Tan Chong International Limited reported net profit of HK$318.1 million for the year ended Dec 31, 2025, down 48% year-on-year as limited allocation of the new Subaru Forester weighed on vehicle registrations and margins.

Earnings per share fell to 7.13 Hong Kong cents from 23.81 cents. The board recommended a final dividend of HK$0.06 per share, taking the full-year payout to HK$0.08, up from HK$0.075 a year earlier. The final dividend is scheduled for payment on Jun 24, 2026 to shareholders on the register at Jun 2, 2026.

Revenue slipped 5% YoY to HK$12.04 billion. Segment EBITDA showed the transportation division as the largest contributor at HK$786.6 million (+4% YoY), followed by other operations at HK$515.3 million (+24% YoY). Property rentals and development generated HK$247.9 million (-65% YoY) after a smaller revaluation gain, while heavy commercial vehicle and industrial equipment EBITDA rose to HK$17.5 million. The motor-vehicle distribution segment stayed in loss at HK$114.3 million.

Supply shortages of the Subaru Forester curtailed sales across Hong Kong, Singapore and other ASEAN markets, offsetting growth in after-sales and financing income. A lower fair-value uplift on investment properties and reduced other income also compressed the operating margin, which declined to 6.2% from 8.6% a year earlier.

Management pointed to a 14% improvement in the net-gearing ratio to 41.3% and a HK$680 million reduction in inventories as evidence of tighter working-capital control. Net debt fell 8% to HK$5.38 billion, while total comprehensive income rose to HK$1.06 billion on equity investment gains and favourable currency translation.

Looking ahead, the group intends to convert its strong order backlog into sales as vehicle supply improves after the second quarter of 2026. Planned launches include the Subaru Solterra XT and e-Outback in several key markets, and the company is shifting certain ASEAN operations from CKD to CBU imports to support a more premium brand positioning. Continued overhead discipline and investment in digitalisation at the ZERO vehicle-logistics unit are expected to support margins amid ongoing geopolitical and macroeconomic uncertainty.

The board noted that the strengthened balance sheet, reduced cost base and forthcoming product pipeline position the group for an earnings recovery in 2026, while it monitors potential risks from energy-price volatility and intensified regional competition.