In 2025/2026, the industry faced a challenging operating environment due to multiple external factors, including persistent uncertainty in China-U.S. relations, instability in the Middle East, fluctuations in plastic material prices, and divergent exchange rate trends. Adhering to a prudent business philosophy, the Group strengthened the foundations of its core businesses, optimised its clientele structure, actively expanded its overseas production footprint, and precisely aligned with demand from emerging industries in a bid to pursue business growth amidst market volatility. For the year ended 30th June 2026, the Group’s total turnover reached increased against last year.

During the year under review, the Group’s overall gross profit increased, with gross profit margin down slightly. Profit attributable to equity holders of the Company increased and basic earnings per share also rose.

During the year, the colorants, pigments and compounded plastic resins business performed outstandingly. While consolidating its competitive advantages in traditional sectors such as automotive applications, food packaging, and new energy, the Group also successfully expanded into emerging customer segments, including electronics and communications, bathroom fittings, and sports products, thereby injecting new growth momentum into this business. Over the past few years, the Group has consistently increased its capital expenditure to upgrade production equipment, build laboratories, and strengthen technical support services, resulting in sustained growth in operating results during the year. Turnover of the colorants, pigments and compounded plastic resins business increased, with the gross profit margin improved. Profit before taxation increased significantly.

Regarding the plastic raw materials trading business, the current operating environment has improved, and customers are gradually absorbing the cost pressures resulting from tariffs. Meanwhile, the Group is also actively developing alternative products and expanding new customer sources. During the year, orders from customers in the toy industry showed signs of recovery, driving turnover of this business up. Our trading operations have faced challenges brought about by the ongoing geopolitical crisis in the Middle East, which has driven widespread supply chain volatility and increased maritime freight logistics costs across global trade routes. Furthermore, our business has navigated significant fluctuations in global plastic resins prices alongside rapidly evolving international tariff policies, the gross profit margin fell marginally. Benefiting from the Group’s flexible procurement and inventory strategies, loss before taxation narrowed considerably.

The performance of the engineering plastic products business is closely linked to export market sentiment in Europe and the United States. Owing to the impact of tariff policies and geopolitical factors, customers have adopted an increasingly cautious ordering strategy. During the year, this business recorded a decrease in both turnover and gross profit margin. The Group will continue to adopt refined cost control, consolidate its existing customer base, and leverage its Southeast Asian sales network to seize development opportunities arising from the market recovery.

 

HUI Sai Chung
Chairman