Tat Hong Equipment Service reports deeper loss on revenue decline

Tat Hong Equipment Service Co., Ltd. reported a net loss of RMB55.1 million for the six months ended September 30, 2025, a 52.1% increase from the RMB36.2 million loss in the same period of 2024. Revenue for the period decreased by 11.7% to RMB301.1 million, down from RMB340.9 million in 2024. This decline was attributed to slower economic growth and a sluggish construction sector in the PRC, intensifying market competition. Basic loss per share rose to RMB0.05, compared to RMB0.03 previously.

Gross profit saw a substantial decrease of 49.0% to RMB24.5 million from RMB48.0 million, with the gross profit margin falling from 14.1% to 8.1%. To address these challenges, the group is strategically shifting its focus towards clean energy projects and expanding into overseas markets, including establishing a joint venture in Indonesia and expanding into the Greater Bay Area and Hong Kong.

Despite the increased loss, total assets decreased slightly to RMB2,990.69 million as of September 30, 2025, from RMB3,107.24 million as of March 31, 2025. The gearing ratio increased slightly to 58.3% from 58.1% due to higher lease liabilities. The board resolved not to declare an interim dividend for the period.