- Profit Before Tax: ¥7,502 million, a decrease of 2.6% year-on-year.
- Quarterly Net Income: ¥5,097 million, down 6.9% year-on-year.
- Profit Attributable to Equity Shareholders: ¥5,091 million, a 6.6% decrease from the prior year.
- Total Comprehensive Income for the Quarter: ¥5,716 million, showing an 8.0% increase, driven by other comprehensive income factors.
- Basic Quarterly Earnings Per Share: ¥300.02 (vs ¥322.03 in the previous period).
- Diluted Quarterly Earnings Per Share: ¥300.00 (vs ¥322.00 previously).
Balance Sheet and Financial Position
- Total Assets: ¥75,588 million (up from ¥73,948 million last year).
- Total Capital: ¥46,312 million (up from ¥43,530 million).
- Equity Attributable to Equity Shareholders: ¥46,037 million (up from ¥42,901 million).
- Equity Ratio Attributable to Equity Shareholders: 60.9% (improved from 58.0%).
Dividend Information
- FY2024/2025 Dividend: Total annual dividend was ¥139.90, with interim dividend at ¥43.00 and year-end at ¥96.90.
- FY2025/2026 Dividend: Interim dividend paid is ¥56.00.
- FY2025/2026 Forecast: Total annual dividend expected to be ¥140.30, with a forecasted year-end dividend of ¥84.30. No amendment from previously announced dividend forecast.
Key Points for Investors and Potential Price-Sensitive Information
- Minor Decreases in Revenue and Profitability: Investors should note the slight declines in sales revenue, operating income, and profits compared to the previous year. While the decrease is not drastic, it may signal margin pressure or market challenges.
- Improvement in Comprehensive Income: Despite the lower net profits, total comprehensive income rose by 8.0%, suggesting positive contributions from other comprehensive income items (such as foreign currency translation or revaluation gains).
- Strengthening Balance Sheet: The equity ratio has improved to 60.9%, and both total assets and shareholder equity have increased, indicating a healthier balance sheet and potentially lower financial risk.
- Dividend Stability: The dividend payout remains robust, with management maintaining the forecasted annual dividend and even increasing the interim payout compared to the prior year. This demonstrates a commitment to shareholder returns despite slightly lower profits.
- Regulatory Transparency: The disclosure is part of the company’s compliance with the Securities and Futures Ordinance and the Hong Kong Listing Rules, underscoring ongoing transparency with both Hong Kong and Tokyo market investors.
Leadership and Governance
The announcement was authorized by the Board, with joint company secretaries Teo Siok Ghee and Liew Daphnie Pingyen signing off. The Board includes both executive and independent non-executive Directors, ensuring balanced oversight.
Investor Implications
While the modest declines in revenue and profits may warrant cautious attention, the improved comprehensive income, solid balance sheet, and sustained dividend policy are likely to provide reassurance to shareholders. The results may have a mixed impact on share price—potentially negative due to profit decline, but offset by the positive signals from the balance sheet and dividend stability. Investors should continue to monitor upcoming full-year results and any further management commentary on market conditions.
Disclaimer: This article is a summary of material information publicly disclosed by Tan Chong International Limited and Zero Co., Ltd. It is for informational purposes only and does not constitute investment advice. Investors should review the full filings and consult their financial advisers before making investment decisions.
