Tianchang Group (02182) is expected to achieve medium-term revenue of HK$170 million to HK$175 million, a decrease of about 33% to 31% year-on-year

According to Zhitong Finance App News, Tianchang Group (02182) issued an announcement. According to the board's preliminary assessment of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 and the information currently available to the board of directors, the Group will obtain revenue of between HK$170 million and HK$175 million for the six months ended June 30, 2026, a decrease of about 33% to 31% from the revenue of HK$254 million for the six months ended June 30, 2025. The Group anticipates a loss before tax of HK$30 million to HK$35 million for the six months ended June 30, 2026, an increase of approximately 233% to 289% over the six-month pre-tax loss of HK$9 million for the six months ended June 30, 2025.

The Board believes that the increase in the Group's net loss expectations is mainly due to the following factors:

1. Continued uncertainty in the global business environment continues to adversely affect consumer sentiment and customer purchasing decisions, leading to weak market demand and a decrease in orders for the Group's products, leading to a decline in earnings; and

2. The decline in sales and production led to a drop in gross margin. As production volume decreases, fixed manufacturing costs are shared on a smaller production basis, leading to an increase in fixed costs per unit of sales, thus adversely affecting the Group's overall gross margin.