Ten Pao Group Announces 2025 Annual Results

Revenue Increased 3.2% to HK$5,558.6 million, with Rising Dividend Payout to 34.7%

Industrial and Consumer Power Supply Businesses Recorded Solid Growth,
Supported by Expanding Global Manufacturing Capabilities

Financial highlights

 

HONG KONG, March 20, 2026 /PRNewswire/ — Ten Pao Group Holdings Limited（’Ten Pao’ or ‘the Company’, together with the subsidiaries as the Group’, Stock code: 1979.HK ), an industry-leading intelligent power supply solutions provider, is pleased to announce its annual results for the year ended 31 December 2025 (“the Year”).

Financial Review

Looking back at 2025, intensifying macroeconomic uncertainties, rising geopolitical risks, fluctuating trade policies, and growing volatility of raw material prices have all exerted notable pressure on business operations worldwide. Despite the cautious market sentiment, Ten Pao, as an industry-leading intelligent power supply solutions provider, was able to maintain stable volume of orders throughout the year, thanks to its established customer base, comprehensive product portfolio, and agile global footprint. In particular, its high-technology and high-value-added products continued to be well received by the market. While the demand for industrial power supply products saw a rebound, the smart controller business also achieved satisfactory growth, with customers placing growing emphasis on supply chain stability and one-stop services. The Group also proactively expanded into green energy products, high-end smart controllers and intelligent equipment, laying a solid foundation for sustainable business development.

Leveraging its solid operational foundation and forward-looking strategies, the Group maintained stable business performance during the Year. Overall revenue increased by approximately 3.2% year-on-year to HK$5,558.6 million (2024: HK$5,385.7 million). Due to intensified competition in the electronics industry and rising raw material costs, the gross profit margin, even after taking into account the Group’s supply chain advantages, slightly declined by 1.3 percentage points to 18.2% (2024: 19.5%). Despite operating at a healthy level, this has led to a decrease in gross profit of approximately 3.5% year-on-year, reaching HK$1,011.6 million (2024: HK$1,048.2 million). As a result of stringent cost control, operating profit for the Year increased by 1.3% to HK$424.0 million (2024: HK$418.6 million). Overall, profit for the year remained largely stable, amounted to HK$380.4 million (2024: HK$383.6 million), with basic earnings per share reaching HK36.9 cents (2024: HK37.3 cents).

The Group is committed to maintaining a stable dividend policy to reward shareholders for their long-term support. In view of its resilient performance during the Year, the Board recommended a final dividend of HK6.6 cents per ordinary share for the year ended 31 December 2025 (2024: HK6.0 cents per ordinary share), with an option provided to the Company’s shareholders to receive new and fully paid shares in lieu of cash, in whole or in part, under a scrip dividend scheme. Together with the interim dividend of HK6.2 cents per ordinary share paid for the six months ended 30 June 2025 (2024: HK5.2 cents per ordinary share), total dividends for the Year reach HK12.8 cents per ordinary share (2024: HK11.2 cents per ordinary share), representing a payout ratio of 34.7% (2024: 30.0%).

Segment Development and Business Highlights

During the Year, the industrial power supply segment (smart chargers and controllers) remained Group’s key business segment, with revenue increasing by 7.4% year-on-year to HK$2,158.8 million (2024: HK$2,009.6 million), accounting for 38.8% of the Group’s total revenue (2024: 37.3%). In terms of product portfolio, the Group continued to increase R&D investment in high-value-added, high-technical, and high-entry-barrier products, successfully launching a new series of high-power supply products with output ranging from 3,500W to 10,000W. These products can effectively meet the stringent stability and performance requirements of the next generation AI hardware, and can be widely used in high-performance computing (“HPC”) scenarios, such as cloud computing data centers, supercomputing/HPC systems, and enterprise-level servers. Riding on its global supply chain network, the Group was also able to respond to tariff challenges by actively strengthening its relationships with existing Fortune Global 500 customers, effectively fulfilling customer demand for high-end industrial power supplies, and in turn, driving segment growth.

The consumer power supply segment (telecommunication, media and entertainment, lighting and others) remained generally stable during the Year, with segment revenue increasing slightly by 5.5% year-on-year to HK$2,457.1 million (2024: HK$2,328.0 million), accounting for 44.2% of total revenue (2024: 43.2%). From an application perspective, the media and entertainment and lighting sub-segments delivered solid performance, with revenue increasing by 56.3% year-on-year to HK$465.9 million and 14.6% year-on-year to HK$418.6 million, respectively, effectively offsetting the negative impact of weaker demand in the telecommunication business. As a result of the diverging underlying performance, the change in revenue mix as compared to the year ended 31 December 2024 has also led to an expanding segment gross profit margin.

The new energy business segment is another important sector of the Group. During the Year, the Group made strategic adjustments to optimise its existing customer and product mix, targeting customers and products with lower gross profit margins, allowing the Group to achieve a good balance between revenue scale and profitability. Hence, segment revenue declined slightly year-on-year to HK$942.7 million (2024: HK$1,048.2 million), accounting for 17.0% of total revenue (2024: 19.5%). Although competition in the new energy market remains intense, and some projects are still in the ramp-up stage with potentially limited short-term profit contribution, the management believes that these investments are closely aligned with the prevailing market trends, supported by well-thought strategies and strong market demand. The developments are expected to further consolidate the Group’s position in the green power market in Southeast Asia and even globally, serving as a key new growth driver in the future.

While expanding its industrial power supply, new energy, and consumer power supply businesses in an orderly manner, the Group also continued to optimise its global manufacturing network, addressing macro uncertainties and meeting customer needs with its diversified and multi-location manufacturing solutions. In Chinese Mainland, the Group’s new Intelligent Manufacturing Industrial Park in Huizhou commenced full operation in October 2025, becoming the Group’s latest generation of intelligent manufacturing base. Green manufacturing concepts were also incorporated from the planning stage, enabling meaningful reductions in carbon emissions and unit production costs. With the aforesaid planning and execution, the Group was awarded the title of “Green Factory in Guangdong Province” in 2024, as well as officially recognised as a “National Green Factory” in February 2026, paving the way for future collaborations with international customers that prioritise supply chain sustainability.

Beyond Chinese Mainland, the Group has already established production bases in Mexico, Vietnam, and Hungary, essentially forming a complementary network with domestic production facilities. Each plant can configure its production lines and product mixes based on its market positioning, allowing the Group to quickly respond to the increasingly complex and volatile customer demands, amid ongoing shifts in global trade and geopolitical environment. The diversified footprint also allows the Group to flexibly adjust its production schedule, thereby creating cost-effective and reliable product solutions for clients.

Prospect

Looking ahead to 2026, the global economic and industry environment is expected to see lingering impact from multiple uncertainties, including inflation, geopolitical changes, and trade disputes. In particular, China’s manufacturing sector is facing a challenging landscape where “short-term contracts and long-term opportunities coexistence”. While industry chain is concerned about direct

impact such as raw material supply and escalation of logistics costs, they are also striving to capture new development opportunities arising from supply chain restructuring and market transformation.

As geopolitical dynamics continue to swing and the market accelerates its shift towards leading enterprises, this may also prompt companies to seek more secure supply chains. Elevated oil prices have also fully highlighted the economic benefits of new energy. Against the backdrop of accelerating global energy transition, leading Chinese industry players are seeing favourable growth opportunities, supported by policy support, technological upgrades, and the expansion of application scenarios. The Group’s three major segments – industrial power supply, new energy business, and consumer power supply — are also expected to enjoy long-term and sustainable growth.

In view of the prevailing trends, the Group will focus on enhancing the energy efficiency, system adaptability, and integration capabilities of its smart controllers. Building on its existing strengths in power control and modular design, the Group will further expand its high-end smart controller business, thereby reinforcing its leading position in the industrial power supply market. With the global energy transition and the introduction of green low-carbon policies, the “oil-to-electricity” and electric mobility markets are also entering a phase of rapid growth. In the face of diverse green travel scenarios, the Group will further enhance its production efficiency, reduce energy consumption and carbon intensity, and take concrete actions to contribute to the sustainable development of a low-carbon society.

In the long term, by leveraging its accumulated technological expertise and industry experience, the Group will strive to promote the modular development of its technological inventories. This approach will enable more efficient product upgrades with lower investments, allowing the Group to further enhance its intelligence capabilities and market competitiveness while tapping into new application scenarios. Beyond product portfolio development, the Group will also actively explore opportunities in emerging markets, such as the Belt and Road Initiative regions and Southeast Asia, diversifying its business coverage to mitigate the potential impact of the EU Carbon Border Adjustment Mechanism (carbon tax).

The Group will also actively respond to the national policy direction of developing “new quality productive forces” by continuously increasing R&D and investment in high-efficiency power supplies, smart controllers, and automated manufacturing. The Group will strive to integrate further AI application technologies and production equipment into its existing production, while advancing the full operation of Huizhou Intelligent Manufacturing Industrial Park. Supported by the Group’s multi-location production footprint, the Group believes it will be able to flexibly meet the needs of customers across different regions, providing reliable products and services at a more competitive cost.

As the Group completes its global footprint, future capital expenditure is also expected to decline progressively, which in turn, would support strong cash flow performance and create sufficient cash reserves to cope with external uncertainties. The Group will also prioritise shareholders’ return by improving long-term operational efficiency, strengthening capital management, and implementing policies such as share buybacks or dividend distributions at appropriate times.

About Ten Pao Group

Established in 1979 and listed on the Main Board of the Hong Kong Stock Exchange since 2015, Ten Pao has accumulated 46 years of experience in the power supply industry. Embracing the calling for high-end and digital intelligent development, the Group strives to provide customers with “intelligent, efficient, safe, reliable, and fast-to-market” product customization and manufacturing services, while offering “one-stop” intelligent power supply solutions. Over the years, Ten Pao has established long-term cooperative relationships with many well-known international brands, and has truly become an international leading, reliable, and innovative power supply enterprise.

 

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