Tat Seng Packaging Group Ltd reported a net profit of S$6.43 million for the six months ended Jun 30 2026, down 14.4 per cent year-on-year, as higher raw-material costs and a sharp rise in taxes offset solid revenue growth.

The mainboard-listed corrugated-packaging producer generated revenue of S$117.64 million, a 5.9 per cent increase from S$111.10 million a year earlier. Basic and diluted earnings per share slipped to 3.66 Singapore cents from 4.51 cents in the prior-year period. The board declared a tax-exempt (one-tier) interim dividend of 1.0 Singapore cent per share, unchanged from the interim payout a year ago, with a record date of 16 Sep 2026 and payment slated for 30 Sep 2026.

Group turnover was driven by a 6.2 per cent rise in China revenue to S$96.0 million, buoyed by higher sales volumes and a stronger renminbi. Singapore operations contributed S$21.7 million, up 4.5 per cent on increased shipment volumes despite softer average selling prices. Segment operating profit rose 34.8 per cent to S$2.0 million in Singapore and 9.5 per cent to S$7.3 million in China.

Cost of sales climbed 6.3 per cent, reflecting pricier paper inputs, curbing the gross-profit margin to 20.2 per cent from 20.5 per cent. Distribution and selling expenses rose 9.6 per cent on higher freight and warehousing charges, while general and administrative costs fell 12.5 per cent after lower bonus provisions and consultancy fees. Net finance swung to a S$0.60 million expense from a S$0.46 million gain, weighed down by S$1.35 million in fair-value losses on financial assets. Tax expense more than doubled to S$2.24 million following the expiry of a preferential rate at the Suzhou plant and stronger earnings at Nantong Tat Seng Packaging, which attracts a 25 per cent tax rate.

Tat Seng ended June with S$50.2 million in cash and cash equivalents, down from S$84.3 million a year earlier after paying S$61.3 million in special and final dividends declared for FY2025. Total loans and borrowings fell to S$59.5 million from S$67.3 million at end-December 2025, reflecting net repayments.

Looking ahead, the company said operating conditions in Singapore and China remain challenging amid geopolitical tensions, macroeconomic uncertainties, volatile raw-material prices and intense competition. Management intends to prioritise operational efficiency, profitability improvements, customer-relationship strengthening and disciplined cost control over the next 12 months to defend margins and sustain growth.