In the second half of 2025, the global political and economic environment remained in an adjustment cycle. The impact of U.S. tariff policies continued to emerge, the restructuring of global supply chains accelerated, and external end-market demand remained cautious, exerting sustained pressure on the overall operation of the industry. In the face of multiple challenges, the Group adhered to the strategic principle of “seeking progress while ensuring stability”, focusing on strengthening its core businesses to adapt to market changes and reinforcing its business fundamentals. The Group recorded a modest decline in total turnover against the same period last year.

During the period under review, the Group’s overall gross profit increasedwith gross profit margin up slightl. Profit attributable to equity holders of the Company turned from a loss to a profit. In addition, underpinned by its prudent and pragmatic business strategies and reduced interest expenses during the period, the Group’s operating results steadily improved.

During the period, the colorants, pigments and compounded plastic resins business performed outstandingly. In addition to consolidating its traditional business in industries such as automotive applications, food packaging, and construction materials, the Group has, in recent years, also continued to deepen its engagement with diverse domestic industry customers, continuously strengthening relations with existing customers. This strategic deployment has now yielded significant results. Leveraging its stable supply capability, the Group has accurately captured market demand while certain peers underwent business adjustments, resulting in a sustained rise in customer loyalty and a steady expansion in order volume of mobile phone accessories. Turnover of this business increased with an improvement in gross profit margin. Profit before taxation increased significantly.

The price of plastic materials continued to fluctuate within a narrow range at low levels, and tariff policies remained uncertain, leading to a decline in turnover from the plastic raw material trading business. In response to market changes, the Group proactively pursued transformation and actively advanced its export business layout in Southeast Asia. By optimising its procurement and clientele structure, its gross profit margin recorded a modest increase. In addition, benefiting from the downward trend in market interest rates, the Group’s interest expense pressure has been significantly lessened, hence loss before taxation has narrowed considerably.

Regarding the engineering plastic products business, affected by tariff policy uncertainties, export-oriented end customers adopted a more cautious ordering strategy, prioritising inventory clearance. Coupled with the customised nature of engineering plastic products, which requires time for business transformation and new customer development, order volumes faced short-term pressure. During the period, this business recorded a decrease in turnover with gross profit margin down slightly. Given customers’ current wait-and-see approach to ordering, the relevant market demand is expected to be gradually released as tariff policies become clearer.

 

HUI Sai Chung
Chairman